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1 August 2018
Beckley Man Sentenced for Passing Counterfeit ChecksRead the Press Release
Defendant had role in counterfeit check cashing scheme
BECKLEY, W.Va. – A Beckley, West Virginia man was sentenced today for his role in a mail theft and counterfeit check cashing scheme, announced United States Attorney Mike Stuart. Shawn Meadows, age 30, was sentenced to eight months of federal incarceration. He was also ordered to pay more than $7106 in restitution to a bank who was the victim of the check cashing scheme. Meadows previously pled guilty on April 11, 2018 to the felony offense of uttering a counterfeit check. United States Attorney Mike Stuart praised the Beckley Police Department and the United States Postal Inspection Service for catching the three defendants while the scheme was ongoing.
“Caught in the act,” said United States Attorney Mike Stuart. “Thanks to the quick work of the Beckley Police Department and the U.S. Postal Inspection Service, this fraudulent scheme was brought to a quick end. It is gratifying to know that as a result of the prosecution, restitution will be paid to the victim bank.”
On November 30, 2015, Meadows, along with co-defendants Savion Thomas and Deandre Smith, participated in a scheme where Meadows was given a counterfeit check by Thomas and Smith, both of Atlanta, Georgia. Smith and Thomas had rented a car in Atlanta, drove to the Beckley area and stolen checks from mailboxes in the Beckley, West Virginia area. The stolen checks were then cleaned in such a way as to remove identifying information, counterfeited, and copied using a computer Smith and Thomas had brought with them. Meadows was recruited to help cash the counterfeit checks at a local bank. The copied counterfeit checks were cashed on the same day at three separate branches of the same bank in Beckley, West Virginia. Two checks were successfully cashed. The Beckley Police Department responded to a tip from bank employees and stopped the three men after the third attempt to cash the checks. All three men gave statements admitting to their role in the mail theft and check cashing scheme.
Deandre Smith was sentenced for his role in the scheme on August 10, 2016, receiving a year of incarceration and a three year term of supervised release. Savion Thomas is scheduled to be sentenced on August 22, 2018.
Assistant United States Attorney Erik S. Goes and former Assistant United States Attorney Eric Bacaj handled the prosecutions. Judge Irene C. Berger presided over the sentencing hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Baytown Man Sentenced in Barge Repair Kick-Back SchemeRead the Press Release
BEAUMONT, Texas – A 43-year-old Baytown, Texas, man has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Andres “Andy” Degollado pleaded guilty on Apr. 17, 2018 to wire fraud and was sentenced to 15 months in federal prison today by U.S. District Judge Marcia A. Crone. Degollado was also ordered to pay restitution in the amount of $70,000.
According to information presented in court, Degollado served as the Operations Manager for Sienna Shipyards, L.L.C., an inland barge repair facility located on the Sabine River in Orange County, Texas. Degollado was a salaried employee responsible for coordinating the work of employees, contractors, and sub-contractors to perform various aspects of barge repair work. From January to November, 2014, Degollado, while working as Operations Manager for Sienna, devised and carried out a kick-back scheme to defraud his employer by having a contractor bill or invoice Sienna for barge cleaning work when no such work was ever performed. According to company records, Sienna paid fraudulent invoices totaling about $192,250.00 for work that was not performed. As a result, Degollado received kick-backs from the contractor.
This case was investigated by Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Christopher T. Tortorice.
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Ashtabula man indicted on child pornography chargesRead the Press Release
An Ashtabula man was indicted in federal court on child pornography charges.
Jeffrey A. Stanley, 27, was indicted on one count of receipt of visual depictions of minors engaged in sexually explicit conduct and one count of possession of child pornography.
Stanley knowingly received numerous images of children engaged in sexually explicit conduct. This took place between Sept. 4, 2016 and Feb. 22, 2017, according to the indictment.
Stanley on Feb. 22, 2017, possessed a Motorola cellular telephone that contained child pornography, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik. The case was investigated by Federal Bureau of Investigation and the Ashtabula County Sheriff’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
AlphaBay spokesperson sentenced to federal prisonRead the Press Release
ATLANTA - Ronald L. Wheeler III, a/k/a Trappy, has been sentenced for conspiracy to commit access device fraud while working as a public relations specialist for the Dark Web Marketplace AlphaBay.
“By providing access to and promoting AlphaBay, this defendant profited off the ruination of countless individuals,” said U.S. Attorney Byung J. “BJay” Pak. “This case shows, once again, that criminals cannot hide in the shadows of the Dark Web.”
“Wheeler felt like he was shielded from law enforcement by operating on the Dark Web, but he was clearly mistaken,” said Ricardo Grave de Peralta, Acting Special Agent in of FBI Atlanta. “Cyber criminals like him present a critical threat to our community’s, in this case, by encouraging people to purchase illegal drugs and contraband. No matter where crime happens, the FBI will not stop diligently prosecuting anyone who chooses to threaten our citizens.”
“Sites like Alphabay are extremely problematic and the sentence handed down to Wheeler should send a clear message that when criminals participate in these Dark Web sites, you will be caught and face jail time,” said Thomas J. Holloman, Special Agent in Charge of IRS, Criminal Investigation. “We will continue working with our law enforcement partners in dismantling these Dark Web sites.”
According to U.S. Attorney Pak, the charges and other information presented in court: Wheeler conspired with Alexandre Cazes a/k/a Alpha02 a/k/a Admin, and others to commit access device fraud through the operation of The Onion Routing Dark Web marketplace AlphaBay.
AlphaBay was an international criminal marketplace that enabled users to purchase and sell stolen and fraudulently obtained access devices, illegal drugs, firearms, hacking tools, and other illicit goods and services. Sales listings on the website were organized into categories, including “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” “Weapons,” and “Carded Items.” Shortly before AlphaBay was shut down by law enforcement, the website contained thousands of sales listings for illegal products, including approximately 4,488 sales listings for stolen personally identifying information; 28,800 sales listings for stolen online account information; 6,008 sales listings for stolen credit card information; 3,586 sales listings for computer hacking tools, such as botnets and exploit kits; and 257,533 sales listings for illegal drugs, including cocaine, heroin, and a variety of opioids. The sales of stolen personally identifying information, online account information, and credit card information all provided fertile grounds for access device fraud to flourish on the Dark Web. Aside from product listings, AlphaBay provided message board forums where users could securely discuss their criminal activities and receive support from Wheeler and other AlphaBay staffers.
On or about May 25, 2015, Wheeler began working as a public relations specialist for AlphaBay. Wheeler’s duties included moderating the AlphaBay subreddit on the internet website reddit.com, moderating the AlphaBay message board forums, mediating sales disputes among AlphaBay users, promoting AlphaBay on the internet, and providing non-technical assistance to AlphaBay users. Throughout his participation in the conspiracy, Wheeler advised the public on how to access AlphaBay and encouraged the public to use the website. In return for his work, Wheeler received a salary in Bitcoin. Wheeler’s work with AlphaBay continued until early July 2017, when the FBI and its international law enforcement partners shut down the website.
Ronald L. Wheeler III, a/k/a Trappy, 25, of Streamwood, Illinois was sentenced to three years, 10 months in prison to be followed by three years of supervised release on July 31, 2018. He was also ordered to forfeit approximately $140,000 in cash and Bitcoin. Wheeler was convicted on March 8, 2018, after he pleaded guilty.
This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Samir Kaushal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Alachua County Man Sentenced to 360 Months in Prison for Federal Child Pornography and Firearm ChargesRead the Press Release
GAINESVILLE, FLORIDA – Joshua Hansen, 35, of Gainesville, Florida, was sentenced on Monday in the U.S. District Court in Gainesville to 360 months in prison for production of child pornography, 240 months for possession of child pornography, and 120 months for possession of an unregistered silencer. Each count is to be served concurrently. Hansen pleaded guilty on May 18, 2018. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In October 2017, the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Federal Bureau of Investigation executed a search warrant at Hansen’s residence. The search warrant authorized the seizure of firearm sound suppression devices and electronic devices used to publish videos relating to Hansen’s manufacturing and test firing of sound suppression devices. Agents seized an unregistered silencer attached to a .22 caliber rifle. A forensic examination of Hansen’s electronic devices revealed thousands of images and videos of child pornography, including images of infants and toddlers. Agents also recovered pornographic videos created by Hansen involving two minor children. Hansen created the videos over approximately one year, when the victims were between five and eight years of age.
U.S. Attorney Canova said, “The cooperative efforts of our law enforcement partners exposed an armed predator and helped protect other children from abuse. The sentence imposed on Hansen sends a strong message that those who take advantage of our innocent children will pay a steep price.”
“We will continue to adapt to and embrace the changes and challenges in the use technology when fighting violent crime,” said Special Agent in Charge Daryl McCrary. “Together with our law enforcement partners, we identified and saved the victims in this case”
“The FBI Jacksonville Division is always focused on building better relationships with our law enforcement partners, but we are just as committed to developing stronger relationships with members of this community,” Special Agent in Charge Charles P. Spencer. “This case confirms the value of that commitment, and the important role of community members in ensuring safety and security for all of our neighbors.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the North Florida Internet Crimes Against Children Taskforce. The case was prosecuted by Assistant United States Attorney Jason S. Beaton.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Airline employee and his wife charged with running an illegal cash smuggling businessRead the Press Release
ATLANTA – Bubacarr Drammeh, a DAL Global Services, LLC employee, and his wife Matako Drammeh, have been charged with smuggling hundreds of thousands of dollars in cash through Hartsfield-Jackson Atlanta International Airport, and transporting that money to California. Bubacarr Drammeh has also been charged with bribing airport employees to get the cash through security.
“Airports are a critical component of our nation’s transportation infrastructure,” said U.S. Attorney Byung J. “BJay” Pak. “The alleged actions of the Drammehs put all passengers at risk. We are committed to protecting the integrity of Hartsfield-Jackson Atlanta International Airport, the world’s busiest airport, from this kind of activity.”
“The Drammehs are charged with allegedly breaching airport security at the busiest airport in the world,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “The FBI takes airline safety and security very seriously. We want to thank our various law enforcement partners at Hartsfield-Jackson Atlanta International Airport, along with Delta Air Lines whose cooperation provided us with information needed to investigate this case.”
“While halting bulk cash smuggling is an important Homeland Security Investigations (HSI) priority, eliminating a potential vulnerability in airport security may serve a larger contribution to national security and protection of critical infrastructure,” said Homeland Security Investigations Atlanta Special Agent in Charge Nick S. Annan. “This case illustrates HSI’s ongoing commitment to working with our federal, state and local partners to protect public safety. Further, HSI is working with relevant airlines to identify and close potential vulnerabilities, which will ensure other criminal networks are not able to engage in similar activity.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately November 2016 to September 2, 2017, the Drammehs exploited Bubacarr Drammeh’s status as an airline employee to evade airport security screenings in an effort to smuggle hundreds of thousands of dollars in cash through airport security checkpoints. Once through security, Bubacarr Drammeh allegedly transported the unscreened bulk cash on passenger flights to California. Matako Drammeh also took similar trips to California with cash that her husband delivered to her in the airport after he smuggled the cash through security undetected. Together, the Drammehs allegedly took over 50 trips.
In addition to abusing his airline employee status, the indictment also alleges that Bubacarr Drammeh bribed or attempted to bribe airport employees with money to smuggle bulk cash through security. On September 2, 2017, Bubacarr Drammeh attempted to bring a bag filled with over $140,000 in cash through an employee security checkpoint. When a screener at the checkpoint found stacks of money in his bag, Bubacarr Drammeh allegedly offered the screener $8,000 in cash in exchange for not reporting the money to the authorities. Airport security refused and properly contacted law enforcement officers.
On July 24, 2018, a federal grand jury returned an indictment against Bubacarr Drammeh, a/k/a John Dimites, a/k/a BoBo, 42, and Matako Drammeh, 38, both of Riverdale, Georgia, charging them with conspiring to operate an unlicensed money transmitting business and entering an aircraft and airport area in violation of security requirements. A federal grand jury also charged Bubacarr Drammeh with bribery.
Members of the public are reminded that the Indictment contains only charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement - Homeland Security Investigations Division, with assistance from the Atlanta Police Department.
Assistant U.S. Attorney Ryan M. Christian is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
31 July 2018
Wood County man admits to connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Timothy Lohri, of Williamstown, West Virginia, has admitted to his involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Lohri, age 36, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances.” Lohri admitted to his involvement in a conspiracy that consisted of trafficking crystal methamphetamine, also known as “ice,” heroin, and cocaine brought to West Virginia from Columbus, Ohio, and obtained from as far away as Atlanta, Georgia.
Lohri faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James E. Seibert presided.
Woman Sentenced to 51 Months in PrisonRead the Press Release
FORT WAYNE – Erin Clowser, 35 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Chief Judge Theresa L. Springmann after pleading guilty to Theft of Mail, Access Devise Fraud and Aggravated Identity Theft, announced U.S. Attorney Kirsch.
Clowser was sentenced to a term of imprisonment of 51 months followed by 1 year of supervised release and ordered to pay restitution to the victims of her crime in the total amount of $53,005.82. As part of her sentence, Clowser agreed to forfeit to the United States items obtained from her illegal conduct, which included a 2002 Mercedes Benz S500, assorted electronic and computer equipment and purses.
According to documents filed in the case, from November 2016 and continuing through June 2017, Clowser stole mail from various residential mailboxes in the Fort Wayne area. She also used personal information of an individual without their authorization to obtain a debit card which she then used to make purchases at retail establishments and make withdraws from automatic teller machines.
This case was a joint investigation by the United States Postal Inspection Services and the Federal Bureau of Investigation with the assistance of the Allen County Police Department and was prosecuted by Assistant United States Attorney Stacey R. Speith.
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Winchester man Sentenced to 110 Months for Possession of Stolen FirearmsRead the Press Release
LEXINGTON, Ky. — Brandon D. Martin, 29, of Winchester, has been sentenced to 110 months in federal prison, by Senior United States District Joseph M. Hood, for possessing stolen firearms.
Martin previously admitted that in June 2017, he had possessed five stolen firearms. Martin admitted that he knew the firearms had been stolen when he pawned them at several pawn shops in the Winchester area. Law enforcement agents in Clark and Woodford counties confirmed that these firearms had been stolen from burglaries of residences in Clark and Woodford Counties. Martin faces state charges in some of these counties for the burglaries. Martin has previously been convicted of three prior felony offenses.
Martin pleaded guilty to the federal charge in March 2018.
Under federal law, Martin must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky;; Stuart Lowery, Special Agent in Charge, ATF; Burl Perdue, Jr., Clark County Sheriff, and James Fugate, Chief of the Versailles Police Department, jointly made the announcement.
The investigation was conducted by the ATF, Clark County Sheriff’s Office, and the Versailles Police Department. The United States was represented by Assistant United States Attorney Roger W. West.
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.
Wilmerding Fentanyl Trafficker Pleads Guilty to Possessing Large Amounts of New York City Sourced OpioidRead the Press Release
PITTSBURGH, Pa. – A former resident of Wilmerding, Pennsylvania, pleaded guilty in federal court on one count of possession with intent to distribute more than 40 grams of fentanyl, United States Attorney Scott W. Brady announced today
Rondell Lawrence, age 29, pleaded guilty before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that on July 10, 2017, Rondell Lawrence drove his brother and co-defendant, Ronnell Lawrence, to the Greyhound Bus Station in downtown Pittsburgh. Ronnell Lawrence then boarded a bus bound for New York City. Ronnell Lawrence returned to Pittsburgh after spending only one hour in New York City. On July 11, 2017, Rondell Lawrence returned to the Greyhound Bus Station to pick up his brother. Investigators observed Ronnell putting a large camouflage backpack into the back of the Nissan Pathfinder. Investigators later stopped the Nissan Pathfinder for having an expired registration. A subsequent search of the vehicle and the camouflage bag placed there by Ronnell revealed eight large bundles of suspected heroin and fentanyl and a bus ticket to New York City. The Drug Enforcement Agency Laboratory later tested the substances seized from the bag and revealed that the substances were approximately 390 grams of a heroin/fentanyl mixture.
Judge Cercone scheduled sentencing for December 6, 2018. The law provides for a maximum total sentence of not less than five years in prison and up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Rondell Lawrence has been detained in federal custody and will remain detained pending sentencing. The case against Ronnell Lawrence is pending.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Allegheny County District Attorney’s Narcotics Enforcement Team (DANET), Pittsburgh Bureau of Police, and North Versailles Police Department conducted the investigation leading to the indictment in this case.
Watertown Man Pleads Guilty to Role in Interstate Prostitution RingRead the Press Release
BOSTON – A Watertown man pleaded guilty today in federal court in Boston in connection with his role in a long-running interstate prostitution ring.
Jineok Kim, 38, of Watertown, Mass., pleaded guilty to one count of conspiracy to persuade, induce, entice, or coerce individuals to travel in interstate commerce to engage in prostitution and one count of conspiracy to engage in money laundering. Co-defendant Susan Bashir, a/k/a “Susan Redmon,” 41 of Stone Mountain, Ga. pleaded guilty on July 25, 2018 and is scheduled to be sentenced on Nov. 8, 2018. Co-defendant Kyung Song, 52, of Lexington, Mass. is scheduled to plead guilty on Aug. 13, 2018. Co-defendants Yoon I. Kim, 36, of Haymarket, Va. and Taehee Kim, a/k/a “Hyunsook Kim,” 46, of Haymarket, Va., have pleaded not guilty.
According to court documents, Kim participated in the prostitution network, which had multiple brothels in high-end apartments in Cambridge, Mass.; Atlanta, Ga.; and eastern Virginia, from spring 2016 to December 2017. The prostitution network advertised appointments with Asian women primarily on three websites: www.bostonasiandolls.com, www.exoticasiansatlanta.com, and www.redhotflowers69.com. The women advertised on the websites were moved from city to city within the network, working as prostitutes for the organization.
Jineok Kim transported women working as prostitutes and supplies, including bulk orders of condoms, to and from brothel locations in Cambridge. Jineok Kim retrieved cash proceeds from each of the Cambridge brothel locations and laundered the proceeds according to Taehee Kim’s instructions, which included depositing the money into accounts belonging to Taehee Kim and a consulting business set up by Yoon Kim, or purchasing postal money orders.
The charge of conspiracy to persuade, induce, entice, or coerce women to travel in interstate commerce to engage in prostitution provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain/loss, whichever is greater. The charge of conspiracy to engage in money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the laundered funds. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Andrew E. Lelling; Peter C. Fitzhugh Special Agent in Charge of Homeland Security Investigations in Boston; Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Cambridge Police Commissioner Branville G. Bard Jr. made the announcement today. Assistant U.S. Attorneys David J. D’Addio and Amy Harman Burkart of Lelling’s Civil Rights Enforcement Team are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waterbury Tax Preparer Sentenced to 20 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL D. MIR, 41, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 20 months of imprisonment, followed by one year of supervised release, for preparing false tax returns and underpaying his own federal taxes.
According to court documents and statements made in court, MIR prepared more than 3300 federal tax returns for the 2012 through 2015 tax years through a tax return preparation practice he operated in Waterbury. MIR falsified information on numerous returns that he prepared for clients by fabricating business expenses, or by inflating deductible medical and dental expenses. For the 2012 through 2014 tax years, MIR deposited more than $400,000 in income generated by his tax preparation business into his personal bank account. However, MIR did not report any income from his tax preparation business on his 2013 personal income tax return, and he reported only $18,500 in income from his tax preparation business on his 2014 return. MIR did not file a personal income tax return for 2015.
Through MIR’s preparation of false tax returns, and the underpayment of his own taxes, the government lost a total of $406,679.
On March 6, 2018, MIR pleaded guilty to one count of aiding and assisting the filing of a false tax return.
Judge Shea ordered MIR to make full restitution to the government. The IRS is taking action to recover unpaid taxes from MIR’s clients, and MIR’s restitution figure will be reduced as money is recovered from his clients.
Judge Shea also ordered MIR to perform 75 hours of community service during his term of supervised release.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, with the assistance of the Connecticut Department of Revenue Services. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Warwick Man Sentenced to Federal Prison for Sex Trafficking a MinorRead the Press Release
PROVIDENCE, RI – A Warwick man was sentenced today to 84 months in federal prison for trafficking a 16-year-old female in Rhode Island and Massachusetts for the purpose of prostitution.
Michael Sabatino, 26, and two other men, Paris Peters, 26, and Marcus Jamal Gibbs, 30, of Providence, previously admitted to the Court that from approximately August 20, 2015, to September 27, 2015, they recruited, enticed, transported, harbored and advertised a minor victim for the purpose of prostitution.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Sabatino to serve 5 years supervised release upon completion of his term of incarceration. Sabatino pleaded guilty on September 30, 2016, to conspiracy to sex traffic a child and sex trafficking a child.
Paris Peters was sentenced by Chief Judge William E. Smith on April 20, 2018, to 96 months incarceration to be followed by 5 years supervised release. Gibbs is scheduled to be sentenced on September 21, 2018.
The U.S. Sentencing Guidelines range of imprisonment in the matter of Michael Sabatino is 108-121 months. The government recommended the court impose a sentence of 97 months in prison.
Sabatino’s sentence is announced by United States Attorney Stephen G. Dambruch, Pawtucket Police Chief Tina Goncalves, and Homeland Security Investigations (HSI) Special Agent in Charge Peter C. Fitzhugh.
According to information presented to the court, an investigation by Pawtucket Police detectives and HSI agents determined that on August 20, 2015, Sabatino posted photographs of the victim, a 16-year-old female, in various stages of undress on Backpage.com, offering her for prostitution. The pictures were taken by Paris Peters. The advertisement claimed the person in the photographs was 20-years-old. The defendants knew the victim was only 16-years-old.
Over the next several weeks, as numerous individuals responded to the Backpage.com advertisement, the victim was driven by Sabatino, Peters and Gibbs to various hotels and private residences in Rhode Island and Massachusetts to engage in commercial sexual activity.
On September 28, 2015, HSI agents were notified by Pawtucket Police of the report of a missing and endangered 16-year-old female who was being prostituted throughout Rhode Island and in Massachusetts. The teenager was located later in the day at a family member’s home. She admitted to being sex trafficked.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Warrensburg Man Sentenced to 20 Years for Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Warrensburg, Mo., man was sentenced in federal court today for using a 13-year-old victim to produce child pornography.
Thomas Johnson, 25, of Warrensburg, was sentenced by U.S. District Judge Gary A. Fenner to 20 years in federal prison without parole. The court also sentenced Johnson to serve the rest of his life on supervised release following incarceration.
On Jan. 17, 2018, Johnson pleaded guilty to producing child pornography.
Law enforcement officers executed a search warrant at Johnson’s residence on Sept. 25, 2015. Officers found several explicit photos of minor females, including the 13-year-old victim, on Johnson’s cell phone. Officers also seized computers and other electronic media from his residence. On a later date, a laptop computer that Johnson had submitted to a local computer shop for repair was also seized and submitted for forensic examination.
During the forensic examination of Johnson’s electronic media, child pornography was located. Examiners found videos from Skype communications with the child victim. Johnson admitted that he communicated via Skype with the child victim and saved videos from those sessions, which contained sexually explicit content. Johnson also admitted that he had engaged in illicit sexual activity with the child victim on several occasions.
According to court documents, the investigation began in the Eastern District of Virginia when law enforcement agents were monitoring a child pornography Web site where Johnson had an account. Johnson was identified when he logged onto the Web site and accessed images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Olathe, Kan., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Upshur County and Barbour County women sentenced for their roles in a stolen firearms and methamphetamine operationRead the Press Release
ELKINS, WEST VIRGINIA – Lisa Kay Knight, of Buckhannon, West Virginia, and Carla Denise Jones, of Volga, West Virginia, were sentenced today for their roles in a stolen firearms and meth distribution operation, United States Attorney Bill Powell announced.
Knight, age 25, was sentenced today to 15 months incarceration. Knight pled guilty to one count of “Conspiracy to Possess Stolen Firearms” in December 2017. Knight admitted to conspiring with others to steal, possess, barter and sell firearms for money and methamphetamines in Upshur County and elsewhere from October 2016 to September 2017.
Jones, age 56, was sentenced to three years probation. Jones pled guilty to one count of “Unlawful Possession of Firearm” in March 2018. Jones, being a person prohibited from possessing a firearm, admitted to possessing two pistols, two rifles, and a shotgun in Barbour County in February 2017.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. District Judge John Preston Bailey presided.
Two Individuals Sentenced to Prison and Ordered to Pay More Than $570,000 in Restitution for Stealing a Gold BarRead the Press Release
Richard Steven Johnson, 41, of Rio Linda, California, and Jarred Alexander Goldman, 32, of Palm Beach Gardens, were sentenced yesterday, after being convicted of conspiring to steal and stealing a 17th century gold bar on or about August 18, 2010, from the Mel Fisher Maritime Heritage Museum in Key West.
Benjamin G. Greenberg, United States Attorney, Southern District of Florida, Robert F. Lasky, Federal Bureau of Investigation (FBI), Miami Field Office, and Donald J. Lee, Jr., Chief, Key West Police Department, made the announcement.
Johnson pled guilty to his role in the offense and was sentenced to 63 months in prison. Goldman was convicted at trial and was sentenced to 40 months in prison. In addition, United States District Judge Jose E. Martinez ordered Johnson and Goldman to pay $570,195.43 in restitution to the Mel Fisher Maritime Heritage Museum.
The facts proven at Goldman’s trial and at the defendants’ sentencing hearings established that both men drove to Key West from West Palm Beach on August 18, 2010, and entered the Mel Fisher Maritime Heritage Museum. Goldman then stood guard as a lookout to enable Johnson to steal the gold bar. Johnson then removed the gold bar from its display case at the museum and both defendants then drove back to West Palm Beach. Johnson then cut up the gold bar and sold it off, piece-by-piece. Law enforcement was only able to recover a single remaining piece, comprising approximately 3% of the total gold bar.
Mr. Greenberg commended the investigative efforts of the FBI and the Key West Police Department. The case was prosecuted by Assistant U.S. Attorneys Daniel J. Marcet and Monique Botero.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Twelve Charged in Moving Company ScamsRead the Press Release
CINCINNATI – A federal grand jury has charged 12 individuals with conspiring in a racketeering enterprise to defraud individuals through their moving companies located throughout the United States, including in Florida, Ohio, Maryland, North Carolina, Illinois, Texas, California, Connecticut, Colorado and Missouri. More than 900 customers have been identified as victims of the scheme thus far.
Five defendants were arrested today. The indictment was returned July 25 and unsealed today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Thomas J. Ullom, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation (USDOT) and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to the indictment, the defendants operated and worked through a number of affiliated moving companies, which include:
First National Moving and Storage
Public Moving and Storage
Flagship Van Lines
Public Moving Services
Independent Van Lines
Smart Relocation Solutions
JBR Underground
Trident Auto Shipping
National Relocation Van Lines
Unified Van Lines
National Relocation Solutions
United National Moving and Storage
Presidential Moving Services
US Relocation Systems
The co-conspirators owned, operated and worked as employees, members and associates of the affiliated moving companies. The moving companies were operated principally out of a business address in Hollywood, Fla. and had a warehouse in West Chester, Ohio.
It is alleged that the defendants executed a scheme between April 2013 through July 2018 to enrich themselves by stealing from customers who hired their moving companies to move their household goods.
To execute the alleged scheme, the defendants allegedly lied to customers about how long their moving companies had been in business, claiming many years of experience for companies that had been created just a few months prior. The defendants also allegedly created fake online reviews, praising the work of their moving companies.
When potential customers contacted the defendants, the defendants would allegedly provide customers with low binding estimates to do their move, promising to beat their competitor’s prices. After the customers agreed to hire the moving companies, employees of the moving companies would allegedly load the customers’ goods onto the truck and then bump the price of the move. Under federal regulations, in a binding estimate a customer and the motor carrier must both agree in writing to a charge for services prior to the start of any work. When an estimate is binding, USDOT prevents interstate carriers from raising the price of the move after loading customers’ items.
The defendants and the moving companies would allegedly refuse to give back the household goods until customers paid the inflated prices. If customers did not pay the inflated prices on the moves, it is alleged, the defendants would, in some cases, steal the customers’ household goods, never delivering them.
For example, in July 2016, First National Moving and Storage loaded a customer’s goods to transport from Round Rock, Texas to Columbus, Ohio. After loading the goods, the company increased the cost of the move and told the customer that she had to agree to the higher price or the customer’s goods would not be returned to her. The customer called the company to complain, and, during one phone call, the customer was told by the company that her items would be auctioned if she did not pay the higher price.
After customers complained to federal regulators and others, it is alleged that the defendants would shut down the latest iteration of the moving company, and open a new moving company. In doing so, the defendants allegedly lied to federal regulators and hid the identities of the true owners in order to receive licenses to operate. The defendants and other employees of the moving companies also used aliases with customers and regulators.
The defendants are charged with conspiring to conduct the affairs of the moving companies through a pattern of racketeering activity, consisting of multiple acts of wire fraud, theft of an interstate shipment by carrier, Hobbs Act extortion and identification fraud.
Those arrested today include:
Name
Also Known As
Age
Residence
Andrey Shuklin
31
Miami, Fla.
Phyllis Ricci Quincoces
Faith Ashford, Grace Rubestello, Phyllis Ricci, Phyllis Ann
51
Hollywood, Fla.
Vladimir Pestereanu
Vova
28
Sunny Isles Beach, Fla.
Roman Iakovlev
31
Charlotte, N.C.
Jessica Martin
Emma Ricci, Mary Austin
28
Tamarac, Fla.
“The arrests and actions taken today stemming from a criminal investigation conducted by the U.S. Department of Transportation Office of Inspector General (DOT-OIG) demonstrate our commitment to detecting and prosecuting fraudulent household goods movers who take advantage of unsuspecting customers by holding their personal belongings hostage for ransom,” said Thomas J. Ullom, DOT-OIG Regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial partners, as well as Federal Motor Carrier Safety Administration officials, we will continue our vigorous efforts to ensure that commercial household goods movers adhere to Federal laws and regulations designed to protect the public.”
U.S. Attorney Glassman commended the investigation of this case by the USDOT and the assistance of the FBI, as well as Assistant United States Attorneys Megan Gaffney and Matthew Singer, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
If you believe you are a victim of this fraudulent activity, please call the Victim Hotline at 1-800-424-9071 or email [email protected].
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Three Sentenced for Their Role in $4.6 Million Bank Fraud SchemeRead the Press Release
DALLAS — Stephanie Contreraz, 27, Abraham Valdez, 53, both of Frisco, Texas, were sentenced last week before U.S. District Judge David C. Godbey,—to 46 months and 60 months, respectively, in federal prison. Co-defendant Elizabeth Flint, 27, of San Antonio, Texas, was sentenced yesterday before U.S. District Judge David C. Godbey to 40 months in federal prison; based on their respective roles in a conspiracy to commit bank fraud, announced Erin Nealy Cox, U. S. Attorney of the Northern District of Texas.
Co-defendants, Eddie Contreraz, of Frisco, Texas, Ima Isham, of The Colony, Texas and Brice Armijo, of The Colony, Texas are scheduled for sentencing later this year. The seventh defendant, Kwanghee Anh, remains a fugitive with an outstanding arrest warrant.
According to the several factual resumes filed in the case, from January 2014 through March 2016, Eddie Contreraz hired co-defendants S. Contreraz, Valdez, Isham, Armijo, Flint and Anh to work at Preferred Marketing Group, Inc. (PMG), also known as PMG Business Solutions. PMG employees assisted clients with credit repair and obtained funding from lenders in the form of loans, lines of credit, and credit cards. The majority of PMG’s clients were unable to obtain funding on their own due to insufficient income and/or employment; as well as the client’s inability to provide certain documents required by lenders.
In order to conceal these loan disqualifiers and fraudulently obtain funding, S. Contreraz, Valdez and Flint conspired with all the co-defendants charged in the indictment. According to the documents filed in the case, the seven co-defendants engaged in a wide range of fraudulent conduct when submitting loan applications. The co-defendants coached borrower clients to use false and inflated income and false employment information; personally escorted borrowers to several banks on the same day on so-called “bank tours”; and submitted fraudulent documents (false IRS Form W-2’s and false pay stubs) as part of loan packages presented to the victim banks.
At various times during the period from at least January 2014 through March 2016, all seven co-defendants victimized many banks through the submission of hundreds of fraudulent loan applications. To date, the victim banks suffered losses of at least $4.6 million. At the sentencing of Valdez and S. Contreraz, Judge Godbey ordered the payment of restitution in the amount of $4,659,693 and $2,210,446 respectively. At the sentencing of co-defendant Flint yesterday, Judge Godbey ordered her to pay $652,505 in restitution.
The Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney David Jarvis prosecuted.
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Three Defendants Charged Federally with Cocaine Conspiracy Following Seizure of over 30 Pounds of Cocaine and More Than $664,000 in CashRead 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 Eric Young, 45, Chancellor Smith, 22, both of Huntsville, Alabama, and Lance Parker, 41, of Buffalo, NY, were arrested and charged by criminal complaint with conspiracy to possess with the intent to distribute, and to distribute, five kilograms or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on July 20, 2018, deputies with the Erie County Sheriff’s Office Traffic Bureau conducted a commercial vehicle inspection stop of a tractor trailer tandem with Alabama plates that was headed eastbound on Interstate 90 near the Angola Service Center. Defendant Young was driving the tractor trailer with defendant Smith as a passenger. After the deputies became suspicious, Smith was instructed to drive to the Angola Service Center for further inspection.
During the inspection, deputies noted multiple violations including vehicle equipment and a lack of knowledge by the driver pertaining to certain equipment operation. Deputies also noted an irregular placement of the cargo in the trailer. Following the inspection, a K-9 was brought in and gave a positive indication for a narcotic odor on the cargo in the trailer and in the sleeper birth area of the tractor. Following the execution of a search warrant, no controlled substances were located.
Law enforcement officers continued to conduct an active investigation, including surveillance of the tractor trailer, as well as defendants Young and Smith. On July 25, 2018, the tractor trailer was observed parked in a bank parking lot on Slade Avenue in West Seneca, NY. Officers observed the defendants exit the vehicle and a short time later a black Ford pick-up truck arrived and parked next to the tractor trailer. Defendant Parker exited the pick-up truck and removed a large black bag from the covered cargo bed and carried it to the driver's side of the tractor trailer. Parker than returned to the pick-up truck carrying a second black bag, placed it in the covered cargo bed, and departed the area.
The pick-up truck was subsequently stopped by deputies on Interstate 190 in Buffalo. During the execution of a search warrant, officers recovered 17 individually packaged pressed powder bricks of cocaine. Parker was arrested at the scene.
Defendants Young and Smith were detained at the site of the tractor trailer. During a search warrant of the tractor trailer at that time, officers found 52 shrink-wrapped and taped bundles of currency, predominantly in $10,000 bundles, inside the black bag. In total, the bag contained $519,580. In addition, officers also located a hidden compartment in the rear wall of the sleeper area of the tractor trailer cab where they found another $145,000. Young and Smith were arrested at the scene.
Noting that “the defendants had been originally charged in New York State Court by the Erie County District Attorney’s Office,” U.S. Attorney Kennedy further indicated, “District Attorney Flynn and I regularly discuss cases and where they can best be prosecuted. By working cooperatively, our offices are able to maximize the impact of the prosecutions that we bring.”
The defendants made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and are being detained.
The complaint is the result of an investigation by the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and Immigration and Customs Enforcement, Homeland Security investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Three Canadians and their Company Sentenced for Wholesale Distribution of Misbranded Prescription Drugs and Money LaunderingRead the Press Release
PITTSBURGH, PA – Three residents of British Columbia, Canada, and the company they operated have been sentenced in federal court in Pittsburgh on charges of conspiring to distribute wholesale quantities of misbranded prescription drugs made for the foreign market and money laundering, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon sentenced each of the defendants - Tony Lee, 41, of Vancouver, BC, Billy Lee, 43, of White Rock, BC, and Tarnjeet Uppal, 37, of Surray, BC, - to three years probation and a fine of $55,000. Judge Bissoon sentenced their company, Quantum Solutions, SRL, to a $150,000 fine and ordered it to forfeit of $4,235,000.
According to the information presented to the court, Tony Lee, Billy Lee and Tarn Uppal, all Vancouver, B.C. residents, operated Quantum Solutions, SRL (hereafter, Quantum), a company registered in Barbados. Quantum purchased prescription drugs made for foreign markets and sold wholesale quantities to three pharmacists in western Pennsylvania. Quantum purchased the drugs from suppliers located in Turkey, Great Britain and other countries. The defendants arranged for these misbranded drugs to be sent to a re-shipper in the United Kingdom (UK). The UK re-shipper was instructed to unpack the drugs, repack them in several small packages, put misleading labeling and shipping documentation on them and understate the dollar value of the contents in order to create the appearance to U.S. Customs and Border Protection that the drugs were health care products for the personal use of the addressee. The small packages were sent to Washington State and New York State re-shippers known to the U.S. Attorney, where they were once again unpacked and repacked for delivery in the United States. Wholesale quantities of these misbranded drugs intended for use in foreign markets were purchased by three pharmacists in western Pennsylvania. The wire transfers, checks and credit card payments from the pharmacists traveled from western Pennsylvania to Canada and Barbados. None of the re-shippers was licensed in the United States to conduct this business. None of the prescription drugs met FDA approval because they were made and labeled for use outside of the United States.
"Distributing prescription drugs produced and labeled for use outside of the United States within our borders not only violates federal law but also threatens the health and safety of our citizens," said U.S. Attorney Brady. "We are committed to investigating and prosecuting any drug company that illegally circumvents the regulated process for the distribution of prescription drugs."
"Criminals who distribute misbranded prescription drugs from outside the U.S. supply chain put the health of all U.S. consumers at risk," said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. "Our skilled cybercrime investigators will continue to disrupt and dismantle illegal prescription drug distribution networks."
"The role of IRS-Criminal Investigation in a case like this is to follow the money, which in turn allows us to disrupt and dismantle the organization", said Guy Ficco, Special Agent in Charge of IRS-Criminal Investigation. "The defendants who perpetrated this scheme put the American public at risk. By providing our financial expertise, IRS-CI is committed to working with our partners at the FDA and the US Attorney’s Office to see to it that criminals like this are stopped."
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
The United States Attorney commended the United States Food and Drug Administration-Office of Criminal Investigations and the Internal Revenue Service-Criminal Investigations for the investigation leading to the successful prosecution of Tony Lee, Billy Lee and Tarn Uppal, and Quantum Solutions, SRL.
Texas men sentenced for using card skimmers to steal identities, moneyRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that two men from Austin, Texas, were sentenced for using a credit card skimmer to steal people’s identities, then create fake credit cards and steal thousands of dollars from their private bank accounts.
Emicel Artigas Garcia, 39, was sentenced to 54 months in prison and Adalberto Ramos Cuellar, 42, was sentenced to 51 months in prison by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to commit wire fraud and one count of aggravated identity theft. They also face three years of supervised release and must pay $2,637.31.
According to the guilty pleas, the defendants were observed on July 14, 2017 at a Bossier City retail store’s self-checkout counter swiping multiple cards in order to purchase prepaid money and gift cards. Bossier City police later approached the defendants in the parking lot and found seven credit cards and three gift cards in Cuellar’s possession, which bore the defendants’ names. After the electronic information was obtained from the cards, law enforcement agents found that stolen identities were on the cards, even though they were labeled with the defendants’ names. Police later searched the defendants’ car and found seven USB thumb drives, one laptop, eight additional re-encoded cards, a cell phone, a gas pump key, and a gas pump skimmer. Gas pump skimmers are illegal devices used to steal credit card information. The evidence from the seized devices showed that the defendants downloaded private card information between October 2016 and July 2017. The cell phone contained pictures of screens showing the stolen information, and the laptop contained compromised credit/debit card data for 793 additional cards.
The U.S. Secret Service and the Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath prosecuted the case.
Ten Defendants Charged in Nationwide Marijuana and Money Laundering ConspiracyRead the Press Release
United States Attorney Matthew D. Krueger announced today that the following ten defendants have been charged in federal court with offenses related to nationwide conspiracies to distribute marijuana and commit money laundering:
Name
Age
Residence
Robert K. Malkin
62
Oxnard, CA
Seth C. Jacobs
28
Alexandria, VA
Lev B. Reys
38
Valley Village, CA
Jason J. Malkin
31
Los Angeles, CA
Mohammed E. Omar
35
Springfield, VA
Alae Arbi
28
Alexandria, VA
Nahom Hagos
29
Alexandria, VA
Fredric H. Birault
85
Valencia, CA
Lachelle Cook
31
Milwaukee, WI
The defendants currently reside in Milwaukee, Virginia, and California. This case is a part of a long-term nationwide federal drug and money laundering investigation.
The defendants are charged with drug and money laundering offenses, including: conspiracy to distribute and possess with intent to distribute marijuana, and conspiracy to commit money laundering. If proven that the drug conspiracy involved in excess of 100 kilograms of marijuana, the defendants charged with drug offenses will face up to forty (40) years in prison, with a mandatory minimum sentence of five (5) years in prison. The defendants charged with conspiracy to commit money laundering face up to twenty (20) years in prison.
Last week law enforcement officers arrested nine of the above defendants. Seth C. Jacobs remains at large. In addition to last week’s arrests, law enforcement officers executed two (2) federal search warrants in Milwaukee, eleven (11 ) search warrants in Virginia, ten (10) search warrants in California, and one search warrant in Washington, D.C., targeting members of this organization. Law enforcement recovered approximately $1.75 million in U.S. currency, two firearms, seven vehicles, marijuana, and other assets. Approximately 125 federal, state, and local officers participated in these arrests and search warrants.
In making today’s announcement about the federal charges, searches, and arrests, United States Attorney Krueger stated: “Drug-traffickers are motivated by money, pure and simple. These charges reflect our commitment to working with federal, state, and local law enforcement to seize drug money and prosecute drug crimes aggressively.”
Bureau of Alcohol, Tobacco, Firearms and Explosives Agent in Charge Joel L. Lee stated: “The highly successful outcome in this case came as a direct result of the tremendous partnership and teamwork shared with the Wisconsin Department of Justice – Division of Criminal Investigation and as well as contributing local counterparts. Communities in several states to include Wisconsin are better off with the dismantling of this criminal operation.”
Milwaukee Drug Enforcement Administration Agent in Charge Paul E. Maxwell, Jr. commended the collaborative and purposeful approach by state, local and federal law enforcement. “This investigation exemplifies multiple law enforcement agencies collaborating to fight the ongoing drug threat in Wisconsin and throughout the United States. The Drug Enforcement Administration is committed to working with our law enforcement partners and this case is a true reflection of those partnerships,” remarked Maxwell.
“A great group effort by federal, state, local and out-of-state law enforcement agencies has led to the disruption of yet another drug trafficking organization,” said Attorney General Brad Schimel. “We have made the community safer by working together to get drugs, guns, and money out of the hands of criminals.”
The defendants were charged after a lengthy investigation by the Wisconsin Department of Justice - Division of Criminal Investigation, along with the Milwaukee Police Department, North Central HIDTA, and the Bureau of Alcohol, Tobacco, Firearms and Explosives Milwaukee Field Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives Financial Investigators. The case was also supported by the Los Angeles HIDTA, City of Los Angeles Police Department, Los Angeles County Sheriff’s Department, Ventura County Sheriff’s Department, Shasta County Sheriff’s Department, Humboldt County Sheriff’s Department, Fairfax County Police Department, Alexandria Police Department, Virginia State Police, Northern Virginia HIDTA, and the Drug Enforcement Administration. In addition, the case was supported by the United States Attorney Offices in the Central District of California, Eastern District of Virginia, and Washington, D.C.
This case is being prosecuted by Assistant United States Attorneys Elizabeth M. Monfils and Gail J. Hoffman.
A criminal complaint is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig (414) 297-1700
Summerdale Man Sentenced on Drug ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Nicholas Toth, 30, of Summerdale, Alabama, was sentenced on July 26, 2018, to 120 months imprisonment for possession with intent to distribute methamphetamine. Court documents show that Toth sold methamphetamine ice to a confidential informant three times during May of 2017. Toth was indicted on the federal charges of possession with intent to distribute methamphetamine in October of 2017. He pled guilty in March of 2018 to one of the drug sales.
United States District Court Judge William Steele sentenced Toth to 120 months’ imprisonment to be followed by eight years of supervised release when he is discharged from his custody sentence, during which he will undergo drug and alcohol abuse treatment. Toth was also ordered to pay $100 in mandatory special assessments, but no fine was imposed.
The case was investigated by the the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force and the FBI Safe Streets Task Force. It was prosecuted in the United States Attorney’s Office by Assistant United Sates Attorney Gloria Bedwell.
St. Louis Man Pleads Guilty to Stealing Guns out of St. Louis County Police CarsRead the Press Release
St. Louis, MO – Joshua John Pollard, 20, of St. Louis, pled guilty to three counts of possessing stolen firearms. He appeared in federal court this afternoon before U.S. District Judge Henry Autrey.
According to court documents, on January 12, 2018, Pollard broke the windows of a St. Louis County Police vehicle and forcefully stole a Colt AR-15, fully loaded with a 20-round magazine and a Remington 870 pump action shotgun loaded with four rounds.
On January 29, 2018, Pollard broke a window of a second St. Louis County Police vehicle and forcefully stole a Rock River, AR-15 and a Remington 870 pump action shotgun.
On January 30, 2018, Pollard broke the window of a vehicle and stole a 40-caliber Glock model G23 generation 4 semi-automatic firearm. Investigation by members of the St. Louis County Police Department led to the arrest of Pollard on February 1st who admitted breaking into the two police vehicles and another vehicle in St. Charles.
“I greatly appreciate the hard work by all those who brought about the swift and successful conclusion to these investigations,” Colonel Jon M. Belmar, Chief of Police, said. “It is a fine example of the great collaborative work between local and federal authorities that we enjoy here in the St. Louis Region.”
Pollard faces up to 10 years’ imprisonment, a $250,000 fine or both on each count. Restitution to the victim is also mandatory. Sentencing has been set for October 30, 2018. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis County Police Department. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
South Bend Man Sentenced to 180 Months in PrisonRead the Press Release
SOUTH BEND – Anthony Owens, 31 years old, of South Bend, Indiana, was sentenced by U.S. District Court Judge Jon E. DeGuilio after entering a plea of guilty for conspiracy to distribute over 1 kilogram of heroin, announced U.S. Attorney Kirsch.
Anthony Owens was sentenced to 180 months imprisonment followed by 5 years of supervised release.
According to documents in the case, from August 2017 through October 2017, Owens was a member of a group that sold heroin in the South Bend and Mishawaka areas. The members shared at least one cell phone which was used to arrange heroin sales. Members of the group would receive that phone, along with multiple pre-packaged small baggies of heroin, from one of the other members of the group. Buyers would call that phone, and whichever member of the group had the phone at the time would arrange a heroin transaction with the buyer. Sometimes sellers would work individually, while other times sellers would cooperate to arrange and conduct heroin transactions. The selling price was set by others higher in the group and individual sellers would not unilaterally vary from that price. The majority of the proceeds from the heroin sales would be turned back in to the higher-ranking members and the individual sellers would be allowed to keep the remainder of the payment. Together, they distributed kilograms of heroin through thousands of retail transactions.
This case was investigated by DEA, ATF, St. Joseph County Drug Investigations Unit, St. Joseph County Prosecutors Office, Indiana State Police, Mishawaka Police and the Elkhart Police Department. This case was prosecuted by Assistant United States Attorneys Joel Gabrielse and Molly Donnelly
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South Arkansas Men Sentenced to A Total of over 6 Years in Federal Prison for Wire Fraud and Money LaunderingRead the Press Release
El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Lawrence Shelton, age 69, of El Dorado, Arkansas was sentenced on July 30, 2018 to 36 months in federal prison followed by three years of supervised release, on one count of conspiracy to commit wire fraud and one count of money laundering; Ronald Murphy, age 70, of El Dorado, Arkansas was sentenced today to 18 months in federal prison followed by three years of supervised release, on one count of conspiracy to commit wire fraud and one count of structuring transactions to avoid reporting requirements; and Domanique Robinson, age 40, of Camden, Arkansas was sentenced today to 24 months in federal prison followed by three years of supervised release, on one count of conspiracy to commit wire fraud and one count of structuring transactions to evade reporting requirements. The defendants were additionally ordered to pay $310,000.00 total in restitution. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, Shelton was the Chief Executive Officer, director, and founder of 2ND CHANCE, a nonprofit organization that focused on “at risk” children from low-income households by helping to make them self-reliant and productive citizens through education and mentoring. 2nd CHANCE received federal funding from the United States Department of Agriculture (USDA) through a federal grant and was managed by Arkansas Department of Human Services (DHS). A joint investigation by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service - Criminal Investigation Division (IRS) revealed that fraudulent claims were electronically submitted to DHS by 2ND CHANCE program director, Robinson, regarding the number of children attending the program. Robinson was responsible for receiving attendance sheets from each 2nd CHANCE location and submitting claims with attendance numbers to DHS for funding/reimbursement. Murphy was the owner of South West Economic Development Association (SWEDA). SWEDA served as a food vendor for the 2nd Chance afterschool and summer program from late 2011 until June 2014. Shelton, Robinson, and Murphy, conspired to falsify the claims to DHS by inflating or completely fabricating the number of children in attendance. The fraudulent claims resulted in overpayments made by DHS that were direct deposited into 2nd Chance bank accounts by interstate wire communications. Shelton, Robinson, Murphy, and others personally benefited from the excess funds. The total overpayments made by DHS exceeded $250,000 during the period of fraudulent activity.
Robinson and Murphy were indicted by a federal grand jury in 2015. Shelton was indicted by a federal grand jury in January 2016. Murphy pled guilty in January 2016. Shelton pled guilty in April 2017. Robinson pled guilty in January 2016.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division. Assistant United States Attorney Benjamin Wulff prosecuted the case for the United States.
Slaton High School Teacher Admits to Enticement of a MinorRead the Press Release
LUBBOCK, Texas — Dustin Ray Leonard, 28, of Lubbock, Texas, appeared yesterday in federal court before U.S. Magistrate Judge D. Gordon Bryant, Jr., and pleaded guilty to enticement of a minor, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Leonard faces not less than 10 years and not more than life in federal prison, a $250,000 fine and not less than five years nor more than a lifetime of supervised release. Leonard has been in custody since his arrest on May 22, 2018, and will remain in custody pending sentencing.
According to the factual resume filed in the case, on July 16, 2016, Leonard was hired by the Slaton Independent School District (SISD), as a high school teacher and Coach. On April 12, 2018, the Slaton High School (SHS) and SISD Chief of Police learned of a possible inappropriate relationship that occurred between Leonard and an 11th grade female student, “Jane Doe.” The SISD Superintendent received an audio recording that another student had made of Leonard. In the recording, Leonard was telling a female student about his marital problems. Leonard, after being confronted by SISD about the recording, provided SISD a written letter of resignation, citing personal and family concerns. On May 8, 2018, the SISD school board met and accepted the resignation effective May 18, 2018.
On May 21, 2018, Slaton Police Department (SPD) was provided information regarding Leonard’s Snapchat account and an inappropriate relationship he was having with Doe. Leonard was later interviewed and admitted that he and Doe had been in a sexual relationship since January 2018.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Slaton Police Department, Slaton Independent School District Police Department, the Texas Rangers, the Federal Bureau of Investigation, and Homeland Security Investigations investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
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Six Filipinos Indicted for Domestic and International Money Laundering and Conspiracy for Multi-Year Bribery and Fraud SchemeRead the Press Release
LOS ANGELES – A Filipino woman and her family members were indicted by a federal grand jury today for conspiring to funnel in and out of the United States approximately $20 million in Philippine public funds obtained through a multi-year bribery and fraud scheme. Charged in the indictment for Conspiracy to Commit Money Laundering, Domestic Money Laundering and International Money Laundering were:
Jannet Lim Napoles, 54,
Jo Christine Napoles, 34,
James Christopher Napoles, 33,
Jeane Catherine Napoles, 28,
Reynald Luy Lim, 52, and
Ana Marie Lim, 47.
Four defendants together with approximately 20 Philippines legislators and other government officials not charged in U.S. indictments converted to their own benefit hundreds of millions of dollars in Philippine public funds through the intricate scheme and then transmitted approximately $20 million from that scheme into the United States to purchase assets, including real property and luxury vehicles.
The defendants fraudulently converted money from a lump-sum discretionary “Priority Development Assistance Fund” granted to each member of the Philippines Congress as well as other government funds designed to benefit poor Filipinos.
The money was paid to dozens of non-governmental organizations controlled by Jannet Napoles pursuant to contracts that required the money to be spent on development projects. The projects were not performed. Instead, the money was diverted to kickbacks for the legislators and other government officials, and for the personal use of the Napoles family.
Approximately $20 million of those funds were diverted to money remitters in the Philippines and then wired to Southern California bank accounts where the money was used to purchase real estate, shares in two businesses, two Porsche Boxsters, and finance the living expenses of three family members residing in the United States: Jeane Napoles, Reynald Lim, and Ana Lim.
The charges handed down today pertain to events beginning in September 2012 and continuing through August 2014. In September 2012, an audit discovered the fraud. In July 2013, the fraud and the U.S. proceeds were exposed in the Filipino press. In August 2013, Jannet was arrested by Philippine authorities and Napoles family bank accounts were frozen in the Philippines. Thereafter, Napoles and her family members attempted to quietly liquidate the assets in the United States, secretly repatriate most of the resulting funds back to the Philippines and to other accounts in the U.S. and United Kingdom, and disburse some of the funds to Jeane Napoles, who used the money to finance her lifestyle and open a fashion business.
“Even after Jannet Napoles made a highly publicized statement admitting that she had bribed Philippine legislators in connection with these ‘ghost projects,’ the defendants attempted to convert the proceeds of this crime to their own use,” said United States Attorney Nick Hanna. “The efforts of the Philippine and American investigators demonstrates that there are consequences to abusing the public trust and we hope to deter such conduct in the future. To do this, we will work with our Philippine counterparts to secure the extradition of the defendants to the United States.”
According to court documents, approximately $12.5 million in Southern California real estate has been seized by the United States Attorney’s Office and is subject to a civil forfeiture case pending before United States District Judge James V. Selna. If the court orders the assets forfeited, the United States will work with Philippine officials in an attempt to return the stolen funds back to the Philippine government.
U.S. authorities have received ongoing cooperation and substantial assistance from the Philippine government, including the Department of Justice, the Office of the Ombudsman, the Anti-Money Laundering Council, and the Commission on Audit, which responded to official requests pursuant to the Mutual Legal Assistance Treaty between the Philippines and the United States and through the Financial Crimes Enforcement Network.
This case is being investigated by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Daniel O’Brien, Deputy Chief of the Public Corruption and Civil Rights Section.
Sex Offender Sentenced to Thirty-Six Months in Prison for Failure to RegisterRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Kyle Lopez (46, Morgantown, West Virginia) to 36 months in federal prison, followed by 5 years of supervised release, for failure to register as a sex offender as required by the Sex Offender Registration and Notification Act (SORNA). Lopez had pleaded guilty on June 11, 2018.
According to court documents, Lopez, who had previous felony convictions for indecency with a child, sexual assault against a child, and failure to register, failed to register as a sex offender in Florida after moving from West Virginia to Florida in September 2017, in an attempt to abscond from his registration requirements. After receiving notification from West Virginia, the U.S. Marshals Service located Lopez on October 31, 2017, in Volusia County, Florida. He was then charged with failure to register as a sex offender in violation of SORNA.
This case was investigated by the U.S. Marshals Service. It was prosecuted by Assistant United States Attorney Kara M. Wick.
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 Attorney’s 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.
Serial Lawrence County “Mountain Dew” Robber Sentenced to 10 Years in Federal PrisonRead the Press Release
PITTSBURGH, Pa., - A former resident of New Castle, Pennsylvania, has been sentenced to 10 years in federal prison for his convictions on federal robbery laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Eric Barbati, age 33.
According to the information presented to the court, on August 26, 2017, Eric Barbati robbed the BFS Foods Convenience Store, located at 1509 Wilmington Road, New Castle, PA 16105, of $292.00. Barbati then robbed two other convenience stores, the Red Apple Convenience Store (on August 31, 2017), located at 1010 Wilmington Avenue, New Castle, PA 16101, of $242.00; and the Market 24 Convenience Store (on September 4, 2017 and again on September 17, 2017), located at 719 W. Washington Street, New Castle, PA 16101, of $170.00 and $117.00, respectively. During all of the convenience store robberies, Barbati would approach the store clerk and attempt to pay for a bottle of Mountain Dew before using a knife or forcibly taking money from the drawer to commit the robbery.
On September 5, 2017, Barbati also robbed the PNC Bank, located at 2470 E. State Street, Hermitage, PA 16148, of $2,702.00, and on September 11, 2017, he robbed the Huntington Bank, located at 108 S. Market Street, New Castle, PA 16142, of $1,641.00.
Judge Cercone also ordered that Barbati pay restitution to all three businesses and both banks and also serve a term of three years of supervised release upon release from prison.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Hermitage Police Department, the New Wilmington Borough Police Department, the New Castle Police Department, and the Neshannock Township Police Department conducted the investigation leading to the guilty plea in this case.
Rochester Man Pleads Guilty in A Series of Store/Restaurant RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Fred Swan, Jr., 29, of Rochester, NY, pleaded guilty to Hobbs Act Robbery, Attempted Hobbs Act Robbery, and brandishing a firearm during a crime of violence before Chief U.S. District Judge Frank P. Geraci. The robbery charges carry a maximum penalty of 20 years in prison and a $250,000 fine. The firearms charge carries a mandatory minimum penalty of seven years in prison, which must be served consecutively to the sentence imposed on the robberies.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that the defendant robbed four establishments at gunpoint between February 11, 2017 and March 24, 2017:
o On February 11, 2017, the defendant robbed the China Star restaurant at 600 West Main Street in Rochester. Swan entered the store and pointed a handgun at a restaurant employee and demanded money. The defendant grabbed approximately $60 cash from the store employee’s hand and fled the restaurant on foot;
o On February 18, 2017, the defendant robbed Alice’s Market convenience store at 1477 South Avenue in Rochester. Swan entered the store, went up to the register, pointed a handgun at the store clerk, and demanded money. The clerk gave the defendant approximately $50 cash from the register. The defendant fled from the store and was driven away from the scene by another individual;
o On February 19, 2017, the defendant robbed the Mobil Quick Mart store at 1810 Mount Hope Avenue in Rochester. Swan entered the store and pointed a handgun at a store employee as he approached the counter and demanded money from the register. The employee refused to give Swan money. The defendant walked around the counter and struck the employee in the head with the handgun, and the two of them fell to the floor fighting. Swan eventually fled the store without getting any money; and
o On March 24, 2017, the defendant robbed the Fast Mart Inc. store at the Valero gas station at 931 South Clinton Avenue in Rochester. Swan entered the store, pointed a handgun at the store clerk, and demanded money. The clerk handed over $280 cash from the register. The defendant then demanded two packs of cigarettes, which the clerk handed to him. Swan fled the store with the cash and cigarettes.
On March 24, 2017, law enforcement officers searched the defendant’s apartment at 229 Meigs Street in Rochester and they recovered the .40 caliber handgun that was used in the Alice’s Market robbery.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for November 5, 2018, at 11:00 p.m. before Judge Geraci.
Reported Gun Crimes Down Significantly During First Half of YearRead the Press Release
Reported crimes with guns were down significantly during the first half of this year compared to last year in the city of Memphis and unincorporated parts of Shelby County, according to figures from the Project Safe Neighborhoods G.U.N. (Government United for Non-Violence) Unit.
From January through the end of June, there were 2,405 reported crimes with guns compared to 2,840 for the same period in 2017 – a 15.3 percent drop. The number is also 8.4 percent less than the 2,625 reported gun crimes in 2016.
Reducing gun crimes is a major focus of the current Operation: Safe Community crime plan, the development of which was spearheaded by the Memphis Shelby Crime Commission. Crime Commission president Bill Gibbons noted a number of objectives in the plan geared toward gun crime reduction, including:
- Vigorous enforcement of tough federal gun laws as part of Project Safe Neighborhoods which is being led by the U.S. Attorney’s office;
- Enactment of tougher state sentences for felons in possession of firearms – which was accomplished in 2017 – coupled with strong enforcement by the District Attorney’s office;
- With the goal of changing behavior, communicating the consequences of committing gun crimes through the FED UP media campaign;
- Enhancing the staff of the Multi-Agency Gang Unit in order to more effectively investigate gang-related crimes and prevent such crimes from occurring; and
- Ramped up data-driven deployment of law enforcement resources.
Since in office, U.S. Attorney Mike Dunavant has made prosecution of gun crimes in the federal system a top priority.
According to Dunavant, "Project Safe Neighborhoods (PSN) is a proven violent crime reduction strategy that works, and is now reinvigorated with additional resources and commitment from our partners at the ATF, Memphis Police Department, Shelby County Sheriff’s Office, and the Shelby County District Attorney’s Office. Since October, 2017, the U.S. Attorney’s Office has increased the number of federal firearms cases filed by over 59%, and the number of defendants charged with firearms offenses has increased over 73%. These efforts provide targeted prosecution of the worst-of-the-worst offenders in order to enhance public safety in Memphis by removing guns from the hands of dangerous people, and removing violent offenders from our communities."
Dunavant added, "These sustained decreases in reported gun crimes and all major violent crime categories is encouraging, and shows that our return to proven enforcement policies is working. Putting the right people in prison upholds the rule of law, deters criminal conduct with a strong message of significant consequences, and makes us all safer. The Department of Justice is open for business, and we are FED UP with gun crime in Memphis. Gun Crime is Max Time."
The reduction in reported crimes with guns is consistent with the reduction in reported violent crimes, the details of which were released earlier this month.
During the first half of this year, reported violent crimes were down 8.1 percent in the city of Memphis compared to last year and down 6.4 percent countywide, according to preliminary figures from the Tennessee Bureau of Investigation. The reduction occurred in all four major categories – murders, rapes, robberies, and aggravated assaults.
1 Reported gun crime incidents in city of Memphis and unincorporated parts of Shelby County.
Source: Project Safe Neighborhoods G.U.N. Unit2 A 8.4 percent decrease compared to 2016 and a 15.3 percent decrease compared to 2017.
Repeat Tax Fraud Offender Sentenced to 10 Years in PrisonRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ARTHUR DALE SENTY-HAUGEN, 51, for orchestrating a years-long tax fraud conspiracy while confined to the Minnesota Sex Offender Program. SENTY-HAUGEN, who pleaded guilty on January 23, 2018 to one count of conspiracy to defraud the United States, was sentenced earlier today to 10 years in prison before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
“Mr. Senty-Haugen’s lengthy criminal history and flagrant disregard for the law and the criminal justice system was appropriately addressed by this significant prison sentence,” said U.S. Attorney Erica MacDonald. “We appreciate the investigative work of our partners at the IRS and their dogged pursuit of this serial fraudster.”
“Today's sentencing of Arthur Senty-Haugen continues to emphasize the diligence of the Internal Revenue Service and U.S. Attorney’s Office in their continued pursuit of those who use fraudulent methods in an attempt to corrupt our nation's tax system,” said Acting Special Agent in Charge Gabriel Grchan, IRS Criminal Investigation of the St. Paul Field Office. “Be assured that IRS Criminal Investigation Division, together with our law enforcement partners, will hold those who engage in similar behavior fully accountable, especially those like Senty-Haugen who repeatedly commit fraud.”
According to the defendant’s guilty plea and documents filed in court, since 1994, SENTY-HAUGEN has been confined to the Minnesota Sex Offender Program (“MSOP”) in Moose Lake, Minnesota. Beginning in early 2012 through late 2017, SENTY-HAUGEN devised and participated in a scheme to obtain money from the U.S. government by filing false federal income tax returns claiming fraudulent refunds on behalf of fellow clients of the MSOP (“the filers”). As part of the scheme, SENTY-HAUGEN prepared and filed the false tax returns using the filers’ names and social security numbers, as well as false wage and federal income tax withholding information. SENTY-HAUGEN enlisted the help of other individuals not confined at MSOP to assist him and the filers in preparing and filing the fraudulent returns as well as collecting and transferring the illicit proceeds. SENTY-HAUGEN admitted to filing a total of 92 fraudulent income tax returns for tax years 2011 through 2016, seeking more than $550,000 in refunds to which the filers were not entitled.
In 2000 and 2013, SENTY-HAUGEN was prosecuted in state court in Carlton County on fraud-related offenses. Additionally, in 2004, while confined at MSOP, SENTY-HAUGEN was indicted in federal court for tax fraud conspiracy, a scheme that was similar to the instant offense, and was sentenced to 57 months in prison followed by three years of supervised release. SENTY-HAUGEN began his new fraud scheme just two days after his term of supervised release expired.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division, and the Minnesota Department of Human Services, Office of Special Investigations.
Assistant U.S. Attorneys Amber M. Brennan and Julie E. Allyn prosecuted the case.
Defendant Information:
ARTHUR DALE SENTY-HAUGEN, 51
MSOP, Moose Lake, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
Sentenced:
- 120 months in prison
- Three years of supervised release
- $247,000 in restitution
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Pittsburgh Man Sentenced to 20 Months’ Incarceration for Cocaine ConspiracyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court for violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge David Stewart Cercone sentenced Michael King, 37, to serve 20 months in prison following his guilty plea on March 23, 2018, to one count of conspiracy.
In connection with his earlier guilty plea, King admitted that from in and around April 2016, and continuing thereafter to in and around October 2016, he conspired with others to distribute and possess with intent to distribute a quantity of cocaine, a Schedule II controlled substance. During his plea colloquy, the defendant admitted that on or about September 30, 2016, he possessed approximately four ounces of cocaine and that he sold cocaine for $1,200 per ounce.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and comprises members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Stowe Township Police Department also provided assistance in this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pennsylvania man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Kevin J. Washington, Jr., of Glenolden, Pennsylvania, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Washington, age 30, pled guilty to one count of “Distribution of Oxycodone.” Washington admitted to selling oxycodone in Ohio County in February 2016.
Washington faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp., Jr. presided.
Pennsylvania Man Pleads Guilty to Misprision of a FelonyRead the Press Release
St. Thomas, USVI – Michael Leonard, 21, of Pennsylvania, pleaded guilty today in District Court before District Court Judge Curtis V. Gomez, to misprision of a felony, United States Attorney Gretchen C.F. Shappert announced. Sentencing is set for November 29, 2018. The federal definition of misprision requires that, (1) the principal committed and completed the felony alleged; (2) the defendant had knowledge of the commission of the felony; (3) the defendant failed to notify the authorities that the crime had been committed; and (4) the defendant took affirmative steps to conceal the crime.
According to court documents, Leonard traveled with Reynaldo Lerburds and other individuals to a secluded area of St. John and was present when a shipment of cocaine was delivered. Leonard took steps to help conceal the cocaine and did not make any effort to notify law enforcement of the receipt of the cocaine or his actions in concealing the cocaine. When Leonard was arrested on April 18, 2018, he failed to inform law enforcement of the receipt of the cocaine or the transport of the cocaine.
Leonard faces a maximum sentence of three years and a $250,000 fine.
The case was investigated by the Drug Enforcement Administration (DEA) and prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Northeast Ohio couple sentenced to prison for 16 robberies or attempted robberies to fund their drug habitRead the Press Release
A Northeast Ohio couple was sentenced to prison for 16 armed robberies or attempted robberies to fund their drug habit.
Casey Layne Liberty, 31, of Amherst, and Daniel T. Begin, 33, of Cleveland, were both sentenced to 71 months on prison. Both were ordered to pay $6,598 in restitution.
The pair previously pleaded guilty to conspiracy to commit bank robbery, bank robbery, conspiracy to commit Hobbs Act robbery and Hobbs Act robbery.
“This pair went on a monthlong crime spree in which they robbed banks and stores to feed their drug habit,” U.S. Attorney Justin Herdman said. “It’s a miracle no one was killed, and we’re gratified this duo will be off the street.”
“This pair posed a danger to people doing their banking or simply picking up lunch,” Anthony said. “The fine work of the FBI agents, along with nearly a dozen police departments, has made our community safer.”
Liberty wore a disguise and robbed banks and stores while Begin acted as the getaway driver, according to court documents.
The pair admitted to following bank robberies last year: Andover Bank in Conneaut on Sept. 19, Chase Bank in Medina on Sept. 28, First National Bank in Beachwood on Oct. 4 and the Chase Bank in Fairlawn on Oct. 12.
They also pleaded guilty to robbing a Subway in Findlay on Sept. 26, a Seven Eleven in Brunswick on Sept. 28, a Gamestop in Elyria on Oct. 7, a Domino’s Pizza in Madison on Oct. 10, a Mr. Hero in Canton on Oct. 11, a Subway in Avon on Oct. 15, a Subway in Elyria on Oct. 16, a Mr. Hero in Perkins Township on Oct. 19, a Domino’s Pizza in North Olmsted on Oct. 22 and a Mr. Hero in Berea on Oct. 22.
This case is being prosecuted by Assistant U.S. Attorneys Ranya Elzein and Robert J. Patton following an investigation by the FBI and the police departments of Conneaut, North Olmsted, Medina, Beachwood, Avon, Elyria, Findlay, Perkins Township, Madison, Berea and North Ridgeville.
North Ridgeville man sentenced to 10 years in prison for downloading multiple videos of young children being raped and sexually assaultedRead the Press Release
A North Ridgeville man was sentenced to more than 10 years in prison for downloading multiple videos of young children being raped and sexually assaulted.
Dana F. Cain, 49, previously pleaded guilty to distribution of child pornography and possession of a computer that contained child pornography. He was sentenced to 121 months in prison.
Cain downloaded nearly 500 movie files from May 2015 through January 2017. These movies include images of toddlers and young girls being rapes and sexually assaulted, according to court documents.
Cain possessed an Apple Macbook computer at his home on Avon Belden Road in North Ridgeville which contained child pornography, according to court documents.
"These are cases with real victims, children whose lives will be forever changed because adults assaulted and violated them," U.S. Attorney Justin Herdman, for the Northern District of Ohio, said in a news release. "We will continue to prosecute those who re-victimize these children by sharing and downloading these images."
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the FBI, the North Ridgeville Police Department, the Avon Police Department and the Ohio Internet Crimes Against Children Task Force.
New Orleans Man Pleads Guilty to Accessory to Murder, Carjacking, Robbery, and Firearms OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that KWAME FLEMING, age 27, of New Orleans, pled guilty to one count of accessory to murder through use of a firearm, in violation of Title 18, United States Code, Section 924(j), two counts of carjacking, in violation of Title 18, United States Code, Section 2119, two counts of brandishing a firearm during a crime of violence, in violation of Title 18, United States Code, Section 924(c), one count of Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951, and one count of discharging a firearm during a crime of violence, in violation of Title 18, United States Code, Section 924(c).
According to court documents, KWAME FLEMING pled guilty to assisting two individuals who committed a murder on June 1, 2015, in New Orleans, and attempting to hinder and prevent their apprehension, trial, and punishment.
Furthermore, KWAME FLEMING also pled guilty to taking part in two carjackings, during which firearms were brandished.
KWAME FLEMING also pled guilty to Hobbs Act robbery, during which KWAME FLEMING and his co-conspirators stole items from a residence in Mississippi, including marijuana and an assault rifle.
For the accessory to murder offense, KWAME FLEMING faces a maximum term of imprisonment of 15 years, a fine of up to $250,000, up to three years of supervised release after imprisonment, and a mandatory $100 special assessment.
For the carjackings, KWAME FLEMING faces a maximum term of imprisonment of 15 years, a fine of up to $250,000, up to three years of supervised release after imprisonment, and a mandatory $100 special assessment.
For the Hobbs Act robbery offense, KWAME FLEMING faces a maximum term of imprisonment of 20 years, a fine of up to $250,000, up to three years of supervised release after imprisonment, and a mandatory $100 special assessment.
KWAME FLEMING faces a mandatory minimum sentence of seven years imprisonment for the first of the brandishing offenses. For his second brandishing offense and the discharge offense, KWAME FLEMING faces mandatory minimum sentences of 25 years for each offense. The maximum penalty that would be imposed for each firearms offense is life imprisonment. Each firearms offense must be served consecutively. KWAME FLEMING also faces fines of up to $250,000, up to five years of supervised release upon release from imprisonment, and a $100 special assessment for each firearms count.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, the Jefferson Parish Sheriff’s Office, the Baton Rouge Police Department, the Zachary Police Department, and the Wilkinson County, Mississippi, Sheriff’s Office in investigating this matter. Assistant United States Attorney Jonathan L. Shih and Trial Attorney Joseph K. Wheatley, of the Organized Crime and Gang Section of the Department of Justice, are in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Man Sentenced for Falsely Pretending to be a General in the U.S. ArmyRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that CHRISTIAN GERALD DESGROUX, age 58, of Raleigh, was sentenced by U.S. District Judge Terrence W. Boyle to 6 months imprisonment followed by 1 year of supervised release. On June 26, 2018, DESGROUX pled guilty to pretending to be a United States Army Lieutenant General in violation of Title 18, United States Code, Section 912.
On November 6, 2017, DESGROUX, while dressed in a military battle dress uniform (BDUs) with U.S. Army rank and insignia, disembarked a private helicopter that landed at the headquarters of Statistical Analysis Systems (SAS) located in Cary, North Carolina. SAS security officers approached DESGROUX who claimed that he was a Lieutenant General in the United States Army and was authorized by the President of the United States to land the helicopter there in order to pick up a female employee of SAS for a classified debriefing at Fort Bragg, North Carolina. After the female and the defendant entered the helicopter, they flew around the area, refueled at a local airport, and returned to SAS.
When questioned by law enforcement, the female stated she was unaware that DESGROUX would be picking her up via helicopter. She believed that although they were not in a romantic relationship, DESGROUX was trying to impress her by flying her around. Her understanding was she would be meeting with the defendant to assist with a design project, but she had no knowledge of DESGROUX’s claims of a debriefing or joint special assignment involving the U.S. President. Investigation revealed DESGROUX had never been in the U.S. military.
The case was investigated by the Department of Homeland Security and the Defense Criminal Investigative Service. Assistant United States Attorneys Jason Kellhofer and Eleanor Morales prosecuted the case for the government.
Lovelia C. Mendoza Sentenced to Prison in Drug Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant LOVELIA C. MENDOZA, age 36, from Dededo, was sentenced in District Court to an eight-year term of imprisonment, to be followed by five years of supervised release, for Possession with Intent to Distribute Fifty Grams or More of Methamphetamine. The Court also ordered Mendoza to pay a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On April 17, 2017, agents and task force officers with the Drug Enforcement Administration conducted a search of Mendoza’s residence. They discovered approximately 537.19 net grams of methamphetamine hydrochloride (“ice”) and approximately 30 gross grams of cocaine. Mendoza was also in possession of $98,555.00 in United States currency, Western Union receipts, plastic Ziploc bags, two fabricated glass pipes, digital scales, a "Pringles" container(s) with a hidden compartment, cut plastic straws, a Sony digital camera, thumb drive, Samsung tablet, Samsung cellular phone, and other digital devices. The evidence revealed that Mendoza possessed the drugs with the intent to distribute them to another person. On May 18, 2017, Mendoza pled guilty to the charge of Possession with Intent to Distribute Fifty Grams or More of Methamphetamine, in violation of 21 U.S.C. § 841(a)(1).
This prosecution was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to federal and local agencies involved in the investigation of drug-related crimes. The Drug Enforcement Administration was the lead investigative agency. Assistance was also provided by the Superior Court of Guam Probation Office. Assistant United States Attorney Rosetta San Nicolas prosecuted this case for the United States Attorney’s Office for the District of Guam.
Los Angeles man sentenced to 40 years for drug trafficking in Hardy and Grant CountiesRead the Press Release
ELKINS, WEST VIRGINIA – Cesar Navarro, of Los Angeles, California, was sentenced today to 480 months incarceration for mailing methamphetamine through the U.S. mail, United States Attorney Bill Powell announced.
“Methamphetamine is an increasing problem in this district. We have seen significant increases in laboratory produced crystal meth coming from other states and countries. With these increases, we have seen more addiction, more violence and more despair. Our prosecutors and law enforcement partners spent countless hours on this case, and it demonstrates the kind of resources will devote to prosecute anyone who thinks they can distribute these highly addictive and dangerous drugs in this district. I have devoted additional resources to the methamphetamine problem, and we will continue to aggressively pursue all those who are involved in its distribution in West Virginia—no matter where they live,” said Powell.
Navarro was also ordered to pay $350,600 in a money judgement.
Navarro, age 40, was found guilty by a federal jury of one count of “Conspiracy to Distribute More than 50 Grams of Methamphetamine,” two counts of “Unlawful Use of Communication Facility,” and two counts of “Distribution of Methamphetamine” in March 2018.
Navarro often mailed at least one pound of crystal methamphetamine at a time to drug dealers in Grant and Hardy Counties and in Frederick County, Virginia, in exchange for large amounts of cash. Over a period of two years, Navarro was responsible for trafficking into West Virginia approximately fifty pounds of highly pure crystal methamphetamine.
Assistant U.S. Attorneys Stephen Warner and Andrew R. Cogar prosecuted the case on behalf of the government. The United States Postal Inspection Service, The West Virginia State Police Bureau of Criminal Investigations, and the Frederick County, Virginia Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.Kansas Man Sentenced to 18 Years for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Leavenworth, Kan., man was sentenced in federal court today for sexually abusing a 14-year-old victim and recording the abuse on his cell phone.
Cole Ryan Marshall, 19, was sentenced by U.S. District Judge Beth Phillips to 18 years in federal prison without parole. The court also sentenced Marshall to serve the rest of his life on supervised release following incarceration.
On April 12, 2018, Marshall pleaded guilty to the sexual exploitation of a child. Marshall admitted that he engaged in illicit sexual conduct with a 14-year-old child victim and recorded images and videos on his cell phone. The images and videos were taken at a location in Polk County, Mo.
Marshall also admitted that he used Dropbox’s online cloud storage program to store and share child pornography.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI and the Kansas Internet Crimes Against Children Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Man, Woman Sentenced for Armed RobberiesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man and woman were sentenced in federal court today for their roles in a three-month-long spree of armed robberies at metropolitan area businesses.
Isaac J. Williams, also known as “Dat Flyguy,” 25, and Rahnice J. Clay, 25, were sentenced in separate appearances before U.S. District Judge Brian C. Wimes. Williams was sentenced to 11 years in federal prison without parole. Clay was sentenced to eight years in federal prison without parole.
On Jan. 31, 2018, Clay pleaded guilty to two counts of aiding and abetting robbery and two counts of aiding and abetting the brandishing of a firearm during a crime of violence. Clay admitted that she was involved in the Sept. 11, 2015, armed robbery of a metroPCS store at 723 Southwest Blvd., Kansas City, Mo., and the Sept. 12, 2015, armed robbery of a GameStop store at 906 Westport Rd., Kansas City, Mo.
On May 24, 2017, Williams pleaded guilty to participating in an armed robbery conspiracy, two counts of robbery and two counts of aiding and abetting the brandishing of a firearm during a crime of violence.
Williams admitted that he participated in a conspiracy from July 25 to Oct. 20, 2015, that involved 13 armed robberies of businesses in the metropolitan area. Approximately $19,500 in proceeds and property were stolen during the course of the conspiracy.
Williams also admitted that he was involved in the Aug. 18, 2015, armed robbery of the MetroPCS store at 4513 Independence Ave., Kansas City, Mo., and the Aug. 21, 2015, armed robbery of the Phillips 66 gas station at 7531 Troost Ave., Kansas City, Mo.
Co-defendant Deitra M. Turner, also known as “Detrix Mob Turner,” 25, pleaded guilty to the same charges as Williams and was sentenced on April 12, 2018, to eight years in federal prison without parole.
Co-defendant Donald L. Boggess, also known as “Old School,” 56, of Kansas City, Mo., has pleaded guilty to one armed robbery and awaits sentencing.
In the Aug. 18, 2015, metroPCS robbery, Boggess was armed with a silver handgun while Williams stood by the door looking out. When Boggess demanded money, the sales clerk motioned to the cash register and Boggess opened the drawer, took approximately $2,627, and stuffed it into his hooded sweatshirt pocket. While taking the cash from the drawer, Boggess continued to point the handgun at the clerk and another employee. Williams and Boggess then fled the store and got into the getaway car with the Turner and Clay. All four divided and shared in the proceeds from the robbery.
In the Aug. 21, 2015, Phillips 66 robbery, Williams and Turner entered the store, while Clay was at the gas pump as the lookout and Boggess remained in the car, as he was the getaway driver. The cashier was in the middle of a transaction with a customer who had just handed her a $100 bill when Williams pushed the customer out of the way and demanded the money in the register. He then pulled out a silver handgun that was wrapped in a t-shirt and pointed it at her. The cashier opened the cash register and took out all of the cash and placed it onto the counter. Williams grabbed the cash, then he and Turner (who was standing by the door as a lookout) left the store. They got into Boggess’s vehicle and Boggess drove away. The money from the robbery was split equally among the four of them.
Clay admitted that, in two robberies, she entered the store prior to the robbery then left the store when there were no other customers. A short time later, Williams and Turner entered the store. Williams, armed with a handgun, demanded money.
In the Sept. 11, 2015, metroPCS robbery, Turner grabbed a blue metroPCS bag from the store to put the money in to. The employee handed over approximately $312. Williams and Turner ordered her to the back to unlock the safe, but she was unable to unlock the safe.
In the Sept. 12, 2015, GameStop robbery, Turner took one of the employees to the back and collected game systems. The employee stated he handed over approximately $555 and games. Two witnesses outside the GameStop store saw Williams and Turner run to and get into Clay’s red Toyota; Clay, the getaway driver, was already in the car. Williams, Turner, and Clay split the money and video game systems.
Boggess pleaded guilty to the Aug. 30, 2015, armed robbery of a 7-Eleven store at 1701 Independence Ave., Kansas City, Mo.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department, the Grandview, Mo., Police Department, the Roeland Park, Kan., Police Department and the FBI.
Justice Department Announces Addendum to Swiss Bank Program Category 2 Non-Prosecution Agreement with Bank Lombard Odier & Co. Ltd.Read the Press Release
The Department of Justice announced today that it has signed an Addendum to a non-prosecution agreement with Bank Lombard Odier & Co., Ltd., of Zurich Switzerland. The original non-prosecution agreement was signed on December 31, 2015.
The Swiss Bank Program, which was announced on August 29, 2013, provided a path for Swiss banks to resolve potential criminal liabilities in the United States relating to offshore banking services provided to United States taxpayers. Swiss banks eligible to enter the program were required to advise the Department by December 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Swiss banks participating in the program were required to make a complete disclosure of their cross-border activities, provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers had a direct or indirect interest, cooperate in treaty requests for account information, and provide detailed information about the transfer of funds into and out of U.S.-related accounts, including undeclared accounts, that identifies the sending and receiving banks involved in the transactions.
The Department executed non-prosecution agreements with 80 banks between March 2015 and January 2016. The Department imposed a total of more than $1.36 billion in Swiss Bank Program penalties, including more than $99 million in penalties from Lombard Odier. Pursuant to today’s agreement, an addendum to Lombard Odier’s non-prosecution agreement, Lombard Odier will pay to the Department an additional sum of $5,300,000, and will provide to the Department supplemental information regarding its U.S.-related account population, which now includes 88 additional accounts.
Every bank that signed a non-prosecution agreement in the Swiss Bank Program had represented that it had disclosed all of its U.S.-related accounts that were open at each bank between August 1, 2008, and December 31, 2014. Each bank also represented that it would, during the term of the non-prosecution agreement, continue to disclose all material information relating to its U.S.-related accounts. In reaching today’s agreement, Lombard Odier acknowledges that there were certain additional U.S.-related accounts that it knew about, or should have known about, but that were not disclosed to the Department at the time of the signing of the non-prosecution agreement. Lombard Odier provided early self-disclosure of their unreported U.S.-related accounts and has fully cooperated with the Department.
“The Department of Justice and Internal Revenue Service have capitalized on information obtained under the Swiss Bank Program to analyze the flow of money of U.S. tax evaders from closed Swiss bank accounts to banks in other countries. As a result, the Department has learned more about the methods of those who continue to evade their tax obligations and those institutions that assist them,” said Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Department of Justice’s Tax Division. “I urge any banks that aided and abetted in these schemes, or that have received money from closed Swiss bank accounts owned or controlled by persons or entities that are U.S. related, to contact the Tax Division and disclose complete and accurate information about these activities before they are contacted by the Division or the IRS.”
Principal Deputy Assistant Attorney General Zuckerman thanked Trial Attorney Kimberly M. Shartar, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis, and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Jury Finds Baldwin County Kingpin Guilty of All ChargesRead the Press Release
MACON: United States Attorney for the Middle District of Georgia, Charles E. Peeler, announces that Delma Goddard, a/k/a “Shug” and “Big Hxmie” age 38, of Milledgeville, Georgia, was found guilty by a jury of his peers of Conspiracy to Possess with Intent to Distribute more than 280 Grams of Crack Cocaine, more than 50 Grams of Methamphetamine, and more than 100 Grams of Heroin. The jury also convicted Mr. Goddard of four counts of Distribution of Methamphetamine; six counts of Distribution of Crack Cocaine; five counts of Possession of a Firearm by a Convicted Felon; five counts of Possessing a Firearm in Furtherance of a Drug Trafficking Crime; one count of Distribution of Heroin; and one count of Possession with Intent to Distribute Heroin. As a result of his conviction on these twenty three counts, Mr. Goddard is facing a minimum mandatory term of imprisonment of at least 125 years without parole.
Mr. Goddard was the lead conspirator and is a member of the Nine-Deuce gang in Baldwin County. The Nine-Deuce gang is affiliated with the Bloods national street gang. During the period between 2013 and 2016, the Nine-Deuce gang was responsible for numerous gang-related assaults in Baldwin County, Georgia. The gang is identified by its use of the color red, as well as particular hand signs, and it is fueled by proceeds from the sale of illegal drugs in Milledgeville and the surrounding counties. Mr. Goddard was responsible for obtaining, manufacturing and distributing crack cocaine, and also for distributing methamphetamine and heroin.
As part of the investigation, agents from the DEA, FBI, ATF and Ocmulgee Drug Task Force were responsible for removing more than 10 ounces of crack cocaine, more than 10 ounces of methamphetamine, and more than 10 ounces of heroin from the streets of Milledgeville. In addition, 17 firearms, including two assault rifles, were purchased from Mr. Goddard and/or seized during a search warrant executed at his residence.
Evidence established during the trial proved that Mr. Goddard sold various quantities of crack cocaine, methamphetamine and heroin to government operatives. Mr. Goddard has a prior conviction for the Sale of Cocaine in 2000.
As part of the original indictment in this case, fifteen other individuals, several of whom were Nine-Deuce gang members, entered guilty pleas to various charges:
- Chad Delacy Freeman, a/k/a “Big Bone” and “Bone Loco” – gang member
- Cynthia Bolston Smith, a/k/a “Cynt”
- Alonzo Butts
- Demetrius Jamel Harden, a/k/a “Meat Dawg” and “Meat Dog” – gang member
- Deshawn Ransom, a/k/a “Nephew” – gang member
- Eric Demetrius Veal
- Everett Hill
- Derrick Mosley, a/k/a “D Mo” – gang member
- Ishmawiyl Abdhal Davis, a/k/a “NY” and “New York” – gang member
- Travis Glenn, a/k/a “T” and “TG” – gang member
- Edward Antonio Brown, a/k/a “Plug” – gang member
- Montavious Jermell Barnes, a/k/a “Coot” and “Koot” – gang member
- Jevon Deshawn Clark, a/k/a “Dub” and “J Dub” – gang member
- Demale Hampton, a/k/a “Rabbit” and “Rab”
- Demond Monterio Dennis, a/k/a “Double Deuce” – gang member
Mr. Goddard will be sentenced in about 60 days following a pre-sentence investigation and report.
“These guilty pleas and convictions and the dismantling of this gang are the result of a true partnership between District Attorney Steve Bradley’s office, Baldwin County Sheriff Bill Massee’s office, the Ocmulgee Drug Task Force, DEA, FBI, ATF, and the Office of the United States Attorney for the Middle District of Georgia,” said United States Attorney Charles E. Peeler. “To those who choose to engage in drug trafficking, firearms trafficking and violent crime, take note: Federal and State law enforcement and prosecutors are teaming up to take you down. Providing the citizens of Middle Georgia with the safe neighborhoods and drug free communities they deserve is the top priority of this office. Thank you to the hard work of law enforcement in this matter.”
“Baldwin County residents can sleep better tonight knowing that a guilty verdict has been returned against this violent crack, powder cocaine and methamphetamine trafficker,” said Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration’s Atlanta Field Division. “This case demonstrates how DEA and its local, state and federal law enforcement partners and the U.S. Attorney’s Office present a united front to disrupt, dismantle and destroy gang-related drug trafficking organizations.”
“Nothing infects our communities more than the infiltration of drugs and guns onto our streets,” said Ricardo Grave de Peralta, Acting Special Agent in Charge (A/SAC) of FBI Atlanta. “Goddard’s conviction is only the beginning of our efforts to protect the good citizens of Baldwin County from the menace this top level gangster and his fellow gang members posed.”
“Sheriff Bill Massee and I both appreciate the excellent coordination between our personnel and those in the Federal system. That partnership has led to a real, identifiable reduction in local gang and drug activity,” said Ocmulgee Judicial Circuit District Attorney Steve Bradley. “These were serious, historical offenders we took off the street, and Baldwin County is much safer as a result.”
The case was brought as part of OCDETF (Organized Crime Drug Enforcement Task Force) and Project Safe Neighborhoods (PSN) programs. OCDETF and PSN are programs that have been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
This case was investigated by the Baldwin County Sheriff’s Office; Ocmulgee Drug Task Force; Drug Enforcement Administration (DEA); Federal Bureau of Investigation (FBI) and Bureau of Alcohol, Tobacco’ Firearms and Explosives (ATF). Assistant U.S. Attorneys Charles Calhoun and Michael Solis are prosecuting the case for the Government with participation and cooperation of Ocmulgee Judicial Circuit District Attorney Steve Bradley.
Questions regarding this case should be addressed to Pamela Lightsey, Public Information Officer, at 478-731-1824 or [email protected].
Joliet, Illinois Man Sentenced to 51 Months in PrisonRead the Press Release
HAMMOND- Rigoberto Ortiz-Dominguez, 33, of Joliet, Illinois, was sentenced before District Court Judge Philip P. Simon on his plea to possession with intent to distribute heroin, announced U.S. Attorney Kirsch.
Ortiz Dominguez received a sentence of 51 months in prison followed by 2 years of supervised release.
According to documents filed in this case, DEA agents used a confidential source to negotiate with Michael Cruz, Ortiz-Dominguez’s co-defendant, for the purchase of kilograms of heroin on November 16, 2017. Cruz informed the confidential source that a courier would deliver the heroin later that same day. The courier was Ortiz-Dominguez. Hammond Police stopped Ortiz-Dominguez on his way to deliver the heroin. During a search of Ortiz-Dominguez’s car, police found 3.06 kilograms of heroin in a hidden compartment. Co-defendant Michael Cruz entered a guilty plea to the same charge on July 27, 2018.
This case was investigated by the Lake County HIDTA (DEA) with the assistance of the Hammond Police Department and was prosecuted by Assistant United States Attorney Thomas M. McGrath.
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Individual Found Guilty for DogfightingRead the Press Release
SAN JUAN, P.R. – Today, after a two-day trial and a 20-minute deliberation, a jury found Ehbrin Castro-Correa, a.k.a. “Chino” guilty of possessing and training an animal for purposes of having the animal participate in an animal fighting venture, announced Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. United States District Court Chief Judge Gustavo Gelpí presided over the trial. Immigration and Customs Enforcement- Homeland Security Investigation (ICE-HSI) was in charge of the investigation.
On June 12, 2017, with jury selection about to begin, Castro-Correa entered a plea of guilty to participating in a dogfight on January 24, 2016 in Juncos, PR. However, at his sentencing hearing on December 19, 2017, Castro-Correa refused to take responsibility for his crime. The court vacated the defendant’s guilty plea and then set the case back on the trial schedule.
On January 24, 2016, defendant used his cellphone to film his dog and another dog engaged in a brutal and bloody dogfight in Juncos. The video was discovered during a search of defendant’s cellphone at the Pan American dock when he attempted to transport six canines to the Dominican Republic for dogfighting. The Dominican Republic is a notorious worldwide haven for dogfights. This discovery led to the execution of a search warrant at his residence, which resulted in the seizure of an additional 25 dogs, dogfighting training materials and instruments, and pharmaceuticals commonly used to condition dogs for dogfighting and treat their wounds.
“This is a bloody and brutal crime where dogs are trained and forced to tear each other apart for the amusement of sick and depraved individuals. It is important to inform the public that it is a violation of federal law to even attend a dogfight,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “The protection of animals is a priority of the U.S. Attorney’s Office for the District of Puerto Rico. Today’s guilty verdict concludes satisfactorily the first case ever tried in the District of Puerto Rico involving dogfights. Individuals who attempt to profit from animal abuse crimes will be investigated, prosecuted, and punished accordingly.”
The defendant is facing up to five years in prison, a fine not to exceed two-hundred and fifty thousand dollars ($250,000.00), and a term of supervised release of at least three years. Assistant United States Attorney Scott H. Anderson was in charge of the prosecution of the case.
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Hartford Man Sentenced to Prison for Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ISAIAH GAMBLE, also known as “Fresh” and “Zay,” 23, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from an investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford’s North End. In 2015, there was a spike of gang-related violence between the Hoodstarz and the Dumouts street gangs. GAMBLE was identified as a member of the Hoodstarz.
In the summer of 2015, investigators made multiple controlled purchases of narcotics from GAMBLE and others in the area of Westland Street in Hartford. On September 15, 2015, GAMBLE was arrested in possession of crack cocaine that he had arranged to sell to an undercover officer.
On March 2, 2016, GAMBLE pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”).
After his guilty plea and while released on bond and awaiting sentencing, GAMBLE had been participating in the U.S. District Court’s Support Court program. On May 2, 2018, Hartford Police arrested GAMBLE and two other individuals after they traveled by car to a location on Westland Street. A search of GAMBLE’s person revealed an “eight-ball” of crack cocaine, and a search of the car revealed 100 wax sleeves containing suspected fentanyl, quantities of crack and marijuana, a digital scale with white residue, and $3,395 in cash. GAMBLE was dismissed from Support Court after his arrest and his federal sentencing was scheduled.
On July 10, 2018, while awaiting sentencing in his federal case, GAMBLE was arrested again after a vehicle in which he was a passenger was stopped for motor vehicle violations. GAMBLE jumped out of the vehicle and began to run toward a residence. He was stopped before entering the house, and a search of his person revealed crack cocaine. A search of the vehicle revealed a digital scale covered with a white powder residue.
GAMBLE has been detained since July 16, 2018, when his bond was revoked.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Gulfport Man Sentenced to 10 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – Eric Jameson Graham, 39, of Gulfport, was sentenced today by U.S. District Judge Louis Guirola, Jr. to the maximum 120 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. He was also ordered to pay a $3,000 fine.
On October 4, 2017, an informant advised agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives that Graham sold an SKS rifle to a known felon. On October 5, 2017, Agents obtained a search warrant for the home Graham shared with his codefendant Erin Woods, where they found marijuana, methamphetamine, and 21 firearms. The firearms were stolen from Woods’ father, a collector. Graham had a prior felony conviction for grand larceny and therefore is prohibited from possessing any firearm.
Co-defendant Woods previously pled guilty in federal court, before Judge Guirola on April 25, 2018, to being a user of controlled substances illegally possessing a firearm. Woods was sentenced on July 25, 2018 to the maximum penalty of 10 years in federal prison for that crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Annette Williams.