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Friday 15 June 2018
Two Mexican Women Arrested, Charged with Possession of Suspected FentanylRead 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 Maria Guadalupe Martinez-Plascencia, 47, and Claudia Anel Cuevas-Sandoval, 37, both of Guadalajara, Mexico, were arrested and charged by criminal complaint with possession with intent to distribute Schedule I and Schedule II controlled substances. The charges carry a maximum penalty of 10 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that according to the complaint, in early June 2018, the Drug Enforcement Administration and the Niagara Frontier Transportation Authority Police began investigating the activities of Martinez, who was associated with an individual arrested on May 26, 2018, in Laredo, Texas. The individual was in possession of a backpack and a laptop bag that concealed heroin. Martinez was identified in a Customs and Border Protection report, which included instructions to conduct an inspection of the defendant during any border crossing.
On June 9, 2018, the NFTA identified Martinez and Cuevas traveling together. The defendants purchased tickets for a Greyhound bus departing from Philadelphia, PA, late in the evening of June 9, 2018, and arriving in Buffalo on June 10, 2018. When the defendants arrived, law enforcement officers surveilled them at the Hyatt Regency Buffalo Hotel in downtown Buffalo.
In the early morning hours of June 11, 2018, officers executed a New York State search warrant in the room the defendants were staying in. During the search, officers found two backpacks and two laptop bags in plain view which were heavy but contained no visible contents. Sewn into the baggage were 10 packages containing suspected fentanyl or fentanyl analogue. Martinez and Cuevas were arrested at that time.
Field testing of the suspected fentanyl was not conducted because of the significant threat to law enforcement personnel, first responders, and members of the public presented by fentanyl, fentanyl-related substances, synthetic opioids, and other powder substances.
The defendants made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and are being held pending a detention hearing on June 18, 2018 at 1:00 p.m.
The complaint is the result of an investigation by the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Men Charged with Interstate Transport of $2.3 Million Worth of Stolen PerfumeRead the Press Release
NEWARK, N.J. – Two men have been charged for their alleged roles in transporting $2.3 million worth of stolen perfume products out of New Jersey, U.S. Attorney Craig Carpenito announced today.
Yunior Estevez, 33, of Hollywood, Florida, and Carlos Duvergel, 53, of Colorado Springs, Colorado, were both charged by complaint with conspiracy and with the interstate transport of stolen property. Estevez will make his initial appearance today before U.S. Magistrate Judge Mark Falk in Newark federal court. Duvergel made his initial appearance on June 6, 2018, before U.S. Magistrate Judge James B. Clark III in Newark federal court and was released on bail on June 7, 2018.
According to documents filed in this case and statements made in court:
In November 2017, the defendants and others obtained unauthorized access to a warehouse storing perfume products in Edison, New Jersey, and drove away with at least one tractor-trailer filled with stolen perfume products. Toll plaza footage from the N.J. Turnpike revealed Estevez to be driving the tractor-trailer out of New Jersey and into Delaware. The value of the stolen perfume products is estimated to be $2.3 million.
The conspiracy count is punishable by a maximum potential penalty of five years in prison. The charge of interstate transport of stolen property is punishable by a maximum penalty of 10 years in prison. Both charges also carry a $250,000 fine, or twice the gross gain or loss from the offenses.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, and the Edison Police Department, with the investigation leading to these charges.
The government is represented by Special Assistant U.S. Attorney Leah Gould of the U.S. Attorney’s Office Public Protection Unit in Newark.
Two Malden Residents Charged with Defrauding Their EmployerRead the Press Release
BOSTON – Two Malden men were charged today in federal court in Boston for their roles in a wide-ranging conspiracy to defraud their employer, a large facilities services company with offices in the Greater Boston area.
Lou Amaral, 52, was charged by information with one count of conspiracy to commit honest services mail fraud, one count of conspiracy to commit wire fraud, one count of money laundering, and one count of tax evasion. Vence Pires, 58, was charged by information with one count of conspiracy to commit wire fraud.
According to court documents, Amaral and Pires worked for the same facilities services company in the Greater Boston area. Amaral was the supervisor of the Special Services department, and as such, he had the ability to hire employees and to contract with third-parties to provide temporary labor. Pires was an account manager who worked for Amaral in Special Services. Amaral first began by taking bribes from a temporary labor company in order to steer contracts to that company. In 2014, Amaral opened up his own temporary labor company and, with the help of Pires, awarded himself the temporary labor contracts. Through this scheme, Amaral made approximately $10 million in revenue over a three-year period, resulting in harm to his employer of more than $4 million.
Amaral has agreed to forfeit approximately $2 million that has been seized from him.
Pires faces a maximum sentence of five years in prison, up to three years of supervised release, and a fine of up to $250,000. Amaral faces a maximum sentence on the conspiracy and money laundering counts of up to 20 years in prison, three years of supervised release, and a fine of $250,000 on each count. Amaral faces a maximum sentence on the tax evasion count of up to five years in prison, supervised release for one year, and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Eric Rosen of Lelling’s Economic Crimes Unit is prosecuting the case.
Two Jamestown Men Indicted on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Tyler Craig Anderson, 27, and Robert Lincoln, 26, both of Jamestown, NY, with conspiracy to make false statements to purchase firearms, which carries a maximum penalty of five years in prison. In addition, Anderson is charged with possession with intent to distribute cocaine and marijuana, maintaining a drug involved premises, and possession of a firearm in furtherance of drug trafficking crimes which are punishable by a mandatory minimum five years in prison and a maximum of life in prison.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the indictment and previously filed complaint, the Ellicott Police Department received complaints from area residents regarding suspected drug dealing at Anderson’s residence. According to residents, there were frequent and short visits by a number of people driving a variety of vehicles. As a result, law enforcement officers conducted controlled purchases of cocaine from Anderson at his residence on Willard Street Extension. Law enforcement officers learned during those controlled drug sales that Anderson had a number of firearms at his residence.
On March 9, 2018, law enforcement officers executed a search warrant at Anderson’s residence and recovered cocaine, marijuana, drug paraphernalia, 14 firearms, and ammunition. The defendant was taken into custody at the scene.
Subsequent investigation determined that at least three of the firearms were purchased by defendant Lincoln at a sporting goods store in Russell, Pennsylvania. Lincoln completed the required federal forms stating that he was the purchaser of the firearms, but shortly thereafter, he turned the firearms over to Anderson.
According to the complaint, law enforcement officers reviewed a Facebook page believed to be operated by defendant Anderson. One post read, "I gotta bout 30 guns and I love em all the same bang bang 'merica." Another Facebook user commented, "And get them all taken the same when they say you can't have them anymore." Anderson responded, "They' re gonna have to kill me mane [sic]."
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Jamestown Police Department, under the direction of Chief Harry Snellings, and the Ellicott Police Department, under the direction of Chief William L. Ohnmeiss, Jr.
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.
Turtle Creek Brothers Charged with Violating Federal Drug, Gun and Witness Tampering LawsRead the Press Release
PITTSBURGH – Two residents of Allegheny County, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug, firearms, and witness tampering laws, United States Attorney Scott W. Brady announced today.
The six-count Indictment, returned on June 13 and unsealed today, named brothers Julian Gray, age 26, and Brandon Gray, age 24, both of Turtle Creek, Pennsylvania, as the defendants.
According to the Indictment, on April 24, 2018, Julian Gray and Brandon Gray conspired with each other and others to distribute and to possess with intent to distribute quantities of heroin, cocaine, and cocaine base. The Indictment also alleges that on April 24, 2018, Julian Gray possessed a Ruger .380 LCP caliber handgun; a Mossberg 12 gauge shotgun; and, a black .22 caliber rifle bearing, in furtherance of a drug trafficking crime. The Indictment further alleges that on April 24, 2018, Brandon Gray possessed a Mossberg .22 caliber rifle, after having been convicted of a previous felony offense (robbery). Lastly, the Indictment alleges that from April 25, 2018, to June 6, 2018, Julian and Brandon Gray did knowingly corruptly persuade a person whose identity is known to the grand jury, and attempt to do so, with the intent to hinder and prevent the communication to a law enforcement officer of information relating to the commission of a Federal offense.
Julian Gray faces a maximum total penalty of up to life imprisonment, a fine of $2,500,000, or both. Brandon Gray faces a maximum total penalty of up to 70 years’ imprisonment, a fine of $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms, and Explosive (ATF) conducted the investigation leading to the Indictment in this case with valuable assistance from the Wilkins Township Police. 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.
An Indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Tulsa Man Sentenced to 46 Months in Prison for RobberyRead the Press Release
Chief District Judge Gregory K. Frizzell sentenced Robert Chebon Johnson, 46, of Tulsa, to 46 months in prison followed by 3 years of supervised release for Robbery. Johnson must also pay restitution in the amount of $15,991.00.
On May 31, 2017, Johnson and another individual covered their faces and robbed Cash America Pawn at 11th and Memorial with a hammer. Johnson and the other individual stole jewelry, laptop computers and various firearms. While running from the business, a citizen began chasing them, firing a shot into the air, which caused Johnson to stop running until the police arrived.
United States Attorney Shores stated, “Robberies routinely are violent offenses that threaten the lives of employees and customers. My office is focused on reducing violent crimes and we will continue to work with law enforcement to improve the safety of our community by aggressively prosecuting these cases.”
The charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department. Assistant United States Attorney Dennis A. Fries handled the prosecution of this case.
Theranos Founder and Former Chief Operating Officer Charged in Alleged Wire Fraud SchemesRead the Press Release
SAN JOSE - A federal grand jury has indicted Elizabeth A. Holmes and Ramesh “Sunny” Balwani, announced Acting United States Attorney Alex G. Tse, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett; Food and Drug Administration (FDA) Commissioner Scott Gottlieb; and U.S. Postal Inspection Service (USPIS) Inspector in Charge Rafael Nuñez. The defendants are charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud. According to the indictment returned yesterday and unsealed today, the charges stem from allegations Holmes and Balwani engaged in a multi-million dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients. Both schemes involved efforts to promote Palo Alto, Calif.-based Theranos.
Holmes, 34, of Los Altos Hills, Calif., founded Theranos in 2003. Theranos is a private health care and life sciences company with the stated mission to revolutionize medical laboratory testing through allegedly innovative methods for drawing blood, testing blood, and interpreting the resulting patient data. Balwani, 53, of Atherton, Calif., was employed at Theranos from September of 2009 through 2016. At times during that period, Balwani worked in several capacities including as a member of the company’s board of directors, as its president, and as its chief operating officer.
According to the indictment, Holmes and Balwani used advertisements and solicitations to encourage and induce doctors and patients to use Theranos’s blood testing laboratory services, even though the defendants knew Theranos was not capable of consistently producing accurate and reliable results for certain blood tests. The tests performed on Theranos technology, in addition, were likely to contain inaccurate and unreliable results.
The indictment alleges that the defendants used a combination of direct communications, marketing materials, statements to the media, financial statements, models, and other information to defraud potential investors. Specifically, the defendants claimed that Theranos developed a revolutionary and proprietary analyzer that the defendants referred to by various names, including as the TSPU, Edison, or minilab. The defendants claimed the analyzer was able to perform a full range of clinical tests using small blood samples drawn from a finger stick. The defendants also represented that the analyzer could produce results that were more accurate and reliable than those yielded by conventional methods—all at a faster speed than previously possible.
The indictment further alleges that Holmes and Balwani knew that many of their representations about the analyzer were false. For example, allegedly, Holmes and Balwani knew that the analyzer, in truth, had accuracy and reliability problems, performed a limited number of tests, was slower than some competing devices, and, in some respects, could not compete with existing, more conventional machines.
“This district, led by Silicon Valley, is at the center of modern technological innovation and entrepreneurial spirit; capital investment makes that possible. Investors large and small from around the world are attracted to Silicon Valley by its track record, its talent, and its promise. They are also attracted by the fact that behind the innovation and entrepreneurship are rules of law that require honesty, fair play, and transparency. This office, along with our other law enforcement partners in the Bay Area, will vigorously investigate and prosecute those who do not play by the rules that make Silicon Valley work. Today’s indictment alleges that through their company, Theranos, CEO Elizabeth Holmes and COO Sunny Balwani not only defrauded investors, but also consumers who trusted and relied upon their allegedly-revolutionary blood-testing technology.”
“This indictment alleges a corporate conspiracy to defraud financial investors,” said Special Agent in Charge Bennett. “This conspiracy misled doctors and patients about the reliability of medical tests that endangered health and lives.”
“The conduct alleged in these charges erodes public trust in the safety and effectiveness of medical products, including diagnostics. The FDA would like to extend our thanks to our federal law enforcement partners for sending a strong message to Theranos executives and others that these types of actions will not be tolerated,” said Catherine A. Hermsen, Acting Director, FDA Office of Criminal Investigations.
“The United States Postal Inspection Service has a long history of successfully investigating complex fraud cases,” said Inspector in Charge Rafael E. Nuñez. “Anyone who engages in deceptive practices should know they will not go undetected and will be held accountable. The collaborative investigative work on this case conducted by Postal Inspectors, our law enforcement partners, and the United States Attorney’s Office illustrates our efforts to protect both consumers and investors.”
The Indictment Alleges That Doctors And Patients Were Defrauded
The indictment alleges Holmes and Balwani defrauded doctors and patients by making false claims concerning Theranos’s ability to provide accurate, fast, reliable, and cheap blood tests and test results, and through omissions concerning the limits of and problems with Theranos’s technologies. The defendants knew Theranos was not capable of consistently producing accurate and reliable results for certain blood tests, including the tests for calcium, chloride, potassium, bicarbonate, HIV, Hba1C, hCG, and sodium. The defendants nevertheless used interstate electronic wires to purchase advertisements intended to induce individuals to purchase Theranos blood tests at Walgreens stores in California and Arizona. Through these advertisements, the defendants explicitly represented to individuals that Theranos’s blood tests were cheaper than blood tests from conventional laboratories to induce individuals to purchase Theranos’s blood tests.
Further, the indictment alleges that based on the defendants’ misrepresentations and omissions, many hundreds of patients paid, or caused their medical insurance companies to pay, Theranos, or Walgreens acting on behalf of Theranos, for blood tests and test results, sometimes following referrals from their defrauded doctors. In addition, the defendants delivered to doctors and patients blood results that were inaccurate, unreliable, and improperly validated. The defendants also delivered to doctors and patients blood test results from which critical results were improperly removed.
The indictment describes a number of schemes that defendants allegedly employed to mislead investors, doctors, and patients. For example, with respect to investors, defendants performed technology demonstrations during which defendants intended to cause potential investors to believe blood tests were being conducted on Theranos’s proprietary analyzer when, in fact, the analyzer really was running a “null protocol” and was not testing the potential investor’s blood. Similarly, defendants purchased and used commercially-available analyzers to test patient blood, while representing to investors that Theranos conducted its patients’ tests using Theranos-manufactured analyzers.
The Indictment Alleges That Investors Were Defrauded
According to the indictment, the defendants also allegedly made numerous misrepresentations to potential investors about Theranos’s financial condition and its future prospects. For example, the defendants represented to investors that Theranos conducted its patients’ tests using Theranos-manufactured analyzers; when, in truth, Holmes and Balwani knew that Theranos purchased and used for patient testing third party, commercially-available analyzers. The defendants also represented to investors that Theranos would generate over $100 million in revenues and break even in 2014 and that Theranos expected to generate approximately $1 billion in revenues in 2015 when, in truth, the defendants knew Theranos would generate only negligible or modest revenues in 2014 and 2015.
Further, defendants allegedly represented to investors that Theranos had a profitable and revenue-generating business relationship with the United States Department of Defense and that Theranos’s technology had deployed to the battlefield when, in truth, Theranos had limited revenue from military contracts and its technology was not deployed in the battlefield. In addition, the defendants represented to investors that Theranos would soon dramatically increase the number of Wellness Centers within Walgreens stores when, in truth, Holmes and Balwani knew by late 2014 that Theranos’s retail Walgreens rollout had stalled because of several issues, including that Walgreens’s executives had concerns with Theranos’s performance.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The indictment charges each defendant with two counts of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and nine counts of wire fraud, in violation of 18 U.S.C. § 1343. If convicted, the defendants face a maximum sentence of twenty (20) years in prison, and a fine of $250,000, plus restitution, for each count of wire fraud and for each conspiracy count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Both defendants appeared today before U.S. Magistrate Judge Susan van Keulen for their initial appearances. The matter was assigned to the Honorable Lucy H. Koh, U.S. District Judge, for further proceedings.Assistant U.S. Attorneys Jeff Schenk, Robert S. Leach, and John C. Bostic are prosecuting the case with the assistance of Laurie Worthen and Bridget Kilkenny. The prosecution is the result of an investigation by the FDA Office of Criminal Investigations, the FBI, and the US Postal Inspection Service.
Texas Man Sentenced to Prison for Money Laundering ConspiracyRead the Press Release
A Houston, Texas man was sentenced today to 58 months in prison for his role in a money laundering conspiracy, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
According to documents and information provided to the court, Marcus T. Weathersby conspired with others to facilitate the fraudulent sale of second-hand prescription medications to a Utah-based wholesale distributor. This scheme involved purchasing bottles of prescription medications from illegitimate sources and then selling the medications to another wholesale distributor who then sold them to pharmacies as new. Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase, or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer.
Weathersby, in approximately December 2010, established Acacia Pharma Distributors Inc. (Acacia), a Mississippi corporation. Nearly eight months later, Weathersby directed another individual to incorporate Four Corner Suppliers Inc. (Four Corner) in Mississippi. Acacia and Four Corner purported to be legitimate wholesale distributors of pharmaceuticals licensed and operating in Mississippi, however, in reality Weathersby and others used these corporations to facilitate the illegal sale of second-hand prescription drugs.
Weathersby also opened and caused others to open bank accounts in the names of Acacia and Four Corner. Between February 2011 and July 2012, Weathersby withdrew and led others to withdraw over $2.9 million in cash from these bank accounts and to structure these cash withdrawals in amounts under $10,000 in order to prevent the banks from complying with their legal obligation to prepare currency transaction reports for each cash transaction over $10,000.
In addition to the term of imprisonment, U.S. District Court Chief Judge Lee H. Rosenthal ordered Weathersby to serve three years of supervised release, and imposed a money judgment against the defendant in the amount of $2,991,867.76, which will be applied as criminal restitution.
Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Patrick thanked special agents of IRS-Criminal Investigation, the Federal Bureau of Investigation, and the Department of Health and Human Services, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Syracuse Man Arrested, Charged with Attempting to Have Sex with A MinorRead 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 Charlie P. Conant, 27, of Syracuse, NY, was arrested and charged by criminal complaint with online enticement of a minor. The charge carries a mandatory minimum penalty of 10 years in prison, and a maximum of life.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, on February 27, 2018, an undercover New York State Police Investigator (UC) discovered a personal ad on a Syracuse, NY, website that appeared to be targeting minors for sex.
The UC responded to the ad via email, posing as a 12-year-old female. The UC wrote, “Hi!! Idk if Im 2 young for u but wanted 2 say hi! Soooo hi!!! Lmao :).” The defendant responded, “Hey how you doin? How old are you? What do you want to get into? Can I see pics of you?” After the UC responded, I’ll b 13 in a few months,” Conant responded, “That’s perfect. I’d love to see pics of you.” The UC sent a picture to the defendant who asked for more pictures. Communication between the UC and Conant via text message. The defendant also continued to ask for more pictures including naked photos.
There was no communication between Conant and the UC between March 29, 2018, and May 15, 2018. On that date, the defendant sent a text message to the UC stating “I really miss you princess.” The UC responded, “Thought u forgot bout me.” The UC and the defendant continued to communicate via text message. During the exchanges, Conant indicated that he wanted to meet with the child in Seneca Falls, NY, for the purpose of having sex. On June 14, 2018, the defendant traveled to Seneca Falls to meet the UC while “the minor’s” grandmother was supposedly at work. After Conant arrived, he was arrested.
The defendant made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman and is being held pending a detention hearing on June 21, 2018 at 2:00 p.m.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Richard Allen, 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.
Supplier of Southeastern New Mexico Drug Trafficking Organization Pleads Guilty to Federal Methamphetamine Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Marcos A. Martinez, 31, of Roswell, N.M., pled guilty yesterday afternoon in in Las Cruces, N.M., to federal methamphetamine trafficking and firearms charges filed as the result of a multi-agency investigation into a criminal organization that was trafficking large quantities of methamphetamine and firearms in southeastern New Mexico.
The investigation, which was initiated by the DEA, ATF and the HIDTA Region VI Pecos Valley Drug Task Force, in spring 2017, initially targeted a methamphetamine trafficking organization operating in southeastern New Mexico supplied by Martinez, and also allegedly supplied by Daniel P. Bruton, 39, of Artesia, N.M. The investigative team quickly expanded to include HSI, the U.S. Marshals Service, the U.S. Border Patrol, the New Mexico State Police, the Chaves County Metro Narcotics Task Force, and the Eddy County Sheriff’s Office, and the investigative targets expanded to include other alleged drug traffickers in Eddy and Chaves Counties. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. During the investigation, law enforcement authorities seized more than 2.5 kilograms of methamphetamine and 44 firearms.
Martinez, Bruton and eight co-defendants were charged in a 34-count indictment filed on Oct. 3, 2017. The indictment alleged that Martinez, Bruton and their co-defendants conspired to violate the federal narcotics trafficking and firearms laws from May 2017 through Oct. 2017 in Eddy and Chaves Counties and elsewhere in New Mexico. The indictment includes 55 overt acts that discussed the conspiracy’s operations, including the quantities of methamphetamine, ranging from multiple ounces to five pounds, allegedly distributed by the defendants on a routine basis. It also describes the firearms, including assault rifles that allegedly were to be smuggled into Mexico, allegedly used by the defendants in relation to their drug trafficking activities.
During yesterday’s proceedings, Martinez pled guilty to all of the charges against him in the indictment, including a methamphetamine trafficking conspiracy count, four counts of using a communication facility in furtherance of drug trafficking crimes, two counts of possessing methamphetamine with intent to distribute, one count of distributing methamphetamine, and one count of smuggling goods from the United States.
In entering the guilty plea, Martinez admitted that on numerous occasions between May 2017 and Sept. 2017, he conspired with his co-conspirators to distribute more than 2,126.98 grams of methamphetamine in Eddy County and elsewhere. Martinez also admitted that in Oct. 2017, he conspired with another individual to provide firearms to be illegally smuggled from the United States to Mexico but the firearms were seized from him by the police at a traffic stop while he was traveling from Roswell to Albuquerque, N.M. Had the firearms not been seized, it was Martinez’s intention to take the firearms to California to be illegally exported to Mexico.
At sentencing, Martinez faces a statutory mandatory minimum penalty of ten years and a maximum of life in prison. Martinez has been in custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
Four of Martinez’s co-defendants have entered guilty pleas: Chelcy A. Vasquez, 26, of Dexter, N.M., pled guilty on Feb. 5, 2018; Erick L. Miranda-Santos, 22, of Artesia pled guilty on April 5, 2018; and Isela Hernandez, 26, of Roswell pled guilty on April 16, 2018. Their sentencing hearings have yet to be scheduled. Kenneth R. Dickerson, 56, of Carlsbad pled guilty on Feb. 20, 2018, and is currently scheduled for sentencing in June 2018.
The remaining five co-defendants have entered pleas of not guilty to the charges against them. Charges in indictments and criminal complaints are only accusations. Defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
These cases were investigated by the DEA, ATF, HSI, the U.S. Marshals Service, the U.S. Border Patrol, the New Mexico State Police, the HIDTA Region VI Pecos Valley Drug Task Force, the HIDTA Region VI Chaves County Metro Narcotics Task Force, and the Eddy County Sheriff’s Office. Assistant U.S. Attorneys Clara N. Cobos and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the cases filed as the result of the investigation.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Superseding Indictment Brought Against Bakersfield Man Who Allegedly Conspired with Police Officers to Sell Methamphetamine and MarijuanaRead the Press Release
BAKERSFIELD, Calif. — On Thursday, a superseding indictment was brought against Noel Carter, 45, of Bakersfield, adding charges of bank fraud and making a false statement on a loan application, U.S. Attorney McGregor W. Scott announced.
On September 14, 2017, Carter was charged in an indictment for conspiring with Bakersfield Police Department officers Damacio Diaz and Patrick Mara to distribute methamphetamine and marijuana that Diaz and Mara seized in the course of their duties as police officers.
The superseding indictment re-alleges that from April 2012 to August 2015, Carter conspired with Diaz and Mara who deliberately failed to submit the seized drugs into the BPD evidence room, and instead provided the stolen narcotics to Carter so Carter could sell those narcotics for profit. The indictment also alleges that Mara took marijuana and provided it to Carter to process so it was suitable for sale. Finally, the indictment alleges that Carter conspired with Mara to unlawfully manufacture, process, and sell marijuana for profit.
Earlier court records indicate that in May 2016, Diaz pleaded guilty to possessing with the intent to distribute methamphetamine, as well as receiving bribes and making a false income tax return. In June 2016, Mara pleaded guilty to conspiring to distribute, and to possess with the intent to distribute, methamphetamine. Both were removed from active duty with the Bakersfield Police Department and are currently serving federal prison sentences.
The superseding indictment adds five additional charges of bank fraud against Carter, alleging that in 2016 and 2017 Carter was a manager of a virtual office and short-term office rental business known as Pacific Workplaces located in the Bank of America Building, 5th Floor, 1430 Truxtun Avenue in Bakersfield. As a contract manager for the Pacific Workplaces office, Carter was responsible for the overall operation of the office, which included the rental of space, sale of services, and the invoicing and collection of payments from clients who used the services and facilities of Pacific Workplaces. Carter was required to deposit payments of Pacific Workplaces’ customers into company checking accounts. Carter is charged with knowingly and fraudulently negotiating Pacific Workplaces customers’ checks and depositing those checks into his personal bank account at Chase Bank, for his own personal gain.
The superseding indictment also adds one additional count of making false statement on a loan application with a federally insured financial institution. The count alleges that on November 3, 2017, Carter knowingly made false statements in a loan application for the purchase of a new Mercedes-Benz automobile. Carter claimed that he earned a gross monthly income of $20,000 from Pacific Workplaces, and provided false pay stubs in support of this statement, when in fact, his actual monthly income from Pacific Workplaces was approximately $4,000.
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the IRS Criminal Investigation, and the Bakersfield Police Department. Assistant U.S. Attorneys Brian K. Delaney and Angela Scott are prosecuting the case.
If convicted, Carter faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Seabrook Resident Pleads Guilty to Producing Child PornographyRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Richard Silvestri, 49, of Seabrook, New Hampshire, pleaded guilty to two counts of producing child pornography.
According to court documents and statements made in court, sometime before December 7, 2017, Silvestri produced visual depictions of an eight-year-old minor female engaging in sexually explicit activity. Silvestri used a Samsung cellular phone to produce the images. Silvestri’s activities were discovered based on a lead from an undercover agent of the Federal Bureau of Investigation (FBI) based in Alaska. That agent notified the Bedford office of the FBI and Silvestri was arrested on December 7, 2017 in Seabrook.
A sentencing hearing is scheduled for September 27, 2018.
“The production of child pornography is a terrible crime that causes real damage to its young victims,” said U.S. Attorney Murray. “The U.S. Attorney’s Office will continue to work closely with our law enforcement partners to locate and prosecute individuals who engage in this unlawful conduct and to seek justice for the victims whose lives are affected by these predators.”
“Mr. Silvestri is finally accepting responsibility for his atrocious actions. He repeatedly abused an innocent child. Few, if any, crimes are more outrageous. That’s why the FBI will continue to work closely with our law enforcement partners to protect our children from predators like him,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division.
The FBI and the Seabrook Police Department participated in the investigation of this case. Staff from the Rockingham County Child Advocacy Center also assisted in the case. Assistant United States Attorneys Donald A. Feith and Helen White Fitzgibbon prosecuted the case.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Sacramento Man Sentenced to 2.5 Years in Prison for Possessing Cocaine with Intent to DistributeRead the Press Release
SACRAMENTO, Calif. — Robert Thomas Honeycutt, 30, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to two years and six months in prison for possessing cocaine with intent to distribute, U.S. Attorney McGregor W. Scott announced. Honeycutt was ordered to surrender to federal custody on August 3, 2018.
According to court documents, on May 2, 2017, officers in Nevada County pulled over a suspicious vehicle driving with expired registration tags. Officers determined that the vehicle was registered to Honeycutt and identified him as the passenger. They also determined that Honeycutt was on searchable probation.
During a search of Honeycutt’s vehicle, officers found approximately 28 grams of cocaine under the driver’s seat and items consistent with narcotics distribution including a digital scale and 300 small baggies. During a search of Honeycutt’s person, officers found approximately 245 grams of cocaine concealed in his pants. During a later search of Honeycutt’s residence, officers found additional cocaine, digital scales, and small baggies.
On March 16, 2018, Honeycutt pleaded guilty to one count of possession with intent to distribute cocaine.
This case was the product of an investigation by the Drug Enforcement Administration, the Nevada County Sheriff’s Office, the Nevada City Police Department, and the Grass Valley Police Department. Special Assistant U.S. Attorney Robert J. Artuz and Assistant U.S. Attorney Justin Lee prosecuted the case.
Romanian Men Ordered to Prison for Roles in ATM Skimming CrewRead the Press Release
HOUSTON – Three Romanian men have been ordered to prison for their roles in the placement of card skimmers on ATMs and stealing money from bank accounts, announced U.S. Attorney Ryan K. Patrick. Cristian Viorel Ciobanu, 31, Bogdan Mirel Constantin, 34, both of Romania, pleaded guilty Oct. 27, 2017. A third defendant – Daniel Marius Muraretu, 40, also of Romania – entered his plea Jan. 26, 2018.
Ciobanu pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft. Today, U.S. District Judge Ewing Werlein Jr. ordered him to serve 42 months for the fraud in addition to another two years for the identity theft which must be served consecutively for a total of 66 months in federal prison.
Constantin pleaded guilty to theft aggravated identity theft and received a mandatory two years in prison, while Muraretu received 37 months for his conviction of the conspiracy charge. They were all also ordered to pay restitution of $390,487.64
At the hearing, Ciobanu told the court he had made a mistake. In handing down Ciobanu’s sentence, Judge Werlein noted that he had committed one crime after another after another in Pennsylvania, Virginia, Texas and then California. “You did not just make a mistake. This was not just a matter of you bumping into someone,” Werlein said. “You claim you are a good man – but this is not the mark of a good man.”
Ciobanu, Muraretu and Constantin were part of a group that traveled to the United States and then to Pennsylvania, Virginia and Texas to steal money from victims’ bank accounts. Further, after fleeing arrest in 2016, Ciobanu was arrested in 2017, apparently committing the same crimes in California.
In each state, the co-conspirators used card skimmers to steal ATM card numbers as customers inserted their cards into the machines. They also used hidden cameras to record customers as they entered their PINs. Armed with this stolen data, they then made their own fake ATM cards. They then used those fake cards and stolen PINs to withdraw at least $390,495.84 from customer accounts. Constantin joined the group in Houston.
All have been and remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Michael Chu is prosecuting the case.
Rhode Island Man Charged in Superseding Indictment with Three Additional Bank RobberiesRead the Press Release
BOSTON - A Rhode Island man was charged in federal court in Boston yesterday with three additional counts of bank robbery.
Stephen A. Davidow, 55, of Pawtucket, R.I., was charged in a superseding indictment with four counts of bank robbery. Davidow was previously charged with one count of bank robbery.
According to court documents, between Dec. 6 and Dec. 11, 2017, an individual, later identified as Davidow, robbed four banks in the Greater Boston area. Based on the physical location of the banks, bank surveillance footage, the bank tellers’ descriptions of the robber, and other similarities, law enforcement determined that the same individual was involved in each robbery. On Dec. 15, 2017, having distributed images of the alleged perpetrator on the local news, law enforcement received a tip that the suspect was Davidow. Photos of Davidow were shown to one of the tellers who positively identified Davidow as the man who robbed the bank.
During the time of the robberies, Davidow was on supervised release following a 2007 conviction for bank robbery in Rhode Island. He was arrested on Dec. 18, 2017, on a Rhode Island federal warrant prior to being transported to Massachusetts in January 2018.
Each count provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; John Gibbons, U.S. Marshal for the District of Massachusetts; Boston Police Commissioner William Evans; and Boston University Police Chief Kelly A. Nee made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Prison Test Shows Micro-Jamming May Counter Criminal Threat of Contraband Cell PhonesRead the Press Release
The National Telecommunications and Information Administration (NTIA) has posted a report detailing its findings from the Jan. 17, 2018 test of micro-jamming technology conducted at the Federal Correctional Institution at Cumberland, Maryland.
Data from the test show that the micro-jammer’s signal disrupted commercial wireless signals inside the prison cell, which meant that if cellphones were operating inside the cell, they would have been rendered inoperable. At 20 ft. and 100 ft. outside the cell, however, the micro-jammer signals did not disrupt the commercial wireless signals.
Department officials present during the January 17, 2018, test reported that while their cellphone signals were blocked inside the cell, their cellphones were operable when standing several feet from the cell’s window.
“These promising test results mark a step forward countering the security threat posed by contraband cellphones,” said Assistant Attorney General Beth Williams of the Justice Department’s Office of Legal Policy. “The results indicate the potential for localized impact of this micro-jamming technology. That is an encouraging sign that brings us closer to a solution that will make our communities safer and help prevent the continuation of criminal activity from inside prison walls.”
The data in the report will be used by BOP and the Department to understand the efficacy of micro-jamming, conduct further evaluation of jamming technology, and develop recommendations for strategic planning.
Contraband cellphones have been an ongoing correctional security and public safety concern for the BOP as well as for state and local correctional institutions. Across the country, contraband cellphones have been used by inmates to direct gang activity, run criminal enterprises, distribute child pornography, intimidate witnesses, and facilitate the commission of violent crimes. “This test is just one part of our ongoing efforts to disrupt and disable dangerous contraband cellphones in federal and state prisons,” said Assistant Attorney General Williams.
The BOP will continue to evaluate cellphone detection and interdiction technologies and work with its federal partners and Congress to achieve cost-effective options to combat this threat to corrections and public safety. The agency does not endorse any specific vendor or product.
NTIA’s full report is available at: https://www.its.bldrdoc.gov/publications/3206.aspx
Philadelphia Man Indicted on Child Pornography ChargesRead the Press Release
PHILADELPHIA –U.S. Attorney William M. McSwain announced today that a Philadelphia man was charged with receiving and possessing child pornography.
Anthony Chiccini, 70, of Philadelphia, PA, was charged today by indictment with receiving and possessing a collection of more than 600 images and videos of children being sexually assaulted and depicted in sexually explicit positions on various dates in 2013 through 2018.
If convicted, the defendant faces a maximum possible sentence of 60 years’ incarceration, which includes a 5-year mandatory minimum term of imprisonment, five years up to a lifetime of supervised release, $750,000 in fines, and a $300 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michelle Rotella.
An indictment, information or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Nurse Practitioner Pleads Guilty in Compounding Pharmacy Fraud SchemeRead the Press Release
WASHINGTON – A Mississippi-based nurse practitioner pleaded guilty for her role in a scheme to defraud health care benefit programs including TRICARE, the health care benefit program serving U.S. military, veterans and their respective family members.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Hurst Jr. of the Southern District of Mississippi, Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Division, Acting Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) New Orleans Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Susan K. Perry, 58, of Grand Bay, Alabama, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Perry is scheduled to be sentenced by Judge Starrett on Sept. 20. Perry was charged in a 13-count indictment and had been scheduled to begin trial on June 26.
As part of her plea, Perry admitted her role in a scheme to defraud health care benefit programs by prescribing medically unnecessary compounded medications to individuals who did not need the medications, sometimes without first examining those individuals. Perry admitted that she knew that Advantage Pharmacy, based in Hattiesburg, Mississippi, would submit claims for reimbursement to health care benefit programs, including TRICARE, for compounded medications based on the prescriptions she signed, and she further expected that the health care benefit programs would pay the claims. From approximately January 2014 through April 2015, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy approximately $1,375,692 based on the claims submitted by Advantage Pharmacy in connection with the compounded medications that Perry prescribed.
The FBI, IRS-CI, DCIS, the U.S. Department of Health and Human Services (HHS) Office of Inspector General, the Mississippi Bureau of Narcotics, and other government agencies investigated the case. Trial Attorneys Katherine Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Nurse Practitioner Pleads Guilty in Compounding Pharmacy Fraud SchemeRead the Press Release
A Mississippi-based nurse practitioner pleaded guilty for her role in a scheme to defraud health care benefit programs including TRICARE, the health care benefit program serving U.S. military, veterans and their respective family members.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Hurst Jr. of the Southern District of Mississippi, Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Division, Acting Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) New Orleans Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Susan K. Perry, 58, of Grand Bay, Alabama, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Perry is scheduled to be sentenced by Judge Starrett on Sept. 20. Perry was charged in a 13-count indictment and had been scheduled to begin trial on June 26.
As part of her plea, Perry admitted her role in a scheme to defraud health care benefit programs by prescribing medically unnecessary compounded medications to individuals who did not need the medications, sometimes without first examining those individuals. Perry admitted that she knew that Advantage Pharmacy, based in Hattiesburg, Mississippi, would submit claims for reimbursement to health care benefit programs, including TRICARE, for compounded medications based on the prescriptions she signed, and she further expected that the health care benefit programs would pay the claims. From approximately January 2014 through April 2015, health care benefit programs, including TRICARE, reimbursed Advantage Pharmacy approximately $1,375,692 based on the claims submitted by Advantage Pharmacy in connection with the compounded medications that Perry prescribed.
The FBI, IRS-CI, DCIS, the U.S. Department of Health and Human Services (HHS) Office of Inspector General, the Mississippi Bureau of Narcotics, and other government agencies investigated the case. Trial Attorneys Katherine Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
New Orleans Man Sentenced for Lying to FBI about Fraudulent BP Oil Spill ClaimRead the Press Release
U.S. Attorney Duane A. Evans announced that JETTY HUI age 44, of New Orleans, Louisiana was sentenced yesterday in U.S. District Court by U.S. District Judge Nannette Jolivette Brown, to three (3) years probation, announced U.S. Attorney Duane A. Evans.
According to court documents, on February 28, 2018, JETTY HUI (HUI) pled guilty to a one count Indictment charging him with making false statements to the FBI, in violation of Title 18, United States Code, Section 1001. HUI was a business owner of Cabinets and Countertops Direct in Lakeview. After the April 20, 2010, Deepwater Horizon explosion, HUI submitted documentation of losses to his business to the Deepwater Horizon Oil Spill Trust. Those losses were fraudulent and were only submitted to facilitate a refund. On December 2, 2010, HUI received approximately $72,500 in funds. In May 2012, HUI was interviewed by the FBI. He made statements regarding the veracity of his claim for those funds, indicating to the FBI that the losses were real, when in fact they were not.
HUI was also ordered to pay $72,500 in restitution to British Petroleum (BP).
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation. The prosecution of this case was handled by Carter K. D. Guice, Jr., Assistant U.S. Attorney, Disaster Fraud Coordinator for the U.S. Attorney’s Office.
New Jersey Man Charged with Lacey Act ViolationsRead the Press Release
U.S. Attorney Duane A. Evans announced that ROBERT GLENN HENNESSY, age 65, a resident of Bayonne, New Jersey, was charged in a four count indictment with violating the Lacey Act.
According to the indictment, on four occasions between March 18, 2016 and June 14, 2017, ROBERT GLENN HENNESSY, did knowingly import, export, transport, sell, receive, acquire, and purchase in interstate commerce Louisiana box turtles having a value in excess of $350.00 knowing that the turtles were taken, possessed, transported, and sold in violation of and in a manner unlawful under Louisiana law. Louisiana law requires that all persons engaged in the sale of native reptiles and amphibians collected in Louisiana must possess a license, and that all persons taking reptiles or amphibians, whether recreationally or commercially, and persons involved in the reptile and amphibian industry, including wholesale/retail dealers and transporters be licensed. As regards box turtles, Louisiana law states that no box turtles, box turtle eggs or parts shall be sold, traded or otherwise entered into commerce, and there shall be no taking of wild box turtles for commercial purposes.
If convicted, ROBERT GLENN HENNESSY faces a maximum penalty per count of not more than 5 years imprisonment, a fine of up to $250,000.00, and three years supervised release after imprisonment.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Fish and Wildlife Service, Office of Law Enforcement, the United States Postal Inspection Service, and United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter. He also thanked the United States Attorney’s Office for the District of New Jersey for their assistance. The prosecution is being handled by Assistant U.S. Attorney Emily K. Greenfield and Jon Maestri.
Navajo Man from McKinley County Pleads Guilty to Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Ronald George, 47, an enrolled member of the Navajo Nation who resides in Vanderwagon, N.M., pled guilty today in federal court in Albuquerque, N.M., to an abusive sexual contact charge. George entered the guilty plea under a plea agreement that recommends that he be sentenced to a term of imprisonment within the range of 78 to 97 months followed by a term of supervised release to be determined by the court. George will be required to register as a sex offender after completing his prison sentence.
George was arrested on April 18, 2017, on an indictment charging him with sexual abuse of a child under the age of 12 years between Feb. 4, 2014 and Sept. 21, 2015, on the Navajo Indian Reservation in McKinley County, N.M.
During today’s proceedings, George pled guilty to a felony information charging him with abusive sexual contact. In entering the guilty plea, George admitted that between Feb. 4, 2014 and Sept. 21, 2015, he engaged in sexual contact with a child under the age of 12 years while on the Navajo Indian Reservation. George remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and is being prosecuted by Assistant U.S. Attorney Nicholas J. Marshall as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Natchez Man Sentenced for Theft of a FirearmRead the Press Release
Natchez, Miss. – Kiandas Washington, 19, of Jackson, was sentenced yesterday by U.S. District Judge David C. Bramlette, III, to serve 13-months in federal prison, followed by three years of supervised release, for theft of a firearm from a licensed dealer, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 15, 2017, the Natchez Police Department responded to a larceny/shoplifting incident at Bowie Outfitters in Natchez. Two store clerks were attending to three individuals when they were distracted and one of the individuals removed a firearm, a Glock model 43, 9 mm caliber pistol, from a box that was sitting on the counter and placed the firearm in his pocket.
Natchez Police Department investigators reviewed the surveillance footage and were able to identify the individual who took the firearm as Kiandas Washington and his male companion. Later that same day, police investigators interviewed the male companion, who provided a statement in which he identified Kiandas Washington as the individual who stole the firearm. Washington was also interviewed by police investigators, and admitted to stealing the firearm. Washington then contacted another person who brought in the firearm and surrendered it to police investigators.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Southwest Mississippi Interdiction Narcotics Enforcement Unit. It was prosecuted by Assistant U.S. Attorney Keesha D. Middleton.
Michigan Man Pleads Guilty to Sending Fentanyl to Dubuque Overdose VictimRead the Press Release
A man who ordered drugs from the dark web and had them shipped to a friend in Dubuque, who died after using the drugs, pled guilty on June 14, 2018, in federal court in Cedar Rapids.
Jay Rickert, age 28, from Grand Rapids, Michigan, was convicted of willfully causing the distribution of a controlled substance.
At the plea hearing, Rickert admitted that in February 2015, he caused a controlled substance to be shipped from a supplier in Canada to a woman in Dubuque, Iowa. According to information disclosed at the plea hearing, Rickert intended to order DMT, a Schedule I hallucinogenic drug, from the dark web and have it shipped to his friend in Dubuque. The supplier in Canada instead shipped the woman fentanyl, a different controlled substance. A criminal complaint previously filed against Rickert indicated that fentanyl and DMT are both white powdery substances that look virtually identical. According to the criminal complaint, the woman, believing that the substance Rickert ordered for her was DMT, used the fentanyl and died. An autopsy concluded that the cause of death was a fentanyl overdose.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Rickert was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Rickert faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and at least 3 years and up to a lifetime term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement, and the Dubuque Drug Task Force, consisting of the Dubuque Police Department and the Dubuque County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 18-MJ-56 and 18-CR-1008.
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Medical Doctor Found Guilty of ConspiracyRead the Press Release
DUBLIN DIVISION, GA: On Wednesday, June 6, 2018, following a three-day trial before U.S. District Judge Dudley H. Bowen, a federal jury convicted Eastman resident Dr. Mark Griffis, age 61, of conspiring to falsify documents pertaining to Department of Transportation mandated medical examinations of holders of commercial driver’s licenses.
According to the evidence presented at trial, Griffis agreed with Jo Carol White to falsely certify medical examination forms without actually examining the driver. (On March 21, 2018, White was sentenced to 15 months imprisonment for her role in the scheme.) Griffis received $50 from White for every false certification. Between February 27, 2012 and September 13, 2013, Griffis falsely certified 271 bogus medical examinations. This allowed these drivers to renew their commercial driver licenses without undergoing the appropriate medical exams to assure their fitness to drive.
United States Attorney Bobby L. Christine stated, “Our nation’s highways are essential to our way of life and standard of living. Like it or not, we share these highways with large and sometimes intimidating commercial vehicles that deliver goods that are essential to our economy. There is a risk inherent in the operation of these very large vehicles and the potential for personal injury and property damage is real. No one wants this risk compounded by undetected medical issues affecting the drivers of these vehicles. The defendant’s actions in this case seriously undermined regulations designed to promote highway safety and placed the public at risk.”
Marlies T. Gonzalez, Regional Special Agent-In-Charge, United States Department of Transportation, Office of Inspector General (DOT-OIG) added, “The successful prosecution of Dr. Mark Griffis demonstrates our commitment to ensuring safety on our nation’s roadways. Working with our federal, state and local law enforcement and prosecutorial partners, we will continue our vigorous efforts to prevent and root out fraud schemes which adversely affect the public trust and safety throughout the State of Georgia and elsewhere.”
DOT-OIG Special Agent Sara Oliver led the investigation of Griffis. She was assisted by investigators of the Drug Enforcement Administration. The Federal Motor Carrier Safety Administration and the Georgia Department of Driver Services also provided assistance.
Assistant United States Attorney Karl Knoche prosecuted the case on behalf of the United States. For additional information, please contact the United States Attorney’s Office at (912) 652-4422.
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McComb Man Sentenced to Almost 8 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
McComb, Miss. – Lajerick James, 26, of Jackson, was sentenced yesterday by U.S. District Judge David C. Bramlette III, to serve 95 months in federal prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF").
On March 21, 2017, Lajerick James sold an ATF confidential informant a Bryco firearm loaded with ten rounds of ammunition. During that same transaction, James sold the confidential informant 5.41 grams of marijuana. On April 3, 2017, James again sold a firearm to the ATF confidential informant. This time, the firearm was a Glock model 22 Gen4, 40 caliber pistol, loaded with nine rounds of ammunition.
James was previously convicted on August 24, 2015 in the Circuit Court of Pike County for felony offense of mayhem.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Southwest Mississippi Interdiction Narcotics Enforcement Unit. It was prosecuted by Assistant U.S. Attorney Keesha D. Middleton.
Massachusetts Chiropractor Indicted for Tax EvasionRead the Press Release
A federal grand jury sitting in the District of Massachusetts has returned an indictment, which was unsealed today, charging the owner of a chiropractic business with tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Richard Rogers, a Massachusetts chiropractor, operated a chiropractic practice from his house. Rogers was charged with evading his taxes from 2012 through 2016 by concealing his income using a variety of methods, including using a nominee bank account to negotiate payments received by check, paying creditors using postal money orders, and using credit card accounts opened with a fictitious social security number. Rogers is also alleged to have concealed the ownership of his residence by titling the property in the name of a trust. Rogers allegedly did not file federal tax returns from at least 2008 through 2016, despite his obligation to do so.
If convicted, Rogers faces a statutory maximum sentence of five years in prison on each count of tax evasion. Roger also faces three years of supervised release and monetary penalties. An indictment is an accusation. A defendant is presumed innocent until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of the office of IRS Criminal Investigation, who conducted the investigation, and Assistant Chief John N. Kane and Trial Attorney Carl F. Brooker of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Maryland Man Sentenced to Five Years in Prison for Shooting on Street in Southeast WashingtonRead the Press Release
WASHINGTON – Malik Parker, also known as Yohan Raymoore, 21, of Temple Hills, Md., was sentenced today to five years in prison on charges stemming from a shooting that took place in September 2016 in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Parker pled guilty in March 2018, in the Superior Court of the District of Columbia, to charges of assault with a dangerous weapon and possession of a firearm during a crime of violence. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of five years in prison. The Honorable Danya A. Dayson accepted the plea and sentenced the defendant accordingly. Following his prison term, Parker will be placed on three years of supervised release.
According to the government’s evidence, on Sept. 19, 2016, at approximately 8:10 p.m., Parker and his girlfriend argued loudly in the street, in the 2900 block of P Street SE. Family members from a nearby house exited to observe the commotion. One of those family members, the victim, told Parker to take the argument somewhere else because he did not want the police to be called. Parker declined his request. Parker removed his gun, fired three shots in the air and then eight shots at the family as they fled back toward their house. Luckily, none of the shots found their targets. Parker then fled before the Metropolitan Police Department (MPD) arrived.
Parker was arrested on Sept. 28, 2016 and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department and the United States Marshals Service. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists T.J. McPhail, Victim/Witness Advocate Shawn Slade, and Litigation Technology Specialist Anisha Bhatia.
Finally, she commended the work of Assistant U.S. Attorney Jessi Brooks and Louis Manzo, who together investigated, indicted and prosecuted the case.
Manhattan U.S. Attorney Announces Extradition of Senior Adviser to the Operator of the “Silk Road” WebsiteRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James D. Robnett, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Angel M. Melendez, Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today the unsealing of an Indictment charging ROGER THOMAS CLARK, who was a senior adviser to Ross Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” the owner and operator of the “Silk Road” online illicit black market that operated from January 2011 until October 2, 2013. During its operation, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute illegal drugs and other illicit goods and services to over a hundred thousand buyers, and to launder hundreds of millions of dollars derived from those unlawful transactions. CLARK was a close confidante of Ulbricht’s who advised him on all aspects of Silk Road’s operations, and who hired and managed a staff of computer programmers who helped develop Silk Road’s technical infrastructure. CLARK was arrested in Thailand on December 3, 2015, and was extradited to the United States today. CLARK is expected to be presented this afternoon before U.S. Magistrate Judge Gabriel W. Gorenstein. CLARK’s case is assigned to U.S. District Judge William H. Pauley III.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Silk Road was a secret online marketplace for illegal drugs, hacking services, and a whole host of other criminal activity. Roger Thomas Clark allegedly served as a trusted confidante to Silk Road founder and operator Ross Ulbricht, advising him on all aspects of this illegal business, including how to maximize profits and use threats of violence to thwart law enforcement. Thanks to the investigative work of our fellow law enforcement agencies and our international partners, Clark now faces justice in an American court.”
IRS-CI Special Agent-in-Charge James D. Robnett said: “The unsealed indictment again shows that the supposed anonymity of the dark web is not a protective shield from prosecution. Working with our law enforcement partners, IRS-CI used its unique financial and cyber expertise to help shine a bright light on a shadowy black marketplace, and we intend to continue pursuing these kinds of criminals no matter where they hide.”
FBI Assistant Director William F. Sweeney Jr. said: “Whether on the streets or on the Internet, the illegality of selling unlawful goods remains unchanged. Under the operation of Ross Ulbricht, the Silk Road was a criminal hub for illicit goods and services. As Ulbricht’s right-hand man, Roger Clark allegedly advised him of methods to thwart law enforcement during the operation of this illegal ploy, pocketing hundreds of thousands of dollars in the process. Today’s extradition of Roger Clark shows that despite alleged attempts to operate under the radar, he was never out of our reach.”
HSI Special Agent-in-Charge Angel M. Melendez said: “The extradition of this man today should be a reminder to those who think they can hide within the confines of the dark web, that you are never out of reach of the long arm of the law. These investigations are important in combatting the illicit drug market and we will continue to work with our law enforcement partners to fight this fight.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court, the previously unsealed criminal complaint, and evidence presented at Ulbricht’s trial in January and February 2015[1]:
Ulbricht created Silk Road in approximately January 2011, and owned and operated the underground website until it was shut down by law enforcement authorities in October 2013. Silk Road emerged as the most sophisticated and extensive criminal marketplace on the Internet at the time, serving as a sprawling black-market bazaar where unlawful goods and services, including illegal drugs of virtually all varieties, were bought and sold regularly by the site’s users. While in operation, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other unlawful goods and services to well over 100,000 buyers, and to launder hundreds of millions of dollars deriving from these unlawful transactions.
Silk Road enabled its users to buy and sell drugs and other illegal goods and services anonymously and outside the reach of law enforcement. Silk Road was operated on what is known as “The Onion Router,” or “Tor” network, a special network of computers on the Internet, distributed around the world, designed to conceal the true IP addresses of the computers on the network and thereby the identities of the network’s users. Silk Road also included a Bitcoin-based payment system that served to facilitate the illegal commerce conducted on the site, including by concealing the identities and locations of the users transmitting and receiving funds through the site.
CLARK – who went by the online nicknames “Variety Jones,” “VJ,” “Cimon,” and “Plural of Mongoose” – was described by Ulbricht as a “real mentor” who advised Ulbricht about, among other things, security vulnerabilities in the Silk Road site, technical infrastructure, management of the Silk Road users, and operating in a manner to attempt to thwart law enforcement. CLARK provided advice to Ulbricht on developing a “cover story” to make it appear as though Ulbricht had sold Silk Road, and also assisted with hiring programmers to help improve the infrastructure of, and maintain, Silk Road. CLARK also communicated at length with Ulbricht regarding the rules that governed Silk Road vendors and users, and regarding the promotion of sales on Silk Road, including the sales of narcotics. CLARK also was responsible for gathering information on law enforcement’s efforts to investigate Silk Road.
CLARK was paid at least hundreds of thousands of dollars for his assistance in operating Silk Road.
CLARK, 56, a citizen of Canada, is charged with narcotics trafficking conspiracy; narcotics trafficking; distributing narcotics by means of the internet; conspiracy to commit, and aid and abet, a computer hacking conspiracy; conspiracy to traffic in fraudulent identification documents; and money laundering conspiracy. If convicted, he faces, among other penalties, a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
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Mr. Berman praised the outstanding joint efforts of the FBI and its New York Special Operations and Cyber Division, HSI Chicago-O’Hare, the DEA’s New York Field Division, and IRS-CI’s New York Field Office. Mr. Berman also thanked the HSI Attache Bangkok, Thailand, for its assistance and support. Mr. Berman also thanked the Royal Thai Police and the U.S. Department of Justice’s Office of International Affairs for their support and assistance.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Michael D. Neff, Richard Cooper, and Timothy T. Howard are in charge of the prosecution.
The charges contained in the Complaint and the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and the Indictment, and the descriptions thereof, constitute only allegations, and every fact described therein should be treated as an allegation.
Manhattan U.S. Attorney Announces Extradition of Italian National Implicated in International Money Laundering and Narcotics ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and David J. Downing, Special Agent in Charge of the Los Angeles Division of the U.S. Drug Enforcement Administration (“DEA”), announced today the extradition of FILIPPO MAGNI, who is charged, along with co-defendant GIACOMO MANCI, with money laundering and narcotics offenses in a Superseding Indictment (the “Indictment”). MAGNI was extradited from Italy to the United States on June 14, 2018, and presented today before Chief United States Magistrate Judge Gabriel W. Gorenstein. MANCI’s extradition from Italy remains pending. This case is assigned to United States District Judge Katherine B. Forrest.
The Indictment, which was returned under seal on November 10, 2016, alleges that MAGNI and MANCI were members of an international narcotics trafficking and money laundering organization involved in trafficking hundreds of kilograms of cocaine and heroin, among other narcotics, and laundering hundreds of millions of dollars in narcotics proceeds through a variety of methods, including through seemingly “legitimate” corporations, shell bank accounts, and money couriers based in the United States and Europe. MAGNI and MANCI were arrested in Italy and taken into custody by the Italian authorities pursuant to an extradition request made by the United States in January 2017.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Filippo Magni and Giacomo Manci were key members of an international drug trafficking organization responsible for cleaning more than $250 million of drug dollars, ensuring that their criminal network could spend their illegal profits. Now, Magni is on U.S. soil and will have to answer for his alleged crimes.”
DEA Special Agent in Charge David J. Downing said: “This extradition demonstrates the reach of US law enforcement and exemplifies successful collaborations between federal, state, and local as well as international law enforcement. Targeting the financial components of these organizations – no matter where in the world those components are located – enables us to put drug traffickers completely out of business.”
According to the allegations in the Indictment [1], the previously filed criminal complaints against the defendants, and statements made in Court:
The Investigation
Since July 2013, the DEA has been investigating an international drug trafficking and money laundering organization (the “Organization”) and its cartel clients, which together have been involved in trafficking hundreds of kilograms of cocaine and heroin, among other narcotics, and laundering narcotics proceeds through a variety of methods. The Organization has ties to Panama, Mexico, Italy, Spain, and the United States, among other locations, and its members are believed to include the defendants.
MAGNI and MANCI are charged with membership in the Organization, which was led by Jesus Rodriguez-Jimenez. Rodriguez-Jimenez, along with five co-defendants, were charged for their participation in the conspiracy in June 2016 in the Southern District of New York. In June 2017, Rodriguez-Jimenez pled guilty to offenses stemming from his leadership role in the organization, and for laundering in excess of $250 million in proceeds on behalf of drug cartels in Mexico and Central America.
This case is also related to the prosecution of Roberto Ponce-Rocha, a large-scale international narcotics trafficker based in Central and South America, who used various methods, including commercial shipments, drivers, and couriers to move narcotics around the world, and to import narcotics into the United States. Ponce-Rocha and three other individuals were indicted separately in 2016. In June 2017, Ponce-Rocha pled guilty to conspiring to import narcotics into the United States.
MAGNI and MANCI were essential players in the Organization, providing money laundering expertise in Europe and the United States, and facilitating the European distribution of narcotics provided by Roberto Ponce-Rocha. For example, in August of 2013, MAGNI met with Ponce-Rocha in Panama to arrange for the shipment of vast amounts of narcotics to Italy; to this end, a test shipment of cocaine was sent to MANCI.
MAGNI facilitated the laundering of narcotics proceeds for the Organization in Italy, Switzerland, and the United Kingdom.
In January 2014, MAGNI and MANCI laundered hundreds of thousands of dollars in narcotics proceeds through a Las Vegas casino, and later deposited the laundered cash into bank accounts controlled by the Organization.
In February 2014, MAGNI and other members of the Organization orchestrated the physical movement of nearly a million dollars in narcotics proceeds across the United States. MANCI, along with a co-conspirator, was arrested in Chicago while transporting this cash in a roller suitcase through an Amtrak station.
These activities were interconnected with the Organization’s front companies, including an LED screens business in Las Vegas, as well as stash houses operated by the Organization in various cities throughout the United States, including Atlanta and Philadelphia, in order to receive drug proceeds from criminal clients who wanted those proceeds funneled into the international banking system. The Organization also arranged and facilitated cash money pick-ups in, among other places, New York City and Atlanta, receiving cash from narcotics traffickers and bringing that cash to co-conspirators with directions to wire it to shell accounts in Mexico, Hong Kong, and Italy, among other places.
In this way, the Organization laundered hundreds of millions of dollars through the international banking system, and facilitated the distribution of hundreds of kilograms of cocaine and heroin, among other narcotics.
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MAGNI, 44, of Rome, Italy, and MANCI, 55, of Rome, Italy, are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to distribute narcotics, which carries a maximum sentence of life in prison. The statutory maximum penalties in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the DEA for its work in the investigation. Mr. Berman also expressed his appreciation to the Italian Government and Italian law enforcement in executing the arrests and preparing for extradition of the defendants to the United States.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Andrew C. Adams and Noah Falk are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manchester Man Sentenced to 20 Months in Prison for Firearms OffensesRead the Press Release
CONCORD - David Hamilton, 20, of Manchester, was sentenced in federal court to 20 months in federal prison for aiding and abetting the straw purchase of a firearm, and for being a prohibited drug user in possession of a firearm, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in September 2016, Manchester Police responded to reports of shots fired, followed by a car accident. When police arrived at the scene, the occupants of the vehicle had fled, leaving behind a pistol. Upon further investigation, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that in June 2016, Hamilton persuaded another individual to “straw purchase” the pistol on Hamilton’s behalf. Specifically, when the purchaser filled out the paperwork required for purchasing the pistol, he falsely stated that he was purchasing it for himself, and not for Hamilton, in violation of federal law.
Approximately two months after the straw purchase, in August 2016, a Manchester Police Officer observed Hamilton – who had an outstanding warrant for his arrest – walking across the Granite Street Bridge in Manchester, New Hampshire. As the officer approached, Hamilton threw a pistol over the sidewalk railing. Police arrested Hamilton and recovered the pistol, which was found to have an obliterated serial number. At the time, Hamilton was an unlawful drug user, and was therefore prohibited from possessing a firearm.
“Those who unlawfully obtain firearms present a serious risk to public safety,” said U.S. Attorney Murray. “The U.S. Attorney’s Office is committed to working aggressively to combat violent crime, in all of its forms. Those who choose to use firearms to commit crimes in New Hampshire will be prosecuted to the fullest extent of the law.”
“Today’s sentencing is another example of the importance of law enforcement partnerships and their effectiveness in protecting the safety and security of communities,” said Special Agent in Charge Mickey Ledingham. “ATF will continue to combat violent crime and to keep guns out of the hands of criminals.”
This matter was investigated by the ATF and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Shane Kelbley.
The case is part of ATF’s Project Safe Neighborhoods initiative, a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Local Resident Charged with Access Device FraudRead the Press Release
U.S. Attorney Duane A. Evans announced that VINCENTIA ROQUES (“ROQUES”), age 40, of New Orleans, Louisiana, was charged Wednesday, June 13, 2018 in a Bill of Information with Access Device Fraud.
According to documents filed in federal court, ROQUES worked part-time as a bookkeeper and office manager for several businesses located within the Eastern District of Louisiana. As the bookkeeper, ROQUES gained access to passwords and account numbers related to accessing bank accounts associated with each business. ROQUES also obtained direct access to financial account information and identifiers that permitted her to conduct unauthorized financial transactions with the money and credit accounts belonging to her employers.
The maximum penalty for access device fraud is ten years of imprisonment, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim.
U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Postal Investigative Service in investigating this matter. Assistant United States Attorney, Richard R. Pickens, II is in charge of the prosecution.
Kentucky man sentenced for assaulting a member of congressRead the Press Release
Victim attacked while mowing his yard.
PRESS RELEASE
Indianapolis B Josh J. Minkler, the United States Attorney for the Southern District of Indiana, announced today that a Bowling Green, Kentucky, man was sentenced for assaulting a member of congress resulting in personal injury, a felony under federal law. Rene A. Boucher 60, was sentenced to 30 days imprisonment by U.S. District Judge Marianne Batanni from the Eastern District of Michigan, sitting by special designation.
“Assaulting a member of Congress is an offense we take very seriously,” said Minkler. “Those who choose to violate the law will be aggressively prosecuted in federal court.”
According to court documents, Boucher and the victim are neighbors in Bowling Green, Kentucky. On November 3, 2017, the victim was mowing his yard while wearing headphones. Boucher allegedly witnessed the victim stack brush onto a pile near the victim’s property and “had enough.” Boucher ran onto the victim’s property and tackled the victim. As a result of this assault, the victim suffered multiple fractured ribs and subsequently contracted and required medical attention for pneumonia. Boucher admitted the assault but denied it was politically motivated.
The United States Attorney’s Office for the Southern District of Indiana was assigned the case following the recusal of the United States Attorney’s Office for the Western District of Kentucky where the offense was committed
This case was investigated by the Louisville office of the Federal Bureau of Investigation and the Kentucky State Police.
“The FBI takes seriously assaults against our elected officials, regardless of motive,” said Special Agent in Charge Amy S. Hess of the FBI's Louisville field office. “Today's sentence should send a clear message that there are consequences to such actions.”
According to Assistant United States Attorney Bradley P. Shepard of the United States Attorney’s Office for the Southern District of Indiana who prosecuted this case as a Special Attorney to the United States Attorney General, Boucher must serve one year of supervised release following his sentence and pay a $10,000 fine.
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Kauai Man Sentenced to 25 Years in Prison for Manufacturing Child PornographyRead the Press Release
HONOLULU – Chief United States District Court Judge J. Michael Seabright sentenced Michael J. Terui, age 38, to 300 months (25 years) in prison yesterday, plus a lifetime period of supervised release, for four counts of manufacturing child pornography. Terui will also be required to register as a sex offender. Terui pled guilty to the offenses on December 12, 2017.
Kenji M. Price, United States Attorney for the District of Hawaii, said that according to court documents and information presented in court, Terui repeatedly sexually abused numerous young children, ranging in age from seven to 13 years old, over a period of more than a decade. Fifteen minor victims have been identified. Terui acted as an outreach resource for his father’s church, which held services in the homes of members of the congregation and offered outreach programs to families that lacked a father figure in the home. Terui would often host "sleepovers" and other gatherings at his residence, where he kept video games and movies, which he used to "groom" the children and gain their trust. Church members and other parents would entrust their children to Terui’s care. Terui engaged in sex acts with the children, often while they were sleeping (or pretending to sleep). Terui recorded his conduct using hidden and handheld digital video cameras. Terui also lured his child-victims on vacations in an effort to bond with them and use them for his sexual gratification. Digital storage media found at Terui’s house contained 77 child pornographic video files and 690 child pornographic images.
At yesterday’s sentencing, Chief Judge Seabright commented that Terui’s conduct was "shocking, abhorrent, callous, and devastating," and told Terui that he had "left a trail of pain through what you’ve done." Chief Judge Seabright said that this was the "worst type of breach of trust possible." In imposing the 25-year sentence, Chief Judge Seabright noted several aggravating factors, including that Terui had groomed the children to gain their trust; taken advantage of his position in the church in order to gain access to the children; and engaged in the egregious sexual abuse over a period of more than 10 years. Chief Judge Seabright also highlighted that Terui had recorded the abuse of the children in order to use the recordings for his future sexual gratification. Four parents of the minor victims participated in the sentencing. The parent of one victim told Terui that he was a "wolf in sheep’s clothing" and accused him of "hiding behind the ministry."
The case was investigated by the Federal Bureau of Investigation, and prosecuted by Assistant United States Attorney Marc A. Wallenstein.
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Joint Statement of Action to Promote Elder Justice in Rural America by the United States Department of Justice and United States Department of AgricultureRead the Press Release
The United States Department of Justice (DOJ) and United States Department of Agriculture (USDA) are forming a working group to focus on ways to empower and to support rural and tribal communities to combat elder abuse and financial exploitation. Today on World Elder Abuse Awareness Day, we collaboratively embark on a mission to work with older Americans in this Nation to improve their quality of life as envisioned by the Report to the President from the Task Force on Agriculture and Rural Prosperity.
The Nation’s seniors are treasured and revered members of our communities. Too often, however, seniors are targeted by unscrupulous criminals for fraud or are subjected to abuse. Factors more common in rural and tribal communities--including large geographic areas that elongate response time, fewer services and service providers, and limited access to broadband-- create additional challenges to identifying and combatting elder fraud and abuse in rural and tribal communities.
DOJ and USDA resolve to marshal our collective resources and expertise to enable rural and tribal communities to more effectively combat elder abuse and financial exploitation. We are forming a working group to develop recommendations and will jointly present strategic action steps in November 2018 at the Department of Justice’s Rural Elder Justice Summit in Des Moines, Iowa.Joint Statement of Action to Promote Elder Justice in Rural America by the United States Department of Justice and Department of AgricultureRead the Press Release
The United States Department of Justice (DOJ) and Department of Agriculture (USDA) are forming a working group to focus on ways to empower and to support rural and tribal communities to combat elder abuse and financial exploitation. Today on World Elder Abuse Awareness Day, we collaboratively embark on a mission to work with older Americans in this Nation to improve their quality of life as envisioned by the Report to the President from the Task Force on Agriculture and Rural Prosperity.
The Nation’s seniors are treasured and revered members of our communities. Too often, however, seniors are targeted by unscrupulous criminals for fraud or are subjected to abuse. Factors more common in rural and tribal communities--including large geographic areas that elongate response time, fewer services and service providers, and limited access to broadband-- create additional challenges to identifying and combatting elder fraud and abuse in rural and tribal communities.
U.S. Attorney D. Michael Dunavant said: "Much of the Western District of Tennessee is made up of rural communities, and it is an important priority for this office to protect our senior population across the district. To halt the scourge of abuse, exploitation and financial fraud against older citizens, we have designated an Elder Justice Coordinator in the U.S. Attorney’s Office to investigate, prosecute, punish and deter crimes against our vulnerable seniors. We appreciate the partnership with the USDA, and we look forward to implementing the strategic action steps that result from this collaboration."
DOJ and USDA resolve to marshal our collective resources and expertise to enable rural and tribal communities to more effectively combat elder abuse and financial exploitation. We are forming a working group to develop recommendations and will jointly present strategic action steps in November 2018 at the Department of Justice’s Rural Elder Justice Summit in Des Moines, Iowa.
Jamesy Havens Sentenced as Leader of Fraud RingRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman announced today that Senior United States District Judge Charles R. Simpson III sentenced Jamesy Havens, age 42, of Louisville, Kentucky, to 70 months in prison followed by 3 years of supervised release for conspiracy to commit mail fraud and multiple money laundering offenses. The Court ordered Havens to pay restitution of $1,449,482.66 to the victims of his scheme.
The Court sentenced Havens and his co-defendants for their participation in a fraudulent scheme that defrauded over 39 lenders who loaned money for the purchase of cars from May 2013 to August 2015. The total amount of loss to the lenders was $1,449,482.66. The Court sentenced co-defendant Ronald Brent Lovell, age 36, of Louisville, Kentucky to 37 months in prison, 3 years supervised release, and ordered him to pay $545,274 in restitution for conspiracy to commit mail fraud and three counts of money laundering. The Court sentenced co-defendant Jasen Coon, age 40, of Florida, to 27 months in prison, 3 years supervised release for conspiracy to commit mail fraud and two counts of money laundering, and ordered him to pay $171,398.31 in restitution. The Court sentenced Co-defendant Danny Lee Coslow, age 50, of La Grange, Kentucky to 21 months in prison and 3 years supervised release for conspiracy to commit mail fraud and five counts of money laundering. The Court ordered Coslow to pay $571,775.22 in restitution. The Court sentenced Christopher Peplinski, age 44, of Michigan, to 3 years’ probation for conspiracy to commit mail fraud and four counts of money laundering. The Court ordered Peplinski to pay $257,746.41 in restitution. The Court sentenced Co-defendant David Farnsworth, age 52, of Louisville, Kentucky, to 3 years of probation and ordered him to pay $302,525.34 in restitution. There is no parole in the federal system for those sentenced to prison terms.
According to the plea agreement filed in the case, the United States’ sentencing memorandum, and testimony during the sentencing hearing, Havens and his co-conspirators applied for car loans with no intent of repaying them. Those involved in the scheme subsequently fraudulently denied applying for the loans and claimed that someone else had stolen their identities and submitted the loan applications. Havens and his co-conspirators laundered the loan proceeds through false businesses and bank accounts designed to appear as legitimate car dealerships. They then used the laundered funds for their own personal use. The loans ultimately defaulted. In order to remove the defaulted loans from their credit histories and to interfere with legitimate collection efforts, Havens and the co-conspirators submitted false identity theft claims to credit reporting agencies claiming they were victims of identity theft. In order to support their identify theft claims, Havens and others created or filed false police reports.
Assistant United States Attorney Joshua Judd prosecuted the case. The United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigations, the Federal Bureau of Investigation, and the United States Secret Service investigated the case.
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Inmate at FCI-Berlin Sentenced to Six Months Additional Prison Time for Attempting to Obtain Drugs in PrisonRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Antonio Priester, 37, an inmate at FCI-Berlin was sentenced to six months in federal prison after pleading guilty to one count of attempting to possess prohibited objects within a federal prison. The prohibited objects Priester was attempting to possess were Schedule I controlled substances known as DMT and jwh-018.
According to documents filed with the court and statements made at the change of plea hearing, in March 2017 Priester sent a number of emails to several individuals directing them to web sites through which the controlled substances could be obtained. He directed one individual to purchase jwh-018 from a particular web site. Priester also provided directions for sneaking the substances into the prison.
The sentence imposed in connection with this charge must be served consecutively to any sentence currently being served by Priester.
The Bureau of Prisons investigated this case. Assistant United States Attorney Donald A. Feith prosecuted the case.
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Honduran National Sentenced for Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MARVIN OYUELA LOPEZ, age 31, a citizen of Honduras, was sentenced yesterday after pleading guilty to a one-count indictment for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
U.S. District Court Judge Lance Africk sentenced MARVIN OYUELA LOPEZ to six months in jail and ordered him to pay mandatory special assessment of $100.00. Additionally, MARVIN OYUELA LOPEZ was also placed on supervised release for one year. The defendant will be surrendered to the custody of U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on January 8, 2018, MARVIN OYUELA LOPEZ was found in the United States after having been previously deported from the United States on December 10, 2013.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Pleads Guilty to Violations of the Federal Gun Control ActRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ELMER JAVIER ACOSTA-MEJIA, age 27, a citizen of Honduras, pleaded guilty yesterday to a two-count indictment for violations of the Federal Gun Control Act.
According to the indictment, ELMER JAVIER ACOSTA-MEJIA, an alien illegally present in the United States, possessed of two firearms. ELMER JAVIER ACOSTA-MEJIA is prohibited from possessing any firearm because he is an alien illegally in the United States.
At sentencing, which is currently set for, September 13, 2018, ELMER JAVIER ACOSTA-MEJIA faces a maximum term of imprisonment of not more than ten (10) years, a fine of $250,000.00, and a mandatory special assessment of $100.00. Additionally, ELMER JAVIER ACOSTA-MEJIA is subject to a period of supervised release after imprisonment of up to three years.
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. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that Ronys Osorto-Osorto, age 35, a citizen of Honduras, was charged today in a one-count indictment for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
According to court documents, on or about May 31, 2018, Ronys Osorto-Osorto was found in the United States after having been officially deported and removed on or about October 8, 2015. If convicted, Ronys Osorto-Osorto faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hobbs Man Sentenced to 15 Years for Federal Drug Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Louis Garcia, 31, of Hobbs, N.M., was sentenced today in federal court in Las Cruces, N.M., to 15 years in prison for his conviction on drug trafficking and firearms charges. Garcia will be on supervised release for eight years after completing his prison sentence.
Garcia was arrested in Dec. 2017, on a criminal complaint charging him with committing drug trafficking and firearms offenses on Nov. 20, 2017, in Lea County, N.M. According to the criminal complaint, officers of the Hobbs Police Department found a loaded firearm, two ounces of methamphetamine, drug paraphernalia and $544 in Garcia’s vehicle during a routine traffic stop.
On Feb. 21, 2018, Garcia pled guilty to a three-count felony information charging him with possession of methamphetamine with intent to distribute, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm. In entering the guilty plea, Garcia admitted that on Nov. 20, 2017, he possessed approximately 54 grams of a mixture containing methamphetamine and a loaded handgun for protection in relation to his drug trafficking activity. Garcia admitted that he was prohibited from possessing firearms or ammunition because of his prior methamphetamine trafficking conviction in 2007.
This case was investigated by the Las Cruces office of the DEA and the Hobbs Police Department and was prosecuted by Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office.
Hendersonville, N.C. Attorney Sentenced to Two Years for Wire FraudRead the Press Release
ASHEVILLE, N.C. – Howard Trade Elkins, 44, of Hendersonville, N.C. was sentenced late yesterday to 24 months in prison on wire fraud charges for embezzling client funds from his law office’s trust account, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered Elkins to serve two years of supervised release upon completion of his prison term.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI) is making today’s announcement with U.S. Attorney Murray.
According to court filings, plea documents and court proceedings, Elkins was an attorney with a private practice in Hendersonville. From 2012 to 2017, Elkins engaged in a scheme to embezzle from his law office’s trust account. During the relevant time period, Elkins served as an attorney for estates of deceased individuals. Among his duties as the estate attorney, Elkins received funds from various sources into his law firm’s trust account, and used such funds to pay various debts and inheritances as directed. According to court records, Elkins would, at times, deposit funds from estate clients into his law firm’s trust account, but did not use the funds as directed. Instead, Elkins embezzled the funds and used it to support his own lifestyle, to gamble, to make lulling payments to other victim clients and to satisfy potential debts and demands related to his legal work.
“Elkins’ clients trusted him and relied on him to carry out his duties as their attorney. Instead, Elkins used his law firm’s trust account as his personal piggy bank,” said U.S. Attorney Murray. “Elkins’ misconduct is reprehensible and, more importantly, it erodes the public’s trust in our legal system,” said U.S. Attorney Murray.
Elkins pleaded guilty in November 2017 to wire fraud. He will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.
The investigation was handled by the FBI. Assistant U.S. Attorney Don Gast of the U.S. Attorney’s Office in Asheville prosecuted the case.
Harvey Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that PATRICK STEPHEN, age 37, a resident of Harvey, Louisiana, was sentenced yesterday after previously pleading guilty to one count of distributing cocaine base, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
U.S. District Judge Carl J. Barbier sentenced STEPHEN to a term of imprisonment of 120 months, 8 years of supervised release, and a $100 mandatory special assessment.
According to court documents, STEPHEN sold approximately 57.1 grams of cocaine base to a confidential source in exchange for $2,500.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Shirin Hakimzadeh and J. Ryan McLaren are in charge of the prosecution.
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Former Stockbroker Sentenced for Microcap Stock Manipulation SchemeRead the Press Release
BOSTON – A former California stockbroker was sentenced today in federal court in Boston in connection with his role in a scheme to manipulate the stock of a publicly traded microcap company.
Adam Hand, 53, of Newport Beach, Calif., was senteneced by U.S. District Court Judge William G. Young to 30 months in prison and three years of supervised release. In July 2016, Hand pleaded guilty to an information charging him with conspiracy to commit securities fraud. In May 2018, his brother, Jehu Hand, 62, was convicted following a 13-day trial of conspiracy, securities fraud and wire fraud. Jehu Hand is scheduled to be sentenced on Sept. 10, 2018. In August 2016, their brother, Learned Hand, 60, of Chapel Hill, N.C., pleaded guilty to an information charging him with conspiracy to commit securities fraud and is scheduled to be sentenced on Aug. 3, 2018.
The charges arose out of the Hand brothers’ involvement in a pump-and-dump scheme to manipulate the market for the stock of Crown Marketing, a microcap or “penny stock” company that claimed to own patented drug delivery technology.
According to evidence at the trial of Jehu Hand, in 2010, Jehu Hand incorporated Crown and issued stock to various front companies he secretly controlled. After registering this stock with the U.S. Securities and Exchange Commission in 2012, Jehu enlisted his brothers Adam and Learned to participate in the pump-and-dump scheme. Learned became the CEO of Crown and put out misleading press releases about the company, while Adam engaged in coordinated trading and sold Crown’s stock as the company was being falsely promoted. In total, the conspirators sold over 23 million shares of Crown stock, thereby causing investor losses of more than $1.5 million.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission and Financial Industry Regulatory Authority during the investigation of this matter. SEC Attorney Andrew Palid, who was appointed as a Special Assistant U.S. Attorney, and Assistant U.S. Attorney Jamie Herbert of Lelling’s Major Crimes Unit prosecuted case.
Former President of TEEMCO Pleads Guilty to Federal Payroll Tax FraudRead the Press Release
OKLAHOMA CITY – GREGORY DAMIEN LORSON, of Naples, Florida, pleaded guilty today to federal tax fraud for not paying to the Internal Revenue Service the federal payroll taxes withheld from wages of TEEMCO, LLC employees for five years, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On April 3, 2018, Lorson was charged in a one-count Information with willful failure to collect and pay over federal payroll taxes to the IRS. According to the Information, Lorson was President and Chief Executive Officer of TEEMCO, LLC, from 2010 until the business closed in mid-2015. TEEMCO was an environmental sales and consulting company in Oklahoma City. From 2010 to 2015, TEEMCO deducted and withheld federal income taxes, Social Security taxes, and Medicare taxes (commonly called "payroll taxes") from wages of TEEMCO employees. Under federal law, an employer must deduct and withhold payroll taxes from employees’ wages, and then pay over those withheld taxes to the IRS at the end of each quarter. According to the Information, instead of forwarding the withheld payroll taxes to the IRS, Lorson used the monies to fund TEEMCO’s extensive advertising campaign and to pay other creditors and expenses.
At today’s hearing, Lorson pleaded guilty to the one-count Information. He admitted that TEEMCO withheld federal payroll taxes from employees’ wages and that he knew TEEMCO had a duty to pay over those withheld taxes to the IRS. Lorson admitted that he directed TEEMCO employees not to forward the withheld payroll taxes to the IRS. He also admitted that he failed to file with the IRS quarterly federal tax returns for TEEMCO from 2010 to 2015. As part of his plea agreement, Lorson agreed to pay $3,003,220.47 in restitution to the IRS for withheld payroll taxes and other federal taxes that TEEMCO never paid to the IRS for company employees. Lorson also agreed to pay an additional $542,162.53 in restitution to the Oklahoma Tax Commission for TEEMCO employees’ state taxes that were withheld but never paid to state tax authorities.
At sentencing, Lorson faces up to five years in federal prison, plus a fine of $250,000 and three years of supervised release. Lorson will be sentenced in approximately 90 days. Reference is made to the Information and other public filings for further information. This case is the result of an investigation conducted by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Former Felon Sentenced to Nearly Nine Years in Prison for Distribution of Cocaine and Possession of Six FirearmsRead the Press Release
LAS VEGAS, Nev. – A former felon who sold cocaine and possessed six firearms was sentenced today to 105 months in federal prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Oren Snowden, 29, of Las Vegas, pleaded guilty on March 12, to one count of possession with intent to distribute cocaine and one count of felon in possession of a firearm. He has a prior federal felony conviction in Nevada for felon in possession of a firearm and was sentenced to three years in prison in 2011. United States District Judge Robert C. Jones presided over the sentencing hearing.
According to court documents, on June 21, 2017, Snowden sold cocaine to an undercover law enforcement officer for $280, at a gas station in Las Vegas. During the execution of a search warrant of his residence, law enforcement recovered six firearms including a Jimenez JA .380 semi-automatic handgun; a Smith and Wesson 10-7 .38 special revolver; a Ruger P345 .45 caliber semi-automatic handgun; a Ruger p950C 9mm semi-automatic handgun; a Bryco T380 .380 caliber; and a Ruger mini 307 .62 caliber semi-automatic rifle with scope. He voluntarily admitted to a Las Vegas Metropolitan Police Department detective that he knew what he was doing “on the side” was bad.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI) and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Alexandra Michael and Nadia Ahmed prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. For more information about PSN, visit www.justice.gov/usao-nv.
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Former Executives at Publicly Traded Transportation Company Charged with $245 Million Accounting and Securities Fraud SchemeRead the Press Release
Two former executives of Roadrunner Transportation Systems Inc., a publicly traded transportation and trucking company formerly headquartered in Cudahy, Wisconsin, were charged in an indictment unsealed today for their alleged participation in a complex accounting and securities fraud scheme that resulted in a loss of more than $245 million in shareholder value.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin, Regional Special Agent in Charge Thomas J. Ullom of the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and Special Agent in Charge R. Justin Tolomeo of the FBI’s Milwaukee Field Office made the announcement.
Mark R. Wogsland, 53, and Bret S. Naggs, 52, both of Cedarburg, Wisconsin, were charged in an indictment filed in the Eastern District of Wisconsin with one count of conspiracy to make false statements to a public company’s accountants and to falsify a public company’s books, records and accounts; one count of conspiracy to commit securities fraud and wire fraud; three counts of securities fraud; and four counts of wire fraud. Naggs, the former controller for Roadrunner’s Truckload operating segment, and Wogsland, the former controller and director of accounting for Roadrunner’s Truckload operating segment, both worked out of Roadrunner’s corporate headquarters in Cudahy. Roadrunner Transportation Systems Inc. is currently headquartered in Downers Grove, Illinois.
“According to the allegations in the indictment, Mark Wogsland and Bret Naggs engaged in a massive securities and accounting fraud scheme that misled shareholders, regulators, and the investing public, and ultimately caused a loss of more than $245 million in shareholder value,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to protecting investors and the integrity of U.S. securities exchanges, and we will vigorously pursue corporate executives who engage in deceptive and fraudulent accounting practices.”
“The stability our financial markets depends upon public companies issuing accurate financial statements,” said U.S. Attorney Matthew D. Krueger. “We commend the FBI and the Department of Transportation Office of Inspector General for its excellent efforts in investigating this case.”
“Working with our law enforcement and prosecutorial partners, the U.S. Department of Transportation Office of Inspector General is committed to preventing and detecting corporate fraud and corruption schemes within transportation-related companies intent on providing false or misleading information to the federal government,” said DOT-OIG Regional Special Agent Ullom. “Today’s indictment helps reinforce the message that executives involved in all modes of transportation must uphold the public’s trust and maintain the highest levels of integrity.”
“Corporate fraud remains a high priority for the FBI,” said Special Agent in Charge Tolomeo. “Perpetrators who mislead investors and manipulate financial data to falsely inflate business performance will face justice for their crimes.”
“This indictment makes it clear that the FBI, its fellow field offices, and federal partners are committed to working together to hold those accountable who would attempt to manipulate the market,” said J.C. Hacker, Acting Special Agent in Charge of FBI Atlanta. “This alleged fraud caused significant harm to Roadrunner and its shareholders for personal profit.”
The indictment alleges that between 2014 and 2017, Naggs, Wogsland and their co-conspirators carried out a complex scheme to mislead Roadrunner’s shareholders, independent auditors, regulators and the investing public about Roadrunner’s true financial condition. According to the indictment, beginning in 2014, Naggs, Wogsland and their co-conspirators identified at least $7 million in overstated accounts on the balance sheet of one of Roadrunner’s largest operating companies, Roadrunner Intermodal Services Inc. (RRIS), which included old, uncollectable customer debts with static balances; understated and increasing liabilities for historic debt owed by terminated drivers; and overstated accounts for licenses and other “prepaid assets” that no longer had any actual value. Instead of addressing the misstated accounts by writing them off, the indictment alleges, Naggs, Wogsland and their co-conspirators purposefully left the vast majority of the misstated accounts on Roadrunner’s books in order to fraudulently boost Roadrunner’s financial performance and mislead Roadrunner’s shareholders, independent auditors, regulators and the investing public about Roadrunner’s true financial condition.
According to the indictment, by late 2014, Naggs, Wogsland and their co-conspirators developed a plan to write off a portion of the misstated accounts. However, instead of immediately writing off the full amount, Naggs, Wogsland and their co-conspirators directed RRIS finance employees to adjust the balance sheet by a small amount each month, in order to conceal from Roadrunner’s shareholders, independent auditors, regulators and the investing public the true nature and extent of the misstated accounts. However, after learning that Roadrunner’s performance at other operating companies had deteriorated, the indictment alleges, Naggs, Wogsland and their co-conspirators abandoned the plan and, in some cases, reversed write-offs that had already been booked. The indictment further alleges that beginning in May 2015, Naggs and other Roadrunner employees received monthly financial reports from RRIS, which included profit and loss figures both with and without the planned monthly write-off.
The indictment alleges that as a result of the scheme, nearly all of the misstated accounts remained on RRIS’s balance sheet from 2014 until early 2017, when Roadrunner announced for the first time that it would be restating its previously reported financial results. Three trading days following the announcement, the price of Roadrunner’s shares dropped from $11.74 to $7.54 per share, causing a loss in shareholder value of more than $160 million. In early 2018, Roadrunner issued restated financial results for 2014 through the third quarter of 2016, acknowledging that it had identified material accounting errors resulting from material weaknesses and management override of internal controls. Three trading days after announcing the restated financial results, Roadrunner’s share price further dropped from $7.14 to $4.90, causing an additional loss in shareholder value of more than $85 million.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Department of Transportation Office of Inspector General’s Chicago Office and the FBI’s Milwaukee and Atlanta Field Offices are investigating the case. Assistant Chief Henry Van Dyck and Trial Attorneys Caitlin Cottingham and David Stier of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S Attorney’s Office for the Eastern District of Wisconsin. The Securities and Exchange Commission also provided assistance in this matter.
Former CFO charged with embezzling more than $1 million from employee-owned companyRead the Press Release
ATLANTA - Carrie N. Harris, a former Chief Financial Officer and Treasurer for an employee-owned construction company based in Lithonia, Georgia has been arraigned on federal charges for embezzling more than $1 million from her employer to pay for her personal expenses. Harris was indicted by a federal grand jury on June 12, 2018.
“Harris allegedly abused her position as the Chief Financial Officer for an employee-owned company, stealing more than $1 million to enrich herself,” said U.S. Attorney Byung J. “BJay” Pak. “As thieves get more and more creative, employers must build in checks and balances to avoid turning over the ‘keys’ to the kingdom.”
“Theft of assets from an employee-owned company jeopardizes the benefits of workers,” said Isabel Colon, Regional Director of Employee Benefits Security Administration’s Atlanta Regional Office. “This case reaffirms the U.S. Department of Labor’s commitment to protect workers’ benefits by identifying criminal activity wherever and whenever it occurs.”
“Harris is accused of abusing the trust of the company which hired her, causing significant losses to her fellow employees,” said J.C. Hacker, Acting Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners will hold anyone accountable who chooses to line their pockets at the expense of the companies they work for.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Between 2008 and 2013, Harris allegedly used her position as the Chief Financial Officer and Treasurer of an employee-owned construction company to steal more than $1 million by issuing over 100 checks to pay for her personal expenses, including nearly $250,000 in flights, cruises, and other vacation expenses, more than $100,000 in cash withdrawals, and more than $100,000 in retail purchases. She caused the checks to be issued to pay for these expenses by using the President’s signature without authorization. The checks she allegedly issued to pay her personal expenses ranged from $4,500 to $17,000. Harris allegedly concealed her fraud from the company by falsifying entries on the company’s check register and general ledger.
Carrie N. Harris, 53, of Jackson, Georgia was arraigned before U.S. Magistrate Judge Linda T. Walker on federal charges of wire fraud, bank fraud, and aggravated identity theft. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Department of Labor – Employee Benefits Security Administration and the Federal Bureau of Investigation.
Assistant U.S. Attorney Ryan J. Huschka 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.
Flagler Beach Man Indicted on Drug and Gun ChargesRead the Press Release
Jacksonville, Florida – A federal
indictment has been returned charging Robert Richard Jodoin (49, Flagler Beach) with importation of GHB (Gamma-Hydroxybutyric Acid), distribution of methoxyacetylfentanyl, possession with the intent to distribute cathinone (also referred to as “bath salts”), maintaining a place for distributing drugs, and possession of a firearm in furtherance of drug trafficking. If convicted on all counts, he faces a minimum mandatory penalty of five years in federal prison, and up to life. The indictment also notifies Jodoin that the United States intends to forfeit the internet domain name "PRIMALVISIONS.NET," which he used to sell drugs on the internet, and a .380 caliber pistol.According to court documents, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations each began an investigation into the activities of Jodoin. Federal agents identified a particular post office box at the Flagler Beach Post Office, registered to Jodoin and “Primal Visions,” as being used to distribute drugs. From late March 2018 through Jodoin’s arrest, U.S. Customs and Border Protection seized multiple international parcels that were addressed to Jodoin at his post office box. Further investigation revealed that these parcels contained controlled substances, including more than a kilogram of GHB. In addition, Jodoin allegedly routinely mailed packages containing dangerous drugs, including methoxyacetylfentanyl, from the Flagler Beach Post Office to customers around the country.
During a search of Jodoin’s residence, law enforcement found a firearm, drug ledgers reflecting purchases and sales of controlled substances, multiple powders consistent with controlled substances, and packaging supplies used for mailing.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Postal Inspection Service, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Florida National Guard Counterdrug Program, the Volusia County Sheriff’s Office, and the Flagler Beach Police Department. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.