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24 July 2018
Michigan Man Charged with Providing Material Support to IsisRead the Press Release
WASHINGTON – In a criminal indictment unsealed in the Eastern District of Michigan today, Ibraheem Izzy Musaibli, 28, of Dearborn, Michigan, was charged with providing and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
The indictment was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan and Timothy R. Slater, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation.
Musaibli, a natural-born U.S. citizen, was detained overseas by Syrian Democratic Forces (SDF) and recently transferred into U.S. custody. Musaibli will be arraigned on the indictment at the federal courthouse in Detroit on Wednesday, July 25, 2018, at 1:00 p.m. EDT.
The indictment alleges that from about April 2015 through June 2018, Musaibli knowingly provided and attempted to provide material support to ISIS, in the form of personnel and services, knowing that ISIS is a terrorist organization and that ISIS engages in terrorism.
“The National Security Division will not tolerate threats to our country from terrorist organizations like ISIS—not least of all those that come from our own citizens,” said Assistant Attorney General Demers. “Musaibli’s alleged provision of material support to ISIS put the United States at risk and may have endangered the lives of countless innocent people. I am confident that he will face justice for his crimes, and I hope that his case sends a clear message that we will hold our citizens accountable who are apprehended overseas and tried to join a terrorist organization such as ISIS. I am also grateful to our law enforcement and military partners who made this prosecution possible.”
“The indictment alleges that, for a substantial period of time, defendant Musaibli provided material support to ISIS — one of the most violent terrorist organizations in the world. During that same time, American-backed coalition forces were fighting ISIS in Iraq and Syria,” United States Attorney Matthew Schneider stated. “We will vigorously prosecute anyone who provides, or even attempts to provide, support to terrorists.”
“The indictment in this case serves as a reminder of the danger posed by those who travel overseas to join forces with ISIS,” said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI. “The FBI is determined to find these individuals and bring them to justice. Bringing charges in these cases will remind others what can happen if they provide assistance to foreign terrorist organizations.”
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Cathleen Corken and Kevin Mulcahy of the Eastern District of Michigan with assistance from the National Security Division’s Counterterrorism Section.
Michigan Man Charged with Providing Material Support to ISISRead the Press Release
In a criminal indictment unsealed in the Eastern District of Michigan today, Ibraheem Izzy Musaibli, 28, of Dearborn, Michigan, was charged with providing and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
The indictment was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan and Timothy R. Slater, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation.
Musaibli, a natural-born U.S. citizen, was detained overseas by Syrian Democratic Forces (SDF) and recently transferred into U.S. custody. Musaibli will be arraigned on the indictment at the federal courthouse in Detroit on Wednesday, July 25, 2018, at 1:00 p.m. EDT.
The indictment alleges that from about April 2015 through June 2018, Musaibli knowingly provided and attempted to provide material support to ISIS, in the form of personnel and services, knowing that ISIS is a terrorist organization and that ISIS engages in terrorism.
“The National Security Division will not tolerate threats to our country from terrorist organizations like ISIS—not least of all those that come from our own citizens,” said Assistant Attorney General Demers. “Musaibli’s alleged provision of material support to ISIS put the United States at risk and may have endangered the lives of countless innocent people. I am confident that he will face justice for his crimes, and I hope that his case sends a clear message that we will hold our citizens accountable who are apprehended overseas and tried to join a terrorist organization such as ISIS. I am also grateful to our law enforcement and military partners who made this prosecution possible.”
“The indictment alleges that, for a substantial period of time, defendant Musaibli provided material support to ISIS — one of the most violent terrorist organizations in the world. During that same time, American-backed coalition forces were fighting ISIS in Iraq and Syria,” United States Attorney Matthew Schneider stated. “We will vigorously prosecute anyone who provides, or even attempts to provide, support to terrorists.”
“The indictment in this case serves as a reminder of the danger posed by those who travel overseas to join forces with ISIS,” said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI. “The FBI is determined to find these individuals and bring them to justice. Bringing charges in these cases will remind others what can happen if they provide assistance to foreign terrorist organizations.”
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Cathleen Corken and Kevin Mulcahy of the Eastern District of Michigan with assistance from the National Security Division’s Counterterrorism Section.
Mexican Man Sentenced to Prison for Illegally Reentering the United States after Two Prior DeportationsRead the Press Release
A Mexican man who illegally returned to the United States after being deported following a conviction for a drug felony offense was sentenced July 23, 2018, to 27 months in federal prison.
Leonides Osornio-Torres, age 45, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a May 7, 2018, guilty plea to one count of illegal reentry into the United States after having been convicted of an aggravated felony offense.
At the guilty plea, Osornio-Torres admitted he had previously been deported from the United States on July 22, 2011, and again on November 6, 2016. He then illegally reentered the United States without the permission of the United States government. Osornio-Torres was previously convicted on January 31, 2003, in the United States District Court for the Northern District of Iowa of distribution of approximately 5.5 pounds of pure methamphetamine and sentenced to 135 months’ imprisonment. On February 23, 2018, Osornio-Torres was arrested in Black Hawk County for providing false identification information and public intoxication and was turned over to ICE on March 16, 2018.
Osornio-Torres was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Osornio-Torres was sentenced to 27 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Osornio-Torres is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2013-LRR.
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Mexican Man Sentenced to Prison Following Deportation and Document FraudRead the Press Release
A Mexican man who had been deported, illegally returned to the United States, and then used false identification documents to obtain a job was sentenced July 23, 2018, to 27 months in federal prison.
Pablo Rosales-Aquino, age 37, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after an April 19, 2018, guilty plea to one count of unlawful use of identification documents and one count of illegal reentry into the United States.
At the guilty plea, Rosales-Aquino admitted he had previously been deported from the United States on April 15, 2009, and that he illegally reentered the United States without the permission of the United States government. Rosales-Aquino was also given voluntary returns to Mexico seven times between March 1998 and January 2000. Rosales-Aquino also admitted that on December 5, 2017, he used a fraudulent social security card and a fraudulent Green card when completing employment forms to obtain a job in Cedar Falls, Iowa. The social security account number on the card used by Rosales-Aquino belonged to a United States citizen. The account number on the Green card belonged to another person.
Rosales-Aquino has prior convictions for operating a motor vehicle while intoxicated in Allamakee County in 2004, in Clayton County in 2005, and in Black Hawk County in 2007. On February 1, 2018, Rosales-Aquino was arrested in Black Hawk County for driving without a license. On March 2, 2018, immigration agents arrested Rosales-Aquino at his place of employment in Cedar Falls.
Rosales-Aquino was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Rosales-Aquino was sentenced to 27 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Rosales-Aquino is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
ourt file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2010-LRR.
Follow us on Twitter @USAO_NDIA.
Mexican Citizen Sentenced to More Than 15 Years in Prison for Drug and Gun ConspiraciesRead the Press Release
Cesar David Grangel, 49, a citizen of Mexico and undocumented resident of California, has been sentenced in federal court for a drug conspiracy and a firearm trafficking conspiracy, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. The sentencing followed Grangel’s guilty plea on January 25, 2018, for conspiracy to distribute and possess with intent to distribute controlled substances (cocaine and methamphetamine) and conspiracy to transfer a firearm to an illegal alien. The court sentenced Grangel to a total sentence of 188 months imprisonment and five years supervised release on those charges and ordered the sentence to be served concurrently with an identical sentence for conspiracy to possess with intent to distribute methamphetamine, based on a case that arose in the District of Idaho but was later transferred to the Southern District of Illinois.
According to court documents, from February 2015 to November 2016, Grangel served as a manager / supervisor of a drug conspiracy that operated in the Southern District of Illinois, the Central District of California, the District of Idaho, the Eastern District of Wisconsin, and the District of North Carolina. During the course of the conspiracy, law enforcement arrested an individual in the Southern District of Illinois who was transporting a load of firearms and ammunition on a return trip from Wisconsin to California. The firearms and ammunition were discovered in a sophisticated, non-factory compartment within the vehicle and were supposed to have been delivered to Grangel, an illegal alien, at Grangel’s direction. Grangel then intended to transfer the firearms to another person so they could be smuggled into Mexico.
Grangel also managed and supervised the transportation of controlled substances within California, as well as from California to Idaho, Wisconsin and North Carolina.
There is no parole in the federal system. The term of supervised release, which follows
service of imprisonment, will be non-reporting based upon Grangel’s anticipated removal from the United States.
The Bureau of Alcohol, Tobacco Firearms and Explosives conducted the investigation leading to the charges against Grangel. The case is being handled by Assistant United States Attorney Kit Morrissey.
Meth Smuggler Ordered to Federal PrisonRead the Press Release
BROWNSVILLE, Texas – A 19-year-old U.S. citizen who resided in Matamoros, Mexico, has been ordered to prison for smuggling methamphetamine through the local port of entry, announced U.S. Attorney Ryan K. Patrick. Brenda Guerra Rios pleaded guilty Jan. 17, 2018, to possession with intent to distribute more than 50 grams of methamphetamine.
Today, U.S. District Judge Andrew S. Hanen ordered Guerra-Rios to federal prison for 66 months. The sentence will be immediately followed by three years of supervised release.
On Nov. 7, 2017, Guerra-Rios attempted to make entry into the United States from Mexico through the pedestrian lane at the Gateway International Port of Entry in Brownsville. A search in secondary inspection revealed a package hidden inside a girdle near her abdomen. The package contained 491.5 grams of methamphetamine.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.
Manhattan U.S. Attorney Announces Money Laundering Charges Against Operators of Nationwide Prostitution Enterprise and Seizure of Online Escort WebsiteRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Angel M. Melendez, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New York (“HSI”), announced today the arrest of BRANDON MARTIN and TAMEKO LINDO for money laundering and conspiracy to commit money laundering in connection with their ownership and operation of Flawless Escorts, a nationwide business offering prostitution services, as well as the seizure of Flawless Escorts’ website. MARTIN and LINDO will be presented today in Fort Lauderdale federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Brandon Martin and Tameko Lindo ran a nationwide prostitution ring, requiring their ‘employees’ to service as many as seven clients a day. However, the fatal flaw in Martin and Lindo’s alleged scheme was their underestimation of law enforcement’s ability to detect and halt their illicit activities.”
HSI Special Agent in Charge of Angel M. Melendez said: “In just under four years, these defendants are alleged to have secured more than three thousand hotel bookings to use in the furtherance of their prostitution scheme. In this case, members of HSI’s El Dorado Task Force were able to follow the money, tracking the advertising funds, payments and movement of dollars to locate the perpetrators, and they now face prosecutions for their actions.”
According to the allegations in the Complaint sworn out in Manhattan federal court:[1]
From 2014 to the present, MARTIN and LINDO have operated an online prostitution service through their website, www.flawlessescorts.com (the “Website”). As part of their prosecution business, MARTIN and LINDO arranged for escorts to travel throughout the United States to engage in prostitution, securing more than 3,000 hotel bookings under the names of various women. MARTIN and LINDO also required escorts to follow certain protocols when traveling on behalf of the Website, including an expectation that each escort would see a minimum of seven clients per day. MARTIN and LINDO also required escorts to deposit the proceeds of their commercial sex acts into a number of corporate and personal bank accounts that they controlled.
MARTIN and LINDO then used the proceeds of the prostitution scheme for personal gain and to further their illegal prostitution business. They paid, for example, over $180,000 from bank accounts under their control to advertise for the Website and to pay expenses of individual escorts.
* * *
MARTIN, 42, and LINDO, 38, of Parkland, Florida, are charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and two counts of money laundering, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI, the New York City Police Department, and the Broward County Sherrif's Office.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Tara M. La Morte and Kyle A. Wirshba are in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to Prison for Virginia Beach Bank RobberyRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 15 years in prison for participating in an armed robbery of a bank in Virginia Beach.
According to court documents, Austin Lee Howard, 35, made plans with Marquis Larosa Buckley, 41, to conduct an armed robbery of a PNC Bank in Virginia Beach. Howard was caught on surveillance video entering the bank the day before the planned robbery to become familiar with the layout, where the tellers and offices were located, and whether there were any security cameras and personnel in the bank.
On or about Oct. 13, 2017, Buckley, wearing a disguise, entered the PNC Bank and brandished a firearm while demanding money from the tellers. He then dropped what appeared to be an explosive device on the floor, which was later determined to be a hoax bomb. In order to speed up the tellers, Buckley discharged his firearm in the bank, and the tellers handed over approximately $8000. During the robbery, one of the tellers secreted an electronic tracking device in the money given to Buckley before he fled the scene and got into the get-a-way vehicle driven by Howard. As a result, the Virginia Beach police were able to track the robbers’ movements via GPS as they fled the scene in the get-a-way vehicle. The police eventually located the get-a-way vehicle and recovered the money with the GPS device, the pistol used during the robbery, and the disguise worn by Buckley.
Buckley pleaded guilty to his role in the armed robberies on July 3, and is scheduled for sentencing on October 3.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney William D. Muhr prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-16.
Man Sentenced to Life in Prison for 2009 Newport News MurderRead the Press Release
NEWPORT NEWS, Va. – A Boston man was sentenced today to life in prison for his role in a 2009 murder in Newport News.
Joseph James Cain Benson, 36, was convicted following a jury trial on April 17, along with co-defendants Mark Xavier Wallace of Williamsburg and Bryan Lamar Brown, of Newport News, for their respective roles in the 2009 murder of Louis Joseph Jr., in Newport News.
According to court documents, Joseph was beaten and shot multiple times at his Denbigh home while he babysat a five-year-old child by Joseph Benson. Benson and another individual traveled from Boston to Williamsburg to commit the home invasion of Louis Joseph to obtain money and drugs. Brown transported the co-defendants to Joseph’s house and also supplied the two firearms to commit the murder. Benson and at least one other man entered the home of Joseph, beat him and shot him multiple times during the robbery.
Brown was sentenced to 45 years in prison on July 19. Wallace is scheduled for sentencing on August 6.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Lisa R. McKeel and Howard J. Zlotnick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-45.
Man Sentenced After Lying About Writing Threatening Note on Board United Flight from San Diego to DenverRead the Press Release
DENVER – Cameron Elvan Korth, age 22, of Denver, was sentenced late last week by U.S. District Court Judge Raymond P. Moore to serve 18 months in federal prison followed by 4 months in a halfway house for lying to authorities about writing a threatening note aboard an aircraft bound for Denver, announced U.S. Attorney Bob Troyer and FBI Denver Division Special Agent in Charge Calvin Shivers. After his custodial sentence, the defendant was ordered to spend 3 years on supervised release. Korth appeared at the sentencing hearing in custody and was remanded at its conclusion.
Korth was first charged by criminal complaint on January 17, 2017. He was indicted by a federal grand jury in Denver on February 7, 2017. He pled guilty to providing false information and threats before Judge Moore on April 10, 2018. He was sentenced on July 20, 2018.
According to the stipulated facts contained in the plea agreement, on January 16, 2017, at approximately 8:26 p.m., the FBI was advised of a written bomb threat discovered by a passenger onboard United Airlines Flight 231 in flight from San Diego to Denver. The passenger was later identified as the defendant Cameron Korth. The note stated, “THERE IS BOMBS ON UA 231 DO NOT ATTEMPT TO LAND.” Due to the threat, upon arrival in Denver, Flight 231 was parked on an isolated portion of the airfield away from the DIA Main Terminal and concourses. The passengers were evacuated to waiting buses and the aircraft was searched by the Denver Police Department. No explosives were found.
Mr. Korth was brought to the Denver Police Office in the Airport Office Building at DIA so he could be interviewed about his involvement in the bomb threat incident. Korth was asked to provide a written statement about what had happened on Flight 231 and he voluntarily did so. As he wrote his statement, investigators believed there to be similarities in the letter formation of the words in the bomb threat and the words in the statement. It was then determined that it was Korth who wrote the note on paper he found jammed in the seat back in front of him. He then took the note to one of the lavatories on the aircraft, placed it in the toilet seat cover dispenser, and then pointed it out to one of the flight attendants.
“A written threat like this is a big deal, especially when you’re one of the people traveling in a metal cylinder 30,000 feet above the earth,” said U.S. Attorney Bob Troyer. “Threats like this have real victims. And they will get you real punishment.”
“The FBI and our law enforcement partners take all threats seriously,” said FBI Denver Division Special Agent in Charge Calvin Shivers. “Hoax threats endanger our community and divert limited law enforcement resources. This sentence shows the seriousness of such matters and the FBI will continue to put its resources towards the investigation of such crimes.”
This matter was investigated by the FBI and the Denver Police Department. The defendant was prosecuted by Assistant U.S. Attorney Kurt Bohn.
Lovelock Paiute Tribe Member Sentenced to Nine Years in Prison for Assaulting A Man with A Broken Glass LampRead the Press Release
RENO, Nev. – A Lovelock Paiute Tribe member who admitted to assaulting a man with a broken glass lamp was sentenced today to nine years in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Rafael Alfonso Medina Jr., 29, was sentenced by U.S. District Judge Larry R. Hicks. He pleaded guilty to one count of assault resulting in serious bodily injury.
According to admissions made in his plea agreement, on January 1, 2016, in Lovelock, Nevada, which is within the exterior boundaries of the Lovelock Indian Reservation, Medina repeatedly assaulted a man on his head, arms, and body with a broken glass table lamp. The victim was airlifted to a hospital in Reno for treatment. The victim suffered severe blood loss, requiring a blood transfusion, as well as amputation of a finger and staples and sutures for his injuries.
The case was investigated by the Bureau of Indian Affairs. Assistant U.S. Attorney Sue Fahami prosecuted the case.
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Lexington Man Sentenced to 25 Years for Drug Trafficking, Firearm Offenses and Being an Armed Career Criminal and Career OffenderRead the Press Release
LEXINGTON, Ky. — Michael D. Jackson, 37, of Lexington, was sentenced yesterday to 25 years in federal prison, by Chief United States District Judge Karen K. Caldwell, for conspiring to distribute more than 40 grams of fentanyl, more than an ounce of crack cocaine, and more than half a kilo of cocaine. Jackson was also sentenced for being a felon in possession of firearms and for possessing a firearm in furtherance of his drug trafficking crime. Jackson’s convictions, combined with his prior criminal record, qualified Jackson as both an Armed Career Criminal and Career Offender.
Jackson previously admitted that, in early 2017, members of the Lexington Police Department (LPD), Narcotics Unit began an investigation into his residence, which was located on Norway Street, near Lafayette High School. During the investigation, LPD stopped and searched Jackson’s vehicle, discovering a 9 mm firearm and large quantities of drugs. LPD detectives also executed a search on his residence, where they located quantities of a fentanyl mixture and cocaine, more than $80,000 in cash, a loaded Taurus handgun, a loaded Glock semi-automatic pistol, a loaded Cobra semi-automatic pistol, which was determined to have been stolen, and a vehicle that had been purchased with proceeds from Jackson’s drug trafficking.
Jackson also admitted that he had prior drug trafficking convictions in Fayette Circuit Court. Jackson pleaded guilty to the charges in April 2018.
“The Defendant’s drug trafficking activities, possession of firearms, and past criminal history have led to this result,” stated Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The sentence imposed should serve as warning to those who engage in similar criminal activities. If you illegally possess firearms, particularly if you are engaged in drug trafficking, you are putting yourself at risk for a substantial stay in federal prison.”
“I want to commend the work of the ATF and the Lexington Police Department on this investigation and prosecution,” said U.S. Attorney Duncan. “The partnership between federal, state, and local law enforcement is vitally important in preventing violent crime and reducing the danger caused by drug trafficking activities.”
Under federal law, Jackson must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for eight years.
United States Attorney Duncan; Stuart Lowery, Special Agent in Charge, ATF; and Chief Lawrence Weathers of the Lexington Police Department, jointly made the announcement.
The investigation was conducted by the ATF and the Lexington Police Department. The United States was represented by Assistant United States Attorney Roger W. West.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Lawton Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
OKLAHOMA CITY – ROBERT LEE PIERCE, 70, of Lawton, Oklahoma, pleaded guilty today to traveling from New Mexico to Oklahoma and failing to register as a sex offender, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to an affidavit in support of a criminal complaint filed on May 17, 2018, the U.S. Marshals Service learned that Pierce was registered as a sex offender in New Mexico as of April 3, 2018, but had actually been living in Lawton with his wife and several small children. The affidavit states further investigation revealed Pierce moved to Lawton in the late summer or early fall of 2017. According to the affidavit, Pierce had been convicted of criminal sexual penetration of a minor victim in New Mexico in May 2015. In Oklahoma, he would have been designated as an Aggravated Offender and required to register as a sex offender for life.
Pierce has been in the custody of the Marshals Service since June 5, 2018, when he appeared before a U.S. Magistrate Judge in Oklahoma City.
On July 5, 2018, the U.S. Attorney filed an information that charges Pierce with traveling in interstate commerce and failing to register and update his registration as a sex offender under the Sex Offender Registration and Notification Act, or SORNA.
Today Pierce pleaded guilty to the SORNA violation before United States District Judge David L. Russell.
At sentencing, Pierce faces up to ten years in prison and a fine of up to $250,000. After release, he will be subject to supervision for not less than five years and up to the rest of his life. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by the United States Marshals Service, the Dona Ana County Sheriff’s Office in New Mexico, and the Lawton Police Department. Assistant U.S. Attorney Brandon Hale is prosecuting the case.
Pierce’s conviction is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court filings for further information.
Jury Finds Isaac J. Culver, III and His Company Guilty of All Charges for Scheme to Defraud Bibb County School DistrictRead the Press Release
MACON: United States Attorney for the Middle District of Georgia, Charles E. Peeler, announces that Isaac J. Culver, III, age 48, Lizella, Georgia, and his corporation, Progressive Consulting Technologies, Inc. (PCTI) were found guilty by a jury of his peers for conspiracy to commit wire and mail fraud, ten (10) counts of wire fraud, one count of mail fraud, and conspiracy to launder the proceeds of unlawful activity.
The charges against Mr. Culver, President and Chief Executive Officer of PCTI, stem from the sale of 15,000 NComputing devices for $3.7 million to upgrade classroom technology for the Bibb County School District (BCSD) in 2012.
Mr. Culver helped to create a fraudulent invoice listing CompTech, a technology company from Dayton, Ohio, as the vendor. Instead, the true purchaser of the NComputing devices was PCTI. As delivered, the devices were useless. The devices did not contain the necessary equipment to be functional (i.e. mouse, keyboard, monitor, servers, etc.).
Mr. Culver led others to believe that the purchase of NComputing devices was made pursuant to the General Services Administration (GSA) Schedule. CompTech understood this to be why PCTI asked them to participate in this transaction. The BCSD employees also believed that this was a GSA purchase, which meant that the transaction did not have to go through normal bidding procedures. In reality, this transaction was not made pursuant to the GSA.
After the December 2012 sale, Mr. Culver hid the fact that PCTI was the true purchaser of the NComputing devices and he did so by continuing to use CompTech to disguise his role. Mr. Culver did so, in part, because he and PCTI were able to net almost $2 million on the NComputing transaction alone. Based on other statements and actions taken by Mr. Culver, there was evidence that they planned to buy these other goods, again using CompTech as a pass through, to continue to profit secretly.
“Protecting taxpayer money from fraudsters is a top priority of the Office of the United States Attorney, particularly when the fraud involves depriving the students of the Bibb County school system of necessary resources,” said United States Attorney Charles E. Peeler. “I would like to thank the Federal Bureau of Investigation, IRS Criminal Investigation, the Georgia Office of the Attorney General, and our trial team for their hard work in this matter.”
“Driven by greed, Isaac Culver not only stole from the taxpayers of Bibb County, but also deprived students in the school system of much needed tools to further their education,” said Murang Pak, Acting Special Agent in Charge (A/SAC) of FBI Atlanta. “The FBI and its law enforcement partners are determined to hold Mr. Culver and anyone else accountable for such reckless disregard for our citizens.”
“Isaac Culver tried to be clever in hiding his scheme from ever being uncovered by government officials. The government uncovered the scheme, presented its case and the jury agreed that Mr. Culver was responsible for not only wire and mail fraud, but laundering the proceeds of the crime,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “At the end of the day, the students of Bibb County District are the victims of Mr. Culver’s fraud, and they are the ones who lost out on valuable technology.”
Each of the charges against Mr. Culver and Progressive Consulting Technologies, Inc. carry a maximum possible sentence of 20 years imprisonment. The fine on the conspiracy to launder the proceeds of unlawful activity carries a maximum fine of $500,000.00 or twice the value of the property involved in the transaction, whichever is greater. The other charges carry a maximum possible fine of $250,000.00 each.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service/Criminal Investigation. Assistant U.S. Attorneys Beth Howard and Danial Bennett are prosecuting the case for the Government with participation and cooperation of Special Assistant U.S. Attorney David McLaughlin from the Georgia Office of the Attorney General.
Inmate at USP Canaan Charged with Assaulting Other Inmates and StaffRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kurt Downs, age 28, an inmate at the United States Penitentiary at Canaan, was indicted by a federal grand jury for assaulting two other inmates and assaulting correctional officers in the performance of their duties.
According to United States Attorney David J. Freed, the indictment alleges that Downs assaulted another inmate on February 15, 2018, resulting in serious bodily injury to the victim. The indictment further alleges that Downs assaulted another inmate on March 11, 2018, and assaulted, resisted, and impeded corrections officers in the performance of their duties in responding to the assault of the inmate.
The case was investigated by the Federal Bureau of Investigation and Bureau of Prisons special investigations staff. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 27 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Indiana Resident Sentenced to 10 Years in Prison for Drug and Firearm Offenses Occurring in IllinoisRead the Press Release
Craig Wayne Wilson, also known as "Nathaniel R. Smith," 40, a resident of Terre Haute, Indiana, was sentenced in federal court today to 120 months in prison for drug and firearm offenses, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced. Wilson previously pleaded guilty on December 6, 2017, to possession with intent to distribute methamphetamine and unlawful possession of a firearm by a convicted felon. The sentence includes a four-year term of supervised release immediately following Wilson’s imprisonment.
According to court documents, law enforcement learned that Wilson, who had outstanding arrest warrants in Indiana, was at a motel in Marshall, Illinois. Deputies with the United States Marshals Service, assisted by the Marshall Police Department and the Illinois State Police, went to the motel on the afternoon of October 7, 2016, and learned Wilson checked into the motel as "Nathaniel R. Smith" and was in his assigned room. Law enforcement entered the room to arrest Wilson, and when removing him from the bed, found a fully loaded Taurus .380 semi-automatic pistol by Wilson’s thigh. Wilson has a prior felony conviction from Vigo County, Indiana, for dealing in methamphetamine and is prohibited from possessing firearms. Law enforcement also found 24.1 grams of methamphetamine of 92% purity, commonly known as "ice," in Wilson’s possession.
The Bureau of Alcohol, Tobacco Firearms and Explosives conducted the investigation following Wilson’s arrest and presented the case to the United States Attorney’s Office. The case was handled by Assistant United States Attorney Kit Morrissey.
Illegal aliens indicted on reentry chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Three illegal aliens were indicted today by a federal grand jury reentry charge, United States Attorney Bill Powell announced.
Jose Neftali Salazar-Lemus, a citizen of El Salvador, age 29, is charged with one count of “Reentry of a Removed Alien.” Salazar-Lemus, having previously been removed from the United States, is accused of being in Berkeley County illegally in July 2018.
Eduardo Hernandez Sanchez, also known as Jorge Andrade-Sanchez, a citizen of Mexico, age 42, was indicted on one count of “Reentry of a Removed Alien.” Sanchez, having previously been removed twice, and previously convicted of drug distribution in Pennsylvania in 2016, is accused of being in Berkeley County illegally in February 2018.
Miguel Angel Cruz-Polanco, a citizen of El Salvador, age 34, is charged with one count of “Reentry of a Removed Alien.” Cruz-Polanco, having previously been removed from the United States three times, once following a felony drug and firearms conviction in the Northern District of West Virginia in 2008, is accused of being in Berkeley County illegally in February 2018.
Salazar-Lemus faces up to two years incarceration and a fine of up to $250,000. Sanchez and Cruz-Polanco each face up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government. The Department of Homeland Security Immigration and Customs Enforcement investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Gun Possessor and Drug Dealer SentencedRead the Press Release
BOISE - Zane Dewey Dinger, 33, previously of Caldwell, Idaho, was sentenced today by Senior U.S. District Judge Edward J. Lodge to 60 months in prison, followed by five years of supervised release, for possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney Bart M. Davis announced. Judge Lodge also ordered that the defendant forfeit the firearm and ammunition. Previously, on May 3, 2018, the defendant pled guilty to the offense pursuant to a written plea agreement.
According to court records, on December 29, 2017, law enforcement officers were preparing to serve a search warrant at Dinger’s residence in Caldwell. The officers observed Dinger driving and stopped his vehicle for a traffic violation. Dinger initially refused to obey the command by officers to exit the vehicle and show his hands. Dinger repeatedly reached inside the vehicle before placing his hands outside of the vehicle before he eventually complied and exited the vehicle. Officers recovered 23.5 grams of methamphetamine, various drug paraphernalia, and a Phoenix Arms Company, Model HP22, .22 caliber semi-automatic pistol underneath the driver’s seat. Officers also recovered a box of .22 caliber ammunition from Dinger’s person.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Caldwell Police Department.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Illegal Alien Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
Jackson, Miss. – Jose Luis Solorio Morales, 27, an illegal alien from Mexico, pled guilty today before Senior U.S. District Judge David C. Bramlette III to his role in a conspiracy to possess with the intent to distribute 500 grams or more of a detectable amount of methamphetamine, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge J. Derryle Smith.
Solorio Morales admitted to assisting in the conversion of approximately 30 pounds of liquid methamphetamine on or about December 28, 2017. The liquid methamphetamine was stored and converted in a home located in Jackson, Mississippi.
Solorio Morales will be sentenced by Judge Bramlette on October 2, 2018, at 10:30 a.m. and faces a maximum penalty of life in prison followed by a $10,000,000 fine.
The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Chris Wansley.
Hammond Man Sentenced to 78 Months in PrisonRead the Press Release
HAMMOND – Peter Salinas a/k/a “Pudge,” 37 years old, of Hammond, Indiana, was sentenced by U.S. District Court Judge Philip P. Simon after pleading guilty to conspiracy to participate in racketeering activity, announced U.S. Attorney Kirsch.
According to documents in the case, Salinas, a member and regional enforcer for the Latin Kings Street Gang, was held responsible for between 2 and 3.5 kilograms of cocaine, and for possessing a firearm during the course of the conspiracy. As a Latin King, the defendant participated in assaults, collection of dues, and directed beatings.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office also has provided assistance. The Latin King case was handled by Assistant U.S. Attorneys David J. Nozick and Dean Lanter and Department of Justice Trial Attorney Joseph Cooley.
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Guatemalan Man Sentenced to Prison for Illegally Returning to the United StatesRead the Press Release
A Guatemalan man who illegally returned to the United States after being deported was sentenced July 23, 2018, to over 2 months in federal prison.
Natanael Misrain Gomez-Tuy, age 29, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a May 31, 2018 guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Gomez-Tuy admitted he had previously been deported from the United States on October 8, 2009. He then illegally reentered the United States without the permission of the United States government. On May 4, 2018, defendant was arrested by ICE following a traffic stop in Cedar Rapids.
Gomez-Tuy was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Gomez-Tuy was sentenced to 70 days’ imprisonment. He must also serve a 1-year term of supervised release after the prison term. There is no parole in the federal system.
Gomez-Tuy is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-49-LRR.
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Franklin Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Stephen Marando, 57, formerly of Franklin, New Hampshire, pleaded guilty in federal court to fentanyl trafficking charges, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on April 13, 2017, Marando and another individual drove from Franklin, New Hampshire, to Lawrence, Massachusetts in order to buy fentanyl. After they obtained the fentanyl and were on their way back to Franklin, the New Hampshire State Police conducted a traffic stop on their vehicle. During the course of the stop, the other individual attempted to discard a package containing 91 grams of fentanyl that they had picked up in Lawrence.
Marando pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl and one count of possession of fentanyl with intent to distribute. He is scheduled to be sentenced on October 31, 2018.
“Each day, law enforcement officers in New Hampshire are working to stop the deadly flow of fentanyl into our state,” said U.S. Attorney Murray. “Interrupting the transportation of drugs frequently requires that New Hampshire state troopers engage traffickers on our highways. Often they are our first line of defense. We will continue to work with State Police and all of our law enforcement partners to prevent drug dealers from further damaging our community and endangering our citizens.”
“With today's plea, Mr. Marando is now accepting responsibility for trafficking fentanyl, which has killed more people in New Hampshire and the United States than any other drug. The FBI, along with our law enforcement partners, are committed to working to defeat this menacing threat, one drug trafficking organization at a time,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division.
This matter was investigated by the Federal Bureau of Investigation, the New Hampshire State Police, and the Laconia Police Department. The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
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Founder of “Nxivm,” a Purported Self-Help Organization, and Five Others Charged in Superseding Indictment with Racketeering ConspiracyRead the Press Release
A superseding indictment was unsealed today in federal court in Brooklyn charging Keith Raniere, Clare Bronfman, Allison Mack, Kathy Russell, Lauren Salzman and Nancy Salzman with racketeering conspiracy involving an array of crimes, including identity theft, extortion, forced labor, sex trafficking, money laundering, wire fraud and obstruction of justice. Bronfman, Russell, Lauren Salzman and Nancy Salzman were arrested this morning. Bronfman will be arraigned this afternoon before United States District Judge Nicholas G. Garaufis in Brooklyn. Russell and the Salzmans will be arraigned before United States Magistrate Judge David J. Stewart in Albany, New York. Raniere and Mack were previously arrested on the original indictment and will be arraigned on the superseding indictment tomorrow before Judge Garaufis in Brooklyn.
Raniere, who founded several pyramid-structured organizations including Nxivm, a purported self-help organization for women, and various related entities, and Mack, a high-ranking member of Nxivm, were previously charged with sex trafficking and forced labor conspiracy in an indictment filed April 20, 2018. Bronfman, a member of Nxivm’s executive board; Russell, Nxivm’s former bookkeeper; Lauren Salzman, a member of Nxivm’s executive board; and Nancy Salzman, the president of Nxivm, were charged for the first time in the superseding indictment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the superseding indictment.
“As alleged in the superseding indictment, for over a decade, Keith Raniere was the leader of a racketeering conspiracy in which he and members of his inner circle committed a broad range of serious crimes from identity theft and obstruction of justice to sex trafficking, all to promote and protect Raniere and Nxivm,” stated United States Attorney Donoghue. “This Office and the FBI will continue to investigate and prosecute those who prey on others to such destructive effect.” Mr. Donoghue expressed his grateful appreciation to the FBI for leading the investigation, and thanked the New York State Police, the FBI Albany Field Office, the New York State Office of the Attorney General, the New York State Department of Health, the Internal Revenue Service Criminal Investigation, New York Field Office, and the United States Attorney’s Office for the Northern District of New York for their assistance with the investigation.
“As alleged, this long-running conspiracy crossed multiple avenues of criminal activity, which included, among other things, electronic monitoring; identity theft; extortion; victim smuggling; and illegal trafficking of a victim after a period of unlawful confinement. The details of these alleged crimes become more and more grim as we continue to dig deeper into the conduct of this organization and its intended mission,” stated FBI Assistant Director-in-Charge Sweeney. “Today’s superseding indictment highlights our commitment to bringing justice to Nxivm’s many victims.”
The superseding indictment alleges that from at least 2003 through the present, Raniere and his inner circle of co-defendants comprised an organized racketeering enterprise engaged in criminal activities with the aim of promoting, enhancing and protecting Raniere and members of the enterprise by recruiting others into Nxivm and DOS for financial and personal benefits. Those criminal activities included the following:
- Raniere and Bronfman conspired to commit identity theft arising out of a scheme to obtain the e-mail usernames and passwords of perceived enemies and critics of Raniere in order to monitor their electronic communications.
- Raniere and Bronfman participated in an identity theft conspiracy involving the use of credit card and banking information belonging to one of Raniere’s sexual partners after her death in November 2016. Bronfman sent Raniere regular emails documenting expenses charged to the woman’s credit card for Raniere’s “review and approval.” Those expenses included payments to a chiropractor for Raniere’s benefit, as well as thousands of dollars’ worth of clothing and shoe purchases for the mother of Raniere’s child.
- Bronfman encouraged and induced the illegal entry into the United States of an alien for Bronfman’s financial gain, engaging in international wire transfers to make it fraudulently appear that the victim had the financial resources to obtain an investor visa.
- Raniere and Lauren Salzman trafficked a victim, who was once a sexual partner of Raniere’s, for labor and services. The victim was confined to a room in Clifton Park, New York, for nearly two years as punishment for having romantic feelings for a man who was not Raniere. The victim was told that if she left the room she would be sent to Mexico without any identification documents. As threatened, she was driven to Mexico and her family was instructed by co-conspirators, including Lauren Salzman, not to send the victim her identification documents.
- Raniere and Lauren Salzman obtained property and services from their slaves through fraud and extortion. After DOS was exposed, Salzman was one of the leaders of a disinformation campaign designed to spread lies about DOS and Nxivm members in order to discredit victims.
- Nancy Salzman, in her role as second-in-command to Raniere within Nxivm, conspired with Raniere and others to obstruct justice by altering records in connection with a civil lawsuit initiated by Nxivm against a former Nxivm student. As part of the discovery in the former student’s countersuit, Nancy Salzman was ordered to turn over videos of courses the student had taken. Nancy Salzman engaged in a scheme to edit videos of courses she had taught to remove materials that she and her co-conspirators believed would have supported the former student’s claims.
- Raniere and Russell conspired to commit identity theft as part of a scheme to smuggle an alien into the United States through Canada after the alien was denied entry. Russell provided the alien with an identification card bearing the last name and birthday of a dead woman.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years’ imprisonment for racketeering conspiracy, forced labor conspiracy and wire fraud conspiracy charges, as well as a maximum of 15 years’ imprisonment for the identity theft conspiracy charge. In addition, Raniere and Mack each face mandatory minimum sentences of 15 years’ imprisonment, and up to life imprisonment, on related charges of sex trafficking and sex trafficking conspiracy.
The government’s investigation is ongoing.
The government’s case is being handled by the office’s Organized Crime and Gangs Section. Assistant United States Attorneys Moira Kim Penza and Tanya Hajjar are in charge of the prosecution. Assistant United States Attorney Karin Orenstein is in charge of forfeiture proceedings in connection with the case.
The Defendants:
KEITH RANIERE (also known as “Vanguard”)
Age: 57
Waterford, New YorkCLARE BRONFMAN
Age: 39
Clifton Park, New YorkALLISON MACK
Age: 35
Brooklyn, New YorkKATHY RUSSELL
Age: 60
Clifton Park, New YorkLAUREN SALZMAN
Age: 42
Clifton Park, New YorkNANCY SALZMAN (also known as “Prefect”)
Age: 64
Clifton Park, New YorkE.D.N.Y. Docket No. 18-CR-204 (NGG) (S-1)
Fort Worth Man Sentenced to Life in Prison for His Role in Sex Trafficking of ChildrenRead the Press Release
FORT WORTH, Texas — Pierre Lagrone, aka “P” or “Pedro,” 34, was sentenced yesterday by U.S. District Judge Reed C. O’Connor, to life in federal prison, announced Erin Nealy Cox U.S. Attorney of the Northern District of Texas.
Following a four-day trial in April 2018, Lagrone and co-conspirators, Herman Sanders, aka “Pooh,” 29, and Demarcus Davis, aka “Zigg,” 26, were found guilty for their roles in a conspiracy to commit sex trafficking of underage girls. Sanders was previously sentenced before Judge O’Connor to 420 months and Davis is scheduled for sentencing July 30, 2018.
According to evidence presented at trial, Lagrone and Davis were violent pimps who recruited, controlled, and profited off underage female victims through commercial sex acts. Lagrone and Davis recruited and advertised underage female victims for commercial sex acts. The defendants communicated with potential clients, collected proceeds, and paid for motels rooms and supplies. Lagrone and Davis kept almost all, if not all, of the proceeds of the commercial sex acts, providing only food, shelter, and occasional clothing to the underage female victims. Sanders conspired with and assisted Lagrone in this sex trafficking.
This case was investigated by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Federal Bureau of Investigation and the Fort Worth, Tyler and Arlington Police Departments. Assistant U.S. Attorney P.J. Meitl and Nicole Dana were in charge of the prosecution.
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Fort Thompson Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury was sentenced on July 23, 2018, by U.S. District Judge Roberto A. Lange.
Austin Paul Abernathy, age 27, was sentenced to 18 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Abernathy was indicted by a federal grand jury on September 12, 2017. He pled guilty on May 5, 2018.
The conviction stems from an incident on August 27, 2017, when BIA Law Enforcement was summoned to a residence in Fort Thompson, in response to an assault. The owner of the house stated that a woman had come to his door looking for help and bleeding. A BIA officer arrived at the residence and found the victim standing in the house bleeding from her hand, leg, and arms. The victim stated she was sleeping at the house across the street when she was attacked by her boyfriend, Abernathy. An ambulance came to the residence and brought her to the hospital in Chamberlain.
The officer went across the street to check for Abernathy, who was finally found on a bed pretending to be asleep. The officer detained Abernathy and put him in the back of his vehicle. The officer also noticed blood on Abernathy’s hands and he was placed under arrest.
A Special Agent with the BIA went to the hospital in Chamberlain to speak with the victim, who stated she was in the back bedroom when Abernathy came in and began to hit her. The victim required 12 stiches to close the wounds she received. The victim and Abernathy were in a dating and intimate relationship at the time of the assault.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Abernathy was immediately turned over to the custody of the U.S. Marshals Service.
Former Gulfport Resident Pleads Guilty to Possession of Child PornographyRead the Press Release
Gulfport, Mississippi. – Gregory A. Mclin, 45, a former Gulfport resident who now resides in Huntsville, Alabama, pled guilty today before U.S. District Judge Louis Guirola to one count of knowingly possessing visual depictions of minors engaging in sexually explicit conduct, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans.
An investigation conducted in May 2016 by HSI, along with the Wiggins Police Department and the Gulf Coast Cyber Crime Task Force, resulted in the identification of an internet protocol address belonging to Gregory A. Mclin and his use of a computer file sharing program. In November 2016, a federal search warrant was executed at Mclin’s Gulfport residence. His electronic devices were seized and forensic examinations were conducted. The examination reports, as well as the submissions of the visual depictions found and submitted to the National Center for Missing and Exploited Children, resulted in a finding that Mclin knowingly possessed visual depictions of minors engaging in sexually explicit conduct, to include visual depictions of a minor who had not attained 12 years of age.
Gregory A. Mclin will be sentenced by Judge Guirola on October 16, 2018 at 10:00 a.m., and faces a maximum penalty of 20 years in prison followed by five years of supervised release, and a maximum $250,000 fine.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Gulf Coast Cyber Crime Task Force, and the Wiggins Police Department. It is being prosecuted by Assistant U.S. Attorney Andrea Jones
Former Financial Analyst for North Suburban Medical Waste Management Company Charged with Insider TradingRead the Press Release
CHICAGO — A former financial analyst for a north suburban medical waste management company used insider information to trade shares of the company ahead of an earnings report, according to a federal criminal charge filed today by the U.S. Attorney’s Office in Chicago.
In April 2016, MATTHEW C. BRUNSTRUM earned $158,707 in profits and avoided losses of $1,194 from the purchase and sale of securities in Lake Forest-based Stericycle Inc., where he worked as a financial analyst, according to a criminal information filed in federal court in Chicago. Brunstrum used material, non-public information to make the trades ahead of a public announcement by Stericycle regarding its lower-than-projected earnings for the first quarter of 2016, the information states. Brunstrum also directed or encouraged a relative to make similar trades ahead of the earnings announcement, the information alleges. The relative allegedly made profits of $146,028, and avoided losses of $24,224.
The information charges Brunstrum, 26, of Chicago, with one count of securities fraud by insider trading. The charge was filed by the Securities and Commodities Fraud Section of the U.S. Attorney’s Office in Chicago. During the investigation, authorities seized $328,959 in illegal profits.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission, which today filed a civil enforcement action against Brunstrum, provided valuable assistance.
The charge alleges that certain Stericycle personnel, including Brunstrum, became aware of the company’s first quarter earnings results in mid-April 2016. When trading on the Nasdaq Stock Market closed on April 28, 2016, Stericycle’s share price was $121.74. After the close of trading that day, Stericycle publicly announced the earnings results and its executives participated in a conference call with outside analysts. During the call, Stericycle’s chief financial officer acknowledged that earnings per share were approximately 5% lower than the company had projected. The following trading day, Stericycle’s stock price fell more than 20%, closing at approximately $95.56 per share.
The charge alleges that Brunstrum and his relative sold nearly 1,050 shares of Stericyle stock prior to the public earnings announcement. The pair also purchased more than 180 near-term, out-of-the-money put options for Stericycle shortly before the earnings announcement, and then sold those options at a profit after Stericycle’s stock declined, the information states.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Arraignment is set for Aug. 2, 2018, at 1:30 p.m., before U.S. Magistrate Judge Jeffrey T. Gilbert. Securities fraud by insider trading is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Assistant U.S. Attorney Paul H. Tzur represents the government in the criminal case.
Federal Jury in Waco Finds Leader of Cartel del Noreste and Nephew of Los Zetas Leaders Z-40 and Z-42 Guilty on All ChargesRead the Press Release
In Waco today, a federal jury convicted 38-year-old Juan Francisco “Kiko” Trevino Chavez, nephew of Los Zetas leaders Miguel Angel Trevino Morales (Z-40) and Oscar Omar Trevino Morales (Z-42), of drug trafficking, firearms and money laundering charges, announced United States Attorney John F. Bash; Special Agent in Charge Shane Folden, Homeland Security Investigations, San Antonio Division; Acting Special Agent in Charge Richard Goss, Internal Revenue Service—Criminal Investigations, San Antonio Division; Special Agent in Charge Will Glaspy, Drug Enforcement Administration, Houston Division; Special Agent in Charge Fred Milanowski, Bureau of Alcohol, Tobacco, Firearms & Explosives—Houston Division; and, Special Agent in Charge Christopher Combs, Federal Bureau of Investigation, San Antonio Division.
Jurors convicted the defendant on one count each of conspiracy to possess marijuana with intent to distribute,conspiracy to import marijuana, unlawful distribution of controlled substances (extra-territorial), conspiracy to possess cocaine with intent to distribute, conspiracy to import cocaine, conspiracy to possess firearms in furtherance of drug trafficking, and conspiracy to commit money laundering.
Evidence presented at trial revealed that from 2004 until September 2016, the defendant was a member of the Los Zetas, a transnational drug trafficking organization operating primarily in the Mexican corridors of Nuevo Laredo, Tamaulipas, Ciudad Acuna and Piedras Negras, Coahuila. Evidence further revealed that Kiko Trevino met with and conspired with the highest level operatives in the criminal organization, including his uncles, Z-40 and Z-42. Evidence also revealed that Kiko Trevino organized the source and distribution of large quantities of narcotics, laundered drug proceeds, and controlled cells of traffickers and a group of armed sicarios in the Nueva Laredo area. The trial evidence showed the Defendant participated in the trafficking of more than 250,000 kilos of cocaine, hundreds of thousands of kilos of marijuana, and 800 firearms. The evidence further described the laundering of hundreds of millions of dollars in drug proceeds. Finally, trial testimony revealed that after his uncles’ arrests, Los Zetas splintered into two groups and Kiko Trevino took over leadership of one of those two groups, the Cartel Del Noreste (CDN), and in this role controlled all of the drug and firearm trafficking, enforcement, and money laundering operations of CDN. Trevino continued in this leadership role until his arrest in 2016.
Kiko Trevino has remained in federal custody since his arrest in Baytown, TX, on September 28, 2016. He faces up to life in federal prison. The date for sentencing has not yet been set. U.S. District Judge Alia Moses in Waco will announce a date for sentencing at a later date.
These federal and state charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by Homeland Security Investigations, Internal Revenue Service—Criminal Investigations, the Drug Enforcement Administration—HIDTA Group, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the United States Marshals Service, the Texas Rangers, the Texas Department of Public Safety, the Irving Police Department, the Waco Police Department, the Laredo Police Department, and the Leon Valley Police Department. The United States Border Patrol, Customs and Border Protection—Office of Enforcement Operations, and the Natalia Police Department also provided support in this case.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
Federal Jury Convicts Syndicato De Nuevo Mexico Prison Gang Associate on Racketeering and Murder ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict today finding Anthony Cordova, 53, of Albuquerque, guilty of racketeering and murder charges following a two-and-a-half-week trial before U.S. District Judge James O. Browning.
Cordova and 11 co-defendants were charged with racketeering offenses in a four-count indictment filed in April 2016. Thereafter, three defendants entered guilty pleas. In March 2017, Cordova and nine co-defendants were charged in a three-count superseding indictment.
The superseding indictment charged the ten defendants with participating in a criminal organization known as the Syndicato de Nuevo Mexico (SNM) Prison Gang that engaged in acts of violence and other criminal activities, including murder, kidnapping, attempted murder, conspiracy to manufacture and distribute narcotics, and firearms trafficking. The superseding indictment alleged that the defendants were members and associates of the SNM Prison Gang, a state-wide gang operating in New Mexico prisons and in communities throughout the state. According to the superseding indictment, the SNM Prison Gang was formed in the early 1980s at the Penitentiary of New Mexico after the prison riot in Feb. 1980, and expanded throughout the New Mexico penal system. Gang members and associates allegedly are expected to remain loyal to the Gang and work to further its objectives after they have completed their prison sentences and those who do not are allegedly subject to violent forms of discipline. The superseding indictment alleged that significant goals of the SNM Prison Gang included controlling and profiting from drug trafficking both within and outside the penal system; intimidating and influencing other gangs for the purpose of expanding the network for its illegal activities; and engaging in violence to assert its gang identity and protect its territory.
The superseding indictment also charged Cordova and Christopher Garcia, 43, of Albuquerque, with committing murder in aid of the racketeering enterprise on Feb. 4, 2005, and Cordova with using a firearm to cause a death on Feb. 4, 2005. The superseding indictment charged Cordova and his co-defendants with committing the crimes charged in Bernalillo County, N.M., and other locations in New Mexico for the purpose of gaining entrance into and maintaining and increasing their stature within the SNM Prison Gang.
Trial on the two charges in the superseding indictment against Cordova began on July 9, 2018, and concluded this afternoon when the jury returned guilty verdicts against Cordova on the offenses of committing murder in aid of a racketeering enterprise and using a firearm to commit that murder.
Testimony at trial established how the SNM Prison Gang was born out of one of the bloodiest prison riots in U.S. history. In the 1980s, the Gang grew until it became the largest prison gang in New Mexico and controlled the prisons through acts of violence including murder, assault, acts of extortion, and drug trafficking. Jurors learned that the Gang’s main rule is that the SNM Prison Gang comes first regardless, and if someone disrespects a Gang member in any way, the SNM Prison Gang must retaliate. The penalty for violating the SNM Prison Gang’s rules – including cooperating with law enforcement, being a member of a rival gang, or disrespecting an SNM gang member – is death. Jurors learned that the importance of drugs, power, and respect of the SNM Prison Gang is not confined within prison walls, but extend beyond those walls.
The jury also learned about the SNM Prison Gang’s structure from several SNM Prison Gang members and former members who testified during the trial. They learned about “associates” like Cordova, who are non-gang members who associate with the Gang and help the Gang’s cause by running drugs for SNM drug dealers and sending drugs and money to SNM Prison Gang members serving prison sentences. “Prospects” of the SNM Prison Gang are individuals interested in becoming members of the Gang. “Soldiers” are Gang members who commit the violence and enforce the rules at the direction of Gang leaders. “Hitters” are members who traffic drugs for the SNM Prison Gang, supply members with drugs and use drugs as a means of controlling individuals, including corrections officials. “Key holders” are those at each prison facility who are control and call the shots within the facility. The main leader is in charge of the entire SNM Prison Gang and gang members carry out his orders.
Jurors heard from law enforcement officers and cooperating Gang members that when an SNM member is released from prison, they are expected to continue to support the Gang through criminal activity, including by drug trafficking. Garcia was the main drug dealer and supplier for the SNM Prison Gang and held significant power outside of prison. SNM members released from prison were sent to Garcia for their “starter kit” of drugs to start dealing. The victim in this case, “S.D.,” was a problem for the SNM Prison Gang beginning in approximately 2001, and in Feb. 2004, he made the fatal mistake of disrespecting Garcia, a SNM Prison Gang member, by shooting him in the stomach. SNM had to retaliate against that disrespect and a bounty was placed for the murder of “S.D.”
Testimony at trial established that in Feb. 2005, Cordova and another individual agreed with Garcia to murder “S.D.” Garcia planned a trip to Las Vegas, Nev., so that he would have an alibi, and provided Cordova with firearms to use in murdering “S.D.” Evidence established that on the evening of Feb. 4, 2005, Cordova and the other individual drove to a gas station where “S.D.” was known to sell drugs, and Cordova told the other individual to kill “S.D.” The other individual did not ultimately shoot “S.D.,” so Cordova took it upon himself to commit the murder. Cordova followed “S.D.,” on a secluded road, and fired five shots, killing “S.D.,” by shooting him in the neck and chest. Testimony established that Cordova killed “S.D.,” in exchange for payment in money and drugs from Garcia in retaliation for “S.D.,” disrespecting SNM when he shot Garcia.
The jury deliberated approximately seven hours before returning the guilty verdict.
At sentencing, Cordova faces a statutory mandatory penalty of life imprisonment. Cordova has been in custody since his arrest in May 2016, and will remain detained pending a sentencing hearing which has yet to be scheduled.
Cordova’s nine co-defendants in the superseding indictment have pleaded guilty or have been convicted in related prosecutions to the SNM prison gang.
This case was investigated by Albuquerque Division of the FBI with assistance from the New Mexico Corrections Department, New Mexico State Police, Bernalillo County Sheriff’s Office, Metropolitan Correctional Center, Albuquerque Police Department, U.S. Marshals Service, and the El Paso, Phoenix, Denver, Las Vegas and Knoxville FBI Divisions. Assistant U.S. Attorneys of the U.S. Attorney’s Office for the District of New Mexico are prosecuting the case.
Fairmont man sentenced for firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dustin Lynn Garrison, of Fairmont, West Virginia, was sentenced today to 57 months incarceration for illegally possessing a firearm, United States Attorney Bill Powell announced.
Garrison, age 26, pled guilty to one count of “Unlawful Possession of a Firearm” in March 2018. Garrison, having previously been convicted of two felonies in the Circuit Court of Marion County, illegally possessed a .308 semi-automatic pistol in September 2017 in Marion County, West Virginia.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives and the Fairmont Police Department investigated. The United State Marshal Service assisted.
Senior U.S. District Judge Irene M. Keeley presided.
Facebook Seller Indicted for Robbing and Shooting CustomerRead the Press Release
St. Louis, MO – Natez Fisher, 18, of St. Louis, MO, was arrested this morning stemming from a two-count indictment charging him with one count of interference with commerce by robbery and one count of use of a firearm in furtherance of a crime of violence.
According to the Indictment, on April 16, 2018, Natez Fisher placed an ad on Facebook Marketplace for the sale of a gaming system. S.K. agreed to purchase the item and met with Fisher at which time Fisher pointed a firearm at S.K., demanded S.K.’s money, and shot him.
If convicted, the robbery charge carries a maximum penalty of 20 years in prison and a $250,000 fine and the defendant could face an additional consecutive mandatory minimum of ten years because the defendant shot the victim during the robbery. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Erie Man Pleads Guilty to Preparing More than 1000 False Income Tax ReturnsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal income tax laws, United States Attorney Scott W. Brady announced today.
Roderick M. Jones, 54, pleaded guilty to three counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Jones prepared and presented approximately 1,015 false and fraudulent individual income tax returns to the Internal Revenue Service. On each return, Jones falsely claimed the individual earned household help income which qualified them for the Earned Income Tax Credit and other credits increasing the refund paid to the individuals. Jones was paid $1,000 for his services and electronically filed the false returns with the IRS.
Judge Cercone scheduled sentencing for November 19, 2018 at 3:00 p.m. The law provides for a total sentence of 9 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Jones on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation Division conducted the investigation that led to the prosecution of Jones.
Eastern Panhandle man indicted on firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Raymond Hoak, of Kearnysville, West Virginia, was indicted today by a federal grand jury on a firearms charge, United States Attorney Bill Powell announced.
Hoak, age 42, is charged with one count of “Unlawful Possession of a Firearm.” Hoak, having previously been convicted of a felony, is accused of having five .22-caliber rifles, a .22-250 rifle, a .300-caliber rifle, a .380-caliber pistol, and another rifle in June 2018 in Jefferson County.
Hoak faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
East Pittsburgh Man Pleads Guilty in Secret Service Investigation into Counterfeit Cash ConspiracyRead the Press Release
PITTSBURGH – A resident of East Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy and passing and uttering counterfeit money, United States Attorney Scott W. Brady announced today.
Bruce M. Charles, Jr. 32, pleaded guilty to four counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that between May 16, 2015 and June 12, 2015, Charles conspired and passed counterfeit $100, $50, and $20 Federal Reserve Notes throughout the Western District of Pennsylvania.
Judge Fischer scheduled sentencing for December 6, 2018 at 9 a.m.. The law provides for a total sentence of 65 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Foster.
Eagle Butte Woman Charged with TheftRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Theft from an Indian Tribal Organization.
Ashley Traversie, age 28, was indicted on July 17, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 19, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, up to 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 2, 2016, and August 17, 2017, Traversie willfully and knowingly stole, embezzled, and converted to her own use, money and funds belonging to the Lakota Thrifty Mart, an Indian tribal organization, in an amount greater than $1,000.
The charge is merely an accusation and Traversie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Traversie was released on bond pending trial which has been set for September 18, 2018.
Eagle Butte Man Charged with LarcenyRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Larceny.
Tommy Shaving, age 49, was indicted on July 10, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 19, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 12, 2017, and October 28, 2017, Shaving unlawfully took and carried away proceeds from checks written on two individuals’ checking accounts, valued at more than $1,000.
The charge is merely an accusation and Shaving is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Shaving was released on bond pending trial. A trial date has been set for September 18, 2018.
Eagle Butte Man Charged with Burglary and LarcenyRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary and Larceny.
Tommy Shaving, age 49, was indicted on July 10, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 19, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between November 29, 2017, and December 1, 2017, Shaving unlawfully entered and remained in the United Church of Christ church, with the intent to commit larceny.
The Indictment also alleges that between November 29, 2017, and December 1, 2017, Shaving unlawfully took and carried away three star quilts, valued at more than $1,000.
The charges are merely accusations and Shaving is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Shaving was released on bond pending trial. A trial date has been set for September 18, 2018.
Doctor Indicted and Arrested for Health Care FraudRead the Press Release
SAN JUAN, P.R. - On July 19, 2018, a Federal Grand Jury in the District of Puerto Rico returned an indictment charging Dr. Miguel Rivera-Sanabria with 18 counts of health care fraud, three counts of aggravated identity theft, three counts of false statement relating to health care matters, and eight counts for attempted distribution of controlled substances. The defendant was arrested today, announced Rosa Emilia Rodríguez Vélez, United States Attorney for the District of Puerto Rico. The Office of the Inspector General for the U.S. Department of Health and Human Services (“HHS-OIG”) is in charge of the investigation with the collaboration of the FBI and the Drug Enforcement Administration (DEA).
According to the indictment, from on or about August 2013, and continuing through on or about August 2017, Dr. Miguel Rivera-Sanabria enriched himself by submitting false and fraudulent claims to Medicare through claims submissions to Medicare Advantage plans for medical services that were never performed. Rivera-Sanabria fraudulently billed Medicare $252,055, and he caused Medicare to pay $225,250 based on these false and fraudulent claims.
The defendant is also charged with Aggravated Identity Theft and False Statements for at least three instances where he billed for services to patients who were deceased. The indictment alleges that the defendant knowingly transferred, possessed, and used the names, date of birth, and social security number, attached to the supplier’s unique Medicare identification number of three patients who in fact were deceased at the time of the alleged psychiatric evaluation claims.
“Billing federal health programs for medically unnecessary services is unacceptable and a waste of taxpayer funds,” said U.S. Attorney Rosa E. Rodriguez-Velez. “Today’s arrest shows the Department of Justice’s firm commitment to protect public funds and to safeguard the well-being of federal health care program beneficiaries.”
Rivera-Sanabria is facing a health care fraud forfeiture allegation of $225,250, which constitutes the amount of money Medicare paid the defendant, and a property located in Las Villas en Palmas II in the municipality of Humacao, PR.
Pursuant to the charges, the defendant faces potential penalties of up to ten years of imprisonment for the health care fraud charges, and a mandatory minimum term of two years of imprisonment for the aggravated identity theft charges. This case was investigated by HHS-OIG, FBI, and DEA, and is being prosecuted by Assistant U.S. Attorney Edward Veronda of the Financial Fraud and Corruption Unit.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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District Man Found Guilty of Murder in Shooting That Killed Innocent BystanderRead the Press Release
WASHINGTON – Kelby Gordon, 32, of Washington, D.C., has been found guilty by a jury of second-degree murder while armed, assault with intent to kill while armed, and related firearms offenses for killing an innocent bystander and firing into an occupied bedroom during a broad-daylight shooting in Southeast Washington, announced U.S. Attorney Jessie K. Liu, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Gordon was found guilty on July 23, 2018, following a trial in the Superior Court of the District of Columbia. He is to be sentenced on Sept. 21, 2018, by the Honorable Milton C. Lee.
According to the government’s evidence, on March 24, 2016, at approximately 11:15 a.m., the victim, Gabriel Turner, was walking in a cut-through behind the 2600 block of Birney Place SE, headed to a nearby bus stop. Mr. Turner, 46, who had intellectual disabilities and who was working at the FBI as a janitor, had just finished having breakfast with his mother – as he had every morning. Gordon, meanwhile, was in the area and, after seeing another man pull out a large amount of money, decided to rob that man near the mouth of the cut-through.
However, as Gordon attempted to rob the man, the man began to pull out his own firearm. Gordon, in his own words, gave the man no chance, and pulled his gun out first. The two men began running down the cut-through behind Mr. Turner.
Unbeknownst to Mr. Turner, Gordon planted his feet and began firing towards the man, who fled in the same direction that Mr. Turner was walking. The man who Gordon was targeting weaved around Mr. Turner and escaped, but a single bullet struck Mr. Turner in the upper back as he ducked. The bullet lodged itself in Mr. Turner’s sinus – killing him almost instantly. Two other bullets flew into an occupied apartment across the street, just missing the head of a second victim as he returned to bed.
An investigation led to Gordon’s arrest on April 17, 2016, by the Capital Area Regional Fugitive Task Force.
In announcing the verdict, U.S. Attorney Liu, Chief Newsham, and Assistant Director in Charge McNamara commended the work of those who investigated the case from the Metropolitan Police Department (MPD), as well as the FBI/MPD Safe Streets Task Force and the FBI’s Cellular Analysis Survey Team, which helped identify Mr. Turner’s assailant. They also expressed appreciation for the assistance provided by the United States Park Police, the Capital Area Regional Fugitive Task Force, the United States Marshals Service, and the District of Columbia Department of Corrections.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Service Coordinators La June Thames and Katina Adams-Washington; Victim/Witness Advocate Jennifer Clark; Administrative Services Specialist Sallie Rynas; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Investigative Analyst Zachary McMenamin; Criminal Investigator John Marsh; Paralegal Specialists Lornce Applewhite and Jeffrey Bloom; Litigation Technology Specialist Thomas “Ron” Royal, and Assistant U.S. Attorney Emily A. Miller, who initially investigated the case.
Finally, they commended the work of Assistant U.S. Attorneys Lindsey Merikas and Monica Trigoso, who investigated and prosecuted the case.
Department of Justice, EPA, State of West Virginia Settle with CSX Transportation over 2015 Derailment and Oil Spill in Mount Carbon, W.Va.Read the Press Release
Today, the U.S. Department of Justice, U.S. Environmental Protection Agency (EPA) and State of West Virginia announced a settlement with CSX Transportation Inc. to resolve its liability for state and federal water pollution violations related to a 2015 oil spill caused by a train derailment in Mount Carbon, West Virginia. Under the terms of the settlement, CSX Transportation will pay penalties of $1.2 million to the United States and $1 million to West Virginia.
“Federal law requires the transport of oil through communities like Mount Carbon to be done safely, whether by rail or any other mode. When accidents happen and public health or the environment is harmed, the Justice Department will respond with strong action in close coordination with our federal and state partners,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “Today’s settlement imposes serious fines under the Clean Water Act for the 2015 CSX train derailment in West Virginia and seeks to deter similar incidents from happening in the future. I applaud the joint efforts of DOJ, EPA, and the State of West Virginia on this case.”
“The 2015 CSX train derailment in Mount Carbon, West Virginia caused significant damage and disruption to that community,” said EPA Office of Enforcement and Compliance Assurance Assistant Administrator Susan Bodine. “Through this settlement EPA, DOJ, and the State of West Virginia are holding CSX Transportation accountable for these consequences.”
On February 16, 2015, a CSX Transportation train with 109 railcars carrying crude oil derailed in Mount Carbon. Twenty-seven tank cars, each containing approximately 29,000 gallons of Bakken crude oil, derailed, and about half of the tank cars ignited. The resulting explosions and fires destroyed an adjacent home and garage. Local officials declared a state of emergency, nearby water intakes were shut down, and residents in the area were evacuated.
EPA and the West Virginia Department of Environmental Protection joined with other federal, state, and local agencies in responding to the incident. In response to federal and state orders, CSX Transportation has taken steps to remedy the damage and disruption caused by the oil spill. Separately, under a state-negotiated provision, CSX Transportation will help improve surface water quality in the area impacted by the oil spill through a contribution of $500,000 to a state-administered fund to upgrade a water treatment facility in Fayette County, West Virginia.
Some of the oil discharged during and following the train derailment flowed into the Kanawha River and Armstrong Creek. Freshwater bodies are particularly sensitive to fuel spills, which may damage fish and bird habitat and threaten drinking water supplies.
The proposed settlement is subject to a 30-day public comment period and final court approval. To view the consent decree or to submit a comment, visit the department’s website at: www.justice.gov/enrd/Consent_Decrees.html.
Cherry Creek Man Charged with Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Cherry Creek, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse.
Keeler Condon, a/k/a “Bud” Condon, age 32, was indicted on July 17, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 19, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 28, 2018, Condon knowingly engaged in, and attempted to engage in, a sexual act with a female juvenile victim who was incapable of appraising the nature of the conduct, and was physically incapable of declining participation in and communicating an unwillingness to engage in the sexual act.
The charge is merely an accusation and Condon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Condon was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for September 18, 2018.
Carrollton, Texas, Man Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Iduar Acosta Fernandez, age 29, of Carrollton, Texas, pled guilty to Conspiracy To Commit Wire Fraud, in violation of Title 18, United States Code, Section 1349, punishable by not more than 30 years imprisonment, up to a $1,000,000.00 fine, or both.
The Indictment alleged that In or about November 2017, to on or about March 27, 2018, in the Eastern District of Oklahoma and elsewhere, the defendant, knowingly and willfully combined, conspired, confederated and agreed with other persons, known and unknown to the Grand Jury, to commit an offense of Wire Fraud.The charges arose from an investigation by the Lighthorse Police Department and the United States Secret Service.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Shannon Henson represented the United States.
Brownsville Man Gets 20 Years for Sexual Exploitation of a ChildRead the Press Release
BROWNSVILLE, Texas – A 26-year-old Brownsville resident has been ordered to federal prison following his conviction for production of child pornography, announced U.S. Attorney Ryan K. Patrick. Manuel Teodoro Perez pleaded guilty Feb. 14, 2018.
Today, U.S. District Judge Andrew Hanen sentenced Perez to 240 months in federal prison. At the hearing, the court heard that Perez molested a four-year-old child on at least five separate occasions. In one instance, Perez molested the child while another younger child was present in the room. The court also heard that Perez was in possession of 628 images and 57 videos of child pornography at the time of his arrest.
In handing down the sentence, Judge Hanen noted the nature and circumstances of the offense as the justification for the 20-year sentence. Perez will also serve 20 years on supervised release following the sentence, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Perez will also be ordered to register as a sex offender.
In April 2017, the Rio Grande Valley Child Exploitation Task Force initiated an investigation into an email address associated with the distribution and downloading of child pornography through the use of internet applications. Perez was ultimately located at his residence in Brownsville and was found to be the possessor of the email address. Further investigation revealed Perez was in possession of numerous images and videos of child pornography – 628 images and 57 videos in total.
During the forensic analysis of the digital storage device Perez was utilizing to store his child pornography collection, law enforcement discovered a video of Perez sexually assaulting a four-year-old minor child. Further investigation revealed Perez had sexually assaulted the minor child on five separate occasions.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorneys Jason Corley and Ana Cano prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Boston Man Convicted of Crack ChargesRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Cuwan Merritt, 29, of Boston, Massachusetts, was convicted today following a two-day jury trial in U.S. District Court of possession with intent to distribute cocaine base, commonly known as “crack.”
On May 12, 2017, the defendant and Michael Artis travelled from Boston intending to sell crack in Lewiston. Law enforcement agents intercepted the vehicle in which they were traveling when they reached Auburn. A police dog alerted to the presence of narcotics on both men. Agents seized 57 pre-packaged .5g bags of crack from Artis and later seized crack that Merritt had secreted in his body.
Merritt faces up to 20 years in prison and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. Artis pled guilty to the same charge on June 28, 2018 and awaits sentencing.
The investigation was conducted by the U.S Drug Enforcement Administration in conjunction with the Maine Drug Enforcement Agency, the Auburn and Lewiston Police Departments and the Maine State Police.
Berkeley County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Douglas Mills, of Hedgesville, West Virginia, has admitted to a cocaine distribution charge, United States Attorney Bill Powell announced.
Mills, also known as “D,” age 26, pled guilty to one count of “Distribution of Cocaine Base.” Mills admitted to selling cocaine in Berkeley County in August 2015.
Mills faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the West Virginia State Police Bureau of Criminal Investigations, the Jefferson County Sheriff’s Office, and the Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Atlanta businessmen sentenced to 10 years in prison for securities fraud schemesRead the Press Release
ATLANTA - Marc E. Bercoon and William A. Goldstein have been sentenced to federal prison on charges that they manipulated the market for shares of MedCareers Group, Inc., a publicly traded company, and that they carried out a second investment fraud scheme using a new business corporation that they organized as the bait for investors.
“These defendants manipulated the stock of a publicly traded company by orchestrating two schemes, netting over $2.5 million from investors,” said U.S. Attorney Byung J. “BJay” Pak. “At the same time they were rigging the stock market, the defendants fleeced dozens of investors in a separate fraud scheme. Today’s sentencing marks a fitting end to the defendants’ long history of cheating investors out of their hard-earned money.”
“It’s easy to dismiss financial fraud cases like this as harmless, but there is a real victimization and lives are changed because of it,” said Murang Pak, Acting Special Agent in Charge (A/SAC) of FBI Atlanta. “Hopefully the sentencing of these two criminals will give the many people who were defrauded some solace.”
According to U.S. Attorney Pak, the charges and other information presented in court: From July 2009 through September 2011, Bercoon and Goldstein conspired with others to manipulate the market for shares of MedCareers Group, Inc., a publicly traded company quoted on the over-the-counter bulletin board under the ticker symbol “MCGI.”
The conspiracy culminated in two “pump and dump” schemes carried out in March and May 2010. To carry out these schemes, Bercoon and Goldstein arranged for MedCareers Group, Inc. to issue a series of misleading press releases and SEC filings, at the same time as co-conspirators sent out mass emails touting the stock. While the price of MCGI and the demand for the stock were both artificially high because of these efforts, the defendants orchestrated a sell-off of their stock, coordinating activity in multiple “nominee” accounts, which were titled in the names of other people and entities to hide the defendants’ involvement.
From May 2009 through June 2010, Bercoon and Goldstein also carried out a second investment fraud concerning a privately held company. Specifically, Bercoon and Goldstein organized a private corporation, Find.com Acquisition, Inc., and then solicited investments from dozens of individuals. Bercoon and Goldstein told investors, and induced brokers working for them to tell investors, that their funds would be used to develop an internet search engine named Find.com. Bercoon and Goldstein used the bulk of the over $1.5 million raised from investors for unrelated purposes, such as subsidizing their other business ventures and making payments to themselves and their family members. In fact, over $550,000 of the $1.5 million invested in Find.com Acquisition, Inc. was simply withdrawn from the bank in cash shortly after being invested.
As part of the scheme, investors were provided with written offering materials. In addition to stating that the investments would be used to develop the Find.com internet search engine business, the written materials stated that investors were being offered the opportunity to buy stock at a price of $1.00 per share, and that no more than 12.5% of investments would go toward commissions. Despite these representations, Bercoon and Goldstein sold stock to some investors at heavily discounted prices, without informing other investors, and paid commissions of 30% to 40% to brokers on some investments.
These charges flow from a securities fraud investigation conducted by the FBI, in which court-authorized wiretaps were used to intercept telephone conversations.
Marc E. Bercoon, 58, of Dunwoody, Georgia and William A. Goldstein, 54, of Alpharetta, Georgia were each sentenced to 10 years in prison, three years of supervised release following their prison terms, and payment of restitution in the amount of $1,496,733. The Court also entered a forfeiture order as to each defendant in the amount of $1,953,974. On February 21, 2018, Bercoon and Goldstein were convicted by a jury on 12 counts of conspiracy, mail fraud, wire fraud, and securities fraud.
In 2010, the U.S. Securities and Exchange Commission sued Bercoon and Goldstein in connection with a separate investment fraud scheme concerning LADP Acquisition, Inc. A judgment of over $3 million was entered against both men in that case. The Court applied a sentencing enhancement for violation of a prior judicial order, finding that the defendants violated a preliminary injunction in the LADP case.
This case was investigated by the Federal Bureau of Investigation. The Atlanta Regional office of the SEC, the Los Angeles Regional Office of the SEC, the Internal Revenue Service Criminal Investigation, and the Criminal Prosecution Assistance Group of FINRA provided valuable contributions in the case.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, and Assistant U.S. Attorneys Alana R. Black and Kamal Ghali prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Apple Valley Sex Offender Sentenced to 28 Years in Prison for Producing Child PornographyRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of JOSEPH THOR PERKINS, 36, to 28 years in prison for sexually exploiting multiple minor victims. PERKINS, who pleaded guilty on January 16, 2018, to one count of production of child pornography, was sentenced on July 23, 2018, before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, since 2013, PERKINS has had contact with four minor victims. He contacted the minors using online messaging applications and enticed them to send him images of themselves engaged in sexually explicit conduct. After receiving the sexually explicit images, PERKINS encouraged the minors to meet him in person to engage in sexual acts and so PERKINS could take sexually explicit photographs of the minors. On multiple occasions between 2013 and 2016, PERKINS met the minor victims separately at various locations, including PERKINS’ residence. PERKINS engaged in sexual acts with the minors and photographed the minors engaged in sexually explicit conduct.
According to the defendant’s guilty plea and documents filed in court, in 2015, PERKINS was charged in Dakota County with possession of child pornography and was charged in Scott County with engaging in sexual acts with a fifth minor victim. Additionally, in 2016, PERKINS solicited a sixth individual online. He believed this sixth individual to be a 14-year-old girl and arranged for “her” to meet him in person, engage in sexually explicit conduct, and for PERKINS to take photographs of the encounter. After arranging the meeting with the purported minor, who was in reality an undercover law enforcement officer, PERKINS was arrested and charged in Washington County with online solicitation.
This case is the result of an investigation conducted by the Washington County Sheriff's Office and the Federal Bureau of Investigation.
Assistant United States Attorney Karen B. Schommer prosecuted the case.
Defendant Information:
JOSEPH THOR PERKINS, 36
Apple Valley, Minn.
Convicted:
- Production of child pornography, 1 count
Sentenced:
- 336 months in prison
- Lifetime of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Additional Charges Filed Against Scranton Man in Sex and Drug Trafficking CaseRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton returned a third superseding indictment today charging Mark Cook, age 39, with additional counts of sex trafficking by force, fraud and coercion, and two counts of interstate prostitution.
According to United States Attorney David J. Freed, the third superseding indictment alleges Cook, who used the street name of “Lucky,” used force or coercion in connection with additional victims of sex trafficking during 2015 and October 2016. It also alleges that Cook transported another person from Pennsylvania to Connecticut for purposes of prostitution between February 25 and March 2, 2016, and on March 7, 2016 persuaded another person to travel from Pennsylvania to New York to engage in prostitution.
The third superseding indictment also contains the original charges of conspiracy to commit sex trafficking by force and coercion, previous counts of sex trafficking by force, fraud and coercion, a count of attempted sex trafficking by force, fraud, and coercion, conspiracy to distribute and possess with intent to distribute heroin, “molly,” and cocaine, distribution and possession with intent to distribute heroin and cocaine, attempted witness tampering, and wire fraud.
According to the third superseding indictment, Cook used a website to post advertisements for prostitution, rented hotel rooms in Scranton, Wilkes-Barre, and elsewhere for prostitution purposes, and used intimidation, threats, physical assaults, and illegal drugs to further the prostitution business.
The charges against Cook resulted from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Scranton Police. Assistant U.S. Attorneys Francis P. Sempa and Jenny P. Roberts are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The sex trafficking offenses each carry a mandatory minimum sentence of 15 years in prison and a potential maximum sentence of life in prison. The charge of persuading another person to travel in interstate commerce for purposes of prostitution carries a maximum sentence of 20 years in prison. The interstate prostitution charge carries a maximum sentence of 10 years in prison. The drug charges and attempted witness tampering charge each carry a potential maximum sentence of 20 years in prison. The wire fraud charge carries a potential maximum sentence of 30 years in prison, and the attempted witness tampering count carries a potential maximum sentence of 20 years in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Accountant Charged with Conspiracy for His Role in Operation of Covington Business Running Medical Reimbursement Account ProgramRead the Press Release
U.S. Attorney Duane A. Evans announced that BRENT ANTHONY SILVA, age 52, a resident of Covington, Louisiana, was charged yesterday in a one-count bill of information with conspiracy to make false statements and representations in connection with a multiple employer welfare arrangement, in violation of 18 U.S.C. ' 371, for his role the operation of the Total Financial Group (“TTFG”), a Covington-area business that created and marketed what it claimed to be a Medical Reimbursement Program.
According to the bill of information, TTFG was a Louisiana business incorporated with the Louisiana Secretary of State on about January 6, 2005, that was most recently located at 406 N. Florida Street, Covington, Louisiana. TTFG and its owners created and marketed a Medical Reimbursement Account program called “Classic 105.” Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan for their employees to reimburse for medical expenses such as co-pays and deductibles; participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105. Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a lender back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan, and fees paid by the employee and the employer directly to TTFG. TTFG told prospective employer-customers that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay. TTFG also told prospective employer-customers that the contributions would be stored in a unique account for each employee and that any money not used by the end of each calendar year would revert to TTFG. TTFG also charged employees a fee of between $150 and $250 per month and the employer a fee of five (5) percent of each employee’s contribution amount. At its peak, in late 2016, over 350 employers and 4,400 employees (“participants”) nationwide were enrolled in TTFG’s Classic 105 program.
According to the Bill of Information, TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions. Rather, TTFG arranged for the contribution, loan, and insurance policy to appear as a series of “paper transactions” that, in effect, did nothing more than reduce participants’ taxable wages and employers’ FICA payments improperly, without their knowledge of the impropriety. In truth, the only money actually paid to TTFG were the fees.
SILVA was hired by the owners of TTFG in about 2013. SILVA performed numerous functions at TTFG, including preparing the federal and state income tax returns for TTFG and its owners, as well as serving as the primary point of contact for all accounting-related issues that arose. In his role with TTFG, SILVA knowingly caused false statements to be made to employer-clients and employee-participants about the financial condition, solvency, and benefits provided by Classic 105 during the marketing and sale of the program, including statements on December 17, 2014 and January 15, 2015.
“This criminal action demonstrates the Labor Department’s resolve to vigorously prosecute those who scheme, misappropriate, misrepresent and deceive small business health plans, as well as, the health insurance market for their own financial gain are brought to justice,” said James Purcell, Regional Director of the Kansas City Regional Office for the U.S. Department of Labor, Employee Benefits Security Administration.
If convicted, SILVA faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Evans reiterated that a 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 Internal Revenue Service – Criminal Investigations; Federal Bureau of Investigation; and United States Department of Labor – Office of Inspector General and Employment Benefits Security Administration and expressed appreciation for the support provided by Senior Trial Attorney Rebecca Pyne, Department of Justice, Organized Crime and Gang Section, Labor-Management Racketeering Unit. Assistant United States Attorney Jordan Ginsberg and Department of Justice, Tax Division Trial Attorney Melanie Smith are in charge of the prosecution.
25 Defendants Charged in Manhattan Federal Court with Multimillion-Dollar Wire Fraud and Money Laundering SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging Diyora Ashirova, Elvin Baghir-Pur, Kirill Dedusev, Roman Eliozashvili, Sarkhan Imamverdiyev, Mikheil Inadze, Aziza Jalolova, Elvin Javadzade, Igor Kalinitchev, a/k/a “Irvin Kalinitchev,” Tengiz Khukhiashvili, Yelena Kudaibergenova, Mishel Levinski, Stanislav Lisitskiy, a/k/a “Giedrius Girnius,” Aleksei Livadnyi, Durra Mehdiyeva, Mikhail Morozov, Ielyzaveta NAzina, Gocha Paposhvili, Matiss Puke, Ketevan Sepiashvili, Aleksandr Starikov, Igor Stasovskiy, Nikolay Tupikin, Karlis Vitols, and Melvut Yazici with conspiracy to commit wire fraud and conspiracy to commit concealment money laundering. Eleven of the defendants were arrested on these charges today in New York. These defendants will be presented and arraigned today before United States Magistrate Judge James L. Cott in Manhattan federal court. BAGHIR-PUR was arrested in Miami this morning and will be there presented there later today. KHUKIASHVILI is in custody on state charges in Alachua County, Florida, and PUKE and VITOLS are in custody on state charges in Charlevoix County, Michigan. All three will be transferred to federal custody. DEDUSEV, ELIOZASHVILI, KUDAIBERGENOVA, LISITSKIY, LIVADNYI, MOROZOV, STARIKOV, and TUPIKIN remain at large. The case has been assigned to United States District Judge George B. Daniels.
U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendants participated in a nationwide scheme to defraud, duping victims who responded to fake internet advertisements designed to resemble advertisements posted by legitimate merchants. Then the defendants allegedly created dozens of shell companies to receive victim payments and withdrew the funds and sent them out of the country. Thanks to the hard work of the FBI, these defendants will now face prosecution.”
FBI Assistant Director William F. Sweeney Jr. said: “Trusting that they were conducting legitimate business with automotive dealers, these victims lost over $4 million as a result of this scheme. While allegedly operating under this façade, the defendants were diligent in the theft of the funds, but showed no regard to the financial impact on the victims. As shown by the charges brought today, the FBI will continue to work tirelessly with our law enforcement partners to uncover duplicitous conspiracies, regardless of the vast intricacy of their cover-ups.”
According to the allegations in the Indictment and statements made during court proceedings in this matter[1]:
From November 2016 through July 2018, the defendants carried out a wide-ranging fraudulent scheme that typically involved impersonating legitimate sellers of cars, tricking victims into providing payment for those cars, withdrawing the funds from banks around the country using efforts designed to evade scrutiny, and wiring the proceeds outside the United States.
The fraud most commonly operated as follows: first, co-conspirators impersonated automotive dealers and collectors and claimed to be selling classic cars on various well-known internet auction and trading websites. Victims responding to the ads were in fact corresponding with a fraud scheme participant. After the victims and co-conspirators came to terms on a sale price, including down payment and shipping costs, victims were next directed to purported automotive transportation companies and were told that these companies would accept payment and transport the cars. These companies were in fact shell corporations established by the conspiracy to help perpetrate the fraud, whose corporate bank accounts were established and controlled by the defendants, awaiting wired funds from the fraud’s victims. After victims had wired payment, the defendants went to the banks to drain the victim’s funds, often starting the same day payment had been transmitted. The defendants would draw money from different bank branches in numerous withdrawals on the same day, in denominations that were varied and often kept to an amount they believed would prevent the financial institutions from recording and reporting the fraud. The co-conspirators then sent the fraud proceeds outside the United States to Eastern European countries, from where many of the conspirators originated. Victims never received the goods they believed they had purchased, and many were unable to recover their money or were left paying loans for cars that were never truly for sale. The defendants’ scheme defrauded victims of more than $4.5 million.
* * *
Each of the defendants is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 30 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. The table below lists the name, age, nationality, and residence of each defendant.
Mr. Berman praised the outstanding investigative work of the FBI, Customs and Border Protection, the New York Police Department, and U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Jeffrey C. Coffman, Thane Rehn, and Matthew J.C. Hellman 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.
Name
Age
Nationality
Residence
ASHIROVA
27
Kazakhstan
Brooklyn
BAGHIR-PUR
24
Azerbaijan
Brooklyn
ELIOZASHVILI
44
Georgia
Brooklyn
IMAMVERDIYEV
30
Azerbaijan
Brooklyn
INADZE
37
Georgia
Brooklyn
JALOLOVA
23
Kazakhstan
Brooklyn
JAVAZADE
30
Azerbaijan
Brooklyn
LEVINSKI
23
United States
Brooklyn
KHUKIASHVILI
63
Georgia
Brooklyn
KHUDAIBERGENOVA
48
Kazakhstan
Brooklyn
KALINITCHEV
62
Ukraine
Brooklyn
MEHDIYEVA
23
Azerbaijan
Brooklyn
NAZINA
29
Ukraine
Brooklyn
PAPOSHVILI
43
Georgia
Brooklyn
SEPIASHVILI
64
Georgia
Brooklyn
STASOVSKIY
58
Russia
Brooklyn
YAZICI
36
Turkey
Brooklyn
PUKE
31
Latvia
Delray Beach, FL
VITOLS
29
Latvia
Delray Beach, FL
DEDUSEV
29
Russia
Los Angeles
LISITSKIY
30
Russia
Los Angeles
LIVADNYI
39
Russia
Los Angeles
TUPIKIN
32
Russia
Los Angeles
MOROZOV
29
Russia
Moscow
STARIKOV
34
Russia
Moscow
[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.