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24 July 2018
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.
"Reality Check with LCSO" and the BLAST Program Bring Law Enforcement and Students TogetherRead the Press Release
TALLAHASSEE, FLORIDA – The United States Attorney’s Office for the Northern District of Florida will join the Leon County Sheriff’s Office tomorrow to present a BLAST (“Building Lasting Relationships Between Police and Community”) Program as part of the three-day “Reality Check with LCSO” event.
Event: Reality Check with LCSO, featuring the BLAST Program
Location:
Leon County Sheriff’s Office
2825 Municipal Way
Tallahassee, FL 32304Media Availability:
Date: Wednesday, July 25, 2018
Time: 8:15 a.m. – 12:00 p.m. EDT
Press: Please RSVP to Shonda Knight at [email protected] or Amy Alexander at [email protected] if you plan to attend.
The Leon County Sheriff's Office’s Reality Check programs offer teens an opportunity to spend three days with LCSO deputies, learning about law enforcement and the consequences of illegal actions. The program includes a tour of the Detention Facility and culminates with a roundtable discussion on the final day.
The BLAST Program offers students an opportunity to meet representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement, and interact with law enforcement officers in a familiar setting. Law enforcement officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
Wednesday’s schedule will include the following discussion sessions, during which students will have a chance to participate in role play with law enforcement officers. (Students have media permissions.)
- Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
This session is open to the media, and videography and photography is permitted.
- Domestic Violence: Students will participate in a scenario in which law enforcement officers respond to a domestic disturbance. Discussion includes the challenges officers face, rights of witnesses and suspects, and benefits of providing information to law enforcement. This session is open to the media, and videography and photography is permitted.
- Traffic Stop Simulation: Participants and officers alternate playing the roles of civilians and officers in a traffic stop. Discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop. This session is open to the media, and videography and photography is permitted.
- Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation. This session is closed to the media. Reporters may try the simulator equipment after the event ends.
Participating agencies include:
- Leon County Sheriff’s Office
- United States Attorney’s Office, Northern District of Florida
- FAMU Police Department
- Florida Highway Patrol
- Homeland Security Investigations
- U.S. Marshals Service
- Bureau of Alcohol, Tobacco, Firearms & Explosives
- Federal Bureau of Investigation
- Drug Enforcement Administration
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
- Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
23 July 2018
Woman Sentenced to Prison for Tax Refund FraudRead the Press Release
Jenelle Robyn Pinkston, 50, of Corvalis, Oregon and formally of Nashville, Tennessee, was sentenced Friday to three years in prison for her involvement in a scheme to fraudulently obtain income tax refunds, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Pinkston was charged in a criminal information on January 23, 2017, and pleaded guilty in January 2018.
According to documents filed with the court and evidence presented at the sentencing hearing, Pinkston filed 143 fraudulent tax refunds over a ten-month period in 2012, while acting as an independent tax preparer for a Nashville-area tax preparation service. Pinkston filed the tax returns on behalf of customers of the tax preparation service and also used the identities of prison inmates, without their knowledge, to file false and fraudulent returns. The fraudulent tax returns resulted in refunds totaling $403,615.00, which Pinkston directed to two banks accounts under her control, and caused an actual loss of more than $63,000 to the IRS.
U.S. District Judge William L. Campbell, Jr. ordered Pinkston to serve three years in prison, two years of supervised release and to pay $63,338 in restitution to the IRS. He also ordered a forfeiture money judgment of $3,185.
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Stephanie N. Toussaint.
Virginia Man Sentenced to 23 Years in Prison for Traveling to Haiti and Engaging in Illicit Sexual ConductRead the Press Release
A Virginia man was sentenced today to 276 months in prison, to be followed by a life term of supervised release, for traveling from the United States to Haiti and engaging in illicit sexual conduct with a minor, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Thomas T. Cullen of the Western District of Virginia and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., announced.
James Daniel Arbaugh, 40, of Stuarts Draft, Virginia, pleaded guilty on Feb. 6, to one count of traveling in foreign commerce from the United States to Haiti in or about 2016 to engage in illicit sexual conduct with a person under the age of 18 before U.S. District Court Judge Elizabeth K. Dillion of the Western District of Virginia, who sentenced him earlier today and remanded him to the custody of the U.S. Marshals Service.
“James Arbaugh was a wolf in sheep’s clothing: he posed as a selfless missionary when in reality he was exploiting his position to prey on and sexually abuse vulnerable children in one of the most impoverished areas of the world,” said Assistant Attorney General Benczkowski. “Today’s sentencing is a testament to the unwavering commitment of our prosecutors and law enforcement partners to hold sexual predators like Arbaugh accountable for their deplorable crimes.”
“The defendant abused his position of trust to prey on vulnerable victims, and their lives will never be the same,” said U.S. Attorney Cullen. “As this case indicates, our office is committed to working with our federal, state, and local law enforcement partners to identify and vigorously prosecute those who exploit children.”
“This kind of heinous and evil activity has no place here, abroad or in-transit,” said Special Agent in Charge Lechleitner. “Those seeking to commit such abhorrent crimes and evade detection cannot hide from our highly skilled and dedicated investigators.”
According to admissions made in connection with his guilty plea, Arbaugh has lived in Haiti for approximately 15 years and has traveled regularly back to the United States during that time. According to statements made by the Court during Armbaugh’s sentencing hearing, during his time in Haiti, Arbaugh traveled as a Mennonite missionary regularly visiting remote towns and villages, where he would befriend and groom children in these communities. Arbaugh admitted that in 2016, while in Haiti, he engaged in illicit sexual contact with a minor under the age of 12 by touching the minor’s genitals under the minor’s clothing.
The investigation of the case was conducted by HSI and the Harrisonburg Police Department. This case is being prosecuted by Trial Attorney Kaylynn Shoop of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jeb Terrien of the U.S. Attorney’s Office in the Western District of Virginia.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Virginia Man Sentenced to 23 Years in Prison for Traveling to Haiti and Engaging in Illicit Sexual ConductRead the Press Release
WASHINGTON – A Virginia man was sentenced today to 276 months in prison, to be followed by a life term of supervised release, for traveling from the United States to Haiti and engaging in illicit sexual conduct with a minor, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Thomas T. Cullen of the Western District of Virginia and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., announced.
James Daniel Arbaugh, 40, of Stuarts Draft, Virginia, pleaded guilty on Feb. 6, to one count of traveling in foreign commerce from the United States to Haiti in or about 2016 to engage in illicit sexual conduct with a person under the age of 18 before U.S. District Court Judge Elizabeth K. Dillion of the Western District of Virginia, who sentenced him earlier today and remanded him to the custody of the U.S. Marshals Service.
“James Arbaugh was a wolf in sheep’s clothing: he posed as a selfless missionary when in reality he was exploiting his position to prey on and sexually abuse vulnerable children in one of the most impoverished areas of the world,” said Assistant Attorney General Benczkowski. “Today’s sentencing is a testament to the unwavering commitment of our prosecutors and law enforcement partners to hold sexual predators like Arbaugh accountable for their deplorable crimes.”
“The defendant abused his position of trust to prey on vulnerable victims, and their lives will never be the same,” said U.S. Attorney Cullen. “As this case indicates, our office is committed to working with our federal, state, and local law enforcement partners to identify and vigorously prosecute those who exploit children.”
“This kind of heinous and evil activity has no place here, abroad or in-transit,” said Special Agent in Charge Lechleitner. “Those seeking to commit such abhorrent crimes and evade detection cannot hide from our highly skilled and dedicated investigators.”
According to admissions made in connection with his guilty plea, Arbaugh has lived in Haiti for approximately 15 years and has traveled regularly back to the United States during that time. According to statements made by the Court during Armbaugh’s sentencing hearing, during his time in Haiti, Arbaugh traveled as a Mennonite missionary regularly visiting remote towns and villages, where he would befriend and groom children in these communities. Arbaugh admitted that in 2016, while in Haiti, he engaged in illicit sexual contact with a minor under the age of 12 by touching the minor’s genitals under the minor’s clothing.
The investigation of the case was conducted by HSI and the Harrisonburg Police Department. This case is being prosecuted by Trial Attorney Kaylynn Shoop of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jeb Terrien of the U.S. Attorney’s Office in the Western District of Virginia.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Verona, New Jersey, Man Admits Illegal Possession of Multiple Guns, Including Replica He Turned into Machine GunRead the Press Release
NEWARK, N.J. – A Verona man today admitted possessing three guns as a previously convicted felon, including a replica Thompson submachine gun that he modified into a working automatic firearm, U.S. Attorney Craig Carpenito announced.
David Lutter, 69, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of possessing three firearms as a previously convicted felon.
According to documents filed in this case and statements made in court:
In January 2017, Lutter met with an undercover agent from the Bureau of Alcohol, Tobacco, and Firearms (ATF) and negotiated the sale of a functioning Thompson submachine gun. The gun had originally been a replica, but Lutter had modified it with real gun parts to convert it into a functioning automatic firearm, which, according to Lutter, could fire 20 to 25 bullets per second. Lutter had also equipped it with what he called a “rock-and-roll switch,” which could toggle between semi-automatic and automatic mode.
Lutter sold the undercover agent the submachine gun, a .32-caliber revolver, and 100 rounds of ammunition for $525. A few months later, in May 2017, Lutter sold the undercover agent a .45-caliber semi-automatic pistol, bullets, and gun parts for $500. When Lutter was arrested in June 2017, law enforcement searched a storage facility he rented and recovered several hundred additional bullets and firearm parts. All three firearms and the recovered ammunition are in the possession of law enforcement.
At no time was Lutter licensed to sell firearms and was prohibited from possessing them due to his 1993 felony conviction for sexual assault of a minor.
The illegal firearms possession count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 30, 2018.U.S. Attorney Carpenito credited special agents of the ATF Newark Field Division, under the direction of Special Agent in Charge John B. Devito, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
United States Attorney Announces the Appointment of Three New Federal ProsecutorsRead the Press Release
RALEIGH – United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today the appointment of three new Assistant United States Attorneys (AUSAs). Each were sworn in today by Mr. Higdon.
Gabriel J. Diaz, is a former intern of the United States Attorney’s Office and was an Assistant District Attorney with the Alamance County (NC) District Attorney’s Office from 2015 until his appointment as AUSA. AUSA Diaz is a graduated of Florida International University and the Campbell University School of Law. AUSA Diaz will be assigned to the National Security Section within the United States Attorney’s Office.
Robert Dodson comes from the Federal Bureau of Prisons (BOP) where he has served as legal counsel since 2013. During his time with BOP, he served as a Special Assistant United States Attorney handling criminal prosecutions arising out of the Federal Correctional Complex in Butner, North Carolina. AUSA Dodson is a graduate of North Carolina State University and the North Carolina Central University School of Law. He will be assigned to the Violent Crime Section, handling a variety of cases in conjunction with Attorney General Jeff Sessions’ reinvigoration of the Project Safe Neighborhoods program which targets violent criminals in an effort to reduce violent crime. He will also become a part of the United States Attorney’s Office “Take Back North Carolina” initiative.
Lucy Partain comes from the Cherokee County (Georgia) District Attorney’s Office where she served as an Assistant District Attorney. Prior to that she served as a law clerk to the Honorable Terrence W. Boyle, United States District Judge for the Eastern District of North Carolina. Ms. Partain is a graduate of the University of Virginia and the Duke University Law School. Ms. Partain will be assigned to the Organized Crime Drug Task Force Unit and will handle drug trafficking cases, including opioid prosecutions.
“It’s my privilege to lead an office filled with incredibly talented and dedicated people who work tirelessly to carry out our mission of justice and fulfill our promises to the people of the Eastern District to reduce violent crime and reduce drug trafficking levels,” said U.S. Attorney Higdon. “We are proud to welcome these fine individuals to our office. I know they will make an immediate impact in our District and serve the citizens of the United States with honor and distinction.”
Two Drivers Sentenced for Human Smuggling Four Passengers Sentenced for Illegally Re-Entering the United StatesRead the Press Release
Gulfport, Miss. – Ever Anibal Silva-Escobar, a citizen of El Salvador, was sentenced on Tuesday, July 17, 2018, to 27 months in federal prison by U.S. District Judge Louis Guirola, Jr., for conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Additionally, one of Silva-Escobar’s passengers, Yesica Paola Rojas-Baten, a citizen of Guatemala, was sentenced on Thursday, July 19, 2018, to 5 months and 19 days imprisonment. Rojas-Baten was sentenced by U.S. District Judge Sul Ozerden for her violation of being an alien who illegally returned to the United States after having been lawfully removed. Rojas-Baten previously pled guilty on April 30, 2018. Silva-Escobar and Rojas-Baten both were sentenced to 1 year of supervised release following their imprisonment. Silva-Escobar was also ordered to pay a $1,000 fine.
On January 30, 2018, two Hancock County Sheriff’s Deputies, working together, but in separate patrol vehicles, conducted traffic stops of two Honda Pilot Sport Utility Vehicles (SUVs) that were traveling together. Silva-Escobar was the driver of one of the SUVs and Kenneth Samuel Hernandez-Valdez, also known as Kenneth Hernandez, was the driver of the other SUV. The U.S. Border Patrol was contacted and arrived on the scene shortly thereafter.
Neither of the drivers had a valid driver’s license, and both were in the United States illegally. Each vehicle contained eight passengers who also were found to be illegal aliens. The SUVs each contained a total of nine occupants even though each vehicle only had seat belts for eight occupants. All eighteen occupants of both vehicles were arrested and transported to the Border Patrol Station in Gulfport, MS.
Silva-Escobar and Hernandez-Valdez, confirmed that they knew their passengers were illegal aliens, and the evidence showed that they were being paid to transport the aliens from Texas. On April 3, 2018, Hernandez-Valdez also pled guilty to Conspiracy to Transport Illegal Aliens Within the United States, and he was sentenced on June 27, 2018, to 27 months in federal prison and 2 years of supervised release upon completion of his sentence.
Further, three other passengers, Pedro Lopez-Alvarez a/k/a Pedro Lopez Alvarez a/k/a Pedro Alvarez-Baten, a citizen of Guatemala; Silvano Doroteo Morales-Ventura a/k/a Silvano Morales Ventura, a citizen of Mexico; and Wilmer Antonio Rubi-Padilla a/k/a Wilmer Rubi Padilla, a citizen of Honduras, were sentenced on July 3, 2018, for Unlawfully Returning to the U.S. After Removal. The three men were sentenced by Judge Guirola to terms ranging from just over 5 months to 6 months in prison. Each of the men had been convicted after pleading guilty on April 10, 2018.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Homeland Security Investigations, the U.S. Border Patrol, and the Hancock County Sheriff’s Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Third Defendant Arrested and Charged in White Plains Federal Court with 2012 Poughkeepsie MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and William V. Grady, Dutchess County District Attorney, announced today that DAVONTE HAMILTON, a/k/a “Vont,” an alleged member of the “Uptown” street gang operating in Poughkeepsie, New York, was arrested in connection with the December 2012 murder of Daquelle LeBlanc. The defendant is charged in a Superseding Indictment with racketeering conspiracy, murder in aid of racketeering activity, and a firearms offense. HAMILTON was arrested tooday and arraigned in White Plains federal court before United States Magistrate Judge Lisa Margaret Smith.
Twelve members and associates of the Uptown gang, and 19 members and associates of the rival Downtown gang, which also operates in Poughkeepsie, New York, were previously charged in separate Indictments – United States v. Douglas Owens et al., 17 Cr. 506 (NSR) and United States v. Ronald Johnson et al., 17 Cr. 505 (VLB) – in August 2017 with murders, attempted murders, racketeering, narcotics, and firearms offenses. The Superseding Indictment adds HAMILTON as the third defendant charged with murder in aid of racketeering activity and firearms offenses in connection with the 2012 murder of LeBlanc.
U.S. Attorney Geoffrey S. Berman stated: “As alleged, Devonte Hamilton aided and abetted the murder of Daquelle LeBlanc nearly six years ago. Together with our law enforcement partners, we will continue to pursue justice for victims like Mr. Leblanc against all involved in such violent offenses.”
FBI Assistant Director William F. Sweeney Jr. said: “The work done on this investigation is a perfect example of how our law enforcement partnerships have a positive impact helping innocent people. Getting these alleged gang members, dealers, and murderers off the streets has made Poughkeepsie safer. The FBI Hudson Valley Safe Streets Task Force won’t let up on our pursuit of these alleged violent criminals until we stop their destructive hold on the community.”
Dutchess County District Attorney William V. Grady said: “I would like to compliment the City of Poughkeepsie Police Department and their law enforcement partners for their dedication in pursuing this important homicide investigation since 2012. Thanks to our additional partnership with the United States Attorney’s Office on this case, we have been able to charge those individuals we feel responsible for this homicide.”
According to the Superseding Indictment[1] filed on July 18, 2018, in White Plains and Manhattan federal court and other documents in the public record:
The Superseding Indictment arose from a joint investigation by the FBI’s Hudson Valley Safe Streets Task Force, the City of Poughkeepsie Police Department, the Dutchess County District Attorney’s Office, and the Dutchess County Sherriff’s Office into a gang war between Uptown and Downtown, which led to multiple fatal and non-fatal shootings between 2012 and 2017 in the City of Poughkeepsie.
Uptown is a criminal organization whose members referred to themselves by, and were known by, several different names, including “Spready Gang,” the “400 Savages,” the “Boogotti Boys,” the “Young Bosses” or “YB’s,” and the “Mob Stars.” Uptown is based within the eastern portion of Poughkeepsie, from east of Hamilton Street to the city line and, more specifically, within the Hudson Gardens housing development (commonly referred to as the “Bricks”). Uptown gang members and associates control the narcotics trade within the Bricks, distributing heroin, crack cocaine, and marijuana primarily. Uptown gang members stored shared guns in various locations known to gang members to protect the narcotics business, to protect each other from rival gangs, and to strike against rival gangs.
In addition to many non-fatal acts of violence against rival gang members and innocent victims, the rivalry between Uptown and Downtown led to the murder of Downtown gang member Daquelle LeBlanc, a/k/a “Hamo,” who was killed by a single gunshot wound to the chest at the age of 16 in the vicinity of Main Street, between Academy and North Hamilton Streets, on or about December 23, 2012. According to the allegations contained in the Superseding Indictment, HAMILTON and two other defendants – who were charged and arrested in connection with the August 2017 Indictments – murdered LeBlanc to enhance their position in Uptown and advance the criminal objectives of that organization.
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HAMILTON, a/k/a “Vont,” was in custody on state charges and was transferred to federal custody this morning. If convicted, HAMILTON faces a maximum sentence of 20 years in prison on Count One (Racketeering Conspiracy), a maximum sentence of life in prison on Count Three (Murder in Aid of Racketeering Activity), and a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison on Count Five (Murder Through Use of a Firearm in Furtherance of a Crime of Violence).[2] The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI’s Hudson Valley Safe Streets Task Force, the City of Poughkeepsie Police Department, the Dutchess County Sheriff’s Office, the Dutchess County Drug Task Force, as well as the United States Marshals’ Service, the New York State Police, and the New York State Department of Corrections and Community Supervision for their assistance in today’s arrests. Mr. Berman also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their assistance in the investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorneys Christopher J. Clore, Maurene Comey, and Emily Deininger are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
[2] DAVONTE HAMILTON was charged only in Counts One, Three, and Five of the thirteen-count Superseding Indictment. The other counts of the Superseding Indictment relate solely to other, previously arrested members of the Uptown gang.
Third and Final Former 5linx Owner Pleads Guilty to Wire Fraud and Tax Charge for His Role in Multi-Million Dollar Marketing SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jason Guck, 43, of Victor, NY, pleaded guilty to conspiracy to commit wire fraud and filing a false tax return for the year 2012 before U.S. District Judge David G. Larimer. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Richard A. Resnick, who is assisting AUSA Craig R. Gestring in the prosecution, stated that in 2001, Guck, Craig Jerabeck, and Jeb Tyler started 5LINX Enterprise, Inc. (5LINX), a multi-level marketing company headquartered in Rochester, NY, which offered utility and telecommunications services, health insurance, nutritional supplements and business services. 5LINX used independent representatives to sell products and services and to recruit additional representatives. Jerabeck was President and Chief Executive Officer, Guck was Vice President and Secretary, and Tyler was Vice President of 5LINX.
In June 2006 and July 2006, Guck, Tyler, and Jerabeck sold 5LINX stock for $5,500,000 to three investment companies, Trillium Lakefront Partners III, L.P.; Trillium Lakefront Partners III, NY L.P.; and Shalam Investment Co., L.L.C. (collectively known as "the Investors"). Guck admitted in the plea agreement that from in or about May 2010 to April 2016, 5LINX sold and distributed products for a Florida vendor. Guck, along with Tyler and Jerabeck, and without the knowledge of the Investors, Board of Directors, or other stockholders, conspired and agreed to cause the Florida vendor to pay them personally or companies they owned approximately $2,310,510, which their Stockholders Agreements prohibited them from receiving. 5LINX, its investors, as owners between 2006 and January 2014, and as creditors thereafter, and stockholders were entitled to and should have received such funds instead of defendant, Guck, and Tyler.
Assistant U.S. Attorney Resnick further stated that Guck solely owned YaYa Holdings Corporation. Guck provided material false information on YaYa Holdings, Inc.’s federal tax returns for the fiscal years ending July 31, 2012, and 2013, and failed to file corporate returns for the fiscal years ending July 31, 2014, and 2015. In addition, for fiscal years ending July 31, 2012, and 2013, Guck failed to report income the corporation received from 5LINX. Also, for the fiscal years ending July 31, 2014, and 2015, the corporation had income that Guck should have reported on corporate tax returns for those years. The false returns and failure to file returns resulted in a tax loss of approximately $778,718.
As part of Guck’s plea, the defendant will forfeit various assets previously seized by the government, including approximately $105,000.
In September 2017, Guck, along with Craig Jerabeck and Jeb Tyler, were charged in a superseding indictment. Jerabeck and Tyler have were previously convicted and are awaiting sentencing.
Today’s plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Gary Loeffert, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Sentencing is scheduled for October 16, 2018, at 2:00 p.m. before Judge Larimer.
St. Croix Man Sentenced for Unlawfully Mailing a Pistol and AR-15 Lower Receiver and for a Felony Marijuana OffenseRead the Press Release
St. Croix, USVI – Jahraun Malachi Brodhurst, 26, of St. Croix, was sentenced on Friday, July 20, 2018, before District Court Chief Judge Wilma A. Lewis to 21 months’ imprisonment for his convictions of unlawfully mailing a firearm and possession with intent to distribute marijuana, United States Attorney Gretchen C.F. Shappert announced. Judge Lewis also sentenced Brodhurst to 3 years of supervised release, a $1,000 fine, and a $200 special assessment.
According to the plea agreement filed with the court, on May 26, 2014, Brodhurst sent a U.S. priority mail parcel from Florida to St. Croix, Virgin Islands that contained a pistol and a an AR-15 lower receiver with an obliterated serial number. Both of the firearms were wrapped in carbon paper. The United States Postal Inspection Service Forensic Laboratories recovered two latent prints from the adhesive side of tape used to wrap the firearms in the carbon paper. Those prints matched Brodhurst’s known fingerprints.
On May 4, 2017, while a passenger in a car, stopped at a DUI checkpoint, Brodhurst was apprehended in possession of a distribution quantity of marijuana.
The case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the U.S. Postal Inspection Service, and the Virgin Islands Police Department. The case was prosecuted by Meredith J. Edwards.
Springfield Man to Serve 18 Months in Prison for Failure to Report $1.15 Million in Earnings on Tax ReturnsRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Ill., man, Gregg Harwood, has been sentenced to 18 months in prison for failing to report more than $1.15 million in earnings on tax returns filed for tax years 2008, 2009, and 2010. Harwood, 60, of the 700 block of Clipper Rd., formerly owned Thermionics, a corporation that manufactured hot / cold pain therapy products that were sold at major retailers and pharmacies across the U.S.
In addition to the prison sentence, U.S. District Judge Sue E. Myerscough ordered that Harwood pay a fine of $50,000, and serve one year of supervised release following the prison term, with the first six months of supervised release as home confinement. Harwood was also ordered to work 20 hours of community service per week while on supervised release.
On Feb. 6, 2018, Harwood waived indictment and pleaded guilty to an information that charged him with filing false income tax returns that failed to report income of more than $1.15 million for tax years 2008, 2009, and 2010. Beginning in November 2007, Harwood created various multi-level entities with no legitimate business purposes, which he used to divert and disguise income he received from Thermionics. Harwood used the resulting tax free income to support his personal lifestyle.
As provided in the plea agreement, today Harwood paid the amount due to the IRS, $447,528, and $250,000 to participants in Thermionics’ employee stock ownership plan.
Harwood remains on bond pending direction from the federal Bureau of Prisons as to the date and location to report to begin serving his prison sentence.
Assistant U.S. Attorney Timothy A. Bass prosecuted the case. The Internal Revenue Service, Criminal Investigation Division, and the U.S. Department of Labor, Criminal Division, investigated the charges.
Springfield EMT/Paramedic Pleads Guilty to Stealing Fentanyl, MorphineRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man who worked as a paramedic and EMT for several emergency medical transportation companies pleaded guilty in federal court today to stealing fentanyl and morphine and replacing the drugs with saline solution.
Zachary L. McCleary, 30, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with two counts of tampering with a consumer product.
McCleary worked at several health care facilities as an emergency medical technician (EMT) between Sept. 25, 2015, and Feb. 21, 2018. During this time, McCleary worked for the Grove, Okla., Emergency Medical Service as an EMT, as a paramedic for Cox Health in Springfield, as a paramedic for Mercy Health in Carthage, Mo., and as a paramedic with Barton County, Mo., Emergency Medical Service.
According to today’s plea agreement, 18 separate adverse event reports were filed by individuals who received emergency medical services from Barton County EMS. In each of those reports, individuals advised that various opioid drugs were administered to provide pain relief, but due to McCleary’s theft of the drugs, and tampering by replacing the drugs with saline solution, each of these individuals did not receive the pain relief intended and experienced continued pain that resulted from McCleary’s reckless disregard to risk of serious bodily injury and harm to these patients.
In February 2018, agents with the Food and Drug Administration-Office of Criminal Investigations (FDA-OCI) opened an investigation regarding the repeated theft and dilution of opioid drugs from various health care providers throughout southwest Missouri. Agents learned that while McCleary was employed as either an EMT or paramedic, various vials containing opioid-based drugs, including fentanyl, morphine, hydrocodone and ketamine, were stolen. Medical service officials advised agents that in some instances the vials were stolen and in other instances, the vials were tampered with so that the drugs were removed and saline was injected to the vials to make it appear that the drugs had not been stolen.
McCleary specifically pleaded guilty to tampering with vials that contained fentanyl and morphine sulfate, by removing those drugs from their vials and replacing them with saline solution, while working for Barton County Emergency Medical Service between Jan. 20 and Feb. 21, 2018. McCleary also specifically pleaded guilty to tampering with vials that contained fentanyl and morphine sulfate, by removing those drugs from their vials and replacing them with saline solution, while working for Cox Health from April 1 to May 19, 2017.
Under federal statutes, McCleary is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Food and Drug Administration – Office of Criminal Investigations.
Rapid City Woman Charged with Child Abuse and Driving Under the Influence of AlcoholRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman has been indicted by a federal grand jury for Child Abuse and Operating a Motor Vehicle Under the Influence of Alcohol with a Minor Present in the Motor Vehicle.
Maria Big Crow, age 26, was indicted on June 12, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 20, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 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 on October 22, 2017, Big Crow was driving a vehicle with several passengers; some of the passengers were juveniles. The vehicle Big Crow was operating was involved in a single vehicle rollover accident, resulting in injuries. The Indictment further alleges that Big Crow was operating the vehicle while under the influence of alchol.
The charges are merely accusations and Big Crow is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Big Crow was released on bond pending trial. A trial date has not been set.
Operator of Bitcoin Investment Platform Pleads Guilty to Securities Fraud and Obstruction of JusticeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JON E. MONTROLL, a/k/a “Ukyo,” pled guilty today to securities fraud and obstruction of justice. MONTROLL, who issued and sold securities related to a bitcoin investment platform that he ran through false statements about the success of the business, later provided false sworn testimony to the United States Securities and Exchange Commission (the “SEC”) and provided the SEC with a false document during the course of the SEC’s investigation into his operation of the bitcoin investment platform. MONTROLL’s plea was taken by U.S. Magistrate Judge James L. Cott. The case is assigned to U.S. District Judge Richard M. Berman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Jon Montroll deceived his investors and then attempted to deceive the SEC. He repeatedly lied during sworn testimony and misled SEC staff to avoid taking responsibility for the loss of thousands of his customers’ bitcoins.”
According to the Information, the allegations in the Complaint, and statements made during the proceedings in Manhattan federal:
JON E. MONTROLL operated two online bitcoin services: WeExchange Australia, Pty. Ltd. (“WeExchange”) and BitFunder.com (“BitFunder”). WeExchange functioned as a bitcoin depository and currency exchange service. BitFunder facilitated the purchase and trading of virtual shares of business entities that listed their virtual shares on the BitFunder platform.
Between the launch of Bitfunder, in or about December 2012, and at least in or about July 2013, MONTROLL converted a portion of WeExchange users’ bitcoins to his personal use without the users’ knowledge or consent. For example, MONTROLL exchanged numerous bitcoins taken from WeExchange into United States dollars, then spent those funds on personal expenses, such as travel and groceries.
Beginning on or about July 18, 2013, MONTROLL promoted a security referred to as “Ukyo.Loan.” As described by MONTROLL in a public post about Ukyo.Loan, MONTROLL encouraged investors to “think of [Ukyo.Loan] as a sort of round-about investment” in BitFunder and WeExchange and, at the same time, described Ukyo.Loan as “a personal loan” and “for private investment purposes.” MONTROLL further promised to pay purchasers of Ukyo.Loan daily interest on their investment and promised shares could be “redeemed at face value anytime upon request.”
During the summer of 2013, one or more individuals (the “Hackers”) exploited a weakness in the BitFunder programming code to cause BitFunder to credit the Hackers with profits they did not, in fact, earn (the “Exploit”). As a result, the Hackers were able to wrongfully withdraw from WeExchange approximately 6,000 bitcoins, with the majority of those coins being wrongfully withdrawn between July 28, 2013, and July 31, 2013. As a result of the Exploit, BitFunder and WeExchange lacked the bitcoins necessary to cover what MONTROLL owed to users.
Notwithstanding the scope of the Exploit, MONTROLL failed to disclose the Exploit to users of BitFunder and WeExchange, or investors in Ukyo.Loan. Instead, MONTROLL continued to promote and sell Ukyo.Loan to customers and, on at least one occasion, falsely represented to customers that BitFunder was commercially successful. As a result of his omissions and misrepresentations, MONTROLL raised approximately 978 bitcoins through Ukyo.Loan after his discovery of the Exploit.
The SEC’s New York Regional Office began an investigation into BitFunder and the Exploit. During the course of the investigation, MONTROLL provided the SEC with a falsified screenshot purportedly documenting, among other things, the total number of bitcoins available to BitFunder users in the WeExchange Wallet as of October 13, 2013. Additionally, during sworn investigative testimony on both November 14, 2013, and October 6, 2015, MONTROLL provided materially false and misleading answers to certain questions about, among other things, the timing of MONTROLL’s discovery of the Exploit.
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MONTROLL, 37, of Saginaw, Texas, pled guilty to one count of securities fraud and one count of obstruction of justice. Each charge carries a maximum penalty 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 defendant will be determined by the judge.
MONTROLL will be sentenced by Judge Berman at a date to be determined.
U.S. Attorney Geoffrey S. Berman praised the outstanding work of the Federal Bureau of Investigation. He also thanked the SEC, which previously filed civil charges against MONTROLL in a separate action.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrew Thomas is in charge of the case.
North Tonawanda Man Arrested, Caught with 30 Kilograms of Cocaine Hidden in A CarRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that Edgar Joel Jimenez-Rodriguez, 38, of North Tonawanda, NY, was arrested and charged by criminal complaint with possession with intent to distribute five kilograms or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that according to the complaint, on July 19, 2018, at approximately 6:15 p.m., law enforcement officers were on surveillance in the vicinity White Haven and Baseline Roads on Grand Island, NY. At approximately 7:25 p.m., officers surveilled a car hauler, which contained several newer-looking Toyota vehicles, pull into the back parking lot of a Toyota car dealership on Alvin Road on Grand Island. The car hauler was also carrying an older-looking, black SUV later identified as a black Mercury Mariner bearing a Florida registration. Officers deemed this to be suspicious since Toyota does not manufacture or sell Mercury vehicles, and there was no Mercury dealer in the vicinity of the Toyota car dealership.
Shortly thereafter, officers observed the defendant, driving a gray Honda Accord, enter the Toyota car dealership parking lot. The Honda Accord drove up to the car hauler while two men began to unload cars from the hauler. Jimenez-Rodriguez exited the vehicle for a time and watched as the vehicles were unloaded from the car hauler. Shortly after the black Mercury Mariner was unloaded, Jimenez-Rodriguez got into the car and left the parking lot.
At approximately 8:13 p.m., officers stopped the vehicle driven by the defendant. As officers performed a security sweep, they noticed clear plastic wrapping consistent with that of narcotics concealed underneath the rear cargo area of the black Mercury Mariner. A drug-detecting K-9 alerted to the rear cargo area. During a subsequent search of the vehicle, officers recovered approximately 30 kilograms of cocaine.
“Illicit drugs ruin lives,” stated U.S. Attorney Kennedy. “The over 65 pounds of cocaine seized in this case had the potential to cause a great deal of misery and ruin a number of lives in our community. Fortunately, we were spared that fate by the dedicated federal, state, and local law enforcement officers, who work tirelessly each day to protect our community from the harm caused by illicit substances. My Office will continue to support those efforts by charging, to the full extent of the law, those offenders who seek to poison our community and ruin lives through the unlawful distribution of drugs.”
DEA Special Agent-in-Charge James J. Hunt stated, “The arrest of Edgar Jimenez-Rodriguez is an example of how surveillance and great police work can lead to taking 30 kilograms of cocaine off of the streets of Erie County, New York. I commend this collaborative law enforcement effort and thank all of those involved for stemming the tide of cocaine and millions of dollars of drug proceeds into our communities.”
New York State Police Superintendent George P. Beach II said, “This case speaks to the tremendous interagency coordination and cooperation necessary to get the seized cocaine off of our streets. These illegal drugs perpetuate a cycle of addiction and criminal behavior which in turn threatens the safety and security of our neighborhoods. I want to thank our members and law enforcement partners for their tenacious dedication to tracking illegal drugs and intercepting them at their source before they can be distributed on our streets.”
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on July 24, 2018, at 2:00 p.m.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Niagara Falls Police Department, under the direction of Commissioner Bryan DalPorto, and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major Mary Clark.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Nicholasville Man Sentenced to 30 Years for Inducing Minors to Produce Child PornographyRead the Press Release
LEXINGTON, Ky. – A Nicholasville man, Jordan Combs, 29, has been sentenced to 30 years in federal prison, to be followed by a life term of supervised release, for inducing minors to produce sexually explicit images.
On Monday, Chief United States District Judge Karen K. Caldwell formally sentenced Combs, who was convicted by a jury, on March 8, 2018, of 10 counts of receipt of sexually explicit images in interstate commerce, four counts of producing such images, five counts of distributing such images, and one count of possession of such images. Combs must serve 85 percent of his prison sentence.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steven Igyarto, Special Agent in Charge, Department of Homeland Security – Homeland Security Investigations (DHS-HSI); and Richard Sanders, Commissioner of the Kentucky State Police; jointly announced the sentence.
The investigation was conducted by the Electronic Crimes Branch of the Kentucky State Police and DHS-HSI. The United States was represented by Assistant United States Attorney David Marye.
Moss Point Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss – Cornelius Javon Massey, 20, of Pascagoula, entered a guilty plea Thursday before U.S. District Judge Sul Ozerden for being an unlawful user of controlled substances in possession of a firearm, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of Alcohol, Tobacco, Firearms and Explosives.
Massey faces a maximum of 10 years in prison, a fine of $250,000, and 3 years of supervised release. Sentencing is set for November 2, 2018, at 9:00 a.m. before Judge Ozerden in Gulfport.
The case arose when officers with the Pascagoula Police Department pulled over a car with four people for a traffic violation. Once stopped and windows down, the Officer noticed a .223 caliber rifle with a large magazine laying in the rear floorboard. While asking for proof of insurance, the officer noticed a handgun in the glove compartment. A narcotics dog alerted for the presence of narcotics in the car. A search yielded marijuana and a grinder, the rifle, a Glock pistol with 4 magazines, a Springfield Arms 9mm pistol with a loaded magazine, and 2 ski masks. Massey admitted in an interview that he smoked marijuana regularly.
Pascagoula Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case is prosecuted by Assistant United States Attorney Annette Williams.
Missouri Man Sentenced for Bonner Springs Bank RobberyRead the Press Release
KANSAS CITY, KAN. – A Kansas City man was sentenced today to 65 months in federal prison for robbing a bank in Bonner Springs, U.S. Attorney Stephen McAllister said.
Timothy Karpovich, 39, Kansas City, Mo., pleaded guilty to one count of bank robbery. An affidavit filed in the case alleged that Karpovich robbed the KCB Bank at 13010 Commercial in Bonner Springs. He gave the teller a handwritten note that read, “This is a robbery.” After the teller complied with the demand, Karpovich took the money, and fled the bank on foot.
Police received a tip that the robber gambled regularly at Harrah’s Casino in North Kansas City, Missouri. Casino employees identified Karpovich from a bank surveillance photo. He was arrested without incident at the casino.
McAllister commended the FBI, the Bonner Springs Police Department, the Missouri Highway Patrol Gaming Division and Assistant U.S. Attorney Trent Krug for their work on the case.
Michigan residents sentenced for roles in oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Darmatrice Love and Kenyata Boudreaux, both of Detroit Michigan, have been sentenced for their roles in a drug distribution operation, United States Attorney Bill Powell announced.
Love, age 33, was sentenced today to 135 months incarceration. Boudreaux, age 42, was sentenced today to 24 months probation. Love and Boudreaux each pled guilty to one count of “Aiding and Abetting Maintaining Drug-Involved Premises” in March 2018. Love and Boudreaux admitted to managing an apartment on Riddle Avenue in Morgantown, West Virginia, to distribute oxycodone. The crime occurred from October 2016 to March 2017.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Irene M. Keeley presided.
Mexican National Facing Federal Drug Charge Following Ten Pound Methamphetamine Seizure at U.S. Border Patrol Checkpoint North of Las CrucesRead the Press Release
ALBUQUERQUE – This morning, a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging Mario Javier Jauregui-Alvidrez, 43, a Mexican national, with a methamphetamine trafficking offense arising out of the seizure of ten pounds of methamphetamine at a U.S. Border Patrol checkpoint in southern New Mexico on July 16, 2018. Jauregui-Alvidrez was remanded into custody pending trial, which has yet to be scheduled.
U.S. Border Patrol agents arrested Jauregui-Alvidrez on July 16, 2018, after seizing approximately 4.5 kilograms (10.1 pounds) of methamphetamine allegedly concealed in Jauregui-Alvidrez’s vehicle. According to the criminal complaint, the agents allegedly found the methamphetamine while inspecting Jauregui-Alvidrez’s vehicle at the U.S. Border Patrol checkpoint on Interstate 25 north of Las Cruces, in Dona Ana County, N.M.
If convicted of the charges in the criminal complaint, Jauregui-Alvidrez faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison, and will be deported after serving his term of incarceration. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA. Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Mescalero Apache Man from Ruidoso Pleads Guilty to Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Nathan Little, 31, an enrolled member of the Mescalero Apache Nation who resides in Ruidoso, N.M., pled guilty on July 20, 2018, in federal court in Las Cruces, N.M., to assaulting a federal officer.
The BIA arrested Little on April 27, 2018, on a criminal complaint charging him with assaulting a federal officer in Nov. 2017. According to the criminal complaint, Little assaulted a BIA officer on Nov. 18, 2017, punching him in the face repeatedly while he was being booked into custody at the Lincoln County Detention Center in Lincoln County, N.M., following a traffic stop that revealed that Little had outstanding warrants.
On July 20, 2018, Little pled guilty to a felony information charging him with assault on a federal officer. In entering the guilty plea, Little admitted assaulting a BIA officer on Nov. 18, 2017, by punching him in the face.
Little has been in federal custody since his arrest on the criminal complaint and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Little faces a maximum penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services, and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Memphis Man Faces Potential Life Sentence for Sex Trafficking ConvictionsRead the Press Release
Memphis, TN – After a three-day jury trial in federal court, Antonio Hawkins, 41, was convicted of multiple counts of sex trafficking. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty verdict today.
According to information presented in court, in April 2016, Antonio Hawkins took three women from New Orleans to Houston to put the women out on the prostitution track. While in Houston, Hawkins picked up a fifteen-year-old runaway, and put her on the track as well. Hawkins subsequently brought them to Memphis to work. All of the women, including the minor (who is now seventeen), testified at trial that Hawkins threatened to, and did, use violence to keep them from leaving him. The women testified that Hawkins struck them, pointed a gun at them and fired warning shots, and once even used a hot hair iron to intimidate the women into doing as he instructed.
U.S. Attorney D. Michael Dunavant said: "Human trafficking of minors and adults for commercial sex purposes is an unconscionable crime that must be met with severe consequences. We commend the FBI for their outstanding investigation of these heinous crimes, and we are pleased to achieve justice for the victims in this disturbing case."
Sentencing is set for Friday, November 2, 2018 before U.S. District Judge Sheryl H. Lipman. Hawkins faces a minimum sentence of 15 years imprisonment and a maximum of life.
This case was investigated by the Federal Bureau of Investigation as part of Project Safe Childhood (PSC), 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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit http://www.justice.gov/psc.
Assistant U.S. Attorneys Kasey Weiland and Deb Ireland prosecuted this case on the government’s behalf.
Maryland Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
A Laurel, Maryland man pleaded guilty to distribution of child pornography today, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Robert K. Hur of the District of Maryland.
Charles Bertsch, 59, a security guard at a local university, pleaded guilty to one count of distribution of child pornography before U.S. District Court Judge Paul W. Grimm for the District of Maryland who will sentence him on Jan. 31, 2019.
According to admissions made as part of his guilty plea, FBI Task force agents in Maryland began an investigation into Bertsch after various law enforcement agencies downloaded child pornography via a peer-to-peer network from IP addresses which led back to the defendant. In an interview with law enforcement, Bertsch acknowledged that by connecting his computer and downloading such images, he was simultaneously enabling others to download child pornography from his hard drive. A forensic examination of Bertsch’s electronic devices, seized pursuant to a search warrant, revealed over 100,000 image files and over 2,000 video files of child pornography.
The investigation was conducted by the FBI Baltimore Field Office with assistance from the Baltimore County Police Department, Washington County Sheriff's Office, and Worcester County Sheriff's Office. This case is being prosecuted by Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Joseph Baldwin of the District of Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Long Island Bloods Gang Member Pleads Guilty to Attempted Murder of RivalRead the Press Release
Earlier today, in federal court in Central Islip, Bloods gang member Billy McLen, also known as “Rizo,” pleaded guilty to attempted murder in aid of racketeering and a weapons possession charge in connection with a shooting that occurred on October 21, 2014 in Hempstead, New York. The proceeding took place before United States Magistrate Judge Arlene R. Lindsay.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty plea.
According to court filings and facts presented during the guilty plea proceeding, in October 2014, the Bloods street gang was at war with members of the Crips street gang from the Parkside section of Hempstead. On October 21, 2014, McLen obtained a handgun from a Bloods leader, Jonathan Mayzick, and later met with Bloods members Naree Barnes and Khalil Brown. Together they proceeded to Peninsula Boulevard near Hempstead High School where they encountered a Crips gang member. McLen, Brown and Barnes pulled out handguns and shot at their rival, firing numerous times across a major roadway during the late afternoon. McLen and his associates then ran to the home of another Bloods member, and McLen placed several phone calls to Mayzick, reporting the shooting. The calls were intercepted by members of law enforcement who were monitoring a court-authorized wiretap of Mayzick’s cell phone. While these calls were taking place, McLen and his associates were located and arrested, and the guns used in the shooting were recovered.
“McLen participated in a premeditated attack in furtherance of the Bloods’ violent feud with the Crips, with the intention of taking another human being’s life,” stated United States Attorney Donoghue. “The defendant now faces a lengthy prison term for the choices he made and the actions he took – attempting to kill his victim and endangering other residents of the community.” Mr. Donoghue extended his appreciation to the FBI’s Long Island Gang Task Force which investigated this case.
"Motivated by futile gang rivalry, McLen allowed violence to determine his actions, which in turn determined his fate, as he will now spend more than 10 years in prison for attempting to take someone’s life,” stated FBI Assistant Director-in-Charge Sweeney. “Gang violence continues to be the dividing wedge in several of our communities, and the FBI’s Long Island Gang Task Force will not cease until this wedge is permanently removed.”
“The guilty plea of Bloods gang member Billy McLen, AKA Rizo, is a stark reminder of the violence that takes place between rival gangs,” stated NCPD Commissioner Ryder. “The Nassau County Police, the United States Attorney’s Office and the FBI have worked tirelessly to ensure that these gang members are brought to justice and that our residents enjoy safe communities. I would like to thank and congratulate all of the members who played an important role in this conviction”
When sentenced, McLen faces a mandatory minimum of 10 years in prison and a maximum sentence of life, as well as forfeiture and a fine of up to $250,000. Barnes and Brown previously pled guilty to discharging firearms in furtherance of a crime of violence and were sentenced to 10 years’ imprisonment. Mayzick was convicted of conspiracy to distribute crack cocaine and sentenced to 162 months in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann and Michael Maffei are in charge of the prosecution.
The Defendant:
BILLY MCLEN (also known as “Rizo”)
Age: 19
Hempstead, New YorkE.D.N.Y. Docket No. 16-CR-429 (S-1) (SJF)
Defendants Previously Sentenced:
NAREE BARNES
Age: 22
Hempstead, New YorkKHALIL BROWN
Age: 22
Hempstead, New YorkE.D.N.Y. Docket No. 16-CR-428 (SJF)
JONATHAN MAYZICK
Age: 30
Hempstead, New YorkE.D.N.Y. Docket No. 16-CR-28 (DRH)
Lexington Man Sentenced to 50 Years for Using Two Minors to Produce Child PornographyRead the Press Release
LEXINGTON, Ky. – A Lexington man, Saul Aguilar -Andres, 20, has been sentenced to 50 years in federal prison, to be followed by a life term of supervised release, for using two minors to produce sexually explicit images and transporting those images, by posting them on Drop Box.
On Monday, Senior United States District Judge Joseph M. Hood formally sentenced Aguilar-Andres. Aguilar-Andres must serve 85 percent of his federal prison sentence.
Aguilar-Andres previously admitted that, in September and October of 2016, he used two minor victims to produce the sexually explicit images, and that in January of 2017, he transported those sexually explicit images by posting them to his Drop Box account.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Louisville FBI; and Chief Lawrence Weathers, of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the FBI, in Lexington and Chicago, and the Lexington Police Department. The United States was represented by Assistant United States Attorney David Marye.
Legal Permanent Resident from Mexico Facing Federal Drug Charge Arising from 12.57 Pound Cocaine Seizure in New MexicoRead the Press Release
ALBUQUERQUE – This morning, a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging Jorge Luis Vargas-Talamantes, 29, a legal permanent resident from Mexico who resides in El Paso, Texas, with a cocaine trafficking offense. The charge arises from a U.S. Border Patrol seizure of 12.57 pounds of cocaine at a checkpoint in southern New Mexico on July 16, 2018. Vargas-Talamantes was remanded into custody pending trial, which has yet to be scheduled.
U.S. Border Patrol agents arrested Vargas-Talamantes on July 16, 2018, after seizing approximately 5.7 kilograms (12.57 pounds) of cocaine allegedly concealed in Vargas-Talamantes’ vehicle. According to the criminal complaint, the agents allegedly found the cocaine while inspecting Vargas-Talamantes’ vehicle at the U.S. Border Patrol checkpoint on Highway 54 south of Alamogordo, N.M., in Otero County, N.M.
If convicted of the charges in the criminal complaint, Vargas-Talamantes faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison, and will be deported after serving his term of incarceration. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA. Assistant U.S. Attorney Clara Cobos is prosecuting the case.
Leader of Violent Drug Crew Sentenced to 35 Years in Prison for 2016 Murder of Nelson Dubon and Other CrimesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, announced that KENNETH RUDGE, 28, of the Bronx, New York, received a sentence of 420 months’ imprisonment from District Judge Kimba M. Wood at a proceeding held today in Manhattan federal court. Rudge previously pleaded guilty to firearms charges arising from his use of a firearm in the murder of Nelson Dubon on January 21, 2016. Rudge murdered Dubon in the course of a robbery in the South Bronx, which Rudge and other members of the violent street crew “YNR” committed as part of that crew’s drug business.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Kenneth Rudge and his YNR crew inflicted violence and death upon our community. Thanks to the extraordinary efforts of the NYPD and the ATF, Rudge will now spend the next 35 years in prison.”
According to the charging documents filed in the case, as well as statements made during the plea proceedings and earlier court appearances:
Since at least 2012, a group of young men and women living in the vicinity of 188th Street and Webster Avenue, and referring to itself as “YNR,” engaged in a conspiracy to distribute crack cocaine and heroin to addicts in that area. YNR managed to bring large quantities of crack cocaine and heroin into its neighborhood and to inflict mindless and, ultimately, deadly violence on its community.
RUDGE personally organized and participated in multiple acts of narcotics sales by junior members of YNR, including groups of minors working at RUDGE’s direction. RUDGE also instigated multiple acts of drug-related violence. Those incidents included the following, each of which was committed in the Bronx, New York: 1) a robbery in or about 2015, of a marijuana dealer in that marijuana dealer’s apartment, during which robbery a victim was pistol-whipped by one of RUDGE’s co-conspirator; 2) a robbery, in or about 2015, of a marijuana dealer, resulting in a shooting by RUDGE and others in order to thwart the victim’s attempt to retaliate for that robbery; 3) an attempted armed robbery, on or about January 21, 2016, of a marijuana stash apartment; and 4) a robbery, on or about January 21, 2016, of a narcotics dealer and others located inside a billiards club, during which RUDGE shot and killed Nelson Dubon.
Following his arrest by the NYPD in connection with the murder of Dubon, RUDGE attempted to corruptly influence and silence witnesses against him, including by attempting to have other YNR members find and silence an eyewitness to the murder. RUDGE also continued his firearms use and violence in the days after the murder of Dubon, including through the pistol-whipping of a livery cab driver in a failed attempt to rob that person of his fares on or about January 25, 2016, in the Bronx.
* * *
Mr. Berman praised the outstanding work of the NYPD and ATF for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Andrew C. Adams and Sarah Krissoff are in charge of the case.
Laurel Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland – Charles Bertsch, age 59, of Laurel, Maryland, pleaded guilty today to distribution of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; Washington County Sheriff Douglas W. Mullendore; and Worcester County Sheriff Reggie T. Mason, Sr.
According Bertsch’s plea agreement, FBI Task Force agents in Maryland began an investigation into Bertsch after various law enforcement agencies downloaded child pornography via a file-sharing network from IP addresses which led back to Bertsch. In an interview with law enforcement, Bertsch acknowledged that by connecting his computer and downloading such images, he was simultaneously enabling others to download child pornography from his hard drive. A forensic examination of Bertsch’s electronic devices, seized pursuant to a search warrant, revealed over 100,000 image files and over 2,000 video files of child pornography.
As part of his plea agreement, Bertsch must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Bertsch faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison, followed by up to lifetime of supervised release, for distribution of child pornography. U.S. District Judge Paul W. Grimm has scheduled sentencing for January 31, 2019, at 1:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Baltimore County Police Department, the Washington County Sheriff's Office, and the Worcester County Sheriff's Office for their work in the investigation. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorney Joseph Baldwin and Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), who are prosecuting the federal case.
Kentucky Man Pleads Guilty to Bank RobberyRead the Press Release
HUNTINGTON, W.Va. – A Kentucky man who robbed over $32,000 from a bank in Wayne County pleaded guilty today, announced United States Attorney Mike Stuart. Steve Ray Meeks, 62, of Louisa, Kentucky, entered his guilty plea to bank robbery. U.S. Attorney Stuart commended the investigative efforts of the FBI, the Wayne County Sheriff’s Office, the Louisa, Kentucky, Police Department, the Kentucky State Police, and the West Virginia State Police.
“Meeks was determined to rob the Community Trust Bank and he was ultimately successful,” said United States Attorney Mike Stuart. “But thanks to the quick response and teamwork of West Virginia and Kentucky law enforcement agencies, he was quickly apprehended and brought to justice.”
Meeks admitted that on January 12, 2018, he robbed the Community Trust Bank in Fort Gay. The day before, Meeks admitted that he had approached the bank with his hood over his head and a ski mask covering his face and tried to get in after the bank had closed. During the morning staff meeting at the bank prior to opening, the bank employees discussed the individual they saw who had tried to get in the day prior. After that meeting, the same individual with the exact same clothes on tried to get in the bank again before it opened. Meeks admitted that he left and returned to the bank after it opened, when he could get in the unlocked door. Meeks further admitted that upon entering the bank, he brandished a weapon that appeared to be a handgun, requested that the tellers put all the money in a bag he brought with him, and threatened to shoot or kill them all.
Following the robbery, Meeks admitted that he drove into Kentucky with a Wayne County Sheriff’s deputy pursuing him, who then shortly after entering Kentucky, turned over the pursuit to a Louisa Police Department officer. Meeks admitted that during the pursuit, he threw large sums of cash from the robbery out the window. Law enforcement deployed stop strips to flatten his tires and Meeks was apprehended. The weapon from the robbery was later found in Fort Gay along the path where Meeks initially fled on foot, and it was discovered to be a BB gun that resembled an actual handgun, without an orange cap on the barrel or any other safety markings to indicate otherwise. Investigators and bank employees determined that the amount Meeks robbed was approximately $32,372.00.
Meeks faces up to 25 years in federal prison when he is sentenced on October 22, 2018.
Assistant United States Attorney Clint Carte is responsible for the prosecution. United States District Judge Robert C. Chambers presided over the plea hearing.
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###Kathy Scott and George Santiago, Former New York State Correction Officers at Downstate Prison, Sentenced for Beating Inmate Kevin Moore and Falsifying RecordsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that KATHY SCOTT and GEORGE SANTIAGO JR., both former New York State Correction Officers, were sentenced today by U.S. District Judge Kenneth M. Karas to 100 months and 87 months, respectively, for the November 12, 2013, beating of Kevin Moore, an inmate at the Downstate Correctional Facility in Fishkill, New York, and for falsifying records to cover up the beating.
SCOTT and SANTIAGO were convicted on November 20, 2017, following a two-week jury trial, of assaulting Moore in violation of his rights under the United States Constitution by repeatedly punching and kicking him in the head and body as he lay restrained on the floor. Moore was hospitalized for two weeks with multiple serious injuries from the beating, including facial bone fractures, five broken ribs, and a collapsed lung. SCOTT and SANTIAGO were also convicted of conspiring to violate Moore’s civil rights, as well as falsifying and conspiring to falsify Department of Correction records concerning the assault. SCOTT and SANTIAGO were taken into custody immediately after sentencing.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Kathy Scott and George Santiago participated in a vicious beating of inmate Kevin Moore within an inch of his life. Then they concocted a phony story to hide what they did, repeatedly lying in Department of Correction records and even creating a fake injury. The U.S. Constitution protects all of us, including those in prison. Correction officers who physically abuse inmates and lie about it will be punished as criminals. Today, Scott and Santiago were held accountable for their crimes.”
According to the evidence introduced at trial:
On November 12, 2013, Kevin Moore, then 54 years old, was brought to the 1D Housing Unit at Downstate Correctional Facility to be housed overnight. Moore objected to his cell assignment and a verbal dispute ensued between Moore and a group of correction officers. After Moore yelled, in sum and substance, “I’m a monster,” multiple officers, including SANTIAGO, forced Moore to the floor, restrained him, and then proceeded to assault Moore as he lay there, repeatedly punching and kicking Moore in the head and body. At no time did Moore ever try to attack, touch, or even make a threatening gesture toward any of the officers. While Moore lay defenseless on the floor, SANTIAGO, who was wearing boots, cocked back his leg and delivered a soccer-style kick to Moore’s face. SANTIAGO also continued to strike Moore after Moore was handcuffed. During the beating, SANTIAGO laughed and taunted Moore, yelling “Who’s the monster now.”
SCOTT, who was then a sergeant and the supervising officer on the scene, was present for the entire beating and was required to stop the excessive force being used by her subordinates. Instead of taking action to stop the unlawful violence, SCOTT encouraged it, ordering an officer to hold Moore down on the floor while other officers continued to kick and punch him. During the beating, Moore repeatedly cried out in pain and begged SCOTT and the other officers to stop hurting him.
Immediately after the beating, SANTIAGO and other officers, led by SCOTT, engaged in an elaborate cover-up of the crime they had committed. They made up a false cover story that Moore had attacked one of the officers and that another officer had to strike Moore once in the head to save his fellow officer. To make this lie believable, the officers claimed that Moore had injured the officer’s back by pushing the officer backward onto a table. But because nothing of the sort had occurred, they created a phony injury. Specifically, SANTIAGO hit one of the other officers repeatedly on the back with a baton and SCOTT photographed the fake injury. SCOTT then prepared a false Use of Force Report describing the incident and incorporating the photos and false statements from herself and other officers, including SANTIAGO, and submitted the false report to her superiors. SCOTT and SANTIAGO also repeatedly pressured other officers to lie to investigators about what had occurred.
Moore was severely injured, suffering multiple facial fractures, five broken ribs, and a collapsed lung, among other injuries. According to the medical evidence, Moore received at least four forceful blows to the face and torso, including one crushing strike to the right eye that was consistent with a kick from a boot.
* * *
SCOTT, 44, of Saugerties, New York, was sentenced to 100 months in prison and one year of supervised release. SANTIAGO, 36, of Fremont Center, New York, was sentenced to 87 months in prison and one year supervised release.
Three other former Downstate correction officers pled guilty to the same offenses in connection with the beating and cover-up. Andrew Lowery pled guilty on July 27, 2016, Donald Cosman pled guilty on August 31, 2016, and Carson Morris pled guilty on November 1, 2017. Lowery and Morris are scheduled to be sentenced on July 25, 2018, and September 14, 2018, respectively. The sentencing of Cosman has not yet been scheduled.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the Special Agents at the United States Attorney’s Office. Mr. Berman also thanked the New York State Department of Correction Office of Special Investigation, and the Dutchess County District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Civil Rights Unit and the White Plains Division. Assistant U.S. Attorneys Andrew Dember and Pierre Armand are in charge of the prosecution.
Justice Department Launches Public Awareness Campaign with Victims of Sexual Harassment in HousingRead the Press Release
The Department of Justice today announced the release of a public service announcement (PSA) aimed at raising awareness and reaching victims of sexual harassment in housing. To enhance the effectiveness of the campaign, the Department has enlisted the assistance of victims to share their experiences and help convey the message that sexual harassment in housing is a violation of civil rights. The Justice Department and the U.S. Department of Housing and Urban Development (HUD) are working together to distribute the PSA. The PSA is posted on the Department’s Youtube channel and HUD’s Youtube channel.
The Department developed a 60-second video featuring three women who were injured parties in sexual harassment lawsuits brought by the Department under the Fair Housing Act. In the PSA, the women, in their own words, share the stories of how they were harassed and the impact the experience has on their lives.
One victim featured in the video, Stephanie, had a landlord who threatened to evict her if she didn’t have sex with him. “It was something that I didn’t want to do but I had to do it. I didn’t know I had a choice at that time, but now that I do, I want other people to know that they do. [I want] other women to know that they don’t have to take this. This is just uncalled for. It’s unspeakable.” Another victim, Temika, featured experienced a landlord who subjected her to unwanted sexual advances and comments, including exposing himself to her while inside her unit, causing her to scream, “Get out!” and run out of the unit.
The PSA released today is a joint effort between the Department and HUD, designed to raise awareness and make it easier for victims all over the country to find resources and report harassment. HUD distributed the video today to all Public Housing Agencies across the United States. The video is intended to air in all national media markets and will be distributed by social media to followers of the Justice Department and HUD, and amplified by other government agencies, partners, and organizations. In addition, the PSA will be circulated to fair housing groups, legal aid organizations, and other related partners across the country. The Justice Department also previewed the PSA last week at two U.S. Attorneys’ Offices in the Middle District of Florida and the District of Colorado, during separate sexual harassment in housing roundtables, engaging over 80 local law enforcement officers, fair housing organizations, universities, civil rights organizations, and other groups.
“Unfortunately, there are still too many landlords and managers who attempt to prey on vulnerable individuals. The launch of the nationwide PSAs is an important step in proliferating the stories of brave women and men across the country in order to raise awareness and help other victims,” said John Gore, Acting Assistant Attorney General of the Civil Rights Division. “Our goal at the Justice Department is to make more people aware that no one should have to choose between a home and the right to be free from sexual harassment.”
“A person’s home is where they should feel the safest, not to live in fear of being subjected to sexual harassment,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “This campaign will let the public know that they have help should they find themselves a victim of this type of behavior. The Justice Department and HUD are committed to working together to address the problem and protect their housing rights.”
In October 2017, the Justice Department launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: a new HUD-DOJ Task Force to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The Department and HUD are working together to distribute the PSA as part of the Task Force’s coordinated public outreach efforts.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
Jury Convicts Suffolk Man of Selling Gun to a FelonRead the Press Release
NORFOLK, Va. – A federal jury convicted a Suffolk man today on charges of selling a firearm to a felon.
According to court records and evidence presented at trial, Charlie Keys, 29, sold a loaded semi-automatic handgun to a man he knew was a felon. The man was working as a confidential informant for the Suffolk Police Department and recorded the gun sale on video. During the sale, Keys demonstrated that the gun worked by firing it into the air while standing in his front yard.
Keys faces a maximum penalty of five years in prison when sentenced on November 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 Thomas E. Bennett, Chief of Suffolk Police, made the announcement after U.S. District Judge Mark S. Davis accepted the verdict. Assistant U.S. Attorneys Andrew C. Bosse and William B. Jackson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-73.