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17 July 2018
Northwest Arkansas Man Sentenced to over 5 Years in Federal Prison for Money Laundering and Filing A False Tax ReturnRead the Press Release
Fayetteville, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Darrell Rosen, age 59, formerly of Fayetteville, Arkansas, was sentenced yesterday to 63 months in federal Prison followed by three years supervised release and ordered to pay a total of $1,851,990.05 in restitution for one count of Money Laundering and one count of Filing a False Income Tax Return. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, from October 2010 through August 2014, Rosen solicited individuals in Arkansas, Texas, and elsewhere to invest in a business centered on training dogs. Rosen represented that he had contracts with governmental entities as well as some private companies that would allow him to train and then sell dogs to the government for profit. Rosen intentionally made false promises that he would invest the money in the dog training business when, in fact, he used much of the money on his personal expenses. In addition, Rosen caused his 2013 Federal Income Tax Return to be filed with false information by both failing to report income he received from investors and for claiming Schedule A deductions for which he was not entitled.
Rosen was indicted by a federal grand jury in April 2017 and entered a guilty plea in January 2018.
The investigation was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Brice R. White prosecuted the case for the United States.
Michael Brooks a/k/a Michael Sandifer Sentenced to 65 Months in PrisonRead the Press Release
HAMMOND – Michael Brooks, 30 years old, of Lynwood, Illinois, was sentenced by U.S. District Court Judge Joseph Van Bokkelen after pleading guilty to Hobbs Act Robbery and Possessing a Firearm in Furtherance of a Crime of Violence, announced U.S. Attorney Kirsch.
Brooks was sentenced to 65 months imprisonment and 3 years of supervised release.
According to documents in the case, Brooks and two others robbed Tobacco City, located at 5935 State Line Road, Hammond, Indiana, on August 13, 2016 at gunpoint. Brooks and the other robbers took U.S. Currency and merchandise from the store.
This case was investigated by the FBI GRIT Task Force and prosecuted by Assistant United States Attorney Jennifer Chang.
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Mexican Woman Sentenced to Time Served for Entering the U.S. After RemovalRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Idabeel Rios-Zendejas, 37, a citizen of Mexico, was sentenced today in U.S. District Court by Chief Judge Nancy Torreson to time served (81 days) for entering the United States after being removed or deported. Rios-Zendejas pled guilty on May 22, 2018.
According to court records, Rios-Zendejas unlawfully entered the United States, was ordered removed to Mexico in 2015, and left. She did not apply for permission to reenter the United States. On April 27, 2018, she was arrested in Clinton, Maine, after a Clinton Police officer stopped a vehicle in which he was a passenger. She admitted to U.S. Border Patrol that she reentered the United States without being inspected and without legal authority.
The investigation was conducted by the U.S. Border Patrol and the Clinton Police Department.
Mexican Man Sentenced to Time Served for Entering the U.S. After RemovalRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Fausto Rivera-Rivera, 37, a citizen of Mexico, was sentenced today in U.S. District Court by Chief Judge Nancy Torreson to time served (81 days) for entering the United States after being removed or deported. Rivera-Rivera pled guilty on June 21, 2018.
According to court records, Rivera-Rivera unlawfully entered the United States, was ordered removed to Mexico in 2013, and left. He did not apply for permission to reenter the United States. On April 27, 2018, he was arrested in Clinton, Maine, after a Clinton Police officer stopped a vehicle in which he was a passenger. He admitted to U.S. Border Patrol that he reentered the United States in Arizona in 2015 without being inspected and without legal authority.
The investigation was conducted by the U.S. Border Patrol and the Clinton Police Department.
Mexican Man Sentenced for Unlawfully Reentering the United StatesRead the Press Release
The United States Attorney for the District of Vermont and the Swanton Sector Office of the United States Border Patrol announce that Zein Diaz-Ventura, 27, a citizen of Mexico, was convicted and sentenced today in United States District Court in Rutland for reentering the United States after having previously been removed from the country. United States District Court Chief Judge Geoffrey W. Crawford sentenced Diaz-Ventura to time served. Diaz-Ventura has been held without bail since his arrest on May 11, 2018. Custody of Diaz-Ventura will be transferred from the United States Marshal’s Service to the Department of Homeland Security for removal proceedings.
According to court records, Diaz-Ventura was the passenger in a vehicle with license plates “not on file” traveling on State Route 105 in Richford, Vermont in the evening on May 11, 2018. U.S. Border Patrol pulled over the vehicle and subsequently determined that Diaz-Ventura has two prior 2012 misdemeanor convictions for illegal entry into the United States and has been removed from the United States on three occasions. In addition, Diaz-Ventura was convicted of misdemeanor battery (domestic violence) in Florida in 2012.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Diaz-Ventura is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Nicole Cate.
Mexican Man Sentenced for Immigration OffenseRead the Press Release
United States Attorney Duane A. Evans announced that JOEL FLORES-GONZALES, age 42, a native of Mexico, was sentenced today after pleading guilty to a one-count indictment for illegal reentry of a removed alien.
United States District Court Judge Jay C. Zainey sentenced FLORES-GONZALES to eight months of imprisonment, followed by one year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on March 12, 2018, FLORES-GONZALES was found in the United States after having been previously deported from the United States on June 20, 2016.
U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Man Sentenced to Two Years in Prison for Using Another Person's Identity on U.S. Passport ApplicationRead the Press Release
RENO Nev. – A man unlawfully in the United States who used another man’s personal identifying information on his U.S. passport application was sentenced to two years in federal prison, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Matthew Perlman of the U.S. Department of State’s Diplomatic Security Service (DSS) San Francisco Field Office.
Alberto Jacinto-Rios, aka Manuel Lorenzo Diaz, 46, was sentenced by U.S. District Judge Howard D. McKibben. Following his prison sentence, Jacinto-Rios will be deported from the United States. He pleaded guilty in April 2018 to one count of aggravated identity theft.
On March 6, 2017, Jacinto-Rios applied for a U.S. passport at the University of Nevada, Reno using the name, date of birth, Social Security number, and birth certificate of a U.S. citizen. He provided the passport acceptance agent with a California birth certificate and a Nevada Identification Card, both in the name of the other. The passport application was referred to DSS because a passport and passport card had been previously issued. Jacinto-Rios was positively identified as the fraudulent passport applicant through photographs. He was arrested on the same day he was indicted in December of 2017.
The case was investigated by DSS. Assistant U.S. Attorney Brian L. Sullivan prosecuted the case.
If you are aware of, or have been a victim of, fraud or fraudulently issued U.S. passports, contact [email protected].
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MS-13 Leader Sentenced to Life in Prison for RICO Conspiracy Involving Two MurdersRead the Press Release
BOSTON – The leader of a violent MS-13 clique was sentenced today to life in prison.
Noe Salvador Perez Vasquez, a/k/a “Crazy,” 27, a Salvadoran national, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to life in prison and five years of supervised release. In April 2018, Perez was convicted by a federal jury of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and of committing or knowingly participating in two murders. Perez also was convicted of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and conspiracy to possess with intent to distribute and to distribute marijuana.
Co-defendants Luis Solis Vasquez, a/k/a “Brujo,” 27, a Salvadoran national, and Hector Enamorado, a/k/a “Vida Loca,” 39, a Honduran national, were also convicted of RICO conspiracy and of committing or knowingly participating in murder. Solis is scheduled to be sentenced on Sept. 11, 2018, and Enamorado is scheduled to be sentenced on Oct. 2, 2018.
MS-13 is a violent transnational criminal organization whose branches, or “cliques,” operate throughout the United States, including in Massachusetts. In furtherance of its mission, MS-13 members are required to commit acts of violence, specifically against rival gang members; kill informants; and support and defend fellow MS-13 members in attacks. MS-13 rewards members who commit acts of violence with promotions within the gang and punishes members who break gang rules.
At trial, Perez was identified as a leader of the Everett Locos Salvatrucha (ELS) clique, which was one of the largest, most active, and most violent MS-13 cliques in Massachusetts. Perez was furthermore considered to be a strict leader, demanding that clique members hunt down rival gang members and frequently subjecting younger clique members to harsh punishments.
On Dec. 14, 2014, Perez, Solis, and Enamorado worked together to murder a 29-year-old male victim at an apartment in Chelsea. According to testimony and exhibits introduced at trial, Solis was a full member, or homeboy, with the Eastside Locos Salvatrucha (ESLS) clique and Enamorado was a homeboy with the Chelsea Locos Salvatrucha (CHS) clique. Enamorado and the victim had engaged in a gang-related fight the night before the murder, and when Enamorado encountered the victim again, Enamorado called Perez to ask him for a gun. Perez delivered the murder weapon, a .380 caliber pistol, to Enamorado in Chelsea. Solis armed himself with a gun and went with Enamorado into the apartment to provide backup and necessary support for the attack. Enamorado used Perez’s gun to fatally shoot the victim three times. Enamorado also shot and wounded a second victim who was inside the apartment at the time of the murder. Following the murder, Perez arranged for Enamorado to flee to New Jersey. Federal agents, however, intercepted the car and arrested Enamorado before he could leave Massachusetts.
On July 5, 2015, a 16-year-old mid-level member of the ELS clique was stabbed to death in a park in Lawrence, Mass. by two members of his clique. Perez and other MS-13 members targeted the 16-year-old for murder because they believed, incorrectly, that he was cooperating with law enforcement. Perez planned and encouraged the murder. After the two ELS clique members stabbed the 16-year-old to death, Perez promised to promote them to homeboy status.
Perez was one of 49 defendants to be convicted as part of this case. All nine defendants who went to trial were convicted and 40 others pleaded guilty. In all, 16 defendants, including Perez, were found to have committed or knowingly participated in murders.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; Somerville Police Chief David Fallon; and Wes Adams, State’s Attorney, Anne Arundel County (Maryland), Anne Arundel County State’s Attorney’s Office, made the announcement today.
Las Cruces Man Sentenced to 30 Months for Using Interstate Communications to Threaten Elementary School StudentsRead the Press Release
ALBUQUERQUE – Michael Anthony Estrada, 24, of Las Cruces, N.M., was sentenced yesterday afternoon in federal court to 30 months in prison for his conviction on a felony information charging him with using interstate communications to threaten the lives and safety of children at a Las Cruces public elementary school. Estrada will be on supervised release for three years after completing his prison sentence.
Estrada was arrested on a criminal complaint on Sept. 15, 2017, for using social media platforms to post threats to shoot children at a Las Cruces public elementary school. According to the complaint, the threats posted by Estrada led local schools authorities in Las Cruces to shelter students in place and shut down operations until Estrada was apprehended.
On Dec. 11, 2018, Estrada pled guilty to a felony information charging him with threatening to injure through the use of interstate communications. In entering the guilty plea, Estrada admitted that on Sept. 15, 2017, he posted a threat on social media that he was going to shoot up a Las Cruces public elementary school. Estrada further admitted that as a result of his actions, the elementary school he threatened and several other Las Cruces elementary schools were placed on lock down.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Cruces Police Department. Assistant U.S. Attorney Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Kingsmen Member Pleads Guilty to Rico ConspiracyRead 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 Jack Wood, 47, of Buffalo, NY, pleaded guilty to RICO conspiracy before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who are handling the case, stated that the defendant was a Kingsmen Motorcycle Club (KMC) member, and served as the Sergeant at Arms of the Arcade KMC Chapter. KMC members and associates used and distributed marijuana, cocaine, methamphetamine, and other controlled substances at the Delevan/Arcade KMC Chapter Clubhouse. KMC members, including Wood, maintained access to firearms on their person and inside KMC Chapter Clubhouses, including the Delevan/Arcade KMC Chapter Clubhouse.
On August 3, 2013, KMC Nomads used the defendant’s van without his knowledge to drive from Wood’s house in Delevan, NY to Springville, NY, to conduct a drive-by shooting. In 2015, when the defendant was questioned about the shooting, Wood made evasive and misleading statements. When the defendant was subpoenaed to testify before a federal grand jury, Wood once again made evasive, incomplete, and misleading statements in an effort to prevent apprehension of those responsible. There were no injuries as a result of the shots fired.
Wood is one of 20 KMC members and associates charged in this case. To date, 18 have been convicted, including National President David Pirk, who was recently convicted following a four-month jury trial. Charges remain pending against two other defendants. The fact that the defendants have been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation led by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert. Assisting in the investigation were the following: the FBI Knoxville, TN, and Jacksonville, FL Field Offices; Immigration and Customs Enforcement, Homeland Security Investigations; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the City of North Tonawanda Police Department; the Niagara Frontier Transportation Authority Police; the Cattaraugus County Sheriff’s Department; and the Hamburg Police Department.
Sentencing is scheduled for October 24, 2018, at 1:00 p.m. before Judge Wolford.
Kentucky Doctor Pleads Guilty in Johnstown to Conspiring to Defraud the U.S.Read the Press Release
JOHNSTOWN, Pa. - A resident of Louisville, Kentucky, pleaded guilty in federal court to a charge of conspiring to commit an offense against the United States, United States Attorney Scott W. Brady announced today.
Dr. John R. Baird, 52, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with Dr. Baird’s guilty plea to conspiring to commit an offense against the United States:
Universal Oral Fluid Labs ("UOFL") was a clinical drug testing and drug screening laboratory located in Greensburg, Pennsylvania. UOFL was located at 475 Willow Crossing Road, Greensburg, Westmoreland County, Pennsylvania. Dr. Baird was a physician licensed in the Commonwealth of Kentucky and the State of Indiana, who specialized in physical medicine, rehabilitation and pain treatment. Dr. Baird’s primary medical practice was located at 3012 East Point Parkway, Louisville, Kentucky 40223.
Both Dr. Baird and UOFL were enrolled providers in the Medicare program and the Kentucky Medicaid program. As a condition of becoming a Medicare provider and being authorized to bill Medicare, Dr. Baird and UOFL, like all other providers of health services to Medicare patients, were required to certify on their enrollment applications that they would comply with all applicable federal and state laws, regulations, policies, procedures, and program requirements.
UOFL billed, and was paid by, Medicare for performing drug tests and related services for Medicare beneficiaries who were referred to UOFL by physicians enrolled in the program, including Dr. Baird.
From on or about May 1, 2012, and continuing thereafter until at least July 31, 2013, in the Western District of Pennsylvania and elsewhere, Dr. Baird conspired with persons at UOFL and others to commit offenses against the United States, that is, to solicit and receive kickbacks from UOFL in return for referring patients to UOFL for the referral of patient lab
work, for which payment was made in whole or in part under a Federal health care program, namely, Medicare and Medicaid, contrary to Title 42, United States Code, Section 1320a- 7b(b)(1)(A).
It was a part of the conspiracy that Dr. Baird received monthly checks from UOFL in exchange for referrals, including Medicare and Medicaid referrals. Specifically, the monthly kickback checks UOFL paid to Dr. Baird were paid pursuant to the terms of a "joint venture" that Dr. Baird entered into with UOFL. Under this "joint venture," Dr. Baird referred all of his patients, including Medicare and Medicaid beneficiaries, to UOFL for drug testing and related services. UOFL, in turn, billed third-party payors, including Medicare and Medicaid, for such tests, and then kicked back to Dr. Baird, for each referred patient, reimbursement amounts for the tests that exceeded agreed upon thresholds, which were typically between $100.00 and $150.00. Dr. Baird received these "joint venture" payments from UOFL solely in exchange for the referrals Dr. Baird provided to UOFL, and not in exchange for the performance of any other services. Between May 1, 2012 and July 31, 2013, Dr. Baird received $567,609.36 in kickbacks from UOFL in return for Dr. Baird referring his patients' lab work to UOFL.
Judge Gibson scheduled sentencing for Dec. 6, 2018, at 10:30 a.m. The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, the Internal Revenue Service Criminal Investigation, and Pennsylvania Office of Attorney General Medicaid Fraud Control Section conducted the investigation that led to the prosecution of Dr. Baird.
Johnstown Woman Admits Possessing and Distributing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Sabrina L. Rogers, 35, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on July 6, July 10, and July 11, 2017, Rogers distributed less than 28 grams of cocaine base, also known as "crack," and on July 12, 2017, Rogers possessed with the intent to distribute less than 28 grams of "crack."
Judge Gibson scheduled sentencing for Dec. 12, 2018, at 11 a.m. The law provides for a maximum sentence of 80 years in prison and a fine of $4,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Rogers.
Johnstown Woman Admits Distributing Cocaine and Using her Residence as a Drug HouseRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Patricia Ann Hawes, 54, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 11, 2016, Hawes distributed less than 500 grams of cocaine. Likewise, between April 22, 2016 and June 7, 2016, Hawes maintained her residence in Johnstown, Pa., for the purpose of distributing and using heroin and cocaine.
Judge Gibson scheduled sentencing for Dec. 11, 2018, at 10 a.m. The law provides for a maximum sentence of 40 years in prison and a fine of $1,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Hawes.
Johnstown Woman Admits Distributing Cocaine and Using her Residence as a Drug HouseRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Patricia Ann Hawes, 54, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 11, 2016, Hawes distributed less than 500 grams of cocaine. Likewise, between April 22, 2016 and June 7, 2016, Hawes maintained her residence in Johnstown, Pa., for the purpose of distributing and using heroin and cocaine.
Judge Gibson scheduled sentencing for Dec. 11, 2018, at 10 a.m. The law provides for a maximum sentence of 40 years in prison and a fine of $1,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Hawes.
Johnstown Man Admits Distributing Heroin on Four Occasions, Once within 1,000 Feet of a PlaygroundRead the Press Release
JOHNSTOWN, Pa. – A Cambria County resident pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Charles A. Meyer, 37, of Johnstown, Pa. pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Oct. 20, 2015, within 1,000 feet of a playground, and on Dec. 22, 2015, and Jan. 22, 2016, Meyer distributed less than 100 grams of heroin on each of those dates. Also on Jan. 22, 2016, Meyer possessed with the intent to distribute less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Dec. 11, 2018, at 11 a.m. The law provides for a maximum sentence of 100 years in prison and a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Meyer.
Johnson City Woman Sentenced for Preparing False Federal Income Tax ReturnsRead the Press Release
BINGHAMTON, NEW YORK - Lavyette Garcia, age 41, of Johnson City, New York, was sentenced today to serve 24 months in prison and to pay $72,452.00 in restitution to the U.S. Treasury Department following her guilty plea to Preparing False Federal Income Tax Returns and Making False Claims Against the United States government, announced United States Attorney Grant C. Jaquith and James D. Robnett, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (IRS-CI). Garcia was also ordered to serve a 3-year term of supervised release following her prison sentence.
The defendant was arrested by Special Agents of the IRS-CI at her home in Johnson City, New York, on November 17, 2017 and subsequently pled guilty. In admitting her guilt, Ms. Garcia acknowledged that from 2011 to 2014 she knowingly and intentionally prepared and filed 110 false and fraudulent federal income tax returns for others. These false returns included fictitious income levels and falsely claimed eligibility for tax credits in an effort to qualify for tax refunds totaling $848,196.00. The IRS was able to identify some income tax returns as containing false information and halted some refund payments. In many cases where refunds were issued, Lavyette Garcia kept as much as half of the refunded money for herself.
This case was investigated by the U.S. Internal Revenue Service-Criminal Investigations (IRS-CI) and was prosecuted by Assistant U.S. Attorney Richard Southwick.
Johnny C. Black Detained on Federal Assault Charge Arising from Shots Fired at New Mexico State Police Officer on Santa Clara Pueblo LandRead the Press Release
ALBUQUERQUE – Yesterday, a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Johnny C. Black with committing an assault with a dangerous weapon by allegedly firing shots at a New Mexico State Police officer on Santa Clara Pueblo land. Black, 32, an enrolled member of the Noorvik Native Community Tribe in Alaska who resides in Santa Fe, N.M., was ordered detained pending trial, which has yet to be scheduled, based on judicial findings that he poses a risk of flight and a danger to the community.
The FBI arrested Black on July 11, 2018, on a criminal complaint charging him with assault with a dangerous weapon with intent to do bodily harm. According to the complaint, Black allegedly used a firearm to fire multiple shots at a New Mexico State Police officer after fleeing from a routine traffic stop. Black allegedly committed the offense on June 25, 2018, on Santa Clara Pueblo in Santa Fe County, N.M.
The FBI took custody of Black on July 11, 2018, after he was arrested by Santa Ana Pueblo Tribal Police Department on Santa Ana Pueblo, N.M.
If convicted of the charge in the complaint, Black faces a maximum penalty of ten years in federal prison. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Santa Fe office of the FBI and the New Mexico State Police with assistance from the Santa Ana Pueblo Tribal Police Department. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case.
Indictments Target North Sound Drug Trafficking RingRead the Press Release
A 6-month investigation of significant heroin and methamphetamine trafficking in the north Puget Sound region culminated in eleven federal arrests today and the serving of search warrants on thirty locations, announced U.S. Attorney Annette L. Hayes. The local leader of the drug trafficking ring, JOSE VERDUZCO URIAS, 40, was arrested along with seven other defendants named in the ten-person indictment. Three people were arrested and charged by federal criminal complaint. Additionally, a dozen people were arrested on state and local charges. Those arrested on federal charges will appear in U.S. District Court in Seattle at 2:00 today.
“The people we charged today were moving up to 2 kilos of heroin a week into our neighborhoods, feeding addictions whose terrible impacts we see all around us,” said U.S. Attorney Annette L. Hayes. “They distributed in urban centers, small towns, and tribal communities, demonstrating yet again the sad fact that no place is immune from the scourge of opioid addiction.”
JOSE VERDUZCO URIAS has homes in both Snohomish, Washington and in Sedro Wooley, Washington. He had crossed the radar of law enforcement in previous investigations, and thus became the target of increased investigation in late 2017. Members of the VERDUZCO URIAS distribution group named in the indictment include:
BELINDA CRUZ, 40, Sedro Wooley, Washington
ALBERTO CRUZ REYES, 52, Phoenix, Arizona
FERNANDO SANTACRUZ, 27, Mount Vernon, Washington
RIGOBERTO PONCE SANCHEZ, 28, Sedro Wooley, Washington
JOSE URENA VERDUZCO, 32, Kirkland, Washington
JULIAN ZAMORA GARCIA, 34, Seattle
JULIO CESAR FIERRO-VEGA, 33, Mount Vernon, Washington
IVAN VALDEZ SOTO, 34, Salem, Oregon
VICTOR MARTINEZ, 23, Mount Vernon, Washington
Over the course of the investigation, law enforcement utilized information from a number of people working with law enforcement some of whom made drug buys from members of the organization.
During today’s searches law enforcement seized 18 firearms, ten pounds of heroin, twenty pounds of methamphetamine and more than $500,000 in cash.
DEA Special Agent in Charge Keith Weis of the Pacific Northwest region said, “This north sound criminal enterprise has been on our radar for a very long time and the surgical removal of this group will thwart the flow of foreign sourced heroin endangering our communities.”
“The FBI worked side-by-side with the DEA and other federal, state, and local partners to execute today's arrests, which significantly impact this drug trafficking organization's ability to operate in the north Puget Sound region,” said Special Agent in Charge Jay S. Tabb Jr., of the FBI's Seattle Field Office."
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The investigation was led by DEA and FBI with significant participation from Homeland Security Investigations (HSI), Whatcom Gang and Drug Task Force (WGDTF), Skagit County Interlocal Drug Enforcement Unit (SCIDEU), Snohomish Regional Drug and Gang Task Force (SRDGTF), ATF, U.S. Border Patrol, Washington State Patrol, Everett Police, North Sound SWAT, Seattle Police, U.S. Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection (CBP), and NW High Intensity Drug Trafficking Area (NW HIDTA).
The case is being prosecuted by Assistant United States Attorneys Kate Vaughan and Nicholas Manheim.
Indictment: Man Behind Cyberattacks Was Working for Wichita LawyerRead the Press Release
WICHITA, KAN. – A Wichita lawyer and a computer software engineer were charged today in a federal indictment alleging they were responsible for cyberattacks on web sites that posted information critical of the lawyer’s work, U.S. Attorney Stephen McAllister said.
Wichita Attorney Bradley A. Pistotnik, 62, and David Dorsett, 36, Wichita, Kan., are charged with five counts of computer fraud and two counts of conspiracy. In addition, Pistotnik is charged with three counts of making false statements to the FBI.
The indictment alleges Pistonik and Dorsett are responsible for cyberattacks on Leagle.com, Ripoffreport.com and JaburgWilk.com. The indictment alleges Dorsett filled the web site’s in-boxes with threats.
One of the emails read: “Remove this page and we stop” and “if you don’t remove it we will begin targeting your advertisers and explain that this will stop happening to them once they pull their ads from leagle.com or leagle.com kills this page.”
The indictment alleges that when an FBI agent questioned Pistotnik he made false statements including:
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- Pistotnik claimed Dorsett told him about a negative posting on Riffoffreport.com and offered to remove it. In fact, Pistotnik told Dorsett about the negative posting and said to Dorsett, “tell me how to get rid of it.”
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- Pistotnik claimed that it was a week after Dorsett told him the negative posting had been removed that an attorney for Ripoffreport.com contacted him. In fact, the company’s attorney contacted Pistotnik during the attack and before Pistotnik paid Dorsett for his services.
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- Pistotnik claimed he received two emails from Dorsett relating to the attack on Ripoffreport. In fact, he received four such emails, including an invoice for the attack and one referencing the invoice as well as the method used to make the attack.
Upon conviction, the crimes carry the following penalties:
Computer fraud: Up to five years in federal prison and a fine up to $250,000 on each count.
Conspiracy: Up to 10 years and a fine up to
$250,000.
Making false statements: Up to five years and a fine up to $250,000 on each count.
The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER INDICTMENTS
In a superseding indictment that adds three new counts, Shane M. Gaskill, 20, Wichita, Kan., is charged with two additional counts of wire fraud and one additional count of making a false statement to the FBI.
On May 23, an indictment was unsealed charging Gaskill with count of obstruction of justice, one count of conspiracy to obstruct justice and one count of wire fraud. The indictment alleged co-defendant Casey Viner recruited co-defendant Tyler Barriss to make a false call to emergency dispatchers in Wichita aimed at “swatting” Gaskill. As a result, Wichita police responded to what they believed was an emergency involving a fatal shooting at 1033 McCormick.
The new counts allege that after police responded to 1033 McCormick, Gaskill sent two more messages to Barriss. One said: “Do you wanna try again?” In the other message, Gaskill gave Barriss an IP address Gaskill claimed Barriss could use to launch another swatting assault on him. The indictment alleges the IP address did not belong to Gaskill, and Gaskill knew it was not his IP address. Further, it is alleged that when Gaskill was questioned by law enforcement about daring Barriss to “try again” and giving Barriss an IP address, Gaskill falsely told the officer that the IP address was one of his “old” IP addresses. In fact, the IP address belonged to another person in Kansas.
Upon conviction, the new counts carry the following penalties:
Wire fraud: Up to 20 years in federal prison and a fine up to $250,000.
Making a false statement to the FBI: Up to five years and a fine up to $250,000 on each count.
The FBI and the Wichita Police Department investigated. U.S. Attorney Stephen McAllister and Assistant U.S. Attorney Debra Barnett are prosecuting.
**
Michael D. Golightley, 34, Larned, Kan., is charged with seven counts of damaging a protected computer and one count of threatening to damage a protected computer. The crimes are alleged to have occurred in March 2017 in Ellis County, Kan.
The indictment alleges Golightley hired an entity known as DDosCity to carry out a series of denial-of-service attacks against computers served by an internet service provider called Nex-Tec. Nex-Tec provided backup and monitoring Service for Ellis County’s Emergency Medical Service administrative voice lines, Russell County’s hospital voice lines, the Quinter hospital’s voice lines, the Grove County Sheriff’s administrative voice lines, the Russell County Sheriff’s administrative voice lines and the administrative voice lines for the police and fire departments of Russell County.
The indictment alleges Golightley sent an e-mail to Nex-Tec stating: “Take down my ad again when my description doesn’t violate copyright (and) I will violate this site by bringing it offline.”
If convicted, he faces up to five years and a fine up to $250,000 on each of the counts. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
**
Christian Delgado-Lopez, 29, Dana Point, Calif., is charged with possessing with intent to distribute more than 29 pounds of methamphetamine. The crime is alleged to have occurred June 5, 2018 in Meade County, Kan.
If convicted, he faces not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Kimberley Rodebaugh is prosecuting.
**
In a superseding indictment, Bogdana Alexandrovna Mobley, 37, a citizen of Russia, is charged with four new counts alleging she made threats to her ex-husband in an attempt to extort money from him.
In October 2017 Mobley was indicted on a charge of international kidnapping. The indictment alleged her ex-husband had full legal custody of her two youngest children when she unlawfully took the children to Russia. According to court records, in Skype conversations with her ex-husband she told him to give her money if he wanted to talk to the children.
If convicted on the additional counts, she faces up to 20 years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
**
Nelson B. Tolentino-Alas, 41, a citizen of El Salvador, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found June 22, 2018, in Sedgwick County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Lilia Urquidez-Sanchez, 24, a citizen of Mexico, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found June 19, 2018, in Gray County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
**
Elias Castro-Coj, 42, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found March 3, 2018, in Stanton County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
**
Eric Staal, 23, Wichita, Kan., is charged in a superseding indictment with one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute marijuana. The crimes are alleged to have occurred April 28, 2018, in Butler County, Kan.
If convicted, he faces not less than 10 years in federal prison and a fine up to $10 million on the methamphetamine charge and up to five years and a fine up to $250,000 on the marijuana charge. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
**
Daniel Wayne Woydziak, 33, Wichita, Kan., is charged in a superseding indictment with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of ammunition following a felony conviction. The crimes are alleged to have occurred in February and June 2018 in Sedgwick County, Kan.
If convicted, he faces not less than five years and not more than 40 years and a fine up to $5 million on the methamphetamine charge, and up to 10 years and a fine up to $250,000 on each firearm count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
**
Staci Holtsclaw, 34, Wichita, Kan., and Randy Southern, 22, Wichita, Kan, are charged with one count of possession with intent to distribute methamphetamine and three counts of unlawful possession of firearms following a felony conviction. The crimes are alleged to have occurred May 5, 2018, in Sedgwick County, Kan.
If convicted, they face not less than 10 years in federal prison and a fine up to $10 million on the methamphetamine charge and up to 10 years and a fine up to $250,000 on each firearm count. The Sedgwick County Sheriff’s Office investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
**
Alfredo Nino-Cruz, 29, a citizen of Mexico, is charged in a superseding indictment with one count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported (count one), three counts of bank fraud (counts two, four and six), three counts of aggravated identity theft (counts three, five and seven), one count of unlawful possession of a firearm following a felony conviction (count eight), one count of unlawful possession of ammunition following a felony conviction (count nine) and one count of unlawful possession of a firearm by a person unlawfully in the United States (count 10).
Upon conviction, crimes carry the following penalties:
Count one: Up to 20 years in federal prison and a fine up to $250,000.
Counts two, four and six: Up to 30 years and a fine up to $1 million.
Counts three, five and seven: A mandatory two years (consecutive).
Counts eight, nine and 10: Up to 10 years and a fine up to $250,000.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
**
Amanda Patrick, 32, Haysville, Kan., is charged with one count of theft by a postal employee. It is alleged she stole a gift card and cash from the mail. The crimes are alleged to have occurred in December 2017 and May 2018 in Sedgwick County, Kan.
If convicted, she faces up to five years in federal prison and a fine up to $250,000. The U.S. Postal Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Illinois Man and Florida Man Sentenced for Delivery of Misbranded DrugsRead the Press Release
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced that Paul Leix, age 36, of Bloomingdale, Illinois and Thomas Keightly, age 35, of Palm Beach Gardens, Florida, were sentenced today by United States District Court Judge Yvette Kane for conspiracy to commit money laundering and delivery of altered or misbranded drugs by fraud. Leix was sentenced to four months’ imprisonment and Keightly was sentenced to 10 months’ imprisonment.
According to United States Attorney David J. Freed, Leix along with co-defendant, Dominic Pileggi, were involved in a business, L&P Trading, which used the internet to market and distribute peptides (a type of amino acid), along with other bodybuilding chemicals, to individuals seeking to enhance their physiques. Leix marketed these products on his website while providing a disclaimer that the substances were not for human consumption and use (for research purposes only). Customers who visited the website seeking these products for bodybuilding purposes would falsely attest that they were buying the chemicals for research purposes. Leix knew that the buyers were lying about what they would do with the chemicals. By marketing the products to the online bodybuilding community, Leix knew that purchasers would use the products for personal consumption rather than research. The “research only” disclaimer was a device to circumvent the regulatory authority of the Food and Drug Administration (FDA). L&P Trading advertised on body-building billboards and sites and Leix was not properly licensed or had the required approvals to manufacture, sell or prescribe these products.
Leix also sold these drugs and their chemical components to other illegal distributors and manufacturers, including Total Trading, LLC, a company owned and operated by Keightly, located in Lebanon County, that, in turn, sold directly to end users in the same manner.
Pileggi was convicted by a federal jury on June 7, 2018, of conspiracy to commit money laundering and introduction of misbranded drugs into interstate commerce. Pileggi is awaiting sentencing.
“We commend our partners at IRS Criminal Investigation for uncovering this fraudulent scheme to undermine the FDA’s mission to ensure that prescription drugs are safely manufactured and dispensed,” said U.S. Attorney Freed. “These prosecutions send a strong message that operation of clandestine laboratories such as the ones used by these defendants will be prosecuted and legally compelled to forfeit their illegal proceeds.”
“These defendants engaged in illegal on-line sale of misbrand prescription Drugs,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Through false representations, they were able to perpetrate this scheme; and through our forensic accounting and financial investigative skills, we were able to stop them in their tracks and bring them to justice.”
The cases were investigated by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Joseph Terz prosecuted the cases.
# # #
Hazleton Man Pleads Guilty to Making Straw Purchases of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Arce Nunez, age 26, of Hazleton, Pennsylvania, pleaded guilty today before United States District Court Judge Robert D. Mariani to the charge of making false statements to a federally licensed firearms dealer.
According to United States Attorney David J. Freed, Nunez admitted to providing false information regarding the purchase of three firearms from Nimrod Haven Sporting Goods, in Hanover Township, Luzerne County, on February 15, 2016. One of the firearms purchased by Nunez was later recovered by police in Puerto Rico.
A sentencing date for Nunez has not yet been scheduled.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Hartford Man Sentenced to 51 Months in Federal Prison for Illegally Possessing FirearmRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM SEMIDEY, also known as “June,” 38, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 51 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, in December 2016, the Hartford Police Vice and Narcotics Unit began an investigation into illegal drug activity in Hartford’s South End. The investigation revealed that Ariel Pagan, also known as “Snoop,” of Vernon, was using SEMIDEY’s Newbury Street residence to store, process, package and distribute narcotics. In January 2017, an undercover officer posing as a heroin distributor from New Hampshire made four controlled purchases of heroin, in quantities ranging from 150 bags to 1,500 bags, from Pagan. SEMIDEY was present during the fourth controlled purchase, and Pagan told the undercover officer that the undercover officer should contact SEMIDEY if Pagan was not available in the future.
The undercover officer subsequently arranged to purchase 2,100 bags of heroin from Pagan. Pagan and SEMIDEY also asked the undercover officer to bring a quantity of fentanyl from New Hampshire and said they would pay for the fentanyl with 500 bags of heroin. Pagan and SEMIDEY were arrested on January 25, 2017, after they met with the undercover officer in the Newbury Street residence to complete the transaction. A court-authorized search of the residence revealed approximately 2,600 bags of heroin, approximately 10 grams of unpackaged heroin, and various drug packaging material and paraphernalia. Investigators also located and seized a loaded 9mm pistol from SEMIDEY’s bedroom, and approximately 400 rounds of 9mm ammunition, and a holster, from the basement.
SEMIDEY admitted that he purchased the pistol on the street for $600. The firearm had been reported stolen from a Hartford residence.
SEMIDEY’s criminal history includes felony convictions. In addition, in October 2016, SEMIDEY was arrested by Manchester Police and charged with multiple offenses, including felony assault and risk of injury, arising from a domestic dispute. These charges are pending.
SEMIDEY has been detained since his arrest on January 25, 2017. On January 9, 2018, he pleaded guilty to one count of possession of a firearm by a convicted felon.
On December 6, 2017, Pagan pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. He awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harrison County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Lee Starkey, Jr., of Clarksburg, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Starkey, age 24, pled guilty to one count of “Unlawful Possession of a Firearm.” Starkey, having been previously convicted of a felony, admitted to having a .22-caliber revolver in March 2018 in Harrison County.
Starkey 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 Sarah E. Wagner is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia Probation Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grant County Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Ruben James Torrez, 31, of Hurley, N.M., was sentenced today in federal court in Las Cruces, N.M., to 60 months in prison for his conviction on a methamphetamine trafficking charge. Torrez will be on supervised release for four years after completing his prison sentence.
The DEA arrested Torrez on June 23, 2017, on a criminal complaint charging him with possessing methamphetamine with intent to distribute on April 24, 2017, in Grant County, N.M. According to the complaint, Torrez was arrested after the Silver City Police Department and the DEA found approximately 58.01 grams of methamphetamine in his vehicle while executing a search warrant.
On Aug. 8, 2017, Torrez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Torrez admitted that on March 30, 2017, he agreed to sell methamphetamine to an individual, who unbeknownst to him, was working with law enforcement authorities. Torrez acknowledged that before he arrived at the location for the drug transaction, Silver City Police Department officers stopped him and executed a search warrant on his vehicle, and found the methamphetamine that he intended to sell to the individual working with law enforcement.
This case was investigated by the DEA and the Silver City Police Department. Assistant U.S. Attorney Clara Cobos of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Gibson County Man on Supervised Release Indicted on Child Exploitation ChargesRead the Press Release
Jackson, TN – A Gibson County man has been indicted on child exploitation charges. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.
A Humboldt man on federal supervised release was indicted today on child exploitation charges. A grand jury seated in the Eastern Division of the Western District of Tennessee returned a two-count indictment charging that on June 14, 2018, Finis Ewin Hill, 66, known as "Pete" Hill, used the internet to attempt to entice a minor to engage in criminal sexual activity. Hill is also charged with traveling from Tennessee to Mississippi on June 16, 2018, to meet with a person he believed to be under sixteen and engage in illicit sexual activity.
In 2005, Hill was convicted of being a felon possession of a firearm, and sentenced to serve 221 months in prison. He was released from federal custody and placed on supervised release on January 18, 2018. A petition to revoke Hill’s supervised release has also been filed.
U.S. Attorney D. Michael Dunavant said:" Let this indictment serve notice on those who use the internet and electronic means to exploit, abuse, and victimize minor children: You cannot hide, we will track you down, and you will be held accountable for such disturbing and predatory criminal conduct."
If convicted, on count one of the indictment Hill faces not more than 30 years in federal prison, $250,000 fine and supervised release of five years up to life. On count two of the indictment, Hill faces 10 years up to life imprisonment, five years supervised release and $250,000 fine.
This case was investigated by the Milan Police Department and 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. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.
Assistant U.S. Attorneys Debra Ireland and Hillary Parham are prosecuting this case on the government’s behalf.
Founder of Meridian Capital Asset Management Charged with Scheme to Defraud InvestorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the arrest and unsealing of a complaint charging JOHN GERACI with investment adviser fraud, securities fraud, wire fraud, and conspiracy in connection with a scheme to defraud clients of his company, Meridian Capital Asset Management. GERACI caused two clients (“Victim-1” and “Victim-2”) to invest in a hedge fund called the Meridian Matrix Long Short Fund (the “Meridian Matrix Fund”). Between in or about December 2015 and November 2016, GERACI provided fictitious account statements and updates to Victim-1 and Victim-2, telling them that their investment was worth millions when, in reality, GERACI knew that large portions of it had been stolen by the Meridian Matrix Fund’s administrator. GERACI eventually liquidated the Meridian Matrix Fund and misappropriated significant portions of the remaining funds. Although he had recovered over $1 million of Victim-1 and Victim-2’s investment, GERACI falsely told them that their entire investment had been lost, and improperly used their money to pay his own personal and business expenses.
In a separate action, the Securities and Exchange Commission (“SEC”) filed civil charges against GERACI.
U.S. Attorney Geoffrey S. Berman said: “As alleged, when John Geraci realized that Nicholas Mitsakos was a con artist, he withheld this fact from investors he had solicited for the purportedly high-yield fund run by Mitsakos. Geraci allegedly concealed Mitsakos’s fraud because it was lucrative for him. Mitsakos is now a convicted felon in this district, and Geraci faces prosecution for his alleged crimes.”
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
JOHN GERACI was the principal and founder of a company called Meridian Capital Asset Management, which provided investment advice to clients. In or about February 2015, GERACI was introduced to another individual, Nicholas Mitsakos, who purported to operate a hedge fund called Matrix Capital (“Matrix”). Mitsakos told GERACI that Matrix had tens of millions of dollars under management and had achieved annual returns between 19.4% and 66.3% from 2012 to 2014. GERACI and Mitsakos subsequently entered into an arrangement whereby GERACI would raise money for Mitsakos; Mitsakos would manage that money through a new vehicle, the Meridian Matrix Fund; and GERACI and Mitsakos would then split any fees that the Meridian Matrix Fund generated. As part of this arrangement, GERACI convinced Victim-1 and Victim-2 to invest approximately $2 million in the Meridian Matrix Fund, in large part by relying on Mitsakos’s claims about his supposed fund’s assets under management and performance returns.
In or about December 2015, however, GERACI learned that Mitsakos had only invested approximately $1.2 million of Victim-1 and Victim-2’s investment, and had misappropriated significant portions of the remaining money. GERACI also learned that Mitsakos never had any actual assets under management, and that his performance returns were accordingly fictitious and misleading. Nonetheless, GERACI never told Victim-1 or Victim-2 that their investment was in jeopardy or had been solicited with misleading information. To the contrary, GERACI sent Victim-1 and Victim-2 updates that hid Mitsaskos’s misappropriation and falsely claimed that their investment had appreciated. GERACI sent these fictitious updates even after Mitsakos sustained significant trading losses and even after GERACI himself had liquidated the Meridian Matrix Fund’s trading positions in or about June 2016.
In or about August 2016, Mitsakos was charged in this District with securities fraud and other offenses. In or about September 2016, GERACI changed course: instead of providing fictitious account updates to Victim-1 and Victim-2, GERACI told them, in substance and in part, that their entire investment had been wiped out through Mitsakos’s fraud. GERACI did this even though he had ultimately received approximately $1.1 million of Victim-1 and Victim-2’s investment back from Mitsakos after liquidating the Meridian Matrix Fund’s trading positions. Rather than returning this amount to Victim-1 and Victim-2, GERACI used it to pay for his own personal and business expenses, including, for example, payments on a BMW automobile, a gym membership, gas, groceries, travel expenses, and his cellphone bill.
In addition to sending false account updates to Victim-1 and Victim-2 even after learning that Mitsakos had lied about his fund’s assets and performance and that Mitsakos had stolen significant portions of Victim-1 and Victim-2’s investment, GERACI continued to try to raise money for the Meridian Matrix Fund. In attempting to do so, moreover, GERACI relied on the same representations about Matrix’s assets and performance that he knew to be false.
* * *
GERACI, 61, of Miami, Florida, is charged with one count of investment adviser fraud, one count of securities fraud, one count of wire fraud, and one count of conspiring to commit securities and wire fraud. The investment adviser fraud and conspiracy charges each carry a maximum term of five years in prison. The securities and wire fraud charges each carry a maximum term of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. 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 exceptional work of the Office’s Special Agent criminal investigators and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Robert Allen is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Union Officer Sentenced for EmbezzlementRead the Press Release
BOSTON – The former Secretary-Treasurer of UNITE HERE Local 26 was sentenced today in federal court in Boston for embezzling over $170,000 from the organization.
Henry Clay Green Sr., 61, of Boston, was sentenced by U.S. District Court Chief Judge Patti B. Saris to six months in prison and one year of supervised release. Restitution and forfeiture will be determined at a hearing scheduled for Sept. 26, 2018. In December 2017, Green pleaded guilty to one count of embezzlement from a labor union.
From May 19, 2011, to July 14, 2016, Green was Secretary-Treasurer of UNITE HERE Local 26, a labor union representing the hospitality industries in Massachusetts and Rhode Island. In that capacity, Green exercised control over various aspects of Local 26’s financial operations and used his position to embezzle $171,455 from the organization for his own use. When confronted by union officials, Green confessed.
“Henry Green, Sr. used his position as the long-time treasurer of UNITE HERE Local 26 to embezzle over $170,000 of the union’s funds. The Office of Inspector General will continue to investigate union officials who abuse their positions to exploit unions for their own benefit,” stated Michael C. Mikulka, Special Agent in Charge, New York Region, U.S. Department of Labor Office of Inspector General.
“We thank our colleagues the Office of Labor-Management Standards and Office of Inspector General and the U.S. Attorney’s Office. We will continue to work with them to ensure the protection of employee benefit plan participants and that fiduciaries of those plans carry out their duties in compliance with the law,” said Carol S. Hamilton, Acting Regional Director, Employee Benefits Security Administration.
United States Attorney Andrew E. Lelling; DOL OIG SAC Mikulka; DOL EBSA Acting Regional Director Hamilton; and Jonathan Russo, District Director of the U.S. Department of Labor, Office of Labor Management Standards, Boston District Office, made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Former President of Cumberland Distribution, Inc. Sentenced to 15 Years in Federal Prison for $50 Million Drug Diversion SchemeRead the Press Release
Jerrod Nichols Smith, 48, of Houston, Texas, was sentenced yesterday in U.S. District Court to 15 years in federal prison, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. Visiting United States District Judge Billy Wilson also ordered Smith to forfeit $1.4 million.
Smith, along with Charles Jeffrey Edwards, 56, and Brenda Edwards, 47, of Houston, was indicted in January 2013 and charged with operating a 32-month, $50 million drug diversion scheme, in which tainted pharmaceuticals were shipped from a warehouse in Nashville to pharmacies around the country.
Smith was the former president of Houston-based Cumberland Distribution, Inc. (“Cumberland”) and was convicted by a jury in February, after a week-long trial, of 15 counts of mail fraud, conspiracy and making a false statement to the U.S. Food & Drug Administration. Charles and Brenda Edwards previously pleaded guilty to related charges. Charles Edwards was also sentenced today to six years in prison and ordered to forfeit $1.4 million. Brenda Edwards will be sentenced later this year.
The evidence at trial established that, from December 2006 through August 2009, Smith and Jeff Edwards purchased millions of dollars of prescription drugs from unlicensed suppliers who had previously purchased the drugs from patients in and around New York and Miami. In most instances, Smith had these drugs shipped to Cumberland’s Nashville warehouse where they were cleaned, sorted, re-packaged, and shipped to independent pharmacies around the country. Generally, the diverted drugs included drugs used to combat HIV/AIDS; antipsychotic medications; anti-depressants; blood pressure medications; diabetes medications and others.
Smith and Jeff Edwards also had drugs shipped from their unlicensed suppliers to shell companies in Louisiana and Arkansas. Although these companies were licensed to sell drugs, Smith and Jeff Edwards used them as pass-through companies to create the appearance that Cumberland was purchasing drugs from licensed suppliers, when, in fact, Cumberland was purchasing diverted drugs from un-licensed suppliers in New York and Miami. The drugs arriving at Smith’s shell companies were forwarded to Cumberland’s Nashville warehouse and re-sold to independent pharmacies.
In order to conceal the drugs’ true origins, Smith and his co-conspirators provided false documentation to Cumberland’s pharmacy customers.
Numerous pharmacies reported problems with drugs they purchased from Cumberland, including prescription drug bottles containing the wrong medicine; the wrong dosage information; and foreign objects inside. At trial, several witnesses testified that at least one bottle of prescription drugs sold by Cumberland contained breath fresheners instead of medicine.
On May 14, 2009, the FDA executed a federal search warrant at Cumberland’s Nashville warehouse. Thereafter, in order to evade authorities, Smith and his co-conspirators rented another warehouse, utilized freight forwarding companies to receive drug shipments, set up private email accounts, purchased burner phones and hired a private pilot to fly drugs to Nashville. Their scheme resulted in gross proceeds of over $50 million.
This case was investigated by the United States Food and Drug Administration Office of Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Henry C. Leventis and Stephanie N. Toussaint.
Former New York State Senate Majority Leader Dean Skelos and His Son, Adam Skelos, Convicted Again of Corruption Offenses in Manhattan Federal CourtRead the Press Release
Robert Khuzami, Attorney for the United States, acting under authority conferred by 28 U.S.C. § 515, announced the convictions of former New York State Senate Majority Leader DEAN SKELOS and his son ADAM SKELOS on bribery, extortion, and honest services fraud counts, following a five-week jury trial before the U.S. District Judge Kimba M. Wood. As a unanimous jury found for a second time, DEAN SKELOS repeatedly abused his official position to obtain more than $300,000 in bribes and extortion payments made to his son, ADAM SKELOS. The defendants had previously been found guilty of the same offenses by a jury in December 2015, but their convictions were overturned by the U.S. Court of Appeals for the Second Circuit as a result of the Supreme Court’s decision in McDonnell v. United States.
Deputy U.S. Attorney Robert Khuzami said: “Yet again, a New York jury heard a sordid tale of bribery, extortion, and the abuse of power by a powerful public official of this State. And yet again, a jury responded with a unanimous verdict of guilt, in this case of Dean Skelos and his son Adam – sending the resounding message that political corruption will not be tolerated.”
According to the evidence introduced at trial, court filings, and statements made in Manhattan federal court:
From 2011 to 2015, DEAN SKELOS served as Majority Leader and Co-Majority Leader of the New York State Senate, a position that gave him significant power over the operation of New York State government. DEAN SKELOS repeatedly used this power to pressure companies with business before New York State to make payments to his son, ADAM SKELOS, who substantially depended on these companies for his income. DEAN SKELOS and ADAM SKELOS were able to secure these illegal payments through implicit and explicit representations that DEAN SKELOS would use his official position to benefit those who made the payments, and punish those who did not. In total, DEAN SKELOS obtained over $300,000 in payments to ADAM SKELOS through persistent and repeated pressure applied to senior executives of three different companies that needed legislation passed in the New York State Senate and other official actions from DEAN SKELOS.
The Glenwood Scheme
Beginning in late 2010, and continuing for approximately two years, DEAN SKELOS repeatedly solicited payments for ADAM SKELOS from representatives of Glenwood Management Corp. (“Glenwood”), a major New York City real estate company. DEAN SKELOS’s solicitations for payments to ADAM SKELOS took place during the same meetings when Glenwood’s representatives were asking for DEAN SKELOS’s assistance with New York State legislation that was crucial to Glenwood’s profitability. As a result of the sustained pressure from DEAN SKELOS, representatives of Glenwood arranged for a $20,000 direct payment to ADAM SKELOS and further arranged for Abtech Industries (“Abtech”), an Arizona-based stormwater technology company in which Glenwood’s founding family owned a stake, to make $4,000 monthly payments to ADAM SKELOS. Glenwood arranged for these payments to ADAM SKELOS due to the company’s substantial dependence on DEAN SKELOS for real estate tax abatements and other real estate legislation favorable to Glenwood, and based in part on statements from DEAN SKELOS that he would punish those in the real estate industry who defied him.
The Abtech Scheme
After successfully obtaining ADAM SKELOS’s Abtech consulting contract for $4,000 per month, DEAN SKELOS and ADAM SKELOS then threatened to use DEAN SKELOS’s official powers to block Abtech’s bid for a Nassau County contract unless the company sharply increased ADAM SKELOS’s payments. Abtech ultimately agreed to increase ADAM SKELOS’s payments to $10,000 per month because the company feared that, if it did not meet the defendants’ demands, it would lose the Nassau County contract that was critical to its business. In return for the payments to ADAM SKELOS, DEAN SKELOS took and agreed to take numerous official actions to benefit Abtech.
For example, when Abtech and ADAM SKELOS believed Nassau County was withholding funding due to Abtech under its contract, DEAN SKELOS pressured Nassau County officials to make additional funds available. In January 2015, DEAN SKELOS was intercepted in a call with the Nassau County Executive in which he raised the issue, complaining on behalf of ADAM SKELOS that “somebody feels like they’re getting jerked around the last two years.” The next day, DEAN SKELOS traveled with the County Executive and his Deputy to the funeral of a New York City Police Department officer, where DEAN SKELOS reiterated in person his demand that the County make payments to Abtech, which the County subsequently did.
DEAN SKELOS also used his official position in an attempt to direct State funding that had been recovered in litigation with financial services companies (the “Settlement Funds”) in a way that would benefit water projects and contracts being pursued by Abtech. For example, at the same time ADAM SKELOS was attempting to obtain additional Abtech stormwater projects with local municipalities by claiming that the projects could be funded with State money, DEAN SKELOS advocated for a portion of the Settlement Funds to be allocated for stormwater projects.
The PRI Scheme
During the same time period as the Glenwood and Abtech schemes, DEAN SKELOS solicited payments for his son ADAM SKELOS from yet another company, Physician Reciprocal Insurers (“PRI”). PRI, a medical malpractice insurance firm whose existence depends on the renewal of certain New York State legislation, complied with the request, giving ADAM SKELOS a full-time job with benefits. Even though ADAM SKELOS was expected to work 40 hours per week, he treated his PRI position as a “no show” job from the outset of his employment. When ADAM SKELOS’s supervisor told ADAM SKELOS that he was expected to show up to work, ADAM SKELOS berated him and said, “Guys like you couldn’t shine my shoes. Guys like you will never amount to anything, and if you talk to me like that again, I’ll smash your f**king head in.” When the CEO of PRI told DEAN SKELOS that ADAM SKELOS was not showing up to work and was mistreating the other employees, DEAN SKELOS expressed no concern about ADAM SKELOS’s conduct and simply told the CEO to “work it out.” Based on this conversation, among others, the CEO understood that if he did not continue to pay ADAM SKELOS, despite his non-performance and misconduct at work, he was risking DEAN SKELOS taking legislative action against PRI.
During the time period that PRI was paying ADAM SKELOS, DEAN SKELOS repeatedly voted to extend PRI’s legislative protection from liquidation as well as other legislation that was being sought by PRI.
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DEAN SKELOS, 70, and ADAM SKELOS, 36, each face a maximum sentence of 20 years in prison on Count One (conspiracy to commit extortion), a maximum sentence of 20 years in prison on Count Two (conspiracy to commit honest services fraud), a maximum sentence of 20 years in prison on each of Counts Three through Five (extortion), and a maximum sentence of 10 years in prison on each of Counts Six through Eight (bribery). 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 Judge Wood. Both defendants are scheduled to be sentenced on October 24, 2018.
Mr. Khuzami praised the work of the Criminal Special Agent Investigators of the United States Attorney’s Office and the Federal Bureau of Investigation, who jointly conducted this investigation.
This case was prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Edward B. Diskant, Thomas McKay, and Douglas S. Zolkind are in charge of the prosecution.
Former Maryland State Senator Nathaniel Oaks Sentenced to Federal Prison for Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact MARCIA MURPHY
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced former Maryland State Senator Nathaniel Thomas Oaks, age 71, of Baltimore, Maryland, today to 42 months in prison, followed by three years of supervised release for one count of wire fraud and one count of honest services wire fraud. Judge Bennett also ordered that Oaks pay a fine of $30,000 and perform 80 hours of community service.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
U.S. Attorney Robert K. Hur stated, “Our democratic system relies on the integrity of our elected officials. Today’s sentence and our prosecution of former Maryland Senator Nathaniel Oaks demonstrate that we will hold accountable those elected officials who use their offices to enrich themselves, rather than serve the interests of their constituents.”
According to the plea agreement, Oaks was a Maryland State Delegate representing District 41 (Baltimore City) from 1994 until being appointed to the Maryland Senate in February 2017, representing the same District.
According to the statement of facts in support of the plea agreement, on September 21, 2015, a cooperating individual introduced Oaks to an FBI confidential human source, “Mike Henley,” who portrayed himself as an out-of-town businessperson interested in obtaining contracts in the City of Baltimore. The meeting took place at a restaurant in Pikesville, Maryland, and was consensually recorded by Henley. During the meeting, Oaks offered to assist Henley with business development in Maryland.
During the months following the September 21, 2015 meeting between Henley and Oaks, Henley consensually recorded numerous telephone and in-person conversations with Oaks during which they discussed possible development and business-related opportunities that may be available to Henley in Maryland. One such opportunity was a United States Department of Housing and Urban Development (HUD) project (the Project) that Henley told Oaks that he was interested in developing in the City. Oaks told Henley that he wanted to help with the HUD project.
According to the plea agreement, between the months of April 2016 and July 2016, Oaks issued two letters on his official House of Delegates letterhead which contained materially false and fraudulent representations to a person whom he believed to be a HUD official in order to assist Henley in obtaining federal grant funds from HUD. Henley paid Oaks $10,300 for his assistance.
According to the statement of facts in support of the plea agreement, on September 22, 2016, Henley paid Oaks $5,000 in exchange for Oaks’ agreement to file a bond bill request with the Maryland Department of Legislative Services (DLS) seeking $250,000 in state funds for the Project. Oaks filed the bill request with DLS later that day. On November 21, 2016, Oaks forwarded an e-mail to Henley that had been sent to him by DLS. The e-mail attached the draft of the bill to establish a $250,000 bond to be used for the Project.
All the money paid to Oaks by Henley was supplied by the FBI and the meetings were recorded using audio/video recording equipment.
On or about January 9, 2017, Oaks confessed to two FBI agents that he had accepted the first two payments from Henley in exchange for issuing two letters to HUD on his official House of Delegates letterhead and that he knew the letters contained materially false statements in an effort to assist Henley with his housing project. Oaks further confessed to the agents that he had accepted the third payment from Henley in exchange for filing a request for DLS to draft the Bond Bill Legislation.
Oaks agreed to cooperate with the FBI in an investigation of Person #1 for possible violations of federal criminal laws. As part of that cooperation, and at the direction of the FBI, Oaks covertly recorded his telephone conversations and in-person meetings with Person #1 beginning on January 9, 2017 and continuing until March 30, 2017.
According to the plea agreement, on or about March 17, 2017, without recording or disclosing the existence of the conversation to the FBI, Oaks approached Person #1 at a bar in Annapolis and told him “what we talked about, just say no.” On March 30, 2017, Oaks again approached Person #1 in the hallway of a State government building in Annapolis and said “I’m going to ask you for something, just say no.” These statements were intended to dissuade Person #1 from engaging in the activity that Oaks and Person #1 had discussed in a recorded conversation earlier that day, which was the subject of the criminal investigation.
As a result of Oaks’ deliberate and intentional conduct in tipping off Person #1, the covert investigation of Person #1 and possibly other politicians was no longer viable.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kathleen O. Gavin and Leo J. Wise, who prosecuted the case.
Former Manchester Man Sentenced to Ten Years in Federal Prison for Fentanyl TraffickingRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Scott W. Murray announced today that Derick Jennings, 48, formerly of Manchester, was sentenced to serve a total of ten years in federal prison for fentanyl trafficking offenses.
Court documents and statements in court showed that, while on supervised release for a prior drug trafficking crime, Jennings sold fentanyl on three separate occasions in January and February 2016, to an individual who cooperated with the Rochester, New Hampshire Police Department. On April 6, 2016, two individuals were arrested in Manchester during a traffic stop that resulted in the seizure of 244.45 grams of fentanyl that had been packaged for sale. Investigators determined that the individuals were drug “runners” for Jennings. On July 18, 2016, the DEA executed a search warrant at Jennings’ Manchester, New Hampshire apartment and seized 57.7 grams of fentanyl, a digital scale, multiple cellphones, and $6,100 in cash. The cash was later forfeited to the United States.
Jennings pleaded guilty on February 15, 2018, to three counts of distributing fentanyl, one count of possession of fentanyl with intent to distribute, and one count of conspiracy to distribute fentanyl.
Jennings was sentenced to serve eight years in federal prison for the drug trafficking offenses and two years of additional imprisonment for violating the terms of his supervised release, for a total of ten years in prison.
When released from federal prison, Jennings will be on supervised release for four years.
“The Attorney General’s recent visit to New Hampshire once again highlighted the damage that fentanyl is doing to our community,” said U.S. Attorney Murray. “In order to protect the public, we will continue to work closely with our law enforcement partners to target, prosecute and deter the drug traffickers who distribute this deadly drug in the Granite State.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Jennings accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.
This investigation was conducted by the Drug Enforcement Administration, the U.S. Marshal’s New Hampshire Joint Fugitive Task Force, the Strafford County Drug Task Force and the Manchester and Rochester, New Hampshire Police Departments. Assistant United States Attorney Jennifer Cole Davis prosecuted the case.
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Former District of Columbia Government Employee Sentenced to 56 Months in Prison for Bribery SchemesRead the Press Release
WASHINGTON – A former management analyst for the District of Columbia Office of the State Superintendent of Education (OSSE) was sentenced today to 56 months in prison on charges stemming from schemes in which she accepted bribes in return for clearing the way for payments to be made on fraudulent invoices that cost the D.C. government more than $480,000.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
Shauntell Harley, 48, of Washington, D.C., pled guilty in March 2018 in the U.S. District Court for the District of Columbia to two counts of conspiracy to commit bribery. She was sentenced by the Honorable Randolph D. Moss. Following her prison term, Harley will be placed on three years of supervised release.
As part of the plea agreement, Harley must pay $488,311 in restitution to the District of Columbia Office of the State Superintendent of Education. She also was ordered to pay a forfeiture money judgment in the amount of $100,400.
OSSE is an agency of the District of Columbia government. Harley was a management analyst for fiscal policy and grant management in OSSE’s Division of Special Education. From 2009 through 2014, her responsibilities included issuing requests for services through the government’s procurement process and then reviewing invoices from those who supposedly provided the services.
According to a statement of offense submitted at the plea hearing, Harley took part in two separate schemes involving fraudulent invoices paid by the D.C. government.
In one scheme, which began in or about June of 2012, she and business owner Vashawn Strader agreed that Harley would receive money and other things of value in exchange for favorable official action for Strader’s companies. They agreed that Strader would create fraudulent invoices purporting to reflect work that his companies did not actually perform. This work purportedly included early intervention services and professional development training.
Harley used her official position at OSSE to provide Strader with non-public information about OSSE contracts, assist him in creating fraudulent invoices, and submit these fraudulent invoices and other documents as necessary in order to cause OSSE to make the payments for services the companies never performed. In total, this led to $308,311 in payments in 2012 and 2013 to the two companies for services that never were provided. In return for her actions, Harley personally obtained a total of $43,900 in proceeds traceable to the scheme.
Strader, 39, of Washington, D.C., pled guilty in October 2017 to one count of conspiracy to commit bribery. He is awaiting sentencing. Under his plea agreement, Strader is required to pay $308,311 in restitution to OSSE and an identical amount in a forfeiture money judgment.
In the second scheme, which unfolded in 2013 and 2014, Harley admitted conspiring with the owner of another company to have that firm invoice OSSE for work that was not performed. Harley used her official position to create and submit fraudulent purchase orders and otherwise caused OSSE to pay the company. In exchange, the company owner provided Harley with a portion of the proceeds. According to the statement of offense, in this scheme Harley used her official position to cause OSSE to pay $179,999 for services that the company never provided. The company owner made approximately $53,000 in payments to Harley.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and Office of the Inspector General of the District of Columbia. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Thomas Swanton, who assisted with forfeiture issues, and Paralegal Specialists Joshua Fein and Kristy Penny. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Peter C. Lallas, who is investigating and prosecuting the matter.
Former Bank Teller Convicted in White Plains Federal Court with Participating in Violent Bank Robbery in October 2013Read the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that VIRGINIA BLANCO was found guilty on all counts of a three-count Indictment yesterday that charged her with participating in the robbery of a Wells Fargo Bank branch in Yonkers, New York, in October 2013, and with aiding and abetting the discharge of a firearm in furtherance of the robbery. The verdict came following a four-day jury trial in White Plains federal court before U.S. District Judge Cathy Seibel.
U.S. Attorney Geoffrey S. Berman said: “The robbery of the Wells Fargo Bank branch in Yonkers was an inside job. With yesterday’s verdict, Virginia Blanco, the insider who made the violent robbery possible, stands convicted.”
According to the Superseding Indictment and the evidence at trial:
In or about October 2013, BLANCO was working as a teller at a Wells Fargo Bank branch located at 500 Odell Avenue in Yonkers, New York (the “Wells Fargo Branch”). She conspired with co-defendant Giovanny Marte to rob the Wells Fargo Branch and provided critical information to Marte that allowed him and his co-conspirators to carry out the robbery successfully. On October 29, 2013, at approximately 3:17 p.m., Marte and three co-conspirators arrived at the Wells Fargo Branch. One co-conspirator remained in the car while Marte and two co-conspirators entered the bank. Marte and another robber each brandished a firearm and the third robber brandished a wood saw. During the robbery, Marte fired two shots but did not hit anyone. He accessed the vault, filled a laundry bag with approximately $303,500 in cash, and fled the Wells Fargo Branch with the other robbers. Following the robbery, BLANCO and Marte took a trip together to Aruba using proceeds from the robbery.
* * *
BLANCO, 29, faces a maximum sentence of five years in prison on Count One (conspiracy), a maximum sentence of 20 years in prison on Count Two (bank robbery); and a maximum sentence of life in prison, with a mandatory minimum of 10 years, on Count Three (firearm offense). 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. Judge Seibel remanded BLANCO following her conviction and she is scheduled to be sentenced on October 19, 2018.
Mr. Berman praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force, which comprises agents and detectives of the FBI, United States Probation, the City of Yonkers Police Department, the City of Peekskill Police Department, the City of Mount Vernon Police Department, the New York City Police Department, the Westchester County Police, the Greenburgh Police Department, New York State Police, and the Westchester County District Attorney’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Sam Adelsberg, Jamie Bagliebter, Margery Feinzig, Douglas Zolkind, and James McMahon are in charge of the prosecution.
Florida Man Pleads Guilty to $2 Million Insider Trading Scheme Based on Confidential Information Misappropriated from an Investment BankRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York announced that RODOLFO SABLON, a/k/a “Rudy,” pled guilty today before United States Magistrate Judge Debra Freeman to conspiracy to commit securities fraud and fraud in connection with a tender offer for his role in an insider trading scheme based on material, nonpublic information misappropriated from an investment bank by Daniel Rivas, a former employee at the bank. In August 2017, SABLON, Michael Siva, Roberto Rodriguez, and Jeffrey Rogiers were arrested and charged in a 54-count Indictment for their involvement in three insider trading schemes, all stemming from information misappropriated by Rivas.[1] Rivas and an additional participant, James Moodhe, have pled guilty and are cooperating with the Government in this investigation.
U.S. Attorney Geoffrey S. Berman said: “As Rodolfo Sablon admitted today, he traded on his friend’s confidential corporate information, reaping millions of dollars in illegal profits. Further, Sablon and his co-conspirators intended to use their profits to create an investment fund with the intention of sharing further illicit profits with their insider friend. They were arrested before they could do so. Our Office is committed to identifying and prosecuting inside information-sharing networks that undermine our nation’s securities markets.”
According to the allegations contained in the Indictment filed against SABLON and his co-conspirators, and statements made in related court filings and proceedings:
The Investment Bank and Rivas
From August 2013 through May 2017, Rivas was employed as a technology consultant in the Research and Capital Markets Technology Group of an investment bank (the “Investment Bank”). In this role, Rivas had access to an internal, proprietary system maintained by the Investment Bank (the “Deal Tracking System”) containing material, nonpublic information (“Inside Information”) about potential and unannounced merger and acquisition transactions, including tender offers, involving the Investment Bank. The Investment Bank’s written policies prohibited the unauthorized disclosure of confidential information, which included Inside Information. Rivas had a duty, among other obligations, to maintain the confidentiality of all of the Investment Bank’s confidential information, including the Inside Information.
Overview of Insider Trading Schemes
From August 2014 through April 2017, Rivas violated the duties of confidentiality he owed to the Investment Bank by serially misappropriating material, nonpublic information from the Investment Bank’s Deal Tracking System and passing that information along to friends so that they could utilize it to make profitable trades. On more than 50 occasions between August 2014 and April 2017, Rivas provided Inside Information about contemplated but unannounced merger and acquisition (“M&A”) transactions and tender offer transactions involving clients and prospective clients of the Investment Bank to friends who used that information to purchase and sell securities. In total, the insider trading based on Inside Information misappropriated by Rivas resulted in illicit profits of more than $5 million through trading in more than two dozen securities. The Inside Information was passed through three tipping chains.
The Sablon Tipping Chain
SABLON was a member of the second of three tipping chains outlined in the Indictment. In this tipping chain, Rivas passed inside information to SABLON and Rodriguez, a childhood friend of Rivas with whom Rodriguez had maintained a close relationship as adults.
Since 2014, Rodriguez lived and worked in Miami, Florida, with SABLON, with whom he was also friends. In 2015, Rodriguez introduced Rivas to SABLON. Rivas and SABLON then communicated with each other directly and developed an independent relationship.
In the fall of 2015, Rivas disclosed to Rodriguez that Rivas had access to Inside Information by virtue of his position as a corporate insider at an Investment Bank. At Rodriguez’s request, Rivas also agreed to share Inside Information with SABLON. While Rivas had originally agreed to divulge Inside Information to Rodriguez because of their history of friendship, Rivas also learned that Rodriguez and SABLON intended to start an investment fund with the proceeds of the insider trading scheme. Rivas understood that in exchange for the Inside Information Rivas was providing to Rodriguez and SABLON, Rivas would be invited to join the investment fund as a partner once it was successfully launched.
At first, Rivas communicated with Rodriguez and SABLON primarily via phone and text message. As the scheme progressed, however, Rodriguez and SABLON increased their efforts to hide their illegal activity. On several occasions, Rivas met personally with Rodriguez and/or SABLON in Miami in order to provide them with Inside Information. Rivas also provided Rodriguez and SABLON with Inside Information using an encrypted mobile messaging application (the “Messaging App”), which allows users to set a timer to messages to irretrievably “self-destruct.”
In order to maximize the illicit profits that could be earned using Rivas’s Inside Information, Rodriguez and SABLON, in consultation with Rivas, initiated an aggressive strategy of purchasing short-term, out-of-the money call options. In total, from 2015 through April 2017, Rodriguez and SABLON earned more than $2 million in illicit profits through insider trading in more than two dozen securities based on Inside Information divulged by Rivas.
* * *
SABLON, 38, of Miami, Florida, pled guilty to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer (Count Twenty-One), which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain from the offense. 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. SABLON will be sentenced before U.S. District Alison J. Nathan.
Trial against defendants Siva, Rodriguez, Zoquier, and Rogiers is scheduled for September 10, 2018, before Judge Nathan, on charges of conspiracy to commit securities fraud and fraud in connection with a tender offer, conspiracy to commit wire fraud, multiple counts of securities fraud, and tender offer fraud. The allegations contained in the Indictment as to those defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for their assistance. He added that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold and Samson Enzer are in charge of the prosecution.
[1] As for the defendants who have not pled guilty (Michael Siva, Roberto Rodriguez, Jhonatan Zoquier and Jeffrey Rogiers), the charges described herein constitute only allegations.
Five Arrests Made After Interdicting Packages Containing Illegal NarcoticsRead the Press Release
United States Attorney for the Northern District of Oklahoma, Trent Shores, announced his office’s participation in Operation Big Delivery, a week long interdiction of illegal drugs, spearheaded by the Oklahoma Bureau of Narcotics. The United States Attorney’s Office worked with the United States Postal Inspector, the Tulsa Police Department, the Oklahoma Bureau of Narcotics, and the Drug Enforcement Agency by interdicting packages containing illegal narcotics that had been shipped via the United States Postal Service. The interdiction of six packages, all shipped from California, yielded 57 pounds of hydroponic marijuana, 15.5 pounds of THC wax, 48 THC vape cartridges, and two pounds of methamphetamine. Five arrests were made and an additional nine charges are pending.
United States Attorney Shores stated, “The United States Postal Service is not a conduit for illegal drug trafficking and we will enforce the unlawful use of the U.S. mails. This interdiction was a great example of federal, state, and local officers working together to enforce both federal and state law.”
Fifth Circuit Court of Appeals Upholds 4-Year Prison Term for Gameday Entertainment Chairman of the Board who Defrauded San Antonio Victim of Millions of DollarsRead the Press Release
The Fifth Circuit Court of Appeals has affirmed a four-year federal prison sentence handed down in June 2017 to 50-year-old investment counselor Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC (Gameday), for defrauding a San Antonio victim of millions of dollars announced U.S. Attorney John F. Bash.
In an unpublished opinion (No. 17-50654) filed yesterday, the Court affirmed the district court’s actual-loss calculation of $13.5 million and upheld the district court’s application of a sentencing enhancement because Banks’ scheme derived more than $1 million in gross receipts from one or more financial institutions.
On June 28, 2017, United States District Judge Fred Biery sentenced Banks to four years in federal prison. He also ordered Banks to pay $7.5 million in restitution. After sentencing, Banks filed an appeal of the sentence. Since then, the government has recovered full restitution on behalf of the victim in this case.
“I am very pleased that our prosecutors and appellate team were able to obtain justice and restitution for the victim in this case,” said U.S. Attorney Bash.
According to court records, Banks encouraged the victim to loan $7.5 million to Gameday in 2012. Subsequently, Banks encouraged the victim to personally guarantee another $6 million loan made to Gameday by Comerica Bank in 2013. During this time frame, Banks was Chairman of the Board of Gameday and personally benefitted, in the form of millions of dollars in loans and commissions, from the proceeds of these loans made to Gameday.
On April 3, 2017, Banks pleaded guilty to one count of wire fraud. By pleading guilty, Banks admittedly manipulated the victim into guaranteeing Gameday’s $6 million debt by misrepresenting the true nature of the transaction. Furthermore, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions. On June 26, 2013, Banks also caused two pages relating to the $6M loan guarantee and subordination agreements, which contained his victim’s signature, to be faxed from San Antonio to Bank’s employees in California and Comerica bank employees in California.
The FBI conducted this investigation. Assistant United States Attorney Gregory J. Surovic and Tom Moore prosecuted this case on behalf of the Government. Assistant United States Attorneys Elizabeth Berenguer and Joseph Gay handled the appeal.
Federal Grand Jury Supersedes Indictment of West Virginia Supreme Court of Appeals JusticeRead the Press Release
New Indictment Adds Obstruction of Justice Charge
CHARLESTON, W.Va. -- United States Attorney Mike Stuart announced today that the federal grand jury which returned the original indictment against West Virginia Supreme Court of Appeals Justice Allen H. Loughry II last month has today returned a superseding indictment. Loughry, 47, of Charleston, West Virginia, was charged on June 19, 2018, in a 22-count Indictment that was unsealed today. The new indictment adds an obstruction of justice count, in addition to the existing wire and mail fraud, false statements, and witness tampering offenses.
The new count charges that between December 4, 2017, and May 24, 2018, Loughry knowingly and corruptly endeavored to influence, obstruct, and impede the due administration of justice—a pending federal grand jury investigation the existence of which Loughry was well aware, according to the superseding indictment. The superseding indictment goes on to explain that Loughry allegedly obstructed justice by, among other things, deflecting attention away from his own misconduct and blaming others for improperly using Supreme Court funds and property; creating a false narrative about when a Cass Gilbert desk was moved to his home and under whose direction; using invoices not related to the transfer of a leather couch and the Cass Gilbert desk to his home in 2013 to buttress the false narrative he created, and repeating the false narrative to a Special Agent of the FBI in an interview on March 2, 2018.
“Today, a federal grand jury returned a superseding indictment against West Virginia Supreme Court of Appeals Justice Allen Loughry,” said United States Attorney Mike Stuart. “The new indictment adds another very serious charge -- obstruction of justice -- which, in addition to the charges included in the original indictment, expose Loughry to a possible sentence of 405 years in prison. It’s very disappointing that a former Chief Justice of the highest court in the State of West Virginia would engage in such egregious conduct. Obstruction of justice is one of the most serious of offenses and for that conduct to be conducted by a Supreme Court Justice is, frankly, just plain stupefying.”
The 23-count Indictment charges Loughry with sixteen counts of mail fraud (Counts 2, 3, 4-17), which carry a penalty of up to 20 years for each count; two counts of wire fraud (Counts 1 and 19), which carry a penalty of up to 20 years for each count; three counts of making false statements to a federal agent (Counts 21-23), which carry a penalty of up to 5 years for each count; one count of witness tampering (Count 18), which carries a penalty of up to 20 years; and the new charge in Count 20 for obstruction of justice, which carries a penalty of up to 10 years in prison. If convicted on all counts in the Indictment, Loughry faces a possible sentence of up to 405 years in prison, a fine of $5.75 million, and a term of supervised release of up to 3 years.
The superseding indictment can be found
here .Please note: An Indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the July 2018 Federal Grand Jury.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Melvin Louis Bailey, III. Obstruct, Delay, and Affect Commerce by Robbery; Carry, Use, and Brandish a Firearm During and in Relation to a Crime of Violence; Hobbs Act Conspiracy. Bailey, 25, of Tulsa, is charged with conspiring with a juvenile to rob and robbing Walgreens by threatening employees with a shotgun and a handgun. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine for the obstruct, delay, and affect commerce by robbery charges; a maximum penalty of life in prison and a $250,000 fine for the carry, use, and brandish a firearm during and in relation to a crime of violence charges; and a maximum penalty of 20 years in prison and a $250,000 fine for the Hobbs Act conspiracy charge. The Federal Bureau of Investigation and the Tulsa Police Department are the investigative agencies.
James Wesley Barnes. Sexual Exploitation of a Child; Possession of Methamphetamine With Intent to Distribute. Barnes, 70, of Tulsa, is charged with coercing a minor to engage in sexually explicit conduct and possessing with intent to distribute methamphetamine. If convicted, he faces a maximum penalty of 50 years in prison and a $250,000 fine for the sexual exploitation of a child charge; and a maximum penalty of 40 years in prison and a $5,000,000 fine for the possession of methamphetamine with intent to distribute charge. The Tulsa Police Department is the investigative agency.
Jerry Matthew Berry. Production of Obscene Visual Representations of the Sexual Abuse of Children; Distribution of Child Pornography; Receipt of Child Pornography; Possession of Child Pornography. Berry, 34, of Tulsa, is charged with producing, distributing, receiving and possessing graphic image files and video files of minors engaging in sexually explicit conduct. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine for each charge. Homeland Security Investigations and the Tulsa Police Department are the investigative agencies.
Seth Jacob Bruss. Simple Possession of Marijuana. Bruss, 29, of Tulsa, is charged with 2 counts of possessing marijuana. If convicted, he faces a maximum penalty of 3 years in prison and a $5,000 fine. The United States Probation Office is the investigative agency.
Rickie Dean Cole. Felon in Possession of Firearms and Ammunition. Cole, 49, of Slick, is charged with possessing a 9mm pistol, a 12-gauge shotgun and ammunition after prior felony convictions. If convicted, he faces a maximum penalty of life in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Bureau of Narcotics and the Bristow Police Department are the investigative agencies.
Tate Lorenzo Dixon. Failure to Register as a Sex Offender. Dixon, 24, of Locust Grove, is charged with failing to register as a sex offender. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The United States Marshal Service is the investigative agency.
Christopher Allen Hayes. Felon in Possession of Firearm and Ammunition. Hayes, 28, of Tulsa, is charged with possessing a 9mm pistol and ammunition after prior felony convictions. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Mark Nicholas Jones. Bank Robbery With a Dangerous Weapon; Use, Carry and Brandish a Firearm During and in Relation to a Crime of Violence. Jones, 36, of Sapulpa, is charged with robbing Commerce Bank with a 9mm pistol. If convicted, he faces a maximum penalty of 25 years in prison and a $250,000 fine for the bank robbery with a dangerous weapon charge; and a statutory mandatory minimum penalty of 7 consecutive years in prison and a $250,000 fine for the use, carry and brandish a firearm during and in relation to a crime of violence charge. The Federal Bureau of Investigation, the Tulsa Police Department and the Oklahoma Highway Patrol are the investigative agencies.
Jerald Michael Scott Newell. Felon in Possession of Firearm and Ammunition. Newell, 25, of Sand Springs, is charged with possessing a .380 automatic pistol and ammunition after prior felony convictions. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa County Sheriff’s Office are the investigative agencies.
Victor Nunez-Alvarado. Reentry of Removed Alien. Nunez-Alvarado, 22, address unknown, is charged with having returned to the United States unlawfully after being deported in June 2017 from Laredo, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement is the investigative agency.
Jose Peregrina. Reentry of Removed Alien. Peregrina, 43, of Tulsa, is charged with having returned to the United States unlawfully after being deported in January 2012 from Brownsville, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement, the Federal Bureau of Investigation and the Tulsa Police Department are the investigative agencies.
Humberto Toledo-Munoz. Reentry of Removed Alien. Toledo-Munoz, 35, of Tulsa, is charged with having returned to the United States unlawfully after being deported in November 2014 from Del Rio, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement is the investigative agency.
Misty Dawn Weathers. Sex Trafficking of a Child; Sexual Exploitation of a Child;
Possession of Certain Material Involving The Sexual Exploitation of a Minor. Weathers, 36, address unknown, is charged with causing a minor to engage in commercial sex acts, coercing a minor to engage in sexually explicit conduct for the purpose of producing visual depictions, and possession with intent to view the visual depictions. If convicted, she faces a maximum penalty of life in prison and a $250,000 fine for the sex trafficking of a child charge; a maximum penalty of 30 years in prison and a $250,000 fine for the sexual exploitation of a child charge; and a maximum penalty of 10 years in prison and a $250,000 fine for the possession of certain material involving the sexual exploitation of a minor charge. The Federal Bureau of Investigation and the Tulsa Police Department are the investigative agencies.
FCI-Berlin Inmate Sentenced to Two Years in Prison for Assaulting Prison StaffRead the Press Release
CONCORD, N.H. –U.S. Attorney Scott W. Murray announced today that Bashir Masaoud, 31, an inmate at FCI-Berlin, was sentenced to 24 months in federal prison for assaulting staff members at the prison.
According to court documents and statements in court, on May 23, 2017, Masaoud left his cell on Unit A-3 of the prison, crossed the common area of the unit, and grabbed the shirt of a correctional officer. Masaoud attempted to strike the officer with a closed fist. Masaoud was subdued with pepper spray and the assistance of other officers. Masaoud kicked another officer who was assisting in getting Masaoud under control.
Massoud pleaded guilty on August 2, 2018, to two counts of assaulting federal officers.
Masaoud is currently serving a ten-year sentence for being a felon in possession of a firearm. The 24-month sentence will start after Masaoud completes his current sentence.
The case was investigated by the Bureau of Prisons staff at FCI-Berlin. The case was prosecuted by Assistant U.S. Attorney Donald A. Feith.
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Drug Sweep Results in Ten Arrests in Waterbury AreaRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced the arrest of 10 men today on federal narcotics trafficking offenses. The arrests are the result of a seven-month, joint investigation by the FBI, ATF and the Waterbury Police Department into a Waterbury drug ring that is alleged to have been distributing heroin and crack cocaine.
As alleged in court documents and statements made in court, the investigation is part of a joint initiative by federal and state authorities, including the Waterbury State’s Attorney’s Office, targeting violent offenders and narcotics traffickers in Waterbury. “The level of cooperation between state and federal prosecutors, the FBI, the Waterbury Police Department, and the ATF, has been extraordinary,” said U.S. Attorney Durham.
“This joint investigation is an example of how things are supposed to be done, and the results speak for themselves,” said Waterbury State’s Attorney, Maureen Platt. Platt said that she, and state prosecutors from her office, expect to continue to work closely with federal prosecutors on this case, and others.
Acting Waterbury Chief of Police Fernando C. Spagnolo confirmed that officers from his department and the Watertown Police Department, and agents from the FBI and the ATF, arrested the 10 men early Tuesday morning. “We also executed search warrants at five locations associated with members of the drug ring,” Spagnolo added.
The following men were arrested on federal criminal complaints and charged with conspiracy to distribute heroin and cocaine base: CYRUS BRADFORD, 41, of Waterbury; LEE BROCKETT, 30, of Waterbury; TARELL THOMAS, 29, of Waterbury; ALEXANDER CALDERON, 22, of Oakville; LAVAL THOMAS, 31, of Waterbury; CAMERON WILSON, 21, of Waterbury; FELIX COLON, 20, of Waterbury; THOMAS “TJ” MORUZIN, 28, of New Fairfield; DEMAIN BROCKETT, 20, of Waterbury; and, JASON BROCKETT, 45, of Waterbury.
The defendants are charged with conspiracy to distribute a detectable amount of cocaine base ("crack") and heroin. If convicted of the charge, they face a maximum term of imprisonment of 20 years of imprisonment.
According to court documents and statements made in court, the investigation employed various investigative techniques, including purchases of drugs by confidential sources, seizures of drugs during motor vehicle stops, surveillance, and court-authorized wiretaps on cellular telephones utilized by LEE BROCKETT, ALEXANDER CALDERON, TARELL THOMAS, and CYRUS BRADFORD. The wiretap phase of the investigation lasted from April to July 2018.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Natasha Freismuth.
Dominican Republic Man Arrested for Possession with the Intent to Distribute Cocaine After Allegedly Using the U.S. Mails for Illegal Drug DistributionRead the Press Release
St. Thomas, USVI – Domingo Diaz, 40, of the Dominican Republic, was arrested on Monday on an information charging him with possession with the intent to distribute cocaine and attempted possession with the intent to distribute cocaine, United States Attorney Gretchen C.F. Shappert announced. Diaz made his initial appearance before Magistrate Judge Ruth Miller.
According, to the information, Diaz was involved in the mailing of two packages through the U.S. post office packages that each contained more than 500 grams of cocaine, a controlled substance.
If convicted of either possession with the intent to distribute cocaine or attempted possession with the intent to distribute cocaine, Diaz faces a minimum sentence of five years in prison and a $250,000 fine on each count.
United States Attorney Shappert reminds the public that an information is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the United States Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) and prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
District Man Sentenced to 10 Years in Prison for 2016 Attack on Postal Carrier in Northeast WashingtonRead the Press Release
WASHINGTON – Jerome A. Proctor, Jr., 24, of Washington, D.C., was sentenced today to 10 years in prison for discharging a firearm during an armed robbery of a United States Postal Service (USPS) Letter Carrier who was delivering mail, announced U.S. Attorney Jessie K. Liu, Acting Inspector in Charge Eric Shen of the U.S. Postal Inspection Service, Washington Division, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Proctor pled guilty in April 2018 in the U.S. District Court for the District of Columbia, to using, carrying, and possessing a firearm during a crime of violence. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 10 years in prison. The Honorable Christopher R. Cooper accepted the plea and sentenced Proctor accordingly. Following his prison term, Proctor will be placed on five years of supervised release. Judge Cooper also ordered Proctor to pay $10,000 in restitution to the victim.
The government’s evidence established that on Nov. 26, 2016, at approximately 6 p.m., Proctor and an associate attacked the victim in the 2300 block of 2nd Street NE. The victim was completing mail deliveries on his route and Proctor brandished a black semi-automatic handgun and pointed it towards the letter carrier’s head. Proctor then kicked and pistol-whipped the victim while he was on the ground and his associate went through the victim’s pockets, taking the victim’s cell phone, personal keys, and wallet, containing identification and debit cards. Property of the U.S. Postal Service was also taken, including a mail satchel and scanner.
A vehicle drove up during the assault and robbery, at which point Proctor fired a single shot into the air in an attempt to scare off the driver of the vehicle. The driver of the vehicle heard the gunshot, and fearing for her safety, sped away, with the letter carrier chasing after the vehicle. Shortly after the assault and robbery, Proctor and his associate could be seen together on video footage from the Fashion Centre mall at Pentagon City in Arlington, Va., where Proctor’s associate attempted to use a debit card stolen from the letter carrier at the food court.
Proctor was arrested in December 2016 in Prince George’s County, Md. and he has been in custody ever since. He was indicted in this case in May 2017.
During the assault on the letter carrier, Proctor commented that the victim got “blood on his new Timberlands.” During the course of the investigation, the victim’s blood was identified on a stain on a pair of jeans recovered from the residence where Proctor was arrested.
“Today’s sentence holds Jerome Proctor, Jr. accountable for a brazen armed robbery of a Postal Service Letter Carrier who was completing deliveries on his route,” said U.S. Attorney Liu. “The community is safer now that this dangerous offender is off the streets.”
“Protection of Postal employees is one of the Postal Inspection Service's highest priorities,” said Acting Inspector in Charge Shen. “We greatly appreciate the assistance of our law enforcement partners in bringing justice for this violent crime and improving the safety of our employees and community.”
At the time of his arrest in Maryland, Proctor was on probation in Maryland for a firearms conviction. Proctor’s probation was revoked by Maryland and he was re-sentenced to serve the three-year sentence that had previously been suspended. That sentence must run consecutive to the sentence in this case.
In announcing the sentence, U.S. Attorney Liu, Acting Inspector in Charge Shen, and Chief Newsham commended the work of the U.S. Postal Inspection Service and MPD officers in the Fifth District in quickly investigating and arresting Proctor. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Laura Crane of the Violent Crime and Narcotics Trafficking Section, Paralegal Specialist Rommel Pachoca, and Legal Assistant Peter Gaboton.
Dallas County Community Action Committee, Inc. Vice President Sentenced for Defrauding Homeowner Seeking Loan and Foreclosure Prevention AssistanceRead the Press Release
DALLAS — Francisco Javier Gonzalez, a/k/a “Javier Gonzalez,”, 46, of Duncanville, Texas, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 60 months in federal prison and ordered to pay $611,740.55 in restitution for his role in a scheme to defraud numerous homeowners, banks and the Department of Housing and Urban Development, (HUD), announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Gonzalez pleaded guilty in September 2017 to one count of mail fraud, stemming from his work at the Dallas County Community Action Committee, Inc. (DCCAC), a non-profit entity accredited by HUD to provide housing counseling. Gonzalez has been in custody since his arrest in October 2016.
According to the plea agreement factual resume filed in the case, Gonzalez served as a Vice President and Director for DCCAC, and leased space in the DCCAC offices for another entity, known as Residential Counseling FJ LLC.
While working in the DCCAC building, Gonzalez falsely claimed he was certified by HUD to provide foreclosure counseling assistance. Gonzalez sought out victims looking for mortgage loan and foreclosure prevention assistance and would then meet these victims in the DCCAC offices or in their homes.
Additionally, as stated in the plea agreement factual resume, Gonzalez prepared and submitted incomplete and false mortgage assistance applications for the victims. Gonzales instructed the victims to not communicate with the banks, as this would prevent him from effectively obtaining the loan modification. Additionally, Gonzalez required lump sum payments for his supposed assistance; and instructed the victims to make mortgage payments directly to him indicating he would forward these payments to the bank.
Gonzalez did not submit the monies he was paid by the victims to the banks, but instead used the money for his own personal expenses.
HUD Office of Inspector General, Federal Housing Finance Agency Office of Inspector General, and the United States Postal Inspection Service investigated the case. Assistant U.S. Attorney P.J. Meitl was in charge of the prosecution.
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County Ambulance, Inc. Agrees to Pay $16,776.74 to Settle Civil Health Care Fraud CaseRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank today announced that County Ambulance, Inc. (“County Ambulance”), of Ellsworth, has entered into a civil settlement agreement with the United States and the State of Maine in which it will pay $16,776.74 to resolve allegations that it submitted false claims to Medicare and MaineCare (Maine’s Medicaid program) from January 2015 through April 2016. MaineCare is primarily funded by the United States, which pays about two-thirds of all claims submitted to MaineCare.
According to a civil complaint filed today, County Ambulance used money paid to it by Medicare and MaineCare to pay the salary and benefits of a County Ambulance employee who previously had been excluded from Federal health care and the MaineCare programs. Federal health care programs may not pay for items or services furnished, ordered, or prescribed by excluded individuals or entities, including administrative and management services or salary. Prior to joining County Ambulance, the employee had been excluded after surrendering her license to practice as a pharmacy technician due to the diversion of controlled substances, but County Ambulance failed to check publicly available exclusion databases to determine if she was excluded. County Ambulance cooperated throughout the investigation.
The case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General, and the Attorney General’s Office of the State of Maine. The civil action is docketed United States and the State of Maine v. County Ambulance Service, Inc., d/b/a County Ambulance, Inc., 1:18-cv-00280-JAW (D. Me.).
Convicted Alien Smuggler Sentenced to 97 Months in Custody for Event that Left Two People DeadRead the Press Release
Assistant U. S. Attorney Benjamin A. Bish (619) 546-8662
NEWS RELEASE SUMMARY – July 17, 2018
SAN DIEGO – Jorge Luis Martinez-Hernandez, a Mexican citizen with a prior alien smuggling conviction, was sentenced in federal court yesterday to more than eight years in prison for his role in a smuggling incident that left two undocumented immigrants dead.
The sentence was handed down by U.S. District Court Judge Marilyn L. Huff following the defendant’s guilty plea in April to eight counts of Bringing in Certain Aliens resulting in Death and Bringing in Certain Aliens for Financial Gain, all in violation of Title 8, United States Code, Section 1324.
“Smugglers see customers as dollar signs and have no concern for their safety and well-being,” said U.S. Attorney Adam Braverman. “This office is committed to prosecuting smugglers who exploit immigrants for financial gain.”
“This should give us all pause when thinking about the blatant disregard for human life,” said San Diego Sector Chief Patrol Agent Rodney Scott. “To tell people to cross a freeway in complete darkness with cars driving at 65-plus miles per hour is unconscionable. The men and women of the U.S. Border Patrol remain vigilant in our pursuit of these smugglers and the international criminal organizations they work for.”
“Martinez-Hernandez’s actions in this event led to the unfortunate deaths of two people. His conviction and sentence brings some closure to an unnecessary tragedy that involved exploiting individuals for his financial gain,” said David Shaw, Special Agent in Charge for Homeland Security Investigations (HSI) in San Diego. “This tragic case has once again heightened HSI’s commitment to enforce all criminal immigration law and we will continue our efforts to investigate and ultimately dismantle the transnational alien smuggling organizations.”
According to his plea agreement, on September 17, 2017, at approximately 1:45 a.m., Martinez-Hernandez guided eight undocumented individuals - five adults and three minors - through a hole in a wall near the San Ysidro, California Port of Entry. Martinez-Hernandez and the group of eight entered a vehicle waiting on the U.S. side of the border near the hole, which was next to the southbound side of the Interstate 5. Martinez-Hernandez took control as the driver and then made a U-turn into the oncoming traffic in the southbound lanes of the interstate. He then drove north in the southbound lanes against traffic. Customs and Border Protection Officers began pursuit of the vehicle, driving north in the northbound lanes to track Martinez-Hernandez’s movements on the southbound side of the interstate. Martinez-Hernandez then stopped the vehicle on the side of the interstate and directed the eight to follow him to another area. He admitted to investigators that he did this because his coconspirators planned to pick the group up in other vehicles to take them farther into the U.S. illegally.
The investigation revealed that Martinez-Hernandez led the group of eight on foot across the northbound lanes of the Interstate 5, over the dividing fence, and across the southbound lanes. A vehicle travelling south at or near highway speed in the southbound lanes struck two of the undocumented individuals in the group as they ran across the interstate. The collision occurred near the Camino De La Plaza exit on Interstate 5. The two were pronounced dead at the scene. Martinez-Hernandez and the six remaining undocumented individuals were later apprehended when they were found hiding near the southbound side of the interstate and the Camino De La Plaza exit.
Martinez-Hernandez admitted to guiding the eight during this event. He further admitted that the eight undocumented individuals, including one who was from China, agreed to pay between $7,000 to $13,000 to be smuggled into the U.S. Martinez-Hernandez admitted that he was going to receive $1,000 per undocumented individual that he successfully smuggled into the U.S. illegally.
DEFENDANTS Case Number: 17cr3288-H
Jorge Luis Martinez-Hernandez Age: 33 Tijuana, B.C., Mexico
SUMMARY OF CHARGES
2 Counts - Bringing in Certain Aliens Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(i) and (a)(1)(B)(iv), a Class A felony
6 Counts - Bringing in Certain Aliens for Financial Gain and Aiding and Abetting – Title 8, U.S.C., Section 1324(a)(2)(B)(ii) and Title 18, U.S.C., Section 2, a Class A felony
AGENCIES
Homeland Security Investigations
U.S. Customs and Border Protection
U.S. Border Patrol
California Highway Patrol
San Diego Fire Department
San Diego County Medical Examiner’s Office
Chinese National Charged with Insider Trading Scheme Conducted with Principal of Private Equity FundRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Paul D. Delacourt, the Assistant Director-in-Charge of the Los Angeles Field Office of the Federal Bureau of Investigation (“FBI”), announced the indictment late yesterday of MICHAEL YIN, a/k/a “Shaohua Yin,” on charges of conspiracy to commit securities fraud and securities fraud in connection with an insider trading scheme relating to the securities of Lattice Semiconductor Corporation (“Lattice”). YIN remains at large. The case is assigned to U.S. District Judge John G. Koeltl.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Michael Yin reaped illegal gains of more than $5 million by trading on inside information he received from his friend and business associate Benjamin Chow in breach of Chow’s duties to Lattice. Yin and Chow executed their scheme through text message exchanges neither ever thought would see the light of day and in meetings far away in Beijing, China. Thanks to the efforts of law enforcement, Yin’s abuse of the United States markets has been uncovered and he stands indicted for his crimes.”
FBI Assistant Director Paul Delacourt said: "Yin’s alleged use of material, nonpublic information as a road to revenue produced millions in unlawful proceeds. The FBI and our partners at the Securities and Exchange Commission will continue to investigate subjects who use criminal tactics that illegally create overnight millionaires and threaten the credibility of the marketplace."
According to the allegations in the Indictment filed today in Manhattan federal court:[1]
From approximately March 2016 to February 2017, YIN obtained from a friend and business associate, Benjamin Chow, material nonpublic information relating to a potential merger between Lattice and successive private equity firms managed by Chow, one based in Beijing, China (“Firm-1”), and one based in Palo Alto, California, with offices in Beijing, China (“Firm-2”). YIN used such information to make more than $5 million in profitable securities trades through accounts opened in the names of YIN’s family members and associates.
Specifically, as Managing Director of Firm-1 and later Managing Partner of Firm-2, Chow obtained material nonpublic information regarding potential merger agreements between Lattice and Firm-1 and later Firm-2. Information concerning the potential merger agreements was subject, among other things, to nondisclosure agreements executed between Lattice and Chow on behalf of Firm-1 and later Firm-2.
Through multiple meetings in Beijing, China, voice messages, and text exchanges, YIN obtained from Chow material nonpublic information regarding the potential merger between Lattice and Firm-1 and later Firm-2, which Chow provided to YIN in violation of the nondisclosure agreements Chow executed with Lattice on behalf of Firm-1 and Firm-2. YIN made profitable trades in Lattice shortly after receiving the material nonpublic information from Chow, yielding a total of at least approximately $5 million in profits. For example, on one occasion, Chow told YIN, in substance and as transcribed and translated from Chinese, that Chow should soon be able to execute a merger agreement with Lattice. Beginning the following day, and over the course of the next three weeks, YIN purchased more than 2.2 million shares of Lattice stock.
Chow was previously charged in this District and found guilty in a jury trial of several offenses for his role in the scheme and is presently awaiting sentencing in front of U.S. District Judge Gregory H. Woods.
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YIN, 45, of Beijing, China, is charged with one count of conspiring to commit securities fraud, which carries a maximum prison sentence of five years in prison, and 13 counts of securities fraud, which carry maximum sentences of 20 and 25 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. 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 exceptional work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Max Nicholas, Scott Hartman, and Elisha J. Kobre are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the 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.
Child Pornographer Sentenced to 27 Years in Federal Prison after Pensacola Jury ConvictsRead the Press Release
PENSACOLA, FLORIDA – Nicholas E. Fogarty, 36, of Palm Beach Gardens, Florida, was sentenced to 27 years in federal prison today, after being convicted on March 13 of advertisement of child pornography and distribution of child pornography. Fogarty will also be required to register as a sex offender. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
During the day and a half jury trial, the government presented evidence that, beginning in June 2017, an undercover investigator in Pensacola, posing as a minor female on the social media platform Kik, identified Fogarty, who had created the Kik group “Tweenteenlove,” a group that shared child pornography online. During the investigation, Fogarty instructed others to find and bring young girls to the online group. Fogarty communicated with the undercover agent online, including providing direction to the dark web, which is a hidden Internet where child pornography can be found. Upon Fogarty’s arrest in southern Florida, a search of his electronic devices revealed child pornography and a search browser for the dark web. In all, between 4,000 and 5,000 images and videos of child pornography were captured from Fogarty during this investigation. Fogarty has a prior child pornography related conviction in 2014 out of Palm Beach County, Florida.
“Our innocent children trust us to keep them safe and are often unaware of the dangers lurking online,” said U.S. Attorney Canova. “This sentence is a reminder to child predators who believe they are anonymous and beyond the reach of our prosecutors and law enforcement professionals: we will pursue you and bring you to justice.”
“This predator hid behind the anonymity of the dark web and social media applications to advertise and distribute child pornography,” said HSI Tampa Special Agent in Charge James C. Spero. “This case underscores the important work of the North Florida Internet Crimes Against Children Task Force, and HSI is proud to be part of such an effective team.”
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Air Force Office of Special Investigations, the Boynton Beach Police Department, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
California Man Pleads Guilty for His Role in Cross Country Methamphetamine RingRead 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 Thomas Williams, 57, of California City, California, pleaded guilty before U.S. Magistrate Judge Marian W. Payson to narcotics conspiracy and distribution of more than 50 grams of methamphetamine. The charges carry mandatory minimum penalty of 20 years in prison, a maximum of life, and a $20,000,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that between January 2017 and June 27, 2017, the defendant conspired with Julie Cota, and others to distribute methamphetamine. Williams worked with Cota to ship crystal methamphetamine from California to co-conspirators in Dansville, NY. The defendants sent crystal methamphetamine via a shipping company in exchange for money. Williams and Cota sold the crystal methamphetamine for $1,000 an ounce to a co-defendant in Dansville who then distributed the crystal methamphetamine to customers in the Western District of New York.
The plea 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 Livingston County Sheriff’s Department, under the direction of Sheriff Thomas Dougherty; and the New York State Police, under the direction of Major Richard Allen.
Sentencing is scheduled for October 17, 2018, at 2:00 p.m. before U.S. District Judge David G. Larimer.
Bronx Drug Dealer Pleads Guilty to Selling Heroin That Caused Woman’s Overdose Death in A Hospital Rehabilitation ClinicRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DUANE MARTINEZ pled guilty today in Manhattan federal court to conspiring to distribute more than one kilogram of heroin between 2015 and 2017. As part of that conspiracy, MARTINEZ arranged to deliver heroin to a 41-year-old woman, Ivy Katz, while she was a patient in a hospital rehabilitation clinic, causing Katz to overdose and die.
U.S. Attorney Geoffrey S. Berman said: “The trafficking of heroin and other opioids is a serious crime that often leads to the tragic overdoses that are a public health crisis in our city and around the country. Duane Martinez sold large amounts of heroin over a long period of time, and he arranged for his heroin to be delivered to an inpatient rehabilitation clinic located inside a hospital. Martinez’s disregard led to a tragic death and undermined the efforts of health professionals to provide treatment for someone with the courage to seek it. Thanks to the outstanding investigative work of our partners in the New York City Police Department, Duane Martinez is out of business, and heroin dealers should know that they cannot escape the consequences of their crimes.”
According to the allegations contained in the Complaint, the Indictment, and statements made in court and publicly available documents:
From at least in or about November 2015 through in or about April 2017, in the Southern District of New York and elsewhere, MARTINEZ and others conspired to sell more than one kilogram of heroin.
In particular, on or about January 1, 2017, MARTINEZ arranged for heroin to be delivered to Ivy Katz at an inpatient rehabilitation clinic located in a hospital in Manhattan. In mid-December 2016, Katz had voluntarily checked herself into the hospital’s inpatient rehabilitation program for opioid dependence. MARTINEZ arranged for another individual to deliver heroin to Katz in the hospital, evading measures designed to prevent patients in recovery from receiving drugs. Approximately 30 minutes after the person sent by MARTINEZ left the hospital, Katz was found comatose in her room with a needle containing heroin in her arm. Katz never regained consciousness and ultimately died on or about January 16, 2017.
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DUANE MARTINEZ, 44, faces a maximum sentence of life in prison, and a mandatory term of 10 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. MARTINEZ is scheduled to be sentenced by Judge Caproni on October 25, 2018.
Charges against the other individual named in the indictment – Anthony Dodaj – are pending. The charges and allegations against Dodaj are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of the New York City Police Department’s Manhattan South Narcotics Heroin Overdose Team.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys David W. Denton Jr. and Stephanie Lake are in charge of the prosecution.
Binghamton Man Sentenced to Serve More Than 17 Years for Downloading Child PornographyRead the Press Release
BINGHAMTON, NEW YORK - Reid L. Babcock, age 48, of Binghamton, was sentenced today to serve 17 and ½ years in prison and a life term of supervised release for his previously entered guilty plea to receiving and downloading child pornography images from the internet, announced United States Attorney Grant C. Jaquith, Charles Margiotta, Acting Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation. and David Harder, Broome County Sheriff.
In pleading guilty to receipt of child pornography, Babcock admitted that from January of 2017 through April of 2017, in Broome County, New York, he used a cellular telephone to download more than 100 graphic image files of child pornography, depicting minors engaged in sexually explicit conduct, some of whom were approximately 6-7 years of age. Babcock also admitted that at the time of the commission of this crime he was a registered sex offender as a result of his previous conviction in 2003 in Vermont for the crime of Lewd or Lascivious Conduct with a Child.
This case was investigated by the Federal Bureau of Investigation (FBI) and the Broome County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Miroslav Lovric.