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13 July 2018
Six defendants charged in high-end car theft ringRead the Press Release
ATLANTA - Six defendants have been indicted by a federal grand jury on charges of stealing expensive cars from dealerships in three states, altering their Vehicle Identification Numbers (VIN), and fraudulently obtaining new titles for the cars.
“These defendants were brazen in stealing expensive vehicles from car dealerships,” said U.S. Attorney Byung J. “BJay” Pak. “They are alleged to have altered the Vehicle Identification Numbers of the stolen cars to cover their tracks and to allow them to sell the cars as legitimate.”
“The FBI Atlanta’s Organized Crime Task Force, working in coordination with the Alpharetta Public Safety Department and others, were able to bring a stop to the illicit business this crime ring is alleged to have been conducting,” said J.C. Hacker, Special Agent in Charge of FBI Atlanta. “The combined effort is another example of how law enforcement will go to every length to protect our citizens and bring those who violate the law to justice.”
“When a civil servant is associated with criminal activity, it undermines the public’s trust in government,” said Special Agent in Charge Floyd Martinez. “The General Services Administration Office of Inspector General will continue to work with our law enforcement partners to aggressively investigate and hold accountable individuals who abuse this trust for personal gain.”
“This is another great example of what happens when we combine federal and local resources in an effort to combat expansive criminal activity,” said Alpharetta Police Chief John Robison. “We are grateful for our strong partnership with the FBI, and we look forward to continuing to work with them in the future.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The defendants allegedly worked together to steal high-end vehicles, mainly from car dealerships in Georgia, Tennessee, and South Carolina. After stealing the cars, the defendants researched vehicles that were similar to the ones they had stolen, and when a similar car was found, they used that vehicle’s VIN to create a new VIN for the stolen car. They then affixed the new VIN to the dashboard to thwart detection that the vehicle was actually stolen.
At that point, defendants submitted fraudulent powers of attorney to state motor vehicle departments to obtain copies of the titles of the similar cars. With the fake title in hand, the defendants allegedly sold the stolen car with its new VIN. The defendants allegedly stole eight Bentleys, three Audis, two Mercedes-Benz, two GMC Yukons, two Chevrolet Corvettes, as well as other expensive cars.
The following defendants were indicted by a federal grand jury on June 26, 2018 and charged with conspiracy, wire fraud, mail fraud, and altering a VIN:
●Everett Tripodis, 42, of Atlanta, Georgia;
●Janell Payne, 39, of Atlanta, Georgia;
●Mark Wilson, 31, of Toledo, Ohio;
●Kakawana Tate, 42, of Atlanta, Georgia;
●Antonio Tyler, 42, of Augusta, Georgia; and
●Quentin Berry, 45, of Atlanta, Georgia.
Tripodis and Payne were arraigned on July 10, 2018, on federal charges of stealing expensive cars, altering their Vehicle Identification Numbers (VIN), and fraudulently obtaining new titles for the cars. Tripodis was also ordered detained on July 13, 2018, pending trial by U.S. Magistrate Judge Russel G. Vineyard. Tripodis has two previous federal convictions for tampering with and altering VINs. Payne is trained as a lawyer.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. The Alpharetta Police Department, the Atlanta Police Department, and the General Services Administration – Office of Inspector General also provided assistance on the case.
Assistant U.S. Attorneys Phyllis Clerk and Paul R. Jones are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Shasta County Woman Sentenced to 1 Year in Prison for Faking Redding-Area Drug Test ResultsRead the Press Release
SACRAMENTO, Calif. — Demetri Dearth, 61, of Cottonwood, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to one year in prison and $2,500 in special assessments for forging and falsifying documents and then billing clients of her employment drug testing company for tests that never occurred, U.S. Attorney McGregor W. Scott announced.
According to court documents, between about 2006 and about 2010, Dearth owned and operated Advanced Substance Abuse Programs in Redding, California. This company assisted employers in complying with United States and California regulations requiring pre-employment and random employee drug screenings. Dearth’s client roster included more than 80 companies in industries as varied as aviation, trucking, construction, logging, and education. They paid her to test prospective and current employees for drug use, to notify companies of these drug test results, and to maintain testing records in compliance with federal and state regulations.
Between March 2009 and February 2010, Dearth forged some of the drug test results that she reported to her client companies. In at least 46 instances, Dearth did not forward urine samples to approved testing laboratories. Instead, she faked documents certifying that the samples had been tested and obtained negative results. Doing so allowed her to bill client companies for testing that never occurred. It also prevented these companies from knowing whether their prospective and current employees were, in fact, drug-free when they performed potentially dangerous work, such as driving heavy trucks on public highways or providing services to the airline industry.
On October 20, 2017, Dearth pled guilty to 16 counts of making false statements to a government agency and nine counts of mail fraud. Dearth has been ordered to surrender to federal authorities on September 6, 2018. After completing her prison sentence, she will serve one year of probation.
This case was the product of an investigation by the Department of Transportation, Office of the Inspector General and the California Highway Patrol. Assistant United States Attorneys Amanda Beck, Michael D. Anderson, and Lee S. Bickley prosecuted the case.
Seven Nigerian nationals indicted for operating online romance fraud scheme that cost victims nationwide over $1.5 million in lossesRead the Press Release
ATLANTA – A federal grand jury has returned two indictments charging seven Nigerian nationals with federal charges ranging from wire fraud to identity theft arising from their operation of online romance fraud schemes that cost users of American dating websites over $1.5 million in losses. Federal agents have arrested five of the seven defendants - two defendants remain at-large. The indictments were partially unsealed earlier today.
“The defendants in these cases allegedly used fake personas on online dating websites to trick lonely individuals into giving them money,” said U.S. Attorney Byung J. “BJay” Pak. “The defendants would allegedly spend weeks cultivating online relationships with their victims before defrauding them. Some victims lost hundreds of thousands of dollars from their retirement savings or inheritances. Users of online dating websites should be aware of such scams and should exercise extreme caution if asked for money by anyone online or over the phone.”
“The anonymity of the internet often makes a tempting playground for unscrupulous individuals who are simply waiting for an opportunity to steal from others,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “The special agents of the IRS - Criminal Investigation are uniquely skilled in their ability to trace the criminal proceeds obtained as a result of online fraud, and will continue to work with our law enforcement partners in an effort to hold cybercriminals accountable for their actions.”
According to U.S. Attorney Pak, the indictments, and other information presented in court: The defendants and other conspirators allegedly created phony dating profiles on popular online dating websites that described fictitious personas. These profiles depicted photographs of attractive men and women that, in some instances, were public figures, such as government officials or models, taken from publically available websites. The conspirators allegedly used their fake online personas to target users of online dating websites and falsely pose as potential paramours by expressing strong romantic interest in the targeted users. These conspirators often targeted vulnerable individuals who possessed financial assets and in some cases spent weeks and months cultivating romantic relationships with them through online messaging, text messaging, and voice calls.
After gaining their affection and trust, the conspirators, posing as the fake paramours, allegedly provided the targeted users with elaborate false stories to cause the users to send them money through interstate wire or online transfers to bank accounts controlled by the conspirators. The fake paramours often claimed to be working overseas and in need of money to travel back to the United States or to complete business deals abroad. Once the conspirators received money from targeted users, the conspirators quickly withdrew the funds and dispersed them into other accounts, domestically and abroad.
The indictments charge the defendants with a total of 60 counts of wire fraud, money laundering, identity theft, and use of false passports. The defendants charged in the indictments are as follows:
●Olu Victor Alonge, a/k/a Serge Damessi, a/k/a Didier Baraze, a/k/a Mobo Marcus Adeh, a/k/a Ayo Baraze, a/k/a Nicolas Soglo, 34, of Newnan, Georgia;
●Ugochukwu Lazarus Onebunne, a/k/a Policap Tizhe, a/k/a Saheed Ademoha, 41, of Douglasville, Georgia;
●Olajide Olalekan Adara, a/k/a Kelvin Mensah, 33, of Loganville, Georgia;
●Joshua Adedeji Ipoade, 28, of Atlanta, Georgia;
●Oladunni Temitope Oladipupo, 24, of Lynn, Massachusetts; and
●Two other defendants are fugitives and their identities remain sealed.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Capitol Police and the Internal Revenue Service Criminal Investigations Division.
Assistant U.S. Attorneys John S. Ghose and Sekret Sneed are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Secret Service Presenting Law Enforcement Anti-Terrorism Training in Huntsville & TrussvilleRead the Press Release
BIRMINGHAM – The U.S. Secret Service will present anti-terrorism training for law enforcement next week in both Huntsville and Trussville.
In conjunction with the U.S. Attorney’s Office for the Northern District of Alabama and the Huntsville and Trussville police departments, the Critical Protective Analysis Group of the Secret Service will present a one-day conference on Tuesday, July 17, at the Huntsville Public Safety Training Academy, 6000 Cecil Fain Drive. It will present the same conference on Thursday, July 19, at the Trussville Civic Center, 5381 Trussville Clay Road. The conference will be from 9 a.m. to 4 p.m. both days, with registration from 8:30 a.m. to 9 a.m.
The training is free and open to all law enforcement. It is approved for six credit hours with the Alabama Peace Officers Standards & Training Commission. Training will focus on terrorism trends and tactics.
U.S. Attorney Jay E. Town will open Tuesday’s conference in Huntsville. First Assistant U.S. Attorney Lloyd Peeples will open the conference Thursday in Trussville. Only the opening segment of the conferences will be open to the media.
Advance registration will be available until noon Monday by emailing to [email protected] the name, address and phone number of your organization, along with the names of individuals planning to attend.
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Salvadoran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that Carlos Alberto Andrade, age 34, a citizen of El Salvador, pleaded guilty yesterday to a one-count indictment for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
At sentencing, which is set for August 23, 2018, Andrade faces a maximum term of imprisonment of not more than two years, a fine of $250,000.00, and a mandatory special assessment of $100.00. Additionally, Andrade is subject to a period of supervised release after imprisonment of up to one year.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Ride-Sharing Driver Sentenced to 19 Months in Prison for Sexual Assault of PassengerRead the Press Release
WASHINGTON – Selvin Chocooj, 32, a former driver with a national ride-sharing company, was sentenced today to 19 months in prison for sexually assaulting a passenger last year in Northeast Washington, D.C., U.S. Attorney Jessie K. Liu announced.
Chocooj, who is from Guatemala and had been living in Oxon Hill, Md., pled guilty in April 2018, in the Superior Court of the District of Columbia, to third-degree sexual abuse. The plea, which was contingent upon the Court’s approval, called for an agreed-upon prison sentence of 12 to 24 months, to be followed by a period of supervised release and sex offender registration. The Honorable Craig Iscoe accepted the plea and sentenced Chocooj accordingly. Chocooj will be subject to deportation proceedings upon completion of his prison term.
According to a proffer of facts submitted at the plea hearing, on Dec. 10, 2017, at approximately 4 a.m., near the 400 block of East Capitol Street NE, Chocooj and the victim were seated in the front of the defendant’s Toyota Prius. While in the car, Chocooj touched the victim’s breast by force and against her will. She resisted and a physical struggle ensued. During this struggle, the victim sustained injuries to her neck and shoulder, and Chocooj sustained injuries to his face. As the struggle continued, Chocooj physically forced the victim out of the vehicle, got back into the car, and drove away. The victim remained on the scene and called 911.
The day after the incident, officers with the Metropolitan Police Department went to an apartment building in Oxon Hill, Md., and attempted to speak with Chocooj about the allegations. Chocooj jumped out of a third-story window and fled. He was eventually located by the U.S. Marshals Service in the Pikeville, Ky. area and arrested on Dec. 22, 2017.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department’s Sexual Assault Unit. She also expressed appreciation for the assistance provided by the U.S. Marshals Service. She acknowledged work of those who handled the case at the U.S. Attorney’s Office, including Victim/Witness Advocate Tracy Hawkins, Paralegal Specialist Tiffany Jones, and Assistant U.S. Attorney J. Matt Williams, who investigated and prosecuted the case.
Repeat Offender Sentenced to 7 Years in Prison for Illegal Firearms Possession and Conspiracy to Obstruct JusticeRead the Press Release
A repeat offender who used his wife to repeatedly illegally purchase firearms, was sentenced today in U.S. District Court in Seattle to 7 years in prison for four federal felonies, announced U.S. Attorney Annette L. Hayes. ROBERT A. STANARD, 42, of Stanwood, Washington was convicted in January 2018 of illegally possessing two firearms, illegal possession of ammunition, illegal possession of an unregistered silencer and conspiracy to obstruct justice. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez stated that STANARD had a violent felony history and had lied repeatedly at his trial. “You don’t get to take the stand and perjure yourself. That is offensive to our entire system of justice…His false denials went to essential elements of his case.”
“Federal felons with violent criminal histories are prohibited from possessing firearms because they have shown what a danger they pose in our community,” said U.S. Attorney Annette L. Hayes. “This defendant has repeatedly demonstrated his danger, not only to his family but to law enforcement tasked with public safety. Keeping firearms out of the hands of felons in a top priority for the Department of Justice.”
According to records in the case and testimony at trial, STANARD repeatedly directed his wife in person and via text message to purchase firearms for his use. The weapons included an AR-15 assault rifle and a Ruger .380 handgun. STANARD ordered more than 1,000 rounds of ammunition from online sources, as well as gun parts. He directed his wife to purchase ammunition as well. His wife was confused at the gun stores and in a series of text messages and pictures consulted STANARD about every purchase. STANARD used items he ordered online to construct a silencer for one of the weapons. STANARD was arrested in October 2016, following reports of domestic violence. While incarcerated at Snohomish County Jail and later at the Federal Detention Center, STANARD sent coded emails and spoke in code on telephone calls to get a family member to retrieve a third pistol that was hidden in his pick-up truck. The conspirators called the gun a “CD player” and the family member confirmed in the emails and telephone calls that he had retrieved it and was secreting it from law enforcement.
STANARD is prohibited from possessing firearms due to multiple prior convictions including two federal cases. In 2004, STANARD was sentenced to ten years in prison for two unrelated crimes. In March of 2001 in Utah, STANARD illegally possessed an unregistered firearm and, while in an argument with his cousin, he fired the gun with the bullet passing through the wall of a neighboring apartment. While on pretrial release for that crime, STANARD traveled to Washington, where he first pistol whipped a man in Port Angeles, and then plotted to use a pipe bomb to kill the man by blowing-up the man’s long stay motel. But for the work of an alert Sequim Police officer who stopped STANARD’s car due to a broken tail light, the bombing could have killed many innocent people.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Snohomish County Sheriff’s Office and the Washington State Patrol.
The case was prosecuted by Assistant United States Attorneys Andrew Friedman and Joshua Ferrentino.
Realtor pleads guilty to stealing millions from clientsRead the Press Release
ATLANTA – Emily Moerdermo Fu, a metro Atlanta realtor and businesswoman, who defrauded clients out of more than $22 million dollars over a 2-year period, pleaded guilty to mail fraud on July 12, 2018.
“Real estate professionals who embezzle their clients’ investment funds threaten the integrity of our real estate market,” said U.S. Attorney Byung J. “BJay” Pak. “Investors must remain vigilant against fictitious loans, made-up closings, and other schemes by licensed professionals before they invest their monies.”
“The defendant used her position as a well-regarded realtor to defraud money from hardworking investors for her own personal financial gain,” said Scott D. Fix, Acting U.S. Postal Inspector in Charge of the Charlotte Division. “Postal Inspectors will continue to vigorously pursue and bring to justice those individuals who use the U.S. mail to commit crimes.”
According to U.S. Attorney Pak, the charges and other information presented in court: Fu operated Capital Investment International Management, Inc., a company located in Suwanee, Georgia, that offered a wide range of services to investors in commercial properties around the Atlanta area, including investment recommendations, property financing and acquisition, and management services.
From 2004 to 2017, Fu established several investment companies for a group of clients for the supposed purchase of commercial real estate in Forsyth, Gwinnett, Fulton, and other metro counties. In November 2017, the investors discovered irregularities in the records of some of the investment companies and confronted Fu, who admitted to embezzling around $930,000. Through queries into county property databases and other investigations, it was determined that Fu had never followed through on several commercial real estate purchases, each valued in the millions of dollars. The properties included medical and shopping centers in Atlanta and across the northern metro area.
Fu told her victims that she had completed the closings and was managing the properties, when in fact, she had diverted the loans and investment funds for these “ghost purchases” for her own purposes. She also used properties, purchased by the investors with cash, as collateral for unauthorized loans which she then pocketed. Fu had been a prominent real estate professional, whose recognitions included “Individual of the Year – Governor’s International Award” in Georgia in 2012.
Sentencing for Emily Fu, 57, of Atlanta, Georgia has not been scheduled.
This case is being investigated by the U.S. Postal Inspection Service.
Assistant U.S. Attorney Brian Pearce is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Psychic Reader Sentenced for Tax Return SchemeRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Candy Miller, age 40, of Wilmington, Delaware, was sentenced yesterday by U.S. District Court Chief Judge Leonard P. Stark for filing a false tax return to one year and one day of incarceration.
According to statements made at sentencing and documents filed in court, Miller, who operated a Psychic Readings business in Wilmington, filed false tax returns for the years 2010, 2011, and 2012, underreporting her total income by $1,074,000. This unreported income was received from clients of Miller’s business who were told by Miller that she was removing the negativity from their lives by anonymously donating their money to charities, selected by Miller. In fact, Miller made no donations and spent all the money on personal expenses. The offense resulted in a total tax loss of $337,430.
Following the sentencing, U.S. Attorney Weiss stated, “Criminal tax laws are designed to protect the public interest in preserving the integrity of the nation’s tax system. Here, the source of the unreported income came from unwitting customers whom Miller duped. My office will continue to fight against abuse of our tax system and to seek sentences that serve to act as deterrents to would-be tax cheats and those who defraud the public.”
“We should not forget that the ultimate victims in tax fraud cases are the people of the United States; those honest taxpayers who diligently file and pay their taxes each year,” said IRS Criminal Investigation Special Agent-in-Charge Guy Ficco. Miller’s sentence is a reminder that IRS-CI is working to make sure that all taxpayers file and pay their fair share of taxes.”
This matter was investigated by the Internal Revenue Service - Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Edmond Falgowski.
Previously Convicted Sex Offender from Albuquerque Arraigned on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – James Highfield, 63, of Albuquerque, N.M., was arraigned this morning in federal court on an indictment charging him with child pornography offenses and committing a federal sex offense involving a minor while required to register as a sex offender. Highfield entered a not guilty plea to the charges during this morning’s arraignment hearing. Highfield was ordered detained pending trial based on judicial findings that he poses a risk of flight and a danger to the community.
U.S. Attorney John C. Anderson said that Highfield, whose criminal history includes two prior convictions for sex offenses including a child sex offense and who was required to register as a sex offender, is being prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution offenders with the goal of making communities in New Mexico safer places for people to live and work.
The indictment, which was filed on June 26, 2018, charges Highfield with six counts of production of child pornography and one count of commission of a felony sex offense involving a minor by an individual required to register as a sex offender. The first six counts of the indictment allege that on six dates in Sept. 2017 and Oct. 2017, Highfield persuaded, enticed and coerced a child under the age of 18 to engage in sexually explicit conduct so he could produce child pornography. Count 7 alleges that Highfield, an individual required to register as a sex offender, committed the sex offenses involving a minor that are charged in the first six counts of the indictment. The indictment alleges that Highfield committed the offenses in Bernalillo County, N.M.
Highfield was arrested on the indictment earlier today after he was transferred into federal custody from state custody where he was being held on related state charges filed by the 2nd Judicial District Attorney’s Office.
The penalty for a conviction on a production of child pornography charge is a statutory mandatory minimum of 15 years and a maximum of 30 years of imprisonment. A defendant with one prior qualifying sex offense conviction faces an enhanced penalty of a statutory mandatory minimum of 25 years and a maximum of 50 years of imprisonment. A defendant with two prior qualifying sex offense convictions faces an enhanced penalty of a statutory mandatory minimum of 35 years and a maximum of life imprisonment.
The penalty for a conviction for committing a felony sex offense involving a minor by an individual required to register as a sex offender is ten years of imprisonment, which must be served consecutive to any sentence imposed on other offenses.
The Bernalillo County Sheriff’s Office investigated the case, with assistance from the Albuquerque office of Homeland Security Investigations and the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Sarah Mease is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Philipsburg Man Sentenced to Federal Prison for Firearm ViolationRead the Press Release
BILLINGS – Doyle Wesley Pearson, a 39-year-old Philipsburg resident, was sentenced today to 48 months in prison followed by 3 years supervised release after pleading guilty to prohibited person in possession of firearms on March 6, 2018. U.S. District Judge Susan P. Watters handed down the sentence.
Between July 29 and August 1, 2016, Pearson possessed and pawned eight firearms in Livingston, Butte, and Missoula, Montana. Pearson told law enforcement officers that he pawned the eight firearms at eight difference pawnshops so he would not appear suspicious. Pearson’s prior convictions include a Montana failure to register as a sex offender in August 2015 and sodomy in the second degree sodomy from Oregon in 1995. At the time, Pearson was on absconder status with his supervising probation officer and using methamphetamine.
The case was investigated by the Bozeman Police Department, Montana Highway Patrol, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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.
Pay Phone Owner Sentenced for $2.4 Million ScamRead the Press Release
HOUSTON - A 61-year-old Friendswood man has been ordered to federal prison for mail and wire fraud and money laundering, announced U.S. Attorney Ryan K. Patrick. David Grudzinski pleaded guilty April 13, 2018.
Today, U.S. District Judge Sim Lake handed Grudzinski an 18-month term of imprisonement. In handing down the sentence, Judge Lake noted it was a sophisticated fraud but took into consideration Grudzinski’s lack of criminal history. Grudzinski will be required to serve three years of supervised release following completion of the prison term.
Grudzinski owned approximately 450 pay phones in the Houston area. At the time of his plea, Grudzinski admitted to running a scam to unlawfully obtain payments from the owners of toll-free numbers for calls to his pay phones.
Using specialized software, he caused his phones to robotically dial toll-free telephone numbers assigned to various federal and state government agencies as well as other private entities. As a result, Grudzinski fraudulently-obtained $.494 per such call from 2005 through July 10, 2015.
Because of his scheme, Grudzinski collected over $2.4 million in fraudulently-obtained payments during that timeframe.
Grudzinski was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The General Services Administration - Office of Inspector General, U.S. Postal Inspection Service, FBI and IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Operation Synthetic Opioid Surge Announced by the Department of JusticeRead the Press Release
SACRAMENTO, Calif. — Attorney General Jeff Sessions, U.S. Attorney McGregor W. Scott of the Eastern District of California and DEA Special Agent in Charge Chris Nielsen announced this week Operation Synthetic Opioid Surge (S.O.S.), a new program that seeks to reduce the supply of deadly synthetic opioids in high impact areas, specifically fentanyl, and to identify wholesale distribution networks and international and domestic suppliers.
“When it comes to synthetic opioids, there is no such thing as a small case,” Attorney General Sessions said. “In 2016, synthetic opioids killed more Americans than any other kind of drug. Three milligrams of fentanyl can be fatal — that’s not even enough to cover up Lincoln’s face on a penny. Our prosecutors in Manatee County, Florida have shown that prosecuting seemingly small synthetic opioids cases can have a big impact and save lives, and we want to replicate their success in the districts that need it most. This new strategy — and the new prosecutors who will help carry it out — will help us put more traffickers behind bars and keep the American people safe from the threat of these deadly drugs.”
As part of Operation S.O.S., the Department will launch an enforcement surge in 10 districts that have experienced high drug overdose death rates, including the Eastern District of California. The DEA Special Operations Division will coordinate efforts to ensure that leads from street-level cases are used to identify larger-scale distributors. In addition, the Organized Crime Drug Enforcement Task Forces (OCDETF) Executive Office will send an additional two-year term Assistant United States Attorney to each participating district to assist with drug-related prosecutions.
“The deadliness of synthetic opioids cannot be emphasized enough,” U.S. Attorney McGregor W. Scott said. “These drugs kill and have the power to ruin the lives of those in their grip. The Eastern District of California is a transshipment corridor for all kinds of drugs, including fentanyl and fentanyl analogues, and many of our communities, especially in the district’s northern counties, have experienced their devastating effects. We plan to employ these new resources to help protect our communities from these lethal drugs.”
“Too many Americans are caught in the terrible grip of opioid addiction, and fentanyl can kill,” stated DEA Special Agent in Charge Chris Nielsen. “We have seen an increase in the availability of synthetic opioids in this region — along with the destructive consequences that follow. DEA is committed to using every tool available to pursue those distributing this poison in our communities, and we welcome this announcement by the Attorney General.”
The Eastern District of California will use the additional resources to coordinate with district attorney offices to prosecute every readily provable case involving the distribution of fentanyl, fentanyl analogues, and other synthetic opioids. The office will also redouble efforts to disrupt the distribution of these drugs by targeting the transshipment corridors that bisect the district: Interstate Highways 5 and 80. Through these efforts, law enforcement can stop further distribution of the drugs to the Midwest and East Coast, while also working to identify and prosecute large-scale suppliers. Already this year, 13.9 kilos (over 30 pounds) of fentanyl have been seized in the Eastern District of California.
According to the California Department of Public Health, Modoc County had an opioid overdose death rate of 23.78 out of 100,000 residents in 2017, which is about five times the overall rate for California, which is 4.49 opioid deaths per 100,000 residents. Yuba and Shasta County’s opioid overdose death rate is almost three times the state’s rate.
The other nine districts participating in Operation S.O.S. are:
Northern District of Ohio
Southern District of Ohio
Eastern District of Tennessee
Eastern District of Kentucky
Southern District of West Virginia
Northern District of West Virginia
District of Maine
Western District of Pennsylvania
District of New Hampshire
Operation Synthetic Opioid Surge Announced by the Department of JusticeRead the Press Release
SACRAMENTO, Calif. — Attorney General Jeff Sessions, U.S. Attorney McGregor W. Scott of the Eastern District of California and DEA Special Agent in Charge Chris Nielsen announced this week Operation Synthetic Opioid Surge (S.O.S.), a new program that seeks to reduce the supply of deadly synthetic opioids in high impact areas, specifically fentanyl, and to identify wholesale distribution networks and international and domestic suppliers.
“When it comes to synthetic opioids, there is no such thing as a small case,” Attorney General Sessions said. “In 2016, synthetic opioids killed more Americans than any other kind of drug. Three milligrams of fentanyl can be fatal — that’s not even enough to cover up Lincoln’s face on a penny. Our prosecutors in Manatee County, Florida have shown that prosecuting seemingly small synthetic opioids cases can have a big impact and save lives, and we want to replicate their success in the districts that need it most. This new strategy — and the new prosecutors who will help carry it out — will help us put more traffickers behind bars and keep the American people safe from the threat of these deadly drugs.”
As part of Operation S.O.S., the Department will launch an enforcement surge in 10 districts that have experienced high drug overdose death rates, including the Eastern District of California. The DEA Special Operations Division will coordinate efforts to ensure that leads from street-level cases are used to identify larger-scale distributors. In addition, the Organized Crime Drug Enforcement Task Forces (OCDETF) Executive Office will send an additional two-year term Assistant United States Attorney to each participating district to assist with drug-related prosecutions.
“The deadliness of synthetic opioids cannot be emphasized enough,” U.S. Attorney McGregor W. Scott said. “These drugs kill and have the power to ruin the lives of those in their grip. The Eastern District of California is a transshipment corridor for all kinds of drugs, including fentanyl and fentanyl analogues, and many of our communities, especially in the district’s northern counties, have experienced their devastating effects. We plan to employ these new resources to help protect our communities from these lethal drugs.”
“Too many Americans are caught in the terrible grip of opioid addiction, and fentanyl can kill,” stated DEA Special Agent in Charge Chris Nielsen. “We have seen an increase in the availability of synthetic opioids in this region — along with the destructive consequences that follow. DEA is committed to using every tool available to pursue those distributing this poison in our communities, and we welcome this announcement by the Attorney General.”
The Eastern District of California will use the additional resources to coordinate with district attorney offices to prosecute every readily provable case involving the distribution of fentanyl, fentanyl analogues, and other synthetic opioids. The office will also redouble efforts to disrupt the distribution of these drugs by targeting the transshipment corridors that bisect the district: Interstate Highways 5 and 80. Through these efforts, law enforcement can stop further distribution of the drugs to the Midwest and East Coast, while also working to identify and prosecute large-scale suppliers. Already this year, 13.9 kilos (over 30 pounds) of fentanyl have been seized in the Eastern District of California.
According to the California Department of Public Health, Modoc County had an opioid overdose death rate of 23.78 out of 100,000 residents in 2017, which is about five times the overall rate for California, which is 4.49 opioid deaths per 100,000 residents. Yuba and Shasta County’s opioid overdose death rate is almost three times the state’s rate.
The other nine districts participating in Operation S.O.S. are:
Northern District of Ohio
Southern District of Ohio
Eastern District of Tennessee
Eastern District of Kentucky
Southern District of West Virginia
Northern District of West Virginia
District of Maine
Western District of Pennsylvania
District of New Hampshire
Omaha Nation Woman Sentenced for AssaultRead the Press Release
United States Attorney Joe Kelly announced today that U.S. Magistrate Judge Susan M. Bazis sentenced Curtina Morris, 48, of Macy, Nebraska, on July 11, 2018, to 12 months’ imprisonment after her conviction of misdemeanor assault.
In March of 2017, Curtina Morris stabbed her daughter in the abdomen after an argument at her home in Macy within the Omaha Nation Indian Reservation. Her daughter was not seriously injured.
This case was investigated by the Federal Bureau of Investigation.
Oklahoma Orthopedic Company and Physicians Agree to Pay $670,000 to Settle Allegations of False Claims to Medicare, Medicaid, and TricareRead the Press Release
OKLAHOMA CITY – SOUTHWEST ORTHOPAEDIC SPECIALISTS, PLLC; ANTHONY CRUSE, D.O.; R.J. LANGERMAN, JR., D.O.; DANIEL J. JONES, M.D.; MEHDI ADHAM, M.D.; DEREK WEST, D.O.; BRIAN LEVINGS, D.O.; SHANE HUME, D.O.; BRAD REDDICK, D.O.; and KRISTOPHER AVANT, D.O., have agreed to pay $670,000 to settle civil claims stemming from allegations that they submitted false claims to Medicare, Medicaid, and Tricare, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma, and Mike Hunter, Oklahoma Attorney General.
Defendants Cruse, Langerman, Jones, Adham, West, Levings, Hume, Reddick, and Avant are physicians who practiced medicine at and held ownership in Southwest Orthopaedic. The United States alleges that from January 1, 2012, through September 22, 2016, Southwest Orthopaedic and the individual defendants caused false claims to be submitted to Medicare, Medicaid, and Tricare for unnecessary medical procedures involving ultrasonic guidance for needle placement imaging supervision and interpretation. The United States also alleges that from January 1, 2013, through December 31, 2015, Southwest Orthopaedic and Defendant Levings caused false claims to be submitted to Medicare, Medicaid, and Tricare for a surgery assistant who did not perform the services billed.
In order to resolve these allegations, Southwest Orthopaedic and the individual defendants have agreed to pay $670,000. Oklahoma will receive a portion of this total because of alleged false claims submitted to Medicaid.
This settlement resolves two of the allegations filed in a lawsuit by a whistleblower who formerly worked for Southwest Orthopaedic. The lawsuit was filed in federal district court in Oklahoma City under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the government to intervene in the lawsuit. In this case, the government intervened in the allegations resolved by this settlement. Other claims continue to be litigated.
In reaching this settlement, Southwest Orthopaedic and the individual defendants did not admit liability, and the United States and Oklahoma did not concede that their claims lack merit. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty of litigating the case.
This case was investigated by the Federal Bureau of Investigation, the Medicaid Fraud Control Unit of the Oklahoma Attorney General’s Office, and the Defense Criminal Investigative Service. It was prosecuted by Assistant U.S. Attorneys Ronald R. Gallegos and Scott Maule and Assistant Attorney General Christopher P. Robinson.
New Orleans Women Sentenced to Drug OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that United States District Judge Carl J. Barbier sentenced ASHLI MARTIN, age 34, and ANGELMICA AUGUSTINE, age 28, both of New Orleans, to terms of three years’ probation and time served, respectively, after they pled guilty to drug charges. MARTIN pled guilty to one count of possession with intent to distribute a quantity of heroin and cocaine base (“crack”) and AUGUSTINE pled guilty to one count of possession with intent to distribute heroin.
According to court documents, In March of 2017, members of the NOPD/HIDTA Task Force received information from a source of information that three individuals, including Chris Wells, MARTIN’S boyfriend, and Jason Craft, AUGUSTINE’S boyfriend, were heroin distributors in the area of Mandeville Street and Derbigny Street in New Orleans.
In April 2017, officers conducting surveillance observed Wells and Craft conduct hand-to-hand narcotics transactions with several individuals. Officers arrested one of the individuals who purchased heroin and seized the purchased heroin. In a post-arrest statement, the individual admitted that he routinely purchased heroin by calling one telephone that was shared by Wells, Craft, and a third person. According to the individual, any one of the three would answer the phone and sell him an ounce of heroin on a weekly basis.
Officers and DEA Special Agents obtained search warrants for the residence at 406 East Liberaux Street in Chalmette, Louisiana, shared by Wells and MARTIN and the residence at 14070 Wales Street in New Orleans, shared by Craft and AUGUSTINE. During the search of the Chalmette residence, officers and agents seized 70 grams of heroin, 38 grams of crack, and a Smith & Wesson 9 mm semi-automatic pistol. During the search of the Wales Street residence, officers and agents seized 4.9 grams of heroin and several firearms, including two semi-automatic rifles, a semi-automatic pistol, and a shotgun.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the New Orleans Police Department, and the St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney André Jones was in charge of the prosecution.
New Orleans Man Charged with Violating Federal Gun LawRead the Press Release
U.S. Attorney Duane A. Evans announced that ROMALIS WILLIAMS, age 25, of Orleans Parish, was charged in a one-count Indictment with possession of a firearm by a convicted felon.
ROMALIS WILLIAMS was arrested by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives and Louisiana State Police. Following a brief foot pursuit, a Louisiana State Police trooper arrested ROMALIS WILLIAMS. The trooper located a Hi-Point model JCP, .40 S&W caliber semi-automatic pistol in ROMALIS WILLIAMS waistband. ROMALIS WILLIAMS is a convicted felon.
If convicted of the gun violation, ROMALIS WILLIAMS faces a maximum term of imprisonment of 10 years, a fine of up to $250,000.00, a period of up to 3 years supervised release, and a mandatory special assessment of $100.00.
U. S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Louisiana State Police in investigating this matter. Assistant United States Attorney Brittany Reed is in charge of the prosecution.
Mexican National Sentenced to Prison for Impersonating American Citizen and Stealing Government Benefits for DecadesRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924 and Assistant U.S. Attorney Anne Perry (619) 546-7964
NEWS RELEASE SUMMARY – July 13, 2018
SAN DIEGO – Andres Avelino Anduaga was sentenced today to 37 months in federal prison for stealing over $350,000 in government benefits from federal, state and local agencies while impersonating an American citizen for over 30 years. Anduaga was also ordered to repay $360,908.85 in restitution to the Social Security Administration, the California Department of Health Care Services and the County of San Diego.
In 1980, Anduaga used a birth certificate belonging to a United States citizen to obtain a California Driver’s License and a Social Security card. Already a convicted felon, Anduaga used his new identity to commit a variety of crimes over the next 22 years.
As he admitted in his plea agreement, Anduaga used that stolen identity to apply for disability benefits from the Social Security Administration in 1989. Through 2016, he received almost $250,000 in Social Security benefits that he was not entitled to receive. As a direct result, Anduaga also received Medi-Cal health benefits that he should not have been eligible to receive, and caused a loss of over $100,000 to the State of California. Even after his Social Security was terminated in 2016, Anduaga signed up for CalFresh/Supplemental Nutrition (SNAP) benefits and continued to receive those benefits right up until his arrest in November 2017.
In addition to his Theft of Public Property, U.S. District Judge John A. Houston also sentenced Anduaga for being a Removed Alien Found in the United States. Anduaga admitted that, despite twice being deported as “Jose Reyes” in 1994 and 2000, he was able to return and travel freely between the United States and Mexico using a United States passport that he obtained using the same stolen identity he used to defraud public assistance programs.
“The theft of Social Security benefits is a direct attack on the most vulnerable and needy members of our community,” said U.S. Attorney Adam L. Braverman. “Every dollar stolen through this kind of fraud reduces the funds available to our retirees and other worthy beneficiaries.”
“The SSA-OIG is steadfast in its determination to combat Social Security fraud, and relies heavily on the cooperation of both the Department of Justice and the Social Security Administration to meet this goal. Preserving the integrity of SSA’s programs, through criminal prosecution when necessary, is crucial to the future of SSA’s beneficiaries and America’s taxpayers. I’m pleased to see charges brought in this case and grateful that the DOJ shares our determination to ensure the integrity of SSA’s programs,” said Robb Stickley, Special Agent in Charge of the Inspector General’s Office of Investigations in San Francisco.
“It is this kind of malicious theft of identity and people’s hard-earned benefits which highlights the need for vigilance and thoroughness in all encounters which Border Patrol Agents undertake to thwart this kind of illegal activity,” said Chief Patrol Agent Rodney Scott. “This successful collaboration between the Social Security Administration, the U.S. Border Patrol and the Department of Justice highlights the need for, and importance of, cooperation among law enforcement partners.”
DEFENDANT Case Number 17-cr-4461-JAH
Andres Avelino Anduaga Tijuana, Mexico
SUMMARY OF CHARGES
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalty: 10 years’ imprisonment, $721,817.70 fine, restitution
Removed Alien Found in United States – Title 8, U.S.C. Section 1326(a)
Maximum penalty: 2 years’ imprisonment, $250,000 fine
AGENCIES
Social Security Administration’s Office of the Inspector General
United States Border Patrol
United States Customs and Border Protection
California Department of Health Care Services
California Department of Motor Vehicles Investigations Division
Bureau of Public Assistance Investigations, County of San Diego
Members of Fentanyl Trafficking Conspiracy Charged with Drug Distribution Resulting in Death, Money Laundering, and Firearms OffensesRead the Press Release
Concord – United States Attorney Scott W. Murray and Brian D. Boyle, the Special Agent in Charge of the Drug Enforcement Administration (DEA), New England Field Division, announced that additional charges have been brought against members of a drug trafficking conspiracy.
On April 25, 2018, U.S. Attorney Murray announced that 32 individuals were charged with participating in a fentanyl trafficking conspiracy. On Wednesday, a superseding indictment charged Sergio Martinez, 28, of Lawrence, Massachusetts, with aiding and abetting a distribution of fentanyl that resulted in death. The indictment also charged four individuals, Sergio Martinez, Joshua Smith, 29, of Plaistow, New Hampshire, Jesus Rivera, 20, of Lawrence, Massachusetts, and Julio Saldana, 18, of Lawrence, Massachusetts, with possessing firearms in furtherance of a drug trafficking crime. Finally, it charges three individuals, Sergio Martinez, Raulin Martinez, 36, of Lawrence, Massachusetts, and Luz Perez-Demartinez, 25, of Lawrence, Massachusetts, with money laundering.
Two additional individuals, Luz DeJesus, 33, and Henry Marte, 21, both of Lawrence, Massachusetts, were charged with participating in a conspiracy to distribute and possess with intent to distribute fentanyl.
If convicted, each defendant charged in the fentanyl distribution conspiracy faces a mandatory minimum of ten years in prison and a maximum sentence of life, as well as a fine of up to $10 million. If convicted of distribution of fentanyl resulting in death, Sergio Martinez faces a mandatory minimum of twenty years in prison and a maximum sentence of life, as well as a fine of up to $10 million.
The charges were the culmination of a year-long investigation by the DEA in coordination with federal, state, and local authorities in New Hampshire, Massachusetts, and Maine. In addition to the 34 defendants charged in this indictment, thirteen individuals were charged in related indictments with conspiracy to distribute, and possess with intent to distribute, fentanyl.
The investigation, which culminated in the execution of various search warrants on April 9, 2018, led to the seizure of over 30 kilograms of suspected fentanyl, two firearms, and over $500,000 in cash. In court documents, the government has alleged that the investigation targeted a drug trafficking organization led by the Martinez brothers, Sergio and Raulin. The conspiracy was extensive and organized. The Martinez brothers allegedly used a vast network of dispatchers and distributors to serve customers large and small with knowledge that a substantial amount of drugs were going to New Hampshire. They allegedly maintained a residence in Lawrence, Massachusetts, staffed by dispatchers who took drug orders over various “customer phones.” Dispatchers allegedly then communicated with distributors located throughout the Merrimack Valley to arrange for customers to meet them.
The indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
“New Hampshire knows all too well about the deadly nature of fentanyl,” said U.S. Attorney Murray. “We are fully committed to ending the opioid epidemic and will continue to work closely with our law enforcement partners to identify and prosecute those who are responsible for distributing fentanyl and other dangerous drugs.”
“DEA is committed to investigating and dismantling Drug Trafficking Organizations like this one who are responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire, said DEA Special Agent in Charge Brian D. Boyle. “DEA’s top priority is combatting the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes this poison.”
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The cases are being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe, and Debra M. Walsh.
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Maryland Man Sentenced to 64 Months in Prison for Sexually Assaulting Niece in 2004Read the Press Release
WASHINGTON – A 58-year-old man, from Clinton, Md., was sentenced today to 64 months in prison for sexually abusing his niece in 2004, U.S. Attorney Jessie K. Liu announced.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in May 2018, in the Superior Court of the District of Columbia, to a charge of attempted first-degree child sexual abuse. He was sentenced today by the Honorable Craig Iscoe. Upon completion of his prison term, the man will be placed on three years of supervised release. He also will be required to register as a sex offender for the remainder of his life.
According to the government’s evidence, the defendant was visiting the girl’s home in Northwest Washington to watch a football game while her mother was at church services on the date of the assault. He asked the girl to go into her mother’s bedroom and then performed oral sex on her. At the time, the girl was 10 years old.
The victim reported the abuse in February 2018, and an investigation led to the man’s arrest. He has been in custody since April 2018.
In announcing the sentence, U.S. Attorney Liu commended those who investigated the case from the Metropolitan Police Department’s Youth and Family Services Division (MPD). She also commended those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Tracey Hawkins and Lezlie Richardson, Paralegal Specialist T.J. McPhail, and Assistant U.S. Attorney Stuart D. Allen, who investigated and prosecuted the case.
Manhattan U.S. Attorney Announces Extradition of Irish Man Who Helped Run the “Silk Road” WebsiteRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that GARY DAVIS, a/k/a “Libertas,” was extradited from the Republic of Ireland to the United States. DAVIS was arrested in January 2014 for charges arising out of his role as a member of the administrative staff of “Silk Road.” During its operation from 2011 until 2013, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute illegal drugs and other illicit goods and services to more than 100,000 buyers, and to launder hundreds of millions of dollars derived from those unlawful transactions. DAVIS is expected be presented this afternoon in Manhattan federal court, before U.S. Magistrate Judge Sarah Netburn. DAVIS’s case is assigned to U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Gary Davis allegedly served as an administrator who helped run the Silk Road, a secret online marketplace for illegal drugs, hacking services, and an assortment of other criminal activities. Thanks to our partner agencies here and abroad, Davis now faces justice in an American court.”
According to the allegations in the Superseding Indictment[1], court filings, and evidence presented during the 2015 trial of Ross Ulbricht, Silk Road’s founder:
From January 2011 up to October 2, 2013, the “Silk Road” website hosted a sprawling black-market bazaar on the Internet, where illegal drugs and other illicit goods and services were regularly bought and sold by the site’s users. During its more than two-and-a-half years in operation, Silk Road was used by several thousand drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to well over 100,000 buyers, and to launder hundreds of millions of dollars derived from these unlawful transactions.
The owner and operator of Silk Road, Ross William Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” a/k/a “Silk Road,” ran the website with the assistance of a small support staff, including both site administrators and forum moderators. The site administrators were responsible for, among other things, monitoring user activity on Silk Road for problems, responding to customer service inquiries, and resolving disputes between buyers and vendors. The forum moderators were responsible for, among other things, monitoring user activity on discussion forums associated with the site, providing guidance to forum users concerning how to conduct business on Silk Road, and reporting any significant problems discussed on the forums to the site administrators and to Ulbricht.
From June 2013 up to October 2, 2013, GARY DAVIS, a/k/a “Libertas,” the defendant, worked as a site administrator on Silk Road. In that role, DAVIS’s responsibilities included (1) responding to customer support requests from Silk Road users who needed assistance with their buyer or seller accounts on the marketplace; (2) serving as an arbitrator by resolving disputes that arose between drug dealers and buyers on the site; and (3) enforcing the rules for doing business on Silk Road, which had been set by Ulbricht. For instance, there was a rule against “out of escrow” sales – i.e., sellers and buyers arranging payments off the site to avoid paying Silk Road commissions. When violations of this rule were discovered, DAVIS could terminate the vendor’s account or otherwise restrict the vendor’s privileges, and he typically reported such incidents to Ulbricht. DAVIS was paid a weekly salary for his work as a site administrator.
* * *
The charges in the Superseding Indictment against DAVIS, 30, of Wicklow, Ireland, include: one count of conspiracy to distribute narcotics, which carries a maximum sentence of life in prison and a mandatory minimum of 10 years in prison; one count of conspiracy to commit computer intrusion, which carries a maximum sentence of five years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
* * *
Mr. Berman praised the outstanding joint efforts of the Federal Bureau of Investigation and its New York Special Operations and Cyber Division, Immigration and Customs Enforcement’s Homeland Security Investigations - Chicago-O’Hare, the Drug Enforcement Administration’s New York Field Division, and the Internal Revenue Service-Criminal Investigation’s New York Field Office. Mr. Berman also thanked the Irish Republic’s Computer Crime Investigation Unit of the An Garda Siochana for its assistance and support. Mr. Berman also thanked the U.S. Department of Justice’s Office of International Affairs for their support and assistance.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Michael D. Neff, Eun Young Choi, and Timothy T. Howard and are in charge of the prosecution.
The charges contained in the Superseding 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 Superseding Indictment, and the descriptions thereof, constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced for Unlawful Possession of a Firearm by a Felon and Meth UserRead the Press Release
A felon and unlawful user of methamphetamine who possessed a stolen firearm was sentenced on July 12, 2018, to more than 5 years in federal prison.
Gibbons, 30, from Sanborn, Iowa, received the prison term after an April 17, 2018, guilty plea to possession of a firearm by a felon and unlawful user of a controlled substance. Gibbons had previously been convicted of two felonies out of O’Brien County, Iowa: (2015) possession of methamphetamine, third or subsequent offense, and (2009) deliver or conspire to deliver marijuana.
At a prior proceeding, the government presented evidence that on March 9, 2017, officers observed Gibbons, who was on state parole, driving a vehicle in which his sole passenger was a man suspected of burglarizing a residence and stealing seven firearms. Hours later, officers approached Gibbons and questioned him regarding the suspected burglar. During the questioning, officers observed Gibbons in possession of drug paraphernalia and subsequently informed him that he would be taken into custody. Prior to leaving the residence, Gibbons, who was wearing only a t-shirt and jeans, declined to take his jackets in spite of the cold weather. However, without warning, Gibbons bolted for the jackets, wedged himself in between the jackets and the officer standing nearby, and began fumbling through them. It was during this time that the officer observed what later turned out to be a.45 caliber handgun. The handgun was one of the seven stolen firearms.
Gibbons was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Gibbons was sentenced to 63 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Gibbons is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Ajay J. Alexander and was investigated by the Osceola County Sheriff’s Office, Iowa Division of Narcotics Enforcement, Lyon County Sheriff’s Office, O’Brien County Sheriff’s Office, Spencer Police Department, Iowa Division of Criminal Investigations, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-4042-LTS.
Follow us on Twitter @USAO_NDIA.
Man Sentenced for Threatening Federal JudgeRead the Press Release
HOUSTON – A 45-year-old man has received additional prison time for threatening to kill a Texas federal judge, announced U.S. Attorney Ryan K. Patrick. Charles M. Gilmore Jr., a former resident of Missouri, pleaded guilty Feb. 20, 2018.
Today, Chief U.S. District Judge Lee H. Rosenthal handed Gilmore a 120-month sentence. The sentence will begin following completion of a seven-year-term he must serve from Missouri state court and another 120 months in Northern District of Texas federal court. Following those sentences and the new 10-year-term received today, Gilmore will also serve three years of supervised release.
As part of his plea, Gilmore admitted that on or about Jan. 25, 2017, he knowingly mailed a communication threatening to kill a federal judge in the Northern District of Texas. He mailed the letter to the Federal Detention Center in Houston with a return address implicating Gilmore who was incarcerated at the time.
In the letter, Gilmore said he was going to kill the federal judge, promising to “make the streets run red in Texas.” He also included a white powdery substance, but it tested negative for any bioterrorism agents.
During an interview with law enforcement, Gilmore admitted to mailing the letter and reiterated his intent to kill the federal judge.
He has been and will remain in custody.
The FBI conducted the investigation. Assistant U.S. Attorney Ted Imperato is prosecuting the case.
Man Pleads Guilty to Attempted Murder of U.S. Consulate OfficialRead the Press Release
ALEXANDRIA, Va. – A California man pleaded guilty today to shooting a U.S. diplomat stationed at the U.S. Consulate in Guadalajara, Mexico.
“The Vice Consul was targeted and shot because he represented the United States,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “No one should doubt the resolve of law enforcement to steadfastly investigate and apprehend those who attack us. I wish to express our sincere thanks to the many United States and Mexican law enforcement agencies involved in the apprehension and return of this defendant to the United States to face justice.”
According to admissions made in connection with his plea, on Jan. 6, 2017, Zia Zafar, 33, of Chino Hills, armed himself with a firearm, donned a wig and sunglasses to disguise his appearance, and waited in a parking garage for a Vice Consul, who worked at the U.S Consulate in Guadalajara. Although Zafar initially was following the Vice Consul as he walked towards his vehicle, Zafar noticed a security guard nearby, and instead moved to the vehicle exit ramp, where he waited for the Vice Consul to exit. As the Vice Consul approached the exit in his car, Zafar fired a single shot into the vehicle, striking the Vice Consul in his chest and leaving him in serious condition. Zafar admitted that he targeted the Vice Consul because he knew from earlier surveillance that the victim worked at the U.S. Consulate.
“Zia Zafar surveilled and targeted a U.S. official serving in Mexico, lying in wait before shooting him in the chest in a heinous act of premeditated violence,” said Acting Assistant Attorney General Cronan. “Today’s guilty plea sends a clear message that the Department of Justice will aggressively prosecute those who seek to harm U.S. officials serving overseas. The Department of Justice will continue work with our domestic and international partners to ensure that anyone who targets U.S. officials abroad will be brought to justice.”
“Crime doesn’t stop at international borders, as such, the FBI works closely with international partners and security services in order to conduct complex investigations and acquire evidence from abroad for criminal prosecutions in the United States,” said FBI Special Agent in Charge Lasky of the Miami Field Office. “I want to thank the Mexican government for their full support and cooperation throughout this investigation.”
“This guilty plea makes a strong statement to those who would attempt to commit such a heinous crime. The Diplomatic Security Service is dedicated to ensuring those who commit these crimes are brought to justice,” said DSS Director Schurman. “Our global presence allows DSS to work with both U.S. and foreign law enforcement to stop criminals who would attempt to murder a U.S. citizen.”
Zafar pleaded guilty to one count of attempted murder of an internationally protected person and one count of discharging a firearm during a crime of violence. He faces a maximum penalty of 20 years for attempted murder, and a mandatory minimum of 10 years and a maximum of life for discharging a firearm during a crime of violence, which will run consecutive to the attempted murder sentence. Zafar is scheduled for sentencing on November 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Robert F. Lasky, Special Agent in Charge of the FBI’s Miami Field Office, and Christian J. Schurman, Director of the U.S. Department of State’s Diplomatic Security Service (DSS), made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Ronald L. Walutes Jr. and Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
FBI and DSS investigated the case in close cooperation with Mexican authorities and with valuable assistance from the Justice Department’s Office of International Affairs, the Drug Enforcement Administration, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The Department of Justice gratefully acknowledges the government of Mexico, to include the Secretaría de Relaciones Exteriores, Procuraduria General de la Republica, Fiscalia del Estado de Jalisco and Instituto Nacional de Migracion for their extraordinary efforts, support and professionalism in responding to this incident.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-55.
Long-Time Leader of Violent Grape Street Crips Street Gang and Two Members Convicted of Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – Three members of the New Jersey set of the violent street gang “Grape Street Crips” – including its long-time leader – were convicted by a federal jury today of racketeering conspiracy and a host of murders, shootings, and drug trafficking crimes, U.S. Attorney Craig Carpenito, FBI Special Agent in Charge Gregory W. Ehrie and DEA Special Agent in Charge Valerie A. Nickerson announced.
The leader of the enterprise, Corey Hamlet, a/k/a “C-Blaze,” a/k/a “Blaze,” a/k/a “Blizzie,” a/k/a “Castor Troy,” 41, of Belleville, New Jersey; and associates Tony Phillips, a/k/a “Blue,” 27, of Newark; and Ahmad Manley, a/k/a “Fresh,” a/k/a “Moddi G,” 32, of Summit, New Jersey, were convicted following a two-month trial before U.S. District Judge Madeline Cox Arleo in Newark federal court. The jury deliberated for four days before returning the verdicts. (A chart outlining the counts per defendant and maximum potential penalties is attached below.)
“The jury’s verdicts are the culmination of this Office’s investigation and prosecution of more than 60 members of the Grape Street Crips, a violent criminal organization that committed murders and other acts of violence in order to maintain control of a large portion of the illegal drug trade in Newark,” U.S. Attorney Carpenito said. “Today’s convictions of Corey Hamlet, the leader of that organization, as well as two of his senior gang members, represent our steadfast, ongoing commitment to ensuring the safety of New Jersey’s citizens and the communities in which they live. We will not back down from our duty to protect the public through the investigation and prosecution of violent and dangerous criminals like Hamlet and his gang.”
“The FBI is working jointly with county and local authorities, to include the local community, to combat the violent epidemic of gangs in our neighborhoods,” FBI Newark Special Agent in Charge Ehrie said. “In this collaborative effort in delivering the greatest impact toward restoring the community and bringing those bad seeds to justice, the Grape Street Crips, one of the most violent Newark gangs, was dismantled in this joint investigation. The gang was responsible for four murders, an attempted murder, racketeering conspiracy and drug trafficking. With the conviction of Corey Hamlet, the gang’s leader, and two of his associates, the Grape Street Crips gang will have been dealt a serious blow.”
“The members of the Grape Street Crips have wreaked havoc in the city of Newark for years by committing violent murders, shootings and drug trafficking,” DEA Special Agent in Charge Nickerson said. “Now the residents of Newark can rest easier knowing that these criminals have been convicted of these serious charges. The collaboration between the DEA and our law enforcement partners exemplified outstanding investigative efforts resulting in the successful conviction of some of Newark’s most violent criminals. These efforts will have a positive impact on our communities and the residents of this great city.”
The defendants were charged in November 2016 in a 22-count indictment charging 14 members and associates with, among other things, six murders, 12 attempted murders, and numerous other violent and drug trafficking crimes committed as part of the racketeering conspiracy. Twelve of the fourteen defendants charged in the indictment have now been convicted. The two remaining defendants, Hanee Cureton and Khalil Stafford, are pending trial.
An additional 68 members and associates of the Grape Street Crips who were arrested in a coordinated takedown in May 2015 were separately charged with drug-trafficking, physical assaults, and witness intimidation. Sixty-six of those individuals also have been convicted, and charges remain pending against two.
According to the documents filed in this case and other cases and the evidence presented at trial:
The Grape Street Crips engaged for years in numerous acts of murder, robbery, extortion, and drug trafficking throughout Newark. As the leader of the New Jersey set of the Grape Street Crips, Hamlet authorized six murders committed by members of the gang.
The trial highlighted numerous violent acts committed by Grape Street Crips members as part of the racketeering conspiracy, some of which targeted members of rival gangs and others that targeted Grape Street Crips members whom Hamlet perceived to be a threat to his position as the leader of the gang:
- June 14, 2010: The murder of Leroy Simmons;
- Dec. 23, 2010: The murder of Rodney Kearney;
- May 3, 2013: The murder of Tariq Johnson;
- Oct. 27, 2013: The attempted murders of Almalik Anderson and Saidah Goines.
- Nov. 12, 2013: The murder of Anwar West; and
- August 3, 2015: The murder of Andre Singh.
The trial revealed that Hamlet ordered many of the murders as revenge against Almalik Anderson, a rival with whom he had a long-running dispute. One of Hamlet’s fellow gang-members attempted to broker a truce with Anderson at the Short Hills Mall. After the meeting at Short Hills, Hamlet used his Instagram account to assert that Anderson had cooperated with law enforcement. On Hamlet’s orders, Phillips, Manley, and other gang-members then hunted Anderson down and sprayed his car with bullets, nearly killing him and passenger Saidah Goines, a relative. Within two weeks, Hamlet successfully ordered two other gang-members to murder Anwar West, the fellow gang-member who had attempted to broker peace between Hamlet and Anderson.
Hamlet was convicted of 10 counts in the indictment, including RICO conspiracy, murder in aid of racketeering, various other violent crimes in aid of racketeering, using firearms during crimes of violence, and conspiracy to distribute 28 grams or more of crack-cocaine. As part of the RICO conspiracy, Hamlet was convicted for his role in the murders of Tariq Johnson and Anwar West. Hamlet faces a mandatory sentence of life in prison.
Phillips was convicted of 10 counts in the indictment, including RICO conspiracy, murder in aid of racketeering, various other violent crimes in aid of racketeering, using firearms during crimes of violence, and conspiracy to distribute one kilogram or more of heroin. Phillips, too, faces a mandatory sentence of life in prison.
Manley was convicted of eight counts in the indictment, including RICO conspiracy. As part of the RICO conspiracy, Manley was convicted for his role in the attempted murders of Almalik Anderson and Saidah Goines. On two counts of conviction, Manley faces a maximum sentence of life in prison, including a mandatory minimum term of 15 years.
The evidence at trial also showed that members of the Grape Street Crips controlled drug-trafficking at a number of Newark public-housing complexes, including Oscar Miles, Riverview Court, Pennington Court, Wynona Lippman Gardens, Kemsco Village, John W. Hyatt housing complex, and the former Baxter Terrace public-housing complex.
Sentencing is scheduled for Oct. 15, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, and special agents of the DEA, under the direction of Special Agent in Charge Nickerson with the investigation. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontura, for their long and close collaboration on the case
The case was tried by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division and Assistant U.S. Attorney Richard J. Ramsay of the Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations against the remaining two defendants are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defendant
Guilty Counts/Max Penalties
Hamlet
Count 1: Racketeering Conspiracy – Life in Prison;
Count 2: Murder in Aid of Racketeering (Tariq Johnson) – Mandatory life sentence
Count 3: Use of Firearm in Violent Federal Crime (Tariq Johnson) – Life in prison; 10-year mandatory minimum
Count 4: Conspiracy to Murder in Aid of Racketeering (Almalik Anderson / Saidah Goines) – 10 years
Count 5: Attempted Murder in Aid of Racketeering (Almalik Anderson) – 10 years
Count 6: Attempted Murder in Aid of Racketeering (Saidah Goines) - 10 years
Count 7: Conspiracy to Assault with a Dangerous Weapon (Almalik Anderson / Saidah Goines) – 3 years
Count 8: Assault with a Dangerous Weapon (Almalik Anderson) – 20 years
Count 9: Assault with a Dangerous Weapon (Saidah Goines) – 20 years
Count 10: Use of Firearm in Violent Federal Crime (Almalik Anderson / Saidah Goines) – life in prison; 10-year mandatory minimum
Phillips
Count 1: Racketeering Conspiracy – Life in Prison;
Count 2: Murder in Aid of Racketeering (Tariq Johnson) – Mandatory life sentence
Count 3: Use of Firearm in Violent Federal Crime (Tariq Johnson) – Life in prison; 10-year mandatory minimum
Count 4: Conspiracy to Murder in Aid of Racketeering (Almalik Anderson / Saidah Goines) – 10 years
Count 5: Attempted Murder in Aid of Racketeering (Almalik Anderson) – 10 years
Count 6: Attempted Murder in Aid of Racketeering (Saidah Goines) - 10 years
Count 7: Conspiracy to Assault with a Dangerous Weapon (Almalik Anderson / Saidah Goines) – 3 years
Count 8: Assault with a Dangerous Weapon (Almalik Anderson) – 20 years
Count 9: Assault with a Dangerous Weapon (Saidah Goines) – 20 years
Count 10: Use of Firearm in Violent Federal Crime (Almalik Anderson / Saidah Goines) – life in prison; 10-year mandatory minimum
Manley
Count 1: Racketeering Conspiracy – Life in Prison;
Count 4: Conspiracy to Murder in Aid of Racketeering (Almalik Anderson / Saidah Goines) – 10 years
Count 5: Attempted Murder in Aid of Racketeering (Almalik Anderson) – 10 years
Count 6: Attempted Murder in Aid of Racketeering (Saidah Goines) – 10 years
Count 7: Conspiracy to Assault with a Dangerous Weapon (Almalik Anderson / Saidah Goines) – 3 years
Count 8: Assault with a Dangerous Weapon (Almalik Anderson) – 20 years
Count 9: Assault with a Dangerous Weapon (Saidah Goines) – 20 years
Count 10: Use of Firearm in Violent Federal Crime (Almalik Anderson / Saidah Goines) – life in prison; 10-year mandatory minimum
Long Island Man Pleads Guilty to Conspiring to Distribute Crack Cocaine and Illegally Possessing 10 FirearmsRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Ronald Bishop pleaded guilty to conspiring to distribute crack cocaine on Long Island between 2014 and 2016 and illegally possessing 10 firearms in furtherance of his narcotics trafficking operation. The proceeding took place before United States Magistrate Judge Gary R. Brown.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division, and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty plea.
According to court filings and facts presented during the plea proceeding, in January 2016 the NCPD Gang Investigation Squad executed a search warrant at a residence Bishop operated as a stash house and recovered 10 firearms, including four pistols, three revolvers, a shotgun, two assault rifles, high capacity magazines, hundreds of rounds of ammunition, over seven grams of crack cocaine, assorted pills, drug paraphernalia and cash.
“Ronald Bishop’s stash house contained an arsenal of firearms as well as illegal drugs, posing a great danger to the community,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will continue to work tirelessly to bring to justice armed drug dealers who put our communities at risk.” Mr. Donoghue expressed his thanks to the NCPD for their efforts in the investigation and the ATF for their assistance in the prosecution of the case.
“Ronald Bishop conspired to deal in deadly illegal narcotics and possessed illegal firearms,” stated ATF Special Agent-in-Charge Benedict. “ATF and its law enforcement partners stand united in the fight to keep communities safe from those who seek to do harm to their fellow residents. I would like to thank the Special Agents and Task Force Officers of the ATF Long Island Field Office and the NCPD for their collaborative efforts on this case. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”
When sentenced, Bishop faces up to life in prison with a mandatory minimum of 10 years in prison, as well as forfeiture and a fine of up to $5,000,000.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Michael R. Maffei is in charge of the prosecution.
The Defendant:
RONALD BISHOP
Age: 36
Hempstead, New YorkE.D.N.Y. Docket No. 16-CR-494 (SJF)
Leader of Large-Scale Drug Distribution and Money Laundering Conspiracy Sentenced to over 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Dustin Wilson, 41, of Clear Lake, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 10 years and 10 months in prison for distribution of cocaine and money laundering, U.S. Attorney McGregor W. Scott announced.
According to court documents, Wilson conspired with co-defendants Michele Troung and Brandon Roberts to distribute marijuana and cocaine from Sacramento to the Southeastern United States. These defendants also conspired to conceal the proceeds of their drug trafficking through various monetary transactions, including, at Wilson’s direction, using associates to send drug proceeds through MoneyGram or depositing it into Troung’s bank account.
This case was the product of an investigation by the Drug Enforcement Administration and the IRS Criminal Investigation. Assistant U.S. Attorney Todd A. Pickles prosecuted the case.
Troung was sentenced to six years and six months in prison, and Roberts was sentenced to three years and one month in prison.
KC Man Sentenced to 11 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for sharing child pornography over the Internet.
Michael Vandergriff, 56, was sentenced by U.S. District Judge Brian C. Wimes to 11 years in federal prison without parole. The court also sentenced Vandergriff to supervised release for the rest of his life following incarceration.
On Feb. 6, 2018, Vandergriff pleaded guilty to attempting to distribute child pornography. Vandergriff admitted that he shared videos and images of child pornography over the Internet via peer-to-peer file-sharing networks.
On April 2, 2015, law enforcement officers executed a search warrant at Vandergriff’s residence and seized numerous electronic items. According to court documents, a forensic examination established that Vandergriff had no less than 6,500 video and image files depicting child pornography. The seized media also included obscene images depicting minors in bondage and bestiality. Vandergriff appeared to utilize a hidden camera to record images of minors.
According to court documents, law enforcement officers downloaded a total of at least 1,821 video and image files of child pornography, some of which was particularly graphic, on seven separate occasions from Vandergriff’s computer during their investigation from Sept. 17, 2014, to Feb. 26, 2015.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Husband, Wife Plead Guilty to Failure to Pay $328,000 in Business TaxesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., couple pleaded guilty in federal court today to failing to pay more than $328,000 in payroll and other taxes for their construction business.
William Mack Gilreath, also known as “Billy,” 38, and his wife, Malaika Samantha Gilreath, 42, each waived their right to a grand jury and pleaded guilty in separate appearances before U.S. District Judge Beth Phillips to a federal information that charges them with failure to pay employment tax.
The Gilreaths are co-owners of M.S. Consulting, L.L.C., a construction business in Kansas City, Mo.
Despite notification by their tax preparer of their tax responsibilities, and nine notices from the IRS, the Gilreaths willfully failed to pay a total of $328,351 in employment and other taxes that were due. In today’s plea agreement, Billy Gilreath acknowledged that he was more involved in the day-to-day operations of the business than his wife. Both Billy and Malaika Gilreath admitted they each were aware and responsible for collecting, accounting for, and paying over trust fund taxes.
By pleading guilty today, the Gilreaths admitted that they deducted and collected $209,597 in federal income taxes and FICA taxes (Social Security and Medicare) from their employees in 2014, 2015 and 2016. However, they failed to pay over those taxes to the IRS. During this time, the number of employees ranged from 16 to 37 employees.
In addition to the employees’ share of taxes collected, the Gilreaths also admitted that they failed to pay over the employer portion of FICA taxes, which totaled $90,173, and the Missouri Division of Employment Security Outstanding State Unemployment Tax of $28,581.
Under the terms of today’s plea agreements, the Gilreaths are jointly and severally liable to pay $328,351 in restitution to the IRS and the state of Missouri.
Under federal statutes, the Gilreaths are each subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Gregg Coonrod. It was investigated by IRS-Criminal Investigation.
Jury Finds Wichita Man Guilty on Meth Trafficking ChargesRead the Press Release
WICHITA, KAN. – A federal jury on Thursday convicted a Wichita man on charges of distributing methamphetamine, U.S. Attorney Stephen McAllister said.
Ashton B. Malone, 34, Wichita, Kan., was convicted on two counts of distributing methamphetamine. During trial, the prosecutor presented evidence that in May and June 2017 Malone twice sold more than 41 grams of methamphetamine to an undercover investigator.
The case was part of a yearlong, multi-county investigation by the Kansas Bureau of Investigation into methamphetamine trafficking in south central Kansas.
Malone is set for sentencing Sept. 24. He faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $250,000 on each count. McAllister commended the Park City Police Department, the KBI and Assistant U.S. Attorney Mona Furst for their work on the case.
Jury Convicts Jamestown Man of Cocaine 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 a federal jury has convicted Andrew Garner, 37, of Jamestown, N.Y., of conspiracy to possess with the intent to distribute cocaine. The charge carries a maximum penalty of 30 years in prison.
Assistant U.S. Attorneys Joel L. Violanti and Emmanuel O. Ulubiyo, who handled the prosecution of the case, stated that between April and September 2016, the defendant conspired with others to distribute cocaine in the Jamestown area.
The verdict is the result of an investigation by the the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division; the Jamestown Police Department, under the direction of Chief Harry Snellings; and the Ellicott Police Department, under the direction of Chief William L. Ohnmeiss Jr.
Sentencing will be scheduled at a later date before U.S. District Judge Lawrence J. Vilardo, who presided over the trial of the case.
Jury Convicts Carrizo Springs Man of Smuggling AliensRead the Press Release
CORPUS CHRISTI, Texas - A federal jury has convicted a 52-year-old resident of Carrizo Springs for attempting to smuggle 30 aliens through the U.S. Border Patrol Checkpoint located near Falfurrias, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for 20 minutes before convicting David Rodriguez Sr. following a two-day trial of conspiring to and transporting illegal aliens.
The illegal aliens were hidden behind a load of produce in the trailer portion of the 18-wheeler Rodriguez was driving. On Dec. 5, 2017, during a routine immigration inspection, a service canine conducted a sniff and alerted to the exterior of the trailer. U.S. Border Patrol agents unlocked the trailer and located 30 aliens hiding behind pallets of limes. The agents noted that the temperature inside the refrigerated trailer was 54 degrees Celsius.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and set sentencing for Oct. 10, 2018. At that time, Rodriguez Sr. faces a maximum of 10 years in federal prison. Upon completion of any prison term imposed, he also faces a three year term of supervised release.
Rodriguez was permitted to remain on bond pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Jeffrey S. Miller prosecuted the case.
Indiana, Pa. Bank Employee Sentenced for Embezzling Funds from Customers’ AccountsRead the Press Release
PITTSBURGH, Pa. - A resident of Indiana, Pennsylvania, has been sentenced in federal court to one day in prison, six months of community confinement and six months of home confinement on her conviction of embezzling from a federally insured bank, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Madeline Isenberg, 37, of Indiana, Pennsylvania.
According to information presented to the court, from in or around February 2012 until in or around August 2015, Isenberg, while employed as an Assistant Manager for First Commonwealth Bank, embezzled approximately $88,000 from customers’ accounts. Upon discovering the theft, the Bank reimbursed the customers.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Isenberg.
Harrisburg Man Convicted of Methamphetamine OffensesRead the Press Release
Dennis D. Jackson, 32, of Harrisburg, Illinois, was found guilty of methamphetamine related offenses on Thursday following a four day jury trial at the federal courthouse in Benton, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Jackson was convicted of three counts of distributing methamphetamine and one count of possessing with intent to distribute methamphetamine. The offenses were committed in March 2017.
The jury was unable to reach a verdict on two counts that charged Jackson with possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.
Jackson has been held without bond since August 2017. Following the jury’s verdict, he was returned to the custody of the United States Marshal to await sentencing, which is currently set for October 24, 2018, at 10:30 a.m., at the United States District Court in Benton.
The investigation leading to the charges and conviction was conducted by the Carmi office of the Southern Illinois Drug Task Force and Illinois State Police. The case was prosecuted by Assistant United States Attorneys James M. Cutchin and Amanda A. Robertson.
Grand Jury Indicts 12 Russian Intelligence Officers for Hacking Offenses Related to the 2016 ElectionRead the Press Release
The Department of Justice today announced that a grand jury in the District of Columbia returned an indictment presented by the Special Counsel’s Office. The indictment charges twelve Russian nationals for committing federal crimes that were intended to interfere with the 2016 U.S. presidential election. All twelve defendants are members of the GRU, a Russian Federation intelligence agency within the Main Intelligence Directorate of the Russian military. These GRU officers, in their official capacities, engaged in a sustained effort to hack into the computer networks of the Democratic Congressional Campaign Committee, the Democratic National Committee, and the presidential campaign of Hillary Clinton, and released that information on the internet under the names "DCLeaks" and "Guccifer 2.0" and through another entity.
“The Internet allows foreign adversaries to attack America in new and unexpected ways,” said Deputy Attorney General Rod J. Rosenstein. “Together with our law enforcement partners, the Department of Justice is resolute in its commitment to locate, identify and seek to bring to justice anyone who interferes with American elections. Free and fair elections are hard-fought and contentious, and there will always be adversaries who work to exacerbate domestic differences and try to confuse, divide, and conquer us. So long as we are united in our commitment to the shared values enshrined in the Constitution, they will not succeed.”
According to the allegations in the indictment, Viktor Borisovich Netyksho, Boris Alekseyevich Antonov, Dmitriy Sergeyevich Badin, Ivan Sergeyevich Yermakov, Aleksey Viktorovich Lukashev, Sergey Aleksandrovich Morgachev, Nikolay Yuryevich Kozachek, Pavel Vyacheslavovich Yershov, Artem Andreyevich Malyshev, Aleksandr Vladimirovich Osadchuk, Aleksey Aleksandrovich Potemkin, and Anatoliy Sergeyevich Kovalev were officials in Unit 26165 and Unit 74455 of the Russian government’s Main Intelligence Directorate.
In 2016, officials in Unit 26165 began spearphishing volunteers and employees of the presidential campaign of Hillary Clinton, including the campaign’s chairman. Through that process, officials in this unit were able to steal the usernames and passwords for numerous individuals and use those credentials to steal email content and hack into other computers. They also were able to hack into the computer networks of the Democratic Congressional Campaign Committee (DCCC) and the Democratic National Committee (DNC) through these spearphishing techniques to steal emails and documents, covertly monitor the computer activity of dozens of employees, and implant hundreds of files of malicious computer code to steal passwords and maintain access to these networks.
The officials in Unit 26165 coordinated with officials in Unit 74455 to plan the release of the stolen documents for the purpose of interfering with the 2016 presidential election. Defendants registered the domain DCLeaks.com and later staged the release of thousands of stolen emails and documents through that website. On the website, defendants claimed to be “American hacktivists” and used Facebook accounts with fictitious names and Twitter accounts to promote the website. After public accusations that the Russian government was behind the hacking of DNC and DCCC computers, defendants created the fictitious persona Guccifer 2.0. On the evening of June 15, 2016 between 4:19PM and 4:56PM, defendants used their Moscow-based server to search for a series of English words and phrases that later appeared in Guccifer 2.0’s first blog post falsely claiming to be a lone Romanian hacker responsible for the hacks in the hopes of undermining the allegations of Russian involvement.
Members of Unit 74455 also conspired to hack into the computers of state boards of elections, secretaries of state, and US companies that supplied software and other technology related to the administration of elections to steal voter data stored on those computers.
To avoid detection, defendants used false identities while using a network of computers located around the world, including the United States, paid for with cryptocurrency through mining bitcoin and other means intended to obscure the origin of the funds. This funding structure supported their efforts to buy key accounts, servers, and domains. For example, the same bitcoin mining operation that funded the registration payment for DCLeaks.com also funded the servers and domains used in the spearphishing campaign.
The indictment includes 11 criminal counts:- Count One alleges a criminal conspiracy to commit an offense against the United States through cyber operations by the GRU that involved the staged release of stolen documents for the purpose of interfering with the 2016 president election;
- Counts Two through Nine charge aggravated identity theft for using identification belonging to eight victims to further their computer fraud scheme;
- Count Ten alleges a conspiracy to launder money in which the defendants laundered the equivalent of more than $95,000 by transferring the money that they used to purchase servers and to fund other costs related to their hacking activities through cryptocurrencies such as bitcoin; and
- Count Eleven charges conspiracy to commit an offense against the United States by attempting to hack into the computers of state boards of elections, secretaries of state, and US companies that supplied software and other technology related to the administration of elections.
There is no allegation in the indictment that any American was a knowing participant in the alleged unlawful activity or knew they were communicating with Russian intelligence officers. There is no allegation in the indictment that the charged conduct altered the vote count or changed the outcome of the 2016 election.
Everyone charged with a crime is presumed innocent unless proven guilty in court. At trial, prosecutors must introduce credible evidence that is sufficient to prove each defendant guilty beyond a reasonable doubt, to the unanimous satisfaction of a jury of twelve citizens.
This case was investigated with the help of the FBI’s cyber teams in Pittsburgh, Philadelphia and San Francisco and the National Security Division. The Special Counsel's investigation is ongoing. There will be no comments from the Special Counsel at this time.Grand Island Man Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on July 13, 2018, Travis Scott Ruhl, 38, of Grand Island, Nebraska, was sentenced by United States District Judge John M. Gerrard to six years and five months (77 months) in prison for distribution of five grams or more of methamphetamine actual. Following the prison term, Ruhl will serve five years on supervised release.
On March 24, 2017, a confidential informant, working with the Central Nebraska Drug & Safe Streets Task Force, purchased approximately 13 grams of a substance from Ruhl for $550 in the garage of Ruhl’s residence in Grand Island, Nebraska. The Nebraska State Patrol Crime Laboratory found the substance contained at least 5.9 grams of actual (pure) methamphetamine.
This case was investigated by the Central Nebraska Drug & Safe Streets Task Force.
Four Indicted for Conspiring to Distribute More Than Two Kilograms of Heroin in Manatee CountyRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Rafael Sanchez (30, Palmetto), Jerome Miller (29, Bradenton), James McClinton (39, Orlando), and Jose Venegas (23, Dade City) with conspiring to distribute more than a kilogram of heroin and possession with the intent to distribute more than a kilogram of heroin. If convicted on all counts, each faces a mandatory minimum penalty of 10 years, and up to life, in federal prison. The indictment also notifies the defendants that the United States intends to forfeit assets and property that are alleged to be traceable to proceeds of the offense.
According to court documents, special agents from the Drug Enforcement Administration executed a search warrant at a house in Dade City, where the defendants were involved in converting pure heroin for street distribution in Manatee County. During the search, agents recovered approximately 1,400 grams of pure heroin and over 900 grams of cutting agents that were to be added to the pure heroin, for a total of more than two kilograms of distributable heroin. Agents also seized approximately two ounces of methamphetamine, crack cocaine, and a handgun.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, in collaboration with the Manatee County Sheriff’s Office, the Pasco Sheriff’s Office, the Polk County Sheriff’s Office, and the Hardee County Sheriff’s Office. It will be prosecuted by Assistant United States Attorneys Dan Baeza and Greg Nolan.
This case is the result of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Fort Walton Man Sentenced to Twenty Years in Federal Prison for Drug and Firearm OffensesRead the Press Release
PENSACOLA, FLORIDA – Gregory S. Rothwell Jr., 31, of Fort Walton Beach, was sentenced to federal prison today after having been found guilty on April 3 of possession with intent to distribute marijuana, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The charges stemmed from an incident that occurred on July 13, 2017, at an apartment complex in Fort Walton Beach. The Okaloosa County Sheriff’s Office found and seized a loaded firearm, marijuana, a large amount of cash in Rothwell’s vehicle, as well as drug paraphernalia and additional cash in Rothwell’s storage unit. The firearm was purchased originally by Rothwell’s girlfriend, Shelley Wimes. Following a two-day jury trial in April 2018, Rothwell was found guilty as charged. Rothwell was sentenced to 240 months in prison and ordered to pay a $10,000 fine. In addition, the firearm and almost $70,000 in cash that was seized was forfeited to the government. Wimes is awaiting sentencing on August 9 at 2:00 p.m. after having pleaded guilty to two counts of perjury for lying to the grand jury and to the court about her having driven Rothwell’s car on the evening of July 13, 2017.
This case resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Okaloosa County Sheriff’s Office, and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) program. Assistant United States Attorney Alicia H. Forbes prosecuted the case.
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.
Former Fedex Employees have been Indicted for Stealing Mail from Religious OrganizationsRead the Press Release
Memphis, TN – Three Memphis women have been indicted with stealing mail intended for religious organizations throughout the United States. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today.
According to the indictments, throughout 2015, Tiara Williams, Crystal Berry and Kimberly Smith worked in the same area in the Memphis FedEx Hub. They targeted mail pieces intended for religious organizations since there was a strong likelihood that they contained U.S. currency. The employees would search through mail, remove some of the contents contained therein and smuggle items off the premises.
U.S. Attorney D. Michael Dunavant said: "This office takes very seriously our duty to protect the sanctity and security of the United States Postal Service and the U.S. Mail. We work very closely with the United States Postal Inspection Service to defend the nation’s mail system from illegal or dangerous use by mail theft, mail fraud and prohibited mailings; and to ensure public trust in the mail. These indictments show our collective commitment to hold accountable any persons who violate that sanctity and victimize innocent citizens for their own selfish gains."
David M. McGinnis, the Inspector In Charge of the Charlotte Division of the United States Postal Inspection Service, stated, "The Postal Inspection Service takes great pride in protecting postal customers from criminal activity related to the U.S. mail. Postal Inspectors will continue to vigorously investigate and seek criminal prosecution of those who prey on postal customers."
The maximum penalty for mail theft is no more than 5 years in federal prison and a $250,000 fine. Judge Thomas L. Parker, Judge John T. Fowlkes Jr. and Judge Sheryl H. Lipman will preside over these cases respectively.
The case was investigated by the United States Postal Inspection Service in conjunction with FedEx security.
Assistant U.S. Attorney Damon Keith Griffin is prosecuting the case on the government’s behalf.
Former Controller of Small Business Pleads Guilty to Stealing over $229,000Read the Press Release
BOSTON – A Boston woman pleaded guilty today in federal court in Boston to bank fraud in connection with the embezzlement of over $229,000 from a small business that employed her.
Kelly A. Lynch, 40, pleaded guilty to one count of bank fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for Oct. 9, 2018. In February 2018, Lynch was arrested and charged by criminal complaint and subsequently released on conditions.
Lynch was hired in April 2017 as the controller of a small company in a Boston suburb. Her duties included managing incoming invoices, paying bills by check and wire transfer, bookkeeping and financial account maintenance. As a result, Lynch had access to the company’s checkbook, bookkeeping/accounting software (QuickBooks), and online bank accounts.
From April 2017 until her termination in January 2018, Lynch stole funds from the business for her personal use. Specifically, Lynch wrote unauthorized checks to herself using the company checkbook. Some of the checks were pre-signed, blank checks that one of the founders had signed with the intention that Lynch would later use them for business purposes. After she used those checks, Lynch began signing the company checks herself, forging the founder’s signature. At times, Lynch also added an entry to the memo line to indicate that the funds were for “Consulting Fees,” but as a salaried employee, Lynch was not entitled to consulting fees. Lynch then endorsed the checks she wrote to herself and – without authorization and for no business purpose – deposited them in her personal bank account. In total, Lynch stole approximately $141,845 from the company’s bank account in this manner.
During approximately the same time period, Lynch repeatedly logged onto the company’s online bank account and directed that payments be made via transfer to her personal credit cards. As a result, Lynch stole another $87,243 from the company’s bank account.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, three years of supervised release, a fine of up to $1 million, restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cybercrimes Unit, is prosecuting the case.
Florida Man Sentenced to 7 Years in Prison for Role in Stock "Pump and Dump" SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM LIEBERMAN, 42, of Boca Raton, Florida, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 84 months of imprisonment, followed by three years of supervised release, for his role in a securities fraud scheme.
According to court documents and statements made in court, between approximately 2010 and July 2016, LIEBERMAN conspired with others, including Christian Meissenn of Connecticut, to defraud investors through a stock “pump and dump” scheme. LIEBERMAN and his co-conspirators induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies included Terra Energy Resources Ltd. (stock symbol “TRRE”); Mammoth Energy Group, Inc. (stock symbol “MMTE”), a company that later became Strategic Asset Leasing Inc. (stock symbol “LEAS”); Trilliant Exploration Corporation (stock symbol “TTXP”); Hermes Jets, Inc. (stock symbol “HRMJ”), which later became Continental Beverage Brands Corporation (stock symbol “CBBB”); Dolat Ventures, Inc. (stock symbol “DOLV”), and Fox Petroleum, Inc. (stock symbol “FXPT”).
At various times, LIEBERMAN served as the Chief Executive Officer, Chairman of the Board, President, Secretary, and Treasurer of Mammoth Energy Group, Inc.; the President, Chief Executive officer, and Chairman of the Board of Strategic Asset Leasing Inc.; the President, Chief Accounting Officer, Chief Executive Officer, Chief Financial Officer, Secretary, and Treasurer of Fox Petroleum, Inc.; and the Chief Executive Officer, President, Treasurer, Secretary, and Chief Financial Officer of Trilliant Exploration Corporation. In his capacity as an officer of certain of these issuing companies, LIEBERMAN, working with others, issued false and misleading press releases concerning the financial health and prospects of the companies. He also was aware that co-conspirators were making false and misleading statements to promote the sale of these securities.
As part of the scheme, LIEBERMAN arranged for attorneys, including Corey Brinson of Connecticut and Diane Dalmy of Colorado, to sign false and misleading opinion letters that were designed to provide assurances to securities transfer agents and prospective investors. At times, he affixed attorneys’ signatures to the opinion letters. The opinion letters falsely certified that the attorneys had adequately reviewed corporate records and filings for the issuing companies and were satisfied with the adequacy of the companies’ public disclosures.
LIEBERMAN and his co-conspirators also conducted matched or coordinated trades of securities amongst themselves or in large blocks at predetermined prices, in order to artificially boost the trading volume of the securities, create the appearance of liquidity, and falsely drive up the share price.
After selling their own shares at a profit, the conspirators allowed the price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, more than 12,000 victim investors collectively lost nearly $19 million.
Between 2011 and 2015, LIEBERMAN earned nearly $1.2 million through this scheme. He failed to report this income to the Internal Revenue Service, evading $436,235 in federal income taxes for the 2011 through 2015 tax years.
On May 10, 2017, LIEBERMAN pleaded guilty to one count of conspiracy to commit mail and wire fraud, and one count of tax evasion.
Judge Meyer ordered LIEBERMAN to pay $5,301,694 in restitution to the victims of the fraud scheme, and $436,235 to the IRS.
LIEBERMAN, who is released on bond, was ordered to report to prison on August 13.
Meissenn, Brinson, Dalmy and three other individuals also pleaded guilty to various offenses stemming from this scheme. Brinson, of Hartford, and Dalmy, of Denver, were each sentenced to 36 months of imprisonment on April 13, 2017, and May 15, 2018, respectively. On September 27, 2017, Damian Delgado, also known as “Michael Neumann,” of Orlando, Florida, was sentenced to 84 months of imprisonment. On May 7, 2018, Brian Ferraioli, of Sayville, N.Y., and Thomas Heaphy, Jr., of East Moriches, N.Y., were each sentenced to 72 months of imprisonment for their roles in this scheme and an unrelated investment fraud scheme. Meissenn awaits sentencing.
This investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Florence Resident Pleads Guilty in Federal Court to Manufacturing and Passing Counterfeit MoneyRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Michael James Bembry, age 28, of Florence, South Carolina, pled guilty in federal court in Florence to charges arising out of South Carolina and Pennsylvania. The South Carolina charges were for conspiracy to manufacture and pass counterfeit money, in violation of Title 18, United States Code, Section 371, and the Pennsylvania charges were for manufacturing counterfeit money, in violation of Title 18, United States Code, Section 471. Bembry agreed to the transfer of the Pennsylvania charges for the purpose of pleading guilty to those and all other pending federal charges at the same time in South Carolina. United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that Bembry was involved in a conspiracy to manufacture and pass counterfeit $100 and $50 bills in multiple states including South Carolina, North Carolina, Pennsylvania and New Jersey. This conspiracy, which began in 2015, included at least nine defendants who were responsible for making and passing over $100,000 in counterfeit money.
Bembry and other conspirators manufactured counterfeit money at several residences in Florence, South Carolina, and in a room at the Roosevelt Hotel in Philadelphia, Pennsylvania. The counterfeiting method employed by Bembry and others involved using cleaning fluid or bleach to remove or “wash” the images from genuine $1 and $10 bills until only blank genuine currency paper remained. They would then use a genuine $100 bill, known as a “parent note”, to print images of that $100 bill onto the blank genuine currency paper. By this method the perpetrators would print numerous counterfeit $100 bills on genuine currency paper all bearing the same serial number as the $100 parent note. They would then go to various businesses and purchase small items with the counterfeit $100 bills in order to obtain genuine currency as change.
In May 2015, multiple counterfeit $100 bills, a genuine $100 “parent note”, a printer, and other counterfeiting materials were seized by local law enforcement from a car Bembry was driving in Egg Harbor Township, New Jersey. Later, in July 2016, Bembry and a codefendant passed a counterfeit $100 bill at a business in Bryson City, North Carolina.
Ms. Lydon stated the maximum penalty Bembry can receive is imprisonment for 20 years and a fine of $250,000.00. The case was investigated by agents of United States Secret Service with the assistance of the Florence County Sheriff’s Office, the Florence Police Department, the Egg Harbor Township Police Department, and the Bryson City Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case with the assistance of the United States Attorney’s Office for the Eastern District of Pennsylvania.
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Five Miami-Dade Return Preparers Charged with Filing False Tax Returns with the IRSRead the Press Release
Five Miami-Dade return preparers were charged with filing false tax returns with the IRS, in an indictment unsealed today.
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Jamal Dyer, Jonathan Charles Edwards, Daniel Alvaro Murias, Jorge Alfonso Osorio Rodriguez, and Tramaine Das Sealy, were charged by indictment in the Southern District of Florida with one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and five counts of preparing false tax returns, in violation of Title 26, United States Code, Section 7206(2).
According to publicly filed court documents, the defendants allegedly prepared tax returns at The Tax Firm Miami, a business with multiple addresses in Miami-Dade County. The defendants and their co-conspirators unlawfully enriched themselves by charging clients tax preparation fees to prepare materially false tax returns. The defendants knowingly submitted false statements and claims on their clients' tax returns, including false claims to the Education Credit, the American Opportunity Credit, the Residential Energy Credit, and false Schedules C, resulting in a greater tax refund being paid from the IRS to their clients or a lesser tax liability owed by their clients to the IRS. The defendants collected fees from clients for each tax return prepared and deposited the fees into individual bank accounts that they each controlled. According to allegations made in court, the defendants caused approximately $15 million in tax loss over the three charged years.
If convicted of the charged offenses, the defendants are facing up to 5 years in prison for the conspiracy and up to 3 years in prison for each count related to the filing false tax returns.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mr. Greenberg commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov
Felon Convicted of Drug and Firearm ChargesRead the Press Release
PENSACOLA, FLORIDA – After a three-day jury trial, Kenneth Lamar Weathers, 27, of Pensacola, was convicted on July 11 of possessing a firearm by a convicted felon (two counts) and possessing a controlled substance with intent to distribute. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In June 2017, while cleaning a hotel room, a housekeeper found a pistol under the mattress. Weathers, who stayed in the room the night before the current occupant, was determined to have possessed the firearm.
In October 2017, law enforcement officers were notified that an armed male, later identified as Weathers, was within a residence. When officers arrived, an injured woman was in the rear bedroom of the apartment with Weathers. During a search of the residence, a pistol was located between the mattress and box spring where Weathers was lying. A bag in the closet contained $3,661 in U.S. currency, 15 individually wrapped clear baggies with cocaine, and Weathers’s Florida identification card.
For possessing a firearm as a convicted felon, Weathers faces a maximum of 10 years in prison. For possessing with intent to distribute a controlled substance, he faces a maximum of 20 years in prison. The sentencing hearing is scheduled for September 25 at the U.S. Courthouse in Pensacola.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Escambia County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Eight MS-13 Members Indicted in Dallas on Charges Including Racketeering Conspiracy, Attempted Murder and Assault with a Dangerous WeaponRead the Press Release
A federal grand jury has indicted eight MS-13 members, on charges in connection with their MS-13 gang activities, including racketeering conspiracy; attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; conspiracy to commit murder in aid of racketeering; and use, carry and possession of a firearm during and in relation to a crime of violence.
The indictment was announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox for the Northern District of Texas; Special Agent in Charge Katrina W. Berger of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Dallas Office; Chief Jeff Spivey of the Irving, Texas Police Department; Chief U. Reneé Hall of the Dallas Police Department and District Attorney Faith Johnson of the Dallas County District Attorney’s Office.
- Charged in the 18-count indictment, which was unsealed today, are the following alleged MS-13 members and associates:
- Rolan Ivan Hernandez-Fuentes, 25, aka Ivan Fuentes, Tasmania, Ronal Ivan and Fuentes Hernandez;
- Jerson Gutierrez-Ramos, 20, aka Gerson Gutierrez, aka Sparky;
- Cristian Wilfredo Cabrera-Cruz, 26, aka Cristin Benjamin Vigil and Mama;
- Kevin Cruz, 19, aka Street Danger;
- Jose Armando Saravia-Romero, 19, aka Jose Saravia, Mandy and Pinky;
- Manuel Amaya-Alvarez, 21, aka Manuel Amaya and Chocolate; and
- Jonathan Alexander Baires, 20, aka Splinter.
The name of the eighth defendant is currently under seal.
“The Department of Justice will not allow MS-13 to terrorize any community, school or street corner,” said Attorney General Sessions. “The gang has more than 10,000 members following its barbaric motto of ‘kill, rape, and control’ across 40 states, and that threatens law-abiding Americans. Today’s indictment of eight MS-13 members—including five who are charged as illegal aliens in possession of firearms —makes clear that the Trump Administration and this Department will continue to go on offense against MS-13 with every lawful tool at our disposal. I want to thank our fabulous Department of Justice attorneys for their hard work on this case as well as our partners with HSI, ICE, the Dallas County District Attorney's office, and the Dallas and Irving Police Departments. This case is yet another step toward dismantling MS-13 and taking its members off our streets for good."
“MS-13 is one of the most violent and ruthless gangs on the streets today,” stated U.S. Attorney Nealy Cox. “Working with our federal, state and local partners, we are determined to dismantle this organization wherever we find it in order to make our communities safer in Texas.”
“Gangs — and especially transnational gangs like MS-13 — are responsible for many of the violent crimes that occur throughout the country,” said Special Agent in Charge Katrina W. Berger, HSI Dallas. “Some of these violent gang members have illegally entered the United States as unaccompanied alien children. As demonstrated with this HSI-led investigation, an ongoing coordinated multi-agency law enforcement effort is the best means of curtailing gang numbers, gang finances, and gang effectiveness to operate.
“Evil gangs like MS-13 are perpetrators of senseless violence in our communities,” said Texas Governor Greg Abbott. “The indictment of these individuals shows a continued commitment to going after these dangerous individuals and keeping our communities safe. The State of Texas will continue to offer any assistance and resources necessary to crack down on these criminals, and I thank our federal, state, and local partners in law enforcement for their ongoing efforts to address gang violence across Texas.”
According to the indictment, MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate in cities around the country, including the Irving Loco Salvatruchas (ILS) clique in the Dallas area. MS-13 members and associates are required to commit acts of violence to join the gang, and to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members and associates must attack and kill rivals, known as “chavalas,” whenever possible. Members and associates of the ILS clique held meetings in multiple locations in the vicinity of Irving, Texas, including several public parks and a tunnel under Irving.
According to the indictment, beginning on or about July 2016, and continuing through on or about the date of the indictment, Hernandez-Fuentes, Gutierrez-Ramos, and Cruz, participated in a racketeering conspiracy that included attempted murder, conspiracy to commit murder, and robbery.
Across the racketeering conspiracy and other counts, the indictment charges the following defendants for their alleged involvement in six attacks, including multiple machete attacks, upon 10 victims, including members or associates of the rival 18th Street Gang:
Date (on/in or about)
Location
Defendants
Weapons
Victims
July 14, 2017
5600 Block of Spring Valley Road in Dallas
Hernandez-Fuentes, Gutierrez-Ramos, Cabrera-Cruz
Machete and other weapons
Two (one from 18th Street Gang)
July 15, 2017
200 block of West Rochelle Road in Irving
Hernandez-Fuentes, Gutierrez-Ramos
Machete
One (drug dealer)
Aug. 9, 2017
3000 block of Webb Chapel Extension in Dallas
Hernandez-Fuentes, Gutierrez-Ramos, Cruz
Knife, sledgehammer, and other weapons
One (from 18th Street Gang)
Aug. 19, 2017
1900 block of East Grauwyler Road in Irving
Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero
Metal bat
One (from 18th Street Gang)
Middle of August 2017 through Aug. 20, 2017
Two Dallas parks and an apartment complex in Dallas
Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero
Shotgun
One (from 18th Street Gang)
Beginning of 2017 through Sept. 25, 2017
Various locations in Dallas and Running Bear Park in Irving
Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Amaya-Alvarez, Baires
Multiple machetes, shotgun, and other weapons
Four (one from 18th Street Gang)
Cabrera-Cruz was arrested on the indictment yesterday and made an Initial Appearance in Dallas. Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero, Amaya-Alvarez, and Baires are currently in Texas state custody, on charges relating to the August 19, 2017 and September 25, 2017 events described above. Their Initial Appearances will be scheduled.
An indictment is not a finding of guilt. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by HSI Dallas, the Irving Police Department, the Dallas Police Department, and the Dallas County District Attorney’s Office, with assistance from ICE’s Enforcement and Removal Operations. Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Gary Tromblay and Siddharth Mody of the Northern District of Texas, are prosecuting this case.
Eight Defendants Indicted for Stock Fraud-Related OffensesRead the Press Release
Assistant U. S. Attorneys Aaron P. Arnzen (619) 546-8384 and Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – July 13, 2018
SAN DIEGO – Eight people, including a San Diego lawyer, were indicted by a federal grand jury for participating in three unrelated securities fraud crimes.
Arrests by the FBI began on July 5, 2018, and culminated July 11, 2018 when Luke Zouvas of Point Loma was taken into custody. Zouvas was charged with laundering money he believed to be proceeds of stock fraud schemes. According to court records, Zouvas was contacted by a former business associate for whom he had previously laundered stock fraud proceeds. In exchange for a money laundering fee, Zouvas agreed to pick up where the two left off years ago by funneling over $500,000 through his law firm’s client trust account.
In another indictment, Gannon Giguiere of Laguna Beach, California, was charged with manipulating the market for the stock of Eco Science Solutions, Inc. and Kelvin Medical, Inc. According to court records, Giguiere conspired to pump up the price and volume of these stocks through manipulative trading and/or a stock promotion website designed to get innocent investors interested in buying the stock. After the stock prices rose and he dumped the shares, Giguiere pocketed more than $10 million in fraudulent proceeds from these schemes. The same indictment charges Oliver Lindsay of Grand Cayman with participating in the Kelvin Medical scheme, including by trading the conspirators’ stock through an offshore brokerage account in the Cayman Islands.
Another indictment charges a group of five individuals with manipulating the market for the stock of Arias Intel, Corp. According to court records, this scheme included efforts to artificially inflate the price and volume of Arias Intel’s stock by controlling the majority of the company’s free-trading shares through concealed offshore accounts, coordinating press releases with expected stock promotions, and the use of high-pressure call rooms targeting innocent investors. Each of the five defendants – Andrew Hackett of Toronto, Canada; Vikram Khanna of Porter Ranch, California; Kuldeep Sidhu of Vancouver, British Columbia; Annetta Budhu of New York, New York; and Kevin Gillespie of Tampa, Florida – spoke on recorded calls about various aspects of their scheme.
“These fraud schemes victimize all investors and compromise the integrity of our financial markets,” said U.S. Attorney Adam Braverman. “We are committed to holding accountable those who try to manipulate the system for their own profit.”
“For the United States to maintain its vibrant economy, the American people must have trust and confidence in our markets,” said FBI Special Agent in Charge John Brown. “The FBI will continue to aggressively pursue these complex and coordinated fraud schemes in order to protect the American people and our economy.”
Giguiere has been released on a $2 million dollar bond. Sidhu has been detained pending trial. Motions to detain Lindsay and Hackett will be heard on July 17 and 19, 2018, respectively. Budhu and Gillespie made their first appearances in the Southern District of California on July 13, 2018, and Khanna will make his first appearance on July 27, 2018.
The Securities and Exchange Commission has also taken action against Giguiere, Lindsay, Gillespie, Budhu and Hackett.
DEFENDANTS
Case Number 18cr3071-WQH
Gannon Giguiere Age: 46 Laguna Beach, CA
Oliver Lindsay Age: 44 Georgetown, Grand Cayman
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Securities Fraud – Title 15 U.S.C., Sections 78j(b), 78ff; and 17 C.F.R., Section 240.10b-5
Maximum penalty: 20 years’ imprisonment and $5,000,000 fine
Case Number 18cr3072-BTM
Andrew Hackett Age: 29 Toronto, Canada
Vikram Khanna Age: 53 Porter Ranch, CA
Kuldeep Sidhu Age: 47 British Columbia, Canada
Annetta Budhu Age: 53 New York, NY
Kevin Gillespie Age: 49 Tampa, Florida
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Securities Fraud – Title 15 U.S.C., Sections 78j(b), 78ff; and 17 C.F.R., Section 240.10b-5
Maximum penalty: 20 years’ imprisonment and $5,000,000 fine
Case Number 18cr3070-JLS
Luke Zouvas Age: 47 San Diego, CA
SUMMARY OF CHARGES
Money Laundering – Title 18 U.S.C., Section 1956(a)(3)(B)
Maximum penalty: 20 years’ imprisonment and fine equal to value of the funds involved in the transaction.
AGENCY
FBI (lead agency)
Securities and Exchange Commission
Criminal Prosecution Assistance Group, Financial Industry Regulatory Authority
Financial Industry Regulatory Authority
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Eight MS-13 Members Indicted in Dallas on Charges Including Racketeering, Conspiracy, Attempted Murder and Assault with a Dangerous WeaponRead the Press Release
DALLAS - A federal grand jury has indicted eight MS-13 members, on charges in connection with their MS-13 gang activities, including racketeering conspiracy; attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; conspiracy to commit murder in aid of racketeering; and use, carry and possession of a firearm during and in relation to a crime of violence.
The Indictment was announced by U.S. Attorney Erin Nealy Cox for the Northern District of Texas; Special Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Katrina W. Berger of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Dallas Office; Field Office Director Marc Moore of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO); Chief Jeff Spivey of the Irving Police Department; Chief U. Reneé Hall of the Dallas Police Department and District Attorney Faith Johnson of the Dallas County District Attorney’s Office.
Charged in the 18-count Indictment, which was unsealed today, are the following alleged MS-13 members and associates:
- Rolan Ivan Hernandez-Fuentes, 25, aka Ivan Fuentes, Tasmania, Ronal Ivan and Fuentes Hernandez;
- Jerson Gutierrez-Ramos, 20, aka Gerson Gutierrez, aka Sparky;
- Cristian Wilfredo Cabrera-Cruz, 26, aka Cristin Benjamin Vigil and Mama;
- Kevin Cruz, 19, aka Street Danger;
- Jose Armando Saravia-Romero, 19, aka Jose Saravia, Mandy and Pinky;
- Manuel Amaya-Alvarez, 21, aka Manuel Amaya and Chocolate; and
- Jonathan Alexander Baires, 20, aka Splinter.
The name of the eighth defendant is currently under seal.
“MS-13 is one of the most violent and ruthless gangs on the streets today,” stated U.S. Attorney Nealy Cox. “Working with our federal, state and local partners, we are determined to dismantle this organization wherever we find it in order to make our communities safer in Texas.”
“The Department of Justice will not allow MS-13 to terrorize any community, school or street corner,” said Attorney General Sessions. “The gang has more than 10,000 members following its barbaric motto of ‘kill, rape, and control’ across 40 states, and that threatens law-abiding Americans. Today’s Indictment of eight MS-13 members—including five who are charged as illegal aliens in possession of firearms —makes clear that the Trump Administration and this Department will continue to go on offense against MS-13 with every lawful tool at our disposal. I want to thank our fabulous Department of Justice attorneys for their hard work on this case as well as our partners with HSI, ICE, the Dallas County District Attorney's office, and the Dallas and Irving Police Departments. This case is yet another step toward dismantling MS-13 and taking its members off our streets for good."
“Gangs — and especially transnational gangs like MS-13 — are responsible for many of the violent crimes that occur throughout the country,” said Special Agent in Charge Katrina W. Berger, HSI Dallas. “Some of these violent gang members have illegally entered the United States as unaccompanied alien children. As demonstrated with this HSI-led investigation, an ongoing coordinated multi-agency law enforcement effort is the best means of curtailing gang numbers, gang finances, and gang effectiveness to operate.
“Evil gangs like MS-13 are perpetrators of senseless violence in our communities,” said Texas Governor Greg Abbott. “The Indictment of these individuals shows a continued commitment to going after these dangerous individuals and keeping our communities safe. The State of Texas will continue to offer any assistance and resources necessary to crack down on these criminals, and I thank our federal, state, and local partners in law enforcement for their ongoing efforts to address gang violence across Texas.”
According to the Indictment, MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate in cities around the country, including the Irving Loco Salvatruchas (ILS) clique in the Dallas area. MS-13 members and associates are required to commit acts of violence to join the gang, and to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members and associates must attack and kill rivals, known as “chavalas,” whenever possible. Members and associates of the ILS clique held meetings in multiple locations in the vicinity of Irving, Texas, including several public parks and a tunnel under Irving.
According to the Indictment, beginning on or about July 2016, and continuing through on or about the date of the Indictment, Hernandez-Fuentes, Gutierrez-Ramos, and Cruz, participated in a racketeering conspiracy that included attempted murder, conspiracy to commit murder, and robbery.
Across the racketeering conspiracy and other counts, the Indictment charges the following defendants for their alleged involvement in six attacks, including multiple machete attacks, upon 10 victims, including members or associates of the rival 18th Street Gang:
Date (on/in or about)
Location
Defendants
Weapons
Victims
July 14, 2017
5600 Block of Spring Valley Road in Dallas
Hernandez-Fuentes, Gutierrez-Ramos, Cabrera-Cruz
Machete and other weapons
Two (one from 18th Street Gang)
July 15, 2017
200 block of West Rochelle Road in Irving
Hernandez-Fuentes, Gutierrez-Ramos
Machete
One (drug dealer)
Aug. 9, 2017
3000 block of Webb Chapel Extension in Dallas
Hernandez-Fuentes, Gutierrez-Ramos, Cruz
Knife, sledgehammer, and other weapons
One (from 18th Street Gang)
Aug. 19, 2017
1900 block of East Grauwyler Road in Irving
Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero
Metal bat
One (from 18th Street Gang)
Middle of August 2017 through Aug. 20, 2017
Two Dallas parks and an apartment complex in Dallas
Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero
Shotgun
One (from 18th Street Gang)
Beginning of 2017 through Sept. 25, 2017
Various locations in Dallas and Running Bear Park in Irving
Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Amaya-Alvarez, Baires
Multiple machetes, shotgun, and other weapons
Four (one from 18th Street Gang)
Cabrera-Cruz was arrested on the Indictment yesterday and made an Initial Appearance in Dallas. Hernandez-Fuentes, Gutierrez-Ramos, Cruz, Saravia-Romero, Amaya-Alvarez, and Baires are currently in Texas state custody, on charges relating to the August 19, 2017 and September 25, 2017 events described above. Their Initial Appearances will be scheduled.
An Indictment is not a finding of guilt. An Indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by HSI Dallas, the Irving Police Department, the Dallas Police Department, and the Dallas County District Attorney’s Office, with assistance from ICE’s Enforcement and Removal Operations. Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Gary Tromblay and Siddharth Mody of the Northern District of Texas, are prosecuting this case.
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Destrehan Man Charged in Federal Court for Bank RobberyRead the Press Release
U.S. Attorney Duane A. Evans announced that DILLON DAVIS, age 25, of Destrehan, was charged in a one-count Indictment with bank robbery in violation of Title 18, United States Code, Section 2113(a).
The federal indictment alleges that DILLON DAVIS entered the Chase Bank located at 3540 Williams Boulevard, in Kenner, Louisiana, and demanded one thousand dollars in U.S. currency from a bank teller.
If convicted of the violation, DILLON DAVIS faces a maximum term of imprisonment of 20 years, a fine of up to $250,000.00, a period of up to 3 years supervised release, and a mandatory special assessment of $100.00.
U. S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Duane A. Evans praised the work of the Kenner Police Department and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Denver Business Owner Sentenced for Tax EvasionRead the Press Release
DENVER – Christopher Paul Kelly, age 52, of Colorado Springs, Colorado was sentenced by U.S. District Court Judge William J. Martinez to serve 20 months in federal prison, followed by 3 years of supervised release for tax evasion, announced United States Attorney Bob Troyer and IRS – Criminal Investigation Special Agent in Charge Steven Osborne. Kelly was also ordered to pay restitution of $929,098.39 to the IRS. He was indicted by a federal grand jury on June 7, 2017, and pled guilty on December 7, 2017. The defendant was ordered to report to a prison designated by the Bureau of Prisons on August 15, 2018.
According to information contained in the indictment and plea agreement, from 2001 through 2015, Kelly operated merchant card services businesses, which sold vendors the ability to accept credit card payments. These businesses caused Kelly to earn taxable income, generating tax due of more than $500,000 in tax years 2006, 2007, 2012, and 2013. Between 2008 and 2015, Kelly rented homes as his personal residence and purchased or leased expensive automobiles instead of paying his outstanding tax liabilities. In 2008, Kelly caused J.L. to purchase a Mercedes automobile for $80,346.19, which Kelly paid for and used personally.
Kelly avoided these tax obligations by operating through various different companies, which continued to pay him hundreds of thousands of dollars. When contacted by the IRS regarding the outstanding tax liabilities, Kelly made false statements to the IRS Revenue Officer. Kelly then withdrew the balance of his 401(k) account and cashed out the value of his life insurance account, eliminating the ability to place a levy on these accounts. When the IRS levied Kelly’s U.S. Bank account, Kelly stopped depositing funds into that account and instead started depositing much of his income and paying personal expenses out of a bank account controlled by his common law wife.
“Tax thieves steal from all of us,” said U.S. Attorney Troyer. “Kelly’s decision to cheat the system was actually a decision to spend 20 months behind bars.”
“Tax evasion is not a victimless crime,” said Steven Osborne, Special Agent in Charge, IRS – Criminal Investigation, Denver Field Office. “We all pay when others swindle the government. Mr. Kelly chose to ignore his duty to file and pay his taxes and as a result, he is now a convicted felon with a prison term to serve.”
This case was investigated by the Internal Revenue Service – Criminal Investigation. This case was prosecuted by Assistant U.S. Attorney Pegeen Rhyne with Assistant U.S. Attorney Martha Paluch handling the sentencing hearing.