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13 July 2018
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.
Davenport Man Sentenced to Prison for Firearm OffenseRead the Press Release
DAVENPORT, Iowa - On July 12, 2018, United States District Court Chief Judge John A. Jarvey sentenced Raymone Deshawn Walker, Sr., age 21, of Davenport, to 50 months in prison for felon in possession of a firearm and ammunition, announced United States Attorney Marc Krickbaum. Walker was ordered to serve three years of supervised release following his imprisonment, pay $100 to the Crime Victims’ Fund, and forfeit the firearm and ammunition seized.
At a March 1, 2018, plea hearing, Walker admitted on May 10, 2017, he and a minor male were involved in two shots fired incidents – one in Davenport and one in Rock Island. Walker was later encountered at a residence where Davenport Police officers recovered a Phoenix Arms .22 caliber handgun and ammunition. The officers also seized an open box of .22 caliber ammunition in the glovebox of the vehicle Walker occupied earlier that evening.
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
This matter was investigated by the Davenport Police Department and Illinois State Police, Division of Forensic Services. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Dark Web Vendor Sentenced to 108 Months in Prison for Narcotics Trafficking and Money Laundering ChargesRead the Press Release
Adam Lemar Miles, a/k/a “NoStress,” 46, was sentenced today by U.S. District Judge Ursula M. Ungaro to a total of 108 months in prison, to be followed by 4 years of supervised release.
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida; Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Office; Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office; Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office; Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office; and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), made the announcement.
Miles previously pled guilty to one count of conspiracy to distribute a controlled substance, in violation of Title 21, United States Code, Section 846; three counts of distribution of a controlled substance, in violation of Title 21, United States Code, Section 841(a)(l); and one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h). As part of his plea agreement, Miles agreed to forfeit a shotgun, a rifle, two pistols, a revolver, several hundred rounds of ammunition, and $61,872 in seized U.S. currency.
According to publicly filed court documents, agents were investigating vendors who utilize Dark Web marketplaces to advertise and distribute controlled substances. Agents identified a vendor with variations of the moniker “NoStress” who was advertising controlled substances, including methamphetamine and hydrocodone, on dark web marketplaces. On three separate occasions, agents purchased and received 7 grams of methamphetamine, 11 hydrocodone pills, and 14 grams of crystal methamphetamine from vendor accounts operated by Miles on the dark web.
On January 10, 2018, a search warrant was executed on Miles’ home in Riverside, California. Evidence recovered from Miles’ home exposed the defendant as the vendor known as “NoStress.” Additional evidence revealed Miles had distributed at least 350 grams of methamphetamine on the dark web, since 2015.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (“OCDETF”), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Greenberg commended the investigative efforts of the DEA, Miami and Riverside, California Field Offices; IRS-CI, Miami Field Office; USPIS, Miami Field Office; ICE-HSI, Miami Field Office; ATF, Miami and Riverside, California Field Offices; and the FBI, Miami Field Office. Mr. Greenberg also thanked the staff of the U.S Attorney’s Office for the Central District of California for their assistance. The case was prosecuted by Assistant U.S. Attorney Breezye Telfair.
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 or on http://pacer.flsd.uscourts.gov.
Courier for Drug-Trafficking Ring Sentenced to 3 Years in Prison for Transporting Drug Proceeds to MexicoRead the Press Release
SACRAMENTO, Calif. — Verenys Parra Arellanez, 23, of San Bernardino, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to three years in prison for conspiring to distribute heroin, U.S. Attorney McGregor W. Scott announced.
According to court documents, Parra Arellanez transported money to Mexico from the sale of heroin in the Eastern District of California. In total, Parra Arellanez took almost $300,000 in drug proceeds to Mexico.
This case was the product of an investigation by the Drug Enforcement Administration. Assistant United States Attorney Todd A. Pickles prosecuted the case.
Parra Arellanez is the latest defendant to be sentenced as part of the DEA’s investigation of a drug-trafficking ring centered in Sacramento and Bakersfield that distributed heroin and methamphetamine throughout the Eastern District. To date, 12 defendants have been sentenced to a combined 69.5 years of incarceration.
Charges are pending against co-defendants Maria D. Arellanez Rios, Juan Alamilla Guzman, and Jesus Ramon Machado Lopez, who are believed to be fugitives. They are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Columbia, Kentucky Man Convicted of Arson and Insurance FraudRead the Press Release
BOWLING GREEN, Ky. – A jury convicted a Columbia, Kentucky man yesterday following a five-day jury trial in United States District Court on charges of arson and insurance fraud, announced United States Attorney Russell M. Coleman. The defendant set the fire, which destroyed his home, in order to collect on a $50,000 rental insurance policy. An Adair County Volunteer Firefighter died while fighting the fire.
“The men and women of our fire services are unsung heroes” said U.S. Attorney Russell Coleman “Greed-fueled arson that endangers those public servants will be appropriately dealt with by the Department of Justice.”
The evidence introduced at trial established that the defendant, Steve Allen “Boo” Pritchard, 44, of Columbia, Kentucky, hatched a plan with his girlfriend, co-defendant Brandi Waggener, to set fire to their rental home, located in Columbia, Kentucky, during the early morning hours of June 30, 2011. The Adair County Fire Department arrived on scene at approximately 3:12 AM. While fighting the fire, Volunteer Fireman Charles Sparks suffered a heart attack on the second floor of the home. He was rushed to the hospital and died eight days later on July 8, 2011. In addition to his service as a volunteer firefighter, Sparks was a longtime Kentucky State Fire Marshal.
At trial, Pritchard provided an alibi that he was in Louisville delivering glass for his employer during the fire. However, federal prosecutors disproved his alibi by introducing cell phone location data obtained by the FBI. Several of co-defendants’ family and friends also testified that Pritchard had bragged about starting the fire in order to collect on the insurance policy. Finally, federal prosecutors introduced evidence that established Pritchard had been involved in four previous fires that were set in order to collect insurance proceeds, one of which involved Pritchard setting fire to his own car.
Pritchard will be sentenced in Bowling Green on October 21, 2018, at 9:00 a.m. by United States District Court Judge Greg Stivers. Pritchard faces a mandatory minimum sentence of 7 years in prison up to a maximum sentence of life imprisonment, $500,000 fine, and five years of supervised release. Judge Stivers ordered Pritchard into the custody of the U.S. Marshals Service after the jury announced its guilty verdict. Waggener, who remains free on bond, has already pled guilty to both charges and is scheduled to be sentenced in Bowling Green on July 31, 2018 at 10:15 a.m.
Assistant United States Attorneys David Weiser and Nute Bonner are prosecuting the case. The Federal Bureau of Investigation and the Kentucky State Police conducted the investigation.
Cheektowaga Man Sentenced to 15 Years for Bank RobberyRead 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 Thomas Cascio, 52, of Cheektowaga, NY, who was convicted following a jury trial of bank robbery, was sentenced to serve 180 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Paul C. Parisi, who handled the trial of the case, stated that on March 6, 2017, at approximately 1:09 p.m., Cascio entered the Key Bank at 5200 Main Street in Amherst, NY. Wearing a hard hat, safety vest, and eye protection goggles, the defendant approached a teller and passed a bank robbery note. The teller only recalled reading the word “Robbery” at the top of the note before the individual took the note back and told her to “Hurry up!” and “Don’t give me funny money!” The teller gave money to Cascio who then departed the bank. Witnesses described the defendant as having a distinctive nose and gray hair.
The Amherst Police Department issued a high quality bank robbery surveillance photo to local media stations which aired the photo on the evening of March 6, 2017, asking for public assistance. On March 7, 2017, eight people contacted either the Amherst Police Department or FBI identifying the robber as Thomas Cascio. In addition, there were numerous anonymous calls to the Amherst Police Department that identified Cascio as the bank robber.
In 2000, the defendant was convicted in federal court of four bank robberies and sentenced to 48 months in prison. In some of those robberies, Cascio’s movements were similar to his movements on May 6, 2017, including taking the note back from the teller before leaving the bank.
In 2009, Cascio was convicted in state court of one bank robberies and served two years in prison.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Amherst Police Department, under the direction of Chief John Askey; the Cheektowaga Police Department, under the direction of Chief David Zack; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Cartersville man sentenced to 25 years for producing child pornographyRead the Press Release
ROME, Ga. - Shawn Ryan Budovic, who targeted very young children for sexual exploitation, was sentenced to 25 years imprisonment for the production of child pornography.
“The defendant used the internet to hunt and sexually exploit young children for his own sexual gratification,” said U.S. Attorney Byung J. “BJay” Pak. “While Budovic will now serve a lengthy prison sentence for his crimes, this is also a reminder to parents of the dangers children may encounter on the internet, as well as an alert to tactics predators use to lure, manipulate and prey on their victims.”
“Individuals responsible for producing child pornography steal the innocence of children and further their revictimization each time the evidence of that exploitation is shared online,” said Homeland Security Investigations Atlanta Special Agent in Charge Nick S. Annan. “This case shows HSI investigators are actively working to identity and disrupt the trade of these illegal images, and also to identify and seek prosecution of the criminals who produce and possess them.”
According to U.S. Attorney Pak, the charges and other information presented in court: Budovic used the messenger application Kik to meet his former girlfriend when she was a minor and he was in his mid-twenties. Budovic began an online relationship with the minor, and over time he groomed her to believe that his sexual interest in children was normal. He discussed his sexual interest in young children with his girlfriend and sent her images of child pornography. Eventually, Budovic asked his minor girlfriend for sexually explicit photographs of her younger siblings, who were as young as two, four, and nine years old at the time. At Budovic’s urging, the minor girlfriend ultimately sent him multiple sexually explicit photos of her younger sisters. Homeland Security Investigations agents found pornographic photos of the children on Budovic’s phone when they executed a search warrant at his home.
Budovic’s obsession with child pornography did not stop with his minor girlfriend and her siblings. He also had a collection of hundreds of videos and images of pre-pubescent girls being sexually molested and raped. Budovic sought out girls as young as 12 years old on websites, such as Facebook and Skype, and engaged in sexually explicit chats with numerous minors. In multiple instances, he enticed young girls to send him sexually explicit images and videos of themselves over the internet. Budovic also shared images of his own genitals with the girls.
Shawn Ryan Budovic, 28, of Cartersville, Georgia was sentenced to 25 years in prison to be followed by lifetime supervised release. He will be required to register as a sex offender upon release. Budovic was convicted on these charges on May 1, 2018, after he pleaded guilty.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations.
Assistant U.S. Attorney Jolee Porter prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Career offender sentenced to 20 years in prison for drug offenseRead the Press Release
ROME, Ga. - Barry Shedd has been sentenced to 20 years in federal prison for possession with the intent to distribute at least 50 grams of methamphetamine less than two months after his release from state custody.
“This defendant had already served sentences for distributing dangerous drugs when he chose to return to criminal activity,” said U.S. Attorney Byung J. “BJay” Pak. “Shedd took his freedom for granted, and now he will serve 20 years in federal prison, where there is no parole.”
“The amount of prison time Shedd received correctly reflects the continuous criminal activities he engaged in, to include the distribution of the insidious drug methamphetamine,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This sentencing removes yet another dangerous criminal from our streets and sends a clear message to others who may choose to indulge in this lifestyle. DEA and its law enforcement partners and the U.S. Attorney’s Office will relentlessly pursue and ultimately prosecute criminals like Shedd.”
“On the date Shedd was arrested he was cooperative and if not for the vehicle accident would surely still be what I consider a menace to society. It is apparent that the incarceration period and release just prior to this arrest did not have the desired effect of guiding Shedd toward rehabilitation,” said Major Carl Lively, Floyd County Police Department. “Shedd is well known to many officers in our department due to his past drug involvement history. During the past years when he has not been incarcerated he has mostly been a resident in our county. The damages that he has caused to his family and our community through his decisions over the years will never be known.”
According to U.S. Attorney Pak, the charges and other information presented in court: On August 17, 2017, Shedd crashed his vehicle in a single car accident in Floyd County, Georgia. He was observed entering the woods at the site of the crash and then returning to his vehicle.
Because of his known drug history, a K-9 unit searched the wooded area near the crash. Law enforcement officers located a bag containing a quarter kilogram of methamphetamine, 110 pills, digital scales, hypodermic needles, and Shedd’s prison ID card. Officers also seized $3,253 in cash.
Shedd had only just been released from prison 58 days earlier for a prior drug offense. Because of his repeated convictions for trafficking in methamphetamine, the Court designated Shedd a career offender.
Barry Shedd, 46, of Rome, Georgia, was sentenced by U.S. District Judge Harold L. Murphy to 20 years in prison to be followed by 10 years of supervised release on July 12, 2018. Shedd was convicted on these charges on January 10, 2018, after he pleaded guilty.
This case was investigated by the Drug Enforcement Administration, Floyd County Police Department, Polk County Police Department, and Rome/Floyd Metro Task Force.
Assistant U.S. Attorney Alison Prout prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
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.
CEO of Bay Area Medical Device Company Indicted for Alleged Fraud and Money LaunderingRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Lawrence J. Gerrans, president and chief executive officer of San Rafael-based medical device company Sanovas, on three counts of wire fraud and money laundering, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The indictment describes a number of schemes allegedly employed by Gerrans to obtain money from Sanovas in order to pay cash for a home and a myriad of personal expenses.
According to the indictment filed yesterday, between April of 2013 until at least May of 2015 Gerrans employed a number of fraudulent methods to syphon funds out of Sanovas. In one part of the scheme, between April of 2013 and May of 2014, Gerrans allegedly withdrew a total of $500,000 from his personal Individual Retirement Account and then used the funds to pay for personal expenses including vacations, jewelry, and spa treatments. Then, in March of 2015 after a newly constituted board of directors was convened at Sanovas, Gerrans claimed he used the IRA funds for Sanovas’s business and requested reimbursement for the liquidated IRA. Gerrans argued to the new board of directors that he should be reimbursed for the funds as deferred compensation.
The indictment describes another part of the scheme in which Gerrans allegedly orchestrated the payment of bogus consulting fees to a separate company that Gerrans owned. The indictment alleges that, in addition to being president and CEO of Sanovas, Gerrans was the sole owner of Halo Management Group, LLC, a company with its principal place of business in the home in San Anselmo where Gerrans resided. Gerrans allegedly caused invoices to be submitted by Halo to Sanovas even though Halo was not a legitimate independent consulting firm and provided no independent services to Sanovas. Moreover, the indictment alleges Gerrans directed an employee to create after-the-fact accounting entries for consulting and professional services that Halo never actually provided to Sanovas.
Another part of the scheme described in the indictment involves Gerrans’s purchase of a personal residence in San Anselmo, Calif., for $2,570,000. According to the indictment, Gerrans created a shell company, Hartford Legend Capital Enterprises, with its principal place of business in Reno, Nevada. The indictment alleges Gerrans used the company to receive money from Sanovas and Halo in order to facilitate the purchase of the San Anselmo home. In addition, Gerrans orchestrated the payments to Hartford without the knowledge or approval of the Sanovas board of directors.
In sum, the indictment charges Gerrans with three counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of money laundering, in violation of 18 U.S.C. § 1957. Gerrans is scheduled to make his initial federal court appearance regarding the charges on July 29, 2018, before United States Magistrate Judge Sallie Kim.
An indictment merely alleges that crimes have been committed, and Gerrans, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the wire fraud counts, Gerrans faces a maximum statutory sentence of 20 years in prison and a fine in the amount of the greater of $250,000 or twice the gain or loss resulting from the wire fraud scheme. In addition, if convicted of money laundering, the defendant faces a maximum statutory sentence of 10 years in prison and a fine in the amount of the greater of $250,000 or twice the amount of the criminally derived property. The court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Robin Harris is prosecuting the case with assistance from Bridget Kilkenny. This prosecution is the result of an investigation by the Federal Bureau of Investigation.
Business Owner and Former Government Contracting Officer Representative Plead Guilty to Conspiracy and BriberyRead the Press Release
PENSACOLA, FLORIDA – Jerry T. Vertefeuille, 53, of Niceville, and Christopher A. Carter, 37, of Fort Walton Beach, pleaded guilty on July 11 and June 28, respectively, to conspiracy (to commit theft of honest services and wire fraud) and bribery of a public official. Additionally, Vertefeuille pleaded guilty to obtaining and disclosing procurement information. The guilty pleas were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Vertefeuille was a federal government contracting officer representative for the 96 Test Wing Maintenance Group (96 MXG) at Eglin Air Force Base. His duties included overseeing maintenance work and initially approving purchases and invoices.
In 2007, Vertefeuille helped Carter, as the owner of TCC Services, Unlimited, LLC, win a paint booth maintenance contract, as well as multiple contract renewals, until 2014. Vertefeuille received kickbacks in exchange for approving Carter’s fraudulent invoices and recommending the renewal of TCC’s contract. An investigation later revealed that TCC and another contractor submitted invoices for payment to the U.S. Air Force for the same work.
For the conspiracy charge, the defendants face a maximum of 20 years in prison. For bribery of a public official, they face a maximum of 15 years in prison. For obtaining and disclosing procurement information, Vertefeuille also faces a maximum of 5 years in prison. The sentencing hearings are scheduled for September 26 at the U.S. Courthouse in Pensacola.
The case was investigated by the U.S. Air Force Office of Special Investigations, Air Force Audit Agency, and Defense Criminal Investigative Service. 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.
Brockton Felon Sentenced for Firearms OffenseRead the Press Release
BOSTON – A Brockton man who was previously convicted of firearms charges was sentenced yesterday in federal court in Boston on a federal firearms charge.
Dennis Afonso, 34, was sentenced by U.S. District Court Senior Judge George A. O’Toole Jr. to 78 months in prison and three years of supervised release after pleading guilty in April 2018 to one count of being a felon in possession of a firearm and ammunition.
On May 3, 2017, law enforcement officers in Brockton found Afonso, a previously convicted felon, illegally in possession of a Cobra .380 caliber pistol with an obliterated serial number and three rounds of .380 caliber ammunition. Afonso was convicted in 2009 of distribution of cocaine base. He was sentenced to 60 months in prison and had recently completed his period of supervised release when he was found in possession of a firearm on May 3, 2017.
The 2009 conviction was the result of a federal investigation into drug trafficking and related gang activity in the Green Street area of Brockton. According to court documents, Afonso was a member of the Green Street gang, which operates on the north side of Brockton and rivals gangs from the south side of the city. During the course of the investigation, an undercover officer made dozens of controlled purchases of cocaine base from dealers, including Afonso. During that time, Green Street gang members made a verified threat to kill police officers in retaliation for the shooting and death of John Parks by Brockton Police Officers in November 2008.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Brockton Police Chief John Crowley made the announcement. Assistant U.S. Attorney Glenn A. MacKinlay, Chief of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Bergen County, New Jersey, Man Sentenced to 63 Months in Prison for Purchasing Live Webcam Shows of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Wallington, New Jersey, man was sentenced today to 63 months in prison for purchasing live child sex shows from individuals overseas, U.S. Attorney Craig Carpenito announced.
Stephen Hallett, 67, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with receipt of child pornography. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court.
Hallett purchased live child sex shows from individuals located in the Philippines. He admitted that on Feb. 4, 2015, he received a webcam transmission of a minor engaging in sexually explicit conduct. Hallett also admitted purchasing live webcam shows of children engaging in sexually explicit conduct on dozens of occasions between 2013 and 2015.
In addition to the prison term, Judge McNulty sentenced Hallett to five years of supervised release and imposed a $5,000 Justice for Victims of Trafficking Act assessment.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Co-Chief of the U.S. Attorney’s Public Protection Unit in Newark.
Baltimore BGF Gang Member Sentenced to over 7 Years in Federal Prison for a Racketeering Conspiracy Related to His Gang ActivitiesRead the Press Release
Baltimore, Maryland – Chief United States District Judge James K. Bredar sentenced Joseph Laurence Bonds, a/k/a/ Joe, a/k/a Yo Gotti, age 36, to 90 months in prison, followed by five years of supervised release, for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (BGF) gang’s Greenmount Avenue Regime.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Maryland Attorney General Brian E. Frosh; and Baltimore City State’s Attorney Marilyn Mosby.
According to Bonds’ plea agreement, he was a member of an organization known as the BGF Greenmount Avenue Regime, a violent set, or “bubble,” of BGF. During the early years in which it operated, the gang called itself the Young Guerilla Family, or YGF, and consisted mostly of younger people who lived in the 2200, 2300, and 2400 blocks of Barclay Street and Guilford Avenue. YGF members sold drugs throughout the Greenmount Avenue corridor and committed murders, shootings, and armed robberies. In about mid-2007, YGF members took the BGF oath and became the BGF Greenmount Avenue Regime.
Bonds admitted that the BGF Greenmount Avenue Regime continued to sell drugs and commit violent acts, including murders, shootings, and robberies, and by mid-2013 controlled the roughly rectangular area bordered by Greenmount Avenue to the east; Guilford Avenue to the west; 25th Street to the north; and Federal Street to the south, as well as certain offshoots east of Greenmount Avenue, including Mund Park and Cokesbury Avenue.
Bonds admitted that between 2005 and 2016, he conspired with members of the BGF Greenmount Avenue Regime to distribute crack cocaine, powder cocaine, and marijuana in furtherance of the gang. According to his plea agreement, on June 6, 2008, Bonds and another BGF member possessed cocaine with the intent to distribute it, and had $390 in cash. Bonds further admitted that on July 20, 2005, another member of the gang used a .32-caliber revolver belonging to Bonds to murder someone. Bonds later took the revolver back. On October 23, 2013, Bonds possessed a loaded .357 revolver. Bonds knew that he was prohibited from possessing a firearm or ammunition as a result of previous felony convictions.
Eight co-defendants, also members of the BGF gang, have previously pleaded guilty or were found to be guilty after trial of racketeering and drug trafficking laws. Seven of them have been sentenced, including the leader of the gang, Gerald Thomas Johnson, a/k/a “Geezy,” age 35; and Kenneth Jones, a/k/a “K-Slay”, and “Slay,” age 30, who were each sentenced to life in prison.
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.
United States Attorney Robert K. Hur commended the ATF, the FBI, the Baltimore Police Department, the Maryland Attorney General’s Office, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Peter J. Martinez and Christina Hoffman, who prosecuted the case.
Attorney General Sessions Announces Operation Synthetic Opioid SurgeRead the Press Release
Concord – Attorney General Jeff Sessions and U.S. Attorney Scott W. Murray yesterday announced Operation Synthetic Opioid Surge (S.O.S.), a new program that seeks to reduce the supply of deadly synthetic opioids in high impact areas and to identify wholesale distribution networks and international and domestic suppliers.
As part of Operation S.O.S., the Department will launch an enforcement surge in ten districts with some of the highest drug overdose death rates, including the District of New Hampshire. New Hampshire has experienced record numbers of deaths from fentanyl overdoses and has one of the highest per-capita overdose death rates in the United States.
Each participating United States Attorney’s Office will choose a specific county and prosecute every readily provable case involving the distribution of fentanyl, fentanyl analogues, and other synthetic opioids, regardless of drug quantity. The surge will involve a coordinated DEA Special Operations Division operation to insure that leads from street-level cases are used to identify larger scale distributors. Operation S.O.S. was inspired by a promising initiative of the United States Attorney’s Office in the Middle District of Florida involving Manatee County, Florida. In New Hampshire, the U.S. Attorney’s Office will focus its efforts on Hillsborough County. This county, which includes Manchester and Nashua, has the highest number of overdose deaths in the state. The program is expected to be initiated in the near future.
"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."
“The opioid crisis has had a devastating impact on New Hampshire, taking promising young lives and damaging our communities,” said U.S. Attorney Murray. “I am grateful to the Attorney General for his ongoing commitment to assist our state’s efforts to respond to this issue. Through Operation S.O.S., we will be able to enhance our aggressive efforts to identify and prosecute those who are distributing fentanyl and other deadly opioids in the Granite State. We look forward to partnering with the Hillsborough County Attorney’s Office and all of the law enforcement agencies operating in that county to implement this program. Working together, we can ensure that fentanyl dealers are required to face justice in federal court.”
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. In addition to New Hampshire, the following districts also will receive additional prosecutors:
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
Eastern District of California
Western District of Pennsylvania
Operation S.O.S. is based upon successful prosecution efforts in the Middle District of Florida. Aggressive prosecutions of synthetic opioid traffickers in Manatee County resulted in a 77.1 percent reduction in overdoses and a 74.2 percent reduction in deaths.
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6 Defendants Charged in Federal Investigation Targeting Narcotics Sales in RockfordRead the Press Release
CHICAGO — Six individuals are facing federal criminal charges as part of an investigation into heroin and crack cocaine sales in the Rockford area.
As part of the probe, law enforcement conducted numerous controlled purchases of narcotics and conducted extensive physical and video surveillance. Authorities earlier this month searched a residence in the 4400 block of Grinnell Drive in Rockford and discovered distribution quantities of heroin.
The investigation was conducted by the Rockford Area Violent Gang Task Force and the Winnebago County Sheriff’s Police. The Rockford Area Violent Gang Task Force is led by the Federal Bureau of Investigation and includes members of the FBI and the Rockford, Loves Park, and Freeport Police Departments.
A criminal complaint and affidavit filed in U.S. District Court in Rockford charges six defendants with conspiracy to distribute and possess heroin, cocaine, and crack cocaine, with intent to distribute. Several of the defendants were arrested Wednesday. Detention hearings will be held next week in U.S. District Court in Rockford.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Gary Caruana, Winnebago County Sheriff. The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in the investigation. Assistant U.S. Attorney Talia Bucci represents the government.
“The charges in this case send a clear message that the distribution of illegal drugs in Rockford will not be tolerated,” said U.S. Attorney Lausch. “I commend our federal and local law enforcement partners for working together to shut down a significant drug trafficking organization.”
“These arrests and seizures demonstrate our overall strategy and relentless determination to eradicate the drug-fueled gang violence plaguing our community,” said FBI Special Agent-in-Charge Sallett. “We are proud to work side by side with the U.S. Attorney’s Office, the Rockford Area Violent Gang Task Force, and the Winnebago County Sheriff’s Office to bring these individuals to justice. Anyone who terrorizes our communities with their wanton drug dealing should know, we are coming for you.”
Winnebago County Sheriff Caruana thanked all law enforcement partners for their unselfish work to bring this case to a successful conclusion. “This operation makes the Winnebago County region a safer community and showcases Cooperative Law Enforcement,” Sheriff Caruana said.
According to the complaint, TYJUAN ANDERSON, 35, of Rockford, operated a drug-trafficking organization that distributed narcotics in the Rockford area. The complaint alleges that Anderson and other members of his crew, including CHRISTOPHER ARNOLD, 33, of Rockford, and LUMONT JOHNSON, 45, of Rockford, obtained narcotics from multiple suppliers and provided the drugs to other members of Anderson’s organization. The charges allege that CLEVELAND JOHNSON, 38, of Rockford, and DAVID APPLETON, 55, of Rockford, distributed the drugs to customers in the Rockford area.
According to the complaint, Anderson served as a mentor to JUSTIN HILL, 37, of Rockford, on how to operate a successful drug-trafficking business, manage money, and avoid police surveillance. At times when Anderson was low on narcotics, Hill would supply him with drugs to increase Anderson’s inventory, the complaint states.
The conspiracy charge carries a maximum penalty of 20 years in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines. The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
12 July 2018
Westbank Man Sentenced for Scheme to Rob Uptown BanksRead the Press Release
U.S. Attorney Duane A. Evans announced today that ARLANDER CELIUS, age 23, of Marrero, Louisiana, was sentenced to 30 months in the Bureau of Prisons and to be followed by a term of three years of supervised release for his involvement in a plan to rob the Whitney Bank located on South Carrollton Avenue in New Orleans, Louisiana.
On the morning of Wednesday, September 27, 2017, members of the New Orleans Police Department responded to a complaint of an active burglary occurring in uptown New Orleans, Louisiana. Police entered the residence, and discovered CELIUS and his two co-defendants inside of the residence. Law enforcement officers also located a loaded Harrington and Richardson “Pardner” Pump 12 gauge shotgun and a Taurus .38 caliber revolver handgun in the residence, as well as homemade ski masks.
Following a lawful arrest, CELIUS admitted to law enforcement that he had agreed to rob the Whitney Bank with his co-defendants. CELIUS had agreed to serve as a lookout during the robbery, and admitted that the three perpetrators were about to leave the burglarized residence to go rob the bank when the police arrived.
On December 28, 2017, CELIUS pleaded guilty to conspiracy to commit bank robbery with a firearm, in violation of Title 18, United States Code, Sections 371 and 2113, as well as felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g).
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force and officers with the New Orleans Police Department’s Second District. Assistant U.S. Attorney Myles Ranier is handling the prosecution.
Westbank Drug Dealer SentencedRead the Press Release
U.S. Attorney Duane A. Evans announced that TOSH TOUSSAINT, age 27, was sentenced to 62 months in the Bureau of Prisons, with a term of three years of supervised release to follow. TOUSSAINT previously pleaded guilty to one count of possession with the intent to distribute cocaine base, in violation of Title 18, United States Code, Section 841(b)(1)(C), and one count of possession and use of a firearm in furtherance of drug trafficking, in violation of Title 18, United States Code, Section 924(c), on January 25, 2018.
On November 13, 2013, members of the Jefferson Parish Sheriff’s Office and the New Orleans FBI’s Gang Task Force arrested TOSH TOUSSAINT when they found him in possession of approximately 10 grams of cocaine base (crack cocaine) and Taurus 9mm semi-automatic handgun.
The U.S. Attorney wishes to thank the hard work of the FBI’s New Orleans Gang Task Force and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Myles Ranier is in charge of the prosecution.
Weis Markets, Inc. Settles False Claims Act AllegationsRead the Press Release
PITTSBURGH – Weis Markets, Inc. a food retailer based in Sunbury, Pennsylvania, agreed to pay the United States $77,320 to resolve allegations that it violated the False Claims Act by inappropriately using gift cards to induce Medicare and Medicaid beneficiaries to transfer or fill their prescriptions at its affiliated pharmacies, United States Attorney Scott W. Brady announced today.
The settlement resolves allegations that between January 1, 2009, and May 31, 2016, Weis Markets offered and/or provided improper inducements to Medicare and Medicaid beneficiaries in order to influence their decision to transfer or fill their prescriptions at Weis-affiliated pharmacies.
This matter was investigated by the Office of Inspector General of the Department of Health and Human Services. Assistant United States Attorney Rachael L. Mamula handled this matter on behalf of the United States.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Virginia Pharmacist Pleads Guilty to $5 Million Employment Tax FraudRead the Press Release
A Collinsville, Virginia pharmacist pleaded guilty today to failing to account for and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Thomas T. Cullen for the Western District of Virginia.
According to court documents, Jerry R. Harper, Jr., 61, owned and operated Family Discount Pharmacy, Inc. (FDP) in Stanleytown, Virginia, with multiple locations in Stuart, Rocky Mount, Chatham, and Brosville, Virginia. As owner of FDP, Harper was responsible for collecting and paying over FDP’s employment taxes. From 1998 through 2014, FDP accrued employment tax liabilities of more than $5 million. Harper withheld these taxes from FDP employees’ wages, but did not pay the taxes to the Internal Revenue Service (IRS). In over 15 years, Harper only filed one employment tax return with the IRS.
Harper admitted that instead of providing the employment taxes to the IRS, he caused FDP to pay his personal expenses. For example, Harper wired over $1 million to his personal bank account, made over $500,000 in stock market investments, spent over $100,000 on his son’s pharmacy school tuition, and purchased over $370,000 of real property in Virginia and North Carolina. Harper also used part of the money to purchase a Jeep Grand Cherokee and a jet ski.
“Today’s guilty plea sends a clear message that this type of conduct will not be tolerated,” said Principal Deputy Assistant Attorney General Zuckerman. “Employment tax violations represent tens of billions of dollars in lost revenue to the U.S. Treasury and the Justice Department is committed to prosecuting individuals involved in these tax frauds.”
Sentencing is scheduled for October 26, 2018. Harper faces a statutory maximum sentence of 10 years in prison, a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Cullen commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Daniel McGraw and Assistant U.S. Attorney Charlene Day, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
United States Attorney Mike Stuart Announces Unprecedented Growth in SDWVRead the Press Release
ADDITIONAL AUSA POSITION ALLOCATED IN CONJUNCTION WITH OPERATION SYNTHETIC OPIOID SURGE (S.O.S.)
SDWV Receives 1 of only 10 positions in the Country
CHARLESTON, W.Va. – Earlier today, Attorney General Jeff Sessions and U.S. Attorney Mike Stuart today announced Operation Synthetic Opioid Surge (S.O.S.), a new program that seeks to reduce the supply of deadly synthetic opioids in high impact areas and to identify wholesale distribution networks and international and domestic suppliers.
As part of Operation S.O.S., the Department of Justice selected the United States Attorney’s Office for the Southern District of West Virginia (SDWV) as one of only 10 districts in the nation, to launch this important enforcement surge. With Operation S.O.S., a new additional AUSA is being allocated to the District solely to focus on implementing the new surge.
In addition to the new resources of Operation S.O.S., the Attorney General and DOJ previously announced an additional four prosecutors are being allocated to the SDWV. The new prosecutors represent the largest single increase of new prosecutors in the history of the SDWV and the largest percentage increase for any district in the nation.
“In the six months since I became United States Attorney, five additional prosecutors have been allocated to my office,” said United States Attorney Mike Stuart. “It is unprecedented. More new positions than Miami, Pittsburgh, Philadelphia, Phoenix, or many of the largest, fastest growing areas in the country. Literally the largest percentage increase of any district in the entire nation. This is the largest increase of new AUSAs in the history of the SDWV and is a testament to the hard work and accomplishments of my entire team.
The number of cases we are prosecuting, particularly in the area of drugs and violent crimes, have substantially and exponentially increased since I took office. For example, we have seen a nearly 400% and 80% increase in prosecutions of illegal firearms and illicit narcotics, respectively. IT’S BIG! IT’S HUGELY BIG!
With five additional prosecutors, I can assure you this trend will continue and we can dedicate even more resources to our offices in Beckley and Huntington in addition to our growth in Charleston. I am beyond grateful for the trust and confidence the Attorney General and the Department of Justice have demonstrated in my leadership and in the efforts of my staff by awarding the District with such a significant increase in prosecutors.
We are excited by the opportunity to grow the office and bring in even more bright, capable, hard-working attorneys to focus on crime issues important to the citizens of West Virginia.
These are exciting times and maybe the most significant time for law enforcement in the history of southern West Virginia. We are literally shaping the future of law enforcement in this district for at least the next generation.”
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US Attorney Boyce Announces Resignation, Steven Weinhoeft Assumes Role of Acting US AttorneyRead the Press Release
Donald S. Boyce has announced his resignation from the position of United States Attorney for the Southern District of Illinois, effective at midnight on July 21, 2018.
Mr. Boyce was sworn-in as United States Attorney on July 8, 2016, after his appointment by then United States Attorney General Loretta Lynch. Mr. Boyce was later re-appointed United States Attorney by the Judges of the United States District Court for the Southern District of Illinois on October 28, 2016.
Prior to his appointment as United States Attorney, Mr. Boyce had served as an Assistant United States Attorney since 2006, most recently as Chief of the Organized Crime and Drug Enforcement Task Force. Mr. Boyce is also a former St. Louis police officer.
Effective on July 22, 2018, Steven D. Weinhoeft will assume the role of Acting United States Attorney for the Southern District of Illinois. Mr. Weinhoeft has served as an Assistant United States Attorney since 2008, including serving as First Assistant United States Attorney from 2016 to the present. Prior to joining the United States Attorney’s Office, Mr. Weinhoeft served as First Assistant in the Sangamon County, Illinois, State’s Attorney’s Office in Mr. Weinhoeft’s home town of Springfield, Illinois.
U.S. Attorney's Office Hosts Roundtable on Sexual Harassment in HousingRead the Press Release
Tampa, FL - The U.S. Attorney’s Office for the Middle District of Florida (MDFL) and the Justice Department’s Civil Rights Division hosted a roundtable today for community organizations to discuss the problem of sexual harassment in housing, U.S. Attorney Maria Chapa Lopez announced. More than 50 community partners, including local law enforcement agencies, legal aid offices, fair housing organizations, domestic violence centers, housing authorities, and other housing providers from across the MDFL attended. Participants included organizations that often work with vulnerable populations who are most likely to become the victims of sexual harassment in housing.
The Department of Justice, through the various U.S. Attorneys’ Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. Sexual harassment in housing may appear in many forms, including allegations involving individuals who sexually expose themselves to current or prospective tenants, request sexual favors in exchange for reduced rents or making necessary repairs, make unrelenting and unwanted sexual advances to tenants, and evict tenants who resist their sexual overtures.
“Fair housing is a protected right,” said U.S. Attorney Chapa Lopez. “No one should ever have to surrender their dignity in exchange for a place to live. Sexual harassment, intimidation, and the abuse of power and position by landlords, property managers, or their employees should never be used as keys of extortion. Our office is committed to working with our community partners to expose such violations and prosecute them vigorously.”
In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment in Housing Initiative, an effort to combat sexual harassment in housing. On April 12, 2018, Attorney General Jeff Sessions announced the nationwide expansion of that initiative and the formation of a joint task force with the Department of Housing and Urban Development to address this issue. The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of the Justice Department's enforcement efforts among survivors and responsible agencies, and collaborate with federal, state, and local partners to increase reporting, and connect survivors with federal resources.
Through roundtable discussions like those held today, the U.S. Attorney’s Office is working closely with the Civil Rights Division to spread information to local communities about fair housing laws and resources available to victims of sexual harassment in housing. During the meetings, various entities exchange ideas on how to better detect, report, and enforce violations. In addition, various strategies are discussed on how to better share critical resources and strengthen interdisciplinary partnerships throughout central Florida.
Many instances of sexual harassment in housing continue to go unreported. Not only should victims of sexual harassment be aware of the Justice Department’s enforcement efforts, but a concerted effort must be made by the public at-large to encourage others to become involved and report acts of misconduct. In addition to the local authorities, victims should report violations to the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office. The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact them by calling 1-(844) 380-6178 or emailing [email protected].
In support of the Sexual Harassment in Housing Initiative, U.S. Attorney Chapa Lopez has produced Public Service Announcements (PSAs) specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment. (See below to download MDFL PSAs).
Individuals who believe that they may have been victims of a civil rights violation may also file a complaint with the U.S. Attorney's Office.
MDFL Civil Rights Unit
Phone: (813) 274-6095
Email: [email protected]
www.justice.gov/usao-mdfl/civil-rights
U.S. Attorney Davis Announces New Leadership Roles within OfficeRead the Press Release
BOISE – Assistant United States Attorney (AUSA) Nicholas J. Woychick is now the District of Idaho’s Civil Chief, announced U.S. Attorney Bart M. Davis. Previously, AUSA Syrena C. Hargrove served dual roles, as Civil Chief and Appellate Coordinator. She has now assumed the role of Appellate Chief. U.S. Attorney Davis also announced AUSA Joanne P. Rodriguez will serve as an additional Senior Litigation Counsel for the office, joining current Senior Litigation Counsel Raymond E. Patricco who has filled this role since July 2014.
Mr. Woychick has been an AUSA since April 1995. He has served in several roles, including Civil Chief, Senior Litigation Counsel, and Ethics Advisor. He has also been an active civil litigator throughout his tenure with the office, and will continue to litigate cases in addition to filling the role of Civil Chief.
Ms. Hargrove has been an AUSA since March 2008. She served as Appellate Coordinator since 2008 and Civil Chief and Appellate Coordinator since 2010. In her new role, she will expand her work on appeals within the office and will remain part of the management team.
Ms. Rodriguez has been an AUSA since May 1983. A litigator with extensive criminal and civil experience, she has acted as an informal mentor for less experienced AUSAs for years. She will continue her mentoring, in a more formal capacity, as Senior Litigation Counsel. She will also continue to litigate civil cases and will serve on the management team.
“I came into office to find that I have an outstanding staff, including Nick, Syrena, and Joanne,” said U.S. Attorney Davis. “In light of the office’s growth and increasing workload, I am pleased that I am able to have a Civil Chief, Appellate Chief, and additional Senior Litigation Counsel and I am doubly pleased that Nick, Syrena, and Joanne, respectively, have assumed those roles. I look forward to working alongside of them and with the entire management team, going forward.”
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Two-Time Bank Robber Sentenced for Robbing Narragansett BankRead the Press Release
PROVIDENCE, RI – William H. Dority, 56, of South Kingstown, was sentenced on Wednesday to time served plus seven days for robbing a Narragansett bank of $4,635 in November 2017. Dority has been detained since his arrest on November 28, 2017.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Dority to serve 2 years supervised release upon completion of his term of incarceration. Dority pleaded guilty on April 2, 2018, to a charge of bank robbery.
The U.S. Sentencing Guideline imprisonment range in this matter is 37- 46 months. As stipulated in a plea agreement filed with the court, both the government and the defense recommended the court impose a sentence of 37 months incarceration.
According to information presented to the court, on November 28, 2017, Dority entered a Centerville Bank branch office in Narragansett, handing the teller a note demanding cash. As Dority fled, a panic alarm was sounded and a 911 call from another employee resulted in a rapid response by members of the Narragansett Police Department. An alert Department of Environmental Management K-9 (“Bear”), brought in to assist Narraganset Police in the search for the robber, located Dority hiding in a shed not far from the bank about 30 minutes later.
At the time of Dority’s arrest, police recovered $4,615 from the shed.
According to court records, Dority was convicted of bank robbery by force in May 1993 in Virginia, and sentenced to a total of 45 years in prison, 30 years suspended with probation. Dority was on probation at the time of his arrest for robbing the Centerville Bank branch office in Narragansett.
Dority’s sentence is announced by United States Attorney Stephen G. Dambruch, Narragansett Police Chief Sean Corrigan, and Special Agent in Charge of the FBI Boston Division Harold H. Shaw.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
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Two Thomasville Residents Plead Guilty to Possession with the Intent to Distribute CocaineRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Gina Curry age 35, and Ronnie Jones, age 37, both of Thomasville, Georgia, plead guilty on July 12, 2018, to possession with the intent to distribute cocaine in violation of 21 USC §§ 841(a)(1) and 841(b)(1)(C). The pleas were entered before the Honorable Hugh Lawson, Senior United States District Court Judge in Valdosta, Georgia. Their pleas subject both Ms. Curry and Mr. Jones to maximum sentences of twenty (20) years, a maximum fine of $1,000,000.00, or both, a term of supervised release of three (3) years, and $100 mandatory assessment fee.
The facts contained in the defendants’ plea agreements revealed that on August 2, 2016, law enforcement agents spoke with Gina Curry, who informed them that Ronnie Jones, a/k/a “Dank,” stored cocaine and cash inside her home and that some cocaine was currently there. Prior to this meeting, agents had monitored a court-authorized wiretap on a phone used by Ronnie Jones. In so doing, agents had heard many calls regarding Jones storing cocaine at Curry’s residence or in which Jones directed Curry to deliver drugs to him or to his customer. The agents executed a search warrant at 1111 Roberts Street, Pavo, Thomas County, Georgia. Inside the residence, agents located $11,818.00 in U.S. Currency, 51.5 grams of cocaine base, 273.8 grams of powder cocaine, a Highpoint handgun and items indicating that cocaine base had been manufactured inside the residence and packaged for resale. These items included such things as baking soda, cups, mugs and baggies, all of which tested positive for cocaine residue. The weights and chemical compositions of the cocaine and crack cocaine mentioned above were confirmed by laboratory analysis.
“Cocaine and its evil derivative, cocaine base or ‘crack,’ continue to be major drugs of abuse in the Middle District of Georgia. My office and the Drug Enforcement Administration will continue to investigate and prosecute these cases to the fullest extent possible in order to reduce and eradicate the scourge of illegal drug use in our communities,” said United States Attorney Peeler.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Trump Administration Completes Reunification for Eligible Children Under 5Read the Press Release
HHS Secretary Alex Azar, DHS Secretary Kirstjen Nielsen, and Attorney General Jeff Sessions issued the following joint statement regarding reunification efforts for eligible children under 5 years old:
“Dedicated teams at the Departments of Health and Human Services, Homeland Security, and Justice have worked tirelessly to ensure the safety of Ms. L class members. As of this morning, the initial reunifications were completed. Throughout the reunification process, our goal has been the well-being of the children and returning them to a safe environment. Our agencies’ careful vetting procedures helped prevent the reunification of children with an alleged murderer, an adult convicted of child cruelty, and adults determined not to be the parent of the child. Of course, there remains a tremendous amount of hard work and similar obstacles facing our teams in reuniting the remaining families. The Trump administration does not approach this mission lightly, and we intend to continue our good faith efforts to reunify families.
“Certain facts remain: The American people gave this administration a mandate to end the lawlessness at the border, and President Trump is keeping his promise to do exactly that. Our message has been clear all along: Do not risk your own life or the life of your child by attempting to enter the United States illegally. Apply lawfully and wait your turn.
“The American immigration system is the most generous in the world, but we are a nation of laws and we intend to continue enforcing those laws. Establishing the immigration system demanded of our political leaders by the American people for more than 30 years—one that serves the national interest—will allow our nation to further realize the foundation of freedom, safety, and prosperity we inherited from our Founders.”
Below are more details on HHS, DHS, and DOJ progress on reunification, as of 7 a.m. EST, July 12, 2018:
There are 103 children under age 5 covered by the court case. Of the 103 children:
- 57 children have been reunified as of 7 a.m. EST on July 12; and
- 46 children were acknowledged by the court to be ineligible for reunification or determined by HHS, DHS, and DOJ to be ineligible under court-approved criteria.
Of those 46 ineligible for reunification:
22 children have been found ineligible due to safety concerns posed by the adults in question:
- 11 adults have a serious criminal history (charges or convictions for child cruelty, kidnapping, murder, human smuggling, domestic violence, etc.);
- 7 adults were determined not to be a parent;
- 1 adult had a falsified birth certificate;
- 1 adult was alleged to have abused the child;
- 1 adult planned to house the child with an adult charged with sexually abusing a child; and
- 1 adult is being treated for a communicable disease.
24 children are not currently eligible for reunification due to circumstances of the adults in question:
- 12 adults have been deported and are being contacted;
- 9 adults are in custody of the United States Marshals Service for other offenses;
- 2 adults are in custody of state jails for other offenses; and
- 1 adult's location has been unknown for over a year.
Three Sentenced for Tax Fraud and Identity TheftRead the Press Release
VALDOSTA: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Saferia Johnson, age 34, formerly of Valdosta, Georgia; Leo McGill, age 51, of Valdosta, Georgia; and Detrone Middleton, age 38, of Douglas, Georgia, were sentenced on July 11, 2018, by the Honorable Hugh Lawson, Senior United States District Judge for aggravated identity theft and for involvement in a fraudulent income tax fraud scheme seeking more than $2 million in refunds. Ms. Johnson and Mr. McGill were each sentenced to serve 70 months in federal prison and Mr. Middleton was sentenced to serve 64 months in federal prison. The defendants were also sentenced to jointly pay the Internal Revenue Service $1,498,776 in restitution. There is no parole in the federal system.
In 2012, the Internal Revenue Service-Criminal Investigations (IRS-CI) began an investigation after receiving information that a number of accounts controlled by the three co-defendants and others had received a large number of federal tax refund deposits issued in the name of people other than the owners of the bank accounts. IRS-CI identified individuals whose identities had been used on the returns in question and determined that Ms. Johnson, Mr. McGill and Mr. Middleton were involved in a scheme where fraudulent federal incomes tax returns were filed for tax years 2010 and 2011 and refunds deposited into 45 separate bank accounts.
The defendants admitted to filing approximately 984 fraudulent returns using stolen identities (many being those of minors) for tax years 2010 and 2011. The fraudulent returns, which were filed without the knowledge or permission of the individuals whose identities had been stolen, sought total refunds of $2,082,275.00. Refunds totaling $1,498,776.00, the restitution amount ordered, were actually paid. Both Mr. McGill, and Mr. Middleton admitted that those amounts were received by them or their associates.
“The sentences imposed on these three defendants bear witness to the fact that easy money means hard time in the federal criminal justice system. Stealing from the government is stealing from the American people, and it is made all the more despicable by using the identities of children to do it,” said United States Attorney Peeler.
This case was investigated by the Internal Revenue Service–Criminal Investigations. Assistant United States Attorney Robert D. McCullers is prosecuting the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Three Individuals Arrested Based on 15 Pound Heroin Seizure at U.S. Border Patrol Checkpoint in Alamogordo, New MexicoRead the Press Release
ALBUQUERQUE – This morning in federal court in Las Cruces, N.M., three individuals made their initial appearances on heroin trafficking charges arising out of the seizure of more than 15 pounds of heroin at a U.S. Border Patrol checkpoint in southern New Mexico on July 10, 2018. The three defendants are temporarily detained pending preliminary hearings and detention hearings, which have yet to be scheduled.
Goretty Aguirre, 18, a Mexican national, and Mario Chavez, Jr., 18, and Nicholas Ramon Diaz, 18, both of El Paso, Texas, are charged in a criminal complaint with conspiracy and possession of heroin with intent to distribute. According to the criminal complaint, U.S. Border Patrol Agents arrested the defendants on July 10, 2018, after seizing approximately seven kilograms (15.43 pounds) of heroin allegedly concealed in a vehicle driven by Chavez and in which Aguirre and Diaz were passengers. The agents allegedly found the heroin while inspecting Chavez’s vehicle at the U.S. Border Patrol checkpoint near Alamogordo, N.M., in Otero County, N.M.
If convicted of the charges in the criminal complaint, Aguirre, Chavez and Diaz each face a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA. Special Assistant U.S. Attorney Joni Autrey of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Tennessee Man Pleads Guilty to Filing False Retaliatory Lien and Making A False Claim for Tax RefundRead the Press Release
A Rogersville, Tennessee resident pleaded guilty today to filing a fraudulent multi-million dollar lien against a government employee and filing a false claim for a tax refund, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Brian Leo Snow failed to pay his federal tax liabilities for the years 2000 – 2008 and then became the subject of collection activity by the Internal Revenue Service (IRS). After being held in contempt of court for failing to provide documents and records to the IRS, Snow filed false retaliatory liens claiming that various government officials, including an IRS revenue officer, an Assistant United States Attorney, and a United States District Court Judge for the Eastern District of Tennessee owed him millions of dollars. Each of these government officials had been involved in attempts to collect Snow’s back taxes. Snow also filed three false claims with the IRS claiming over $144 million in tax refunds to which he was not entitled. Snow owes the IRS over $150,000 in taxes.
Sentencing is scheduled for November 28, 2018. Snow faces a statutory maximum sentence of fifteen years in prison. He also faces a term of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of the offices of Treasury Inspector General for Tax Administration and IRS Criminal Investigation, who conducted the investigation, and Tax Division Senior Litigation Counsel Jen E. Ihlo and Trial Attorney Jason M. Scheff, who are prosecuting the case.
Tennessee Man Indicted on Federal Charges in Cyberstalking and Identity Theft CaseRead the Press Release
WASHINGTON – Andrew T. Maliska, 27, of Nashville, Tennessee, has been indicted by a federal grand jury in the District of Columbia following an investigation into the creation and circulation of doctored images, related postings, and the personal information of the victim.
The announcement was made by U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Maliska was indicted by a grand jury on one count of cyberstalking and indicted on two counts of identity theft. The indictment, which was unsealed today, was returned on May 24, 2018, in the U.S. District Court for the District of Columbia.
According to the indictment, Maliska resided in the District of Columbia from September 2009 until June 2013, where he studied at a local university and met the victim. The indictment alleges that in 2013 and 2015, during the course of his friendship with the victim, Maliska without authorization, accessed and obtained non-sexual images from the victim’s social media accounts. According to the indictment, Maliska then doctored those images to sexualize them and posted them on various online forums.
The indictment alleges that Maliska also posted the victim’s name, phone number, and address on an escort website in May of 2015. This posting resulted in the victim receiving multiple inquiries from individuals seeking escort services from her. The indictment further alleges that the nature of the other postings were pornographic, racist, and defamatory.
The victim and her family filed a civil suit against Maliska in October of 2015. The following year, the victim and her family obtained a civil settlement in which Maliska acknowledged the postings and content were authored by him, stated he would remove the content, and agreed that he would refrain from engaging in further defamatory postings of the victim.
As alleged in the indictment, in August 2017, after Maliska entered into the civil settlement, he continued to commission sexual images of the victim, posted about the victim, and reactivated a fake social media account in her name. The indictment alleges that Maliska used the victim’s name, biographical information, and images to create the fake social media account. Maliska used the fake social media account to befriend and communicate with others online.
Maliska was arrested on May 31, 2018. He made his first appearance on May 31, 2018, in the U.S. District Court for the Middle District of Tennessee. He pled not guilty to the charges and was detained pending his initial appearance in the District of Columbia. He made his initial appearance today in the U.S. District Court for the District of Columbia. He was released pending further court proceedings.
The charge of cyberstalking carries a statutory maximum of five years in prison and potential financial penalties. The charge of identity theft carries a statutory maximum of five years’ incarceration and potential financial penalties.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorneys Youli Lee and Sumit Mallick of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Assistant U.S. Attorney Byron Jones of the U.S. Attorney’s Office of the Middle District of Tennessee and Bianca Evans, formerly of the U.S. Attorney’s Office for the District of Columbia.
Tax Preparer Admits Conspiring to File False Income Tax ReturnsRead the Press Release
TRENTON, N.J. – A former employee of Tax Pro’s and Tax Solutions & Associates, tax preparation businesses located in Essex and Union counties, admitted today to conspiring to defraud the United States by filing false income tax returns, U.S. Attorney Craig Carpenito announced.
Tony V. Russell 47, of Stone Mountain, Georgia, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to Count One of an indictment charging him with conspiracy to defraud the IRS.
Two members of the conspiracy have previously pleaded guilty to their roles in the fraud and await sentencing. Damien Askew, 39, of Union, New Jersey, pleaded guilty June 6, 2017, to conspiracy to defraud the IRS and filing a false federal personal income tax return. Rudolph Sanders, 41, of Newark, New Jersey, pleaded guilty May 10, 2018, to conspiracy to defraud the IRS.
Two other members of the conspiracy, Joseph Kenny Batts, 49, of Elkridge, Maryland, and Angelo K. Thompson, 38, of Reistertown, Maryland, were arrested April 17, 2018, on charges of conspiracy to defraud the IRS and aiding and assisting in the preparation of false federal income tax returns.
According to documents filed in this and related cases and statements made in court:
From at least 2009 to April 2015, Batts was co-owner, along with Askew, of Tax Pro’s, a tax return preparation and payroll business in Essex County, where Russell, Sanders, Batts, Thompson, and Askew prepared tax returns. To boost their business, the defendants conspired to falsify their clients’ federal income tax returns to generate refunds from the IRS in amounts that their clients were not entitled to receive. Russell, Sanders, Batts, Thompson, and Askew inflated tax refunds by fabricating and inflating credits for education and childcare; deductions, such as charitable contributions and unreimbursed employee expenses; and business losses.
Russell and other members of the conspiracy also permitted Batts to use their Preparer Tax Identification Numbers (PTIN) – the identification number that paid tax preparers are required to place on tax returns they have prepared – when preparing tax returns to conceal Batts’ identity as the actual tax return preparer; Batts had a prior federal tax fraud conviction.
After law enforcement executed a search warrant at Tax Pro’s in April 2015, Batts discontinued Tax Pro’s and opened Tax Solutions and Associates in Union, where Russell, Thompson, and Batts continued preparing false federal income tax returns.
By fraudulently inflating the amounts of the tax refunds, Batts, Askew, Thompson, Russell, and Sanders caused a total tax loss to the IRS of approximately $900,000.
The conspiracy charge carries a maximum potential penalty of five years in prison. The aiding and assisting in the preparation of a false return charge and the filing a false return charge both carry a maximum potential penalty of three years in prison. All offenses carry a statutory maximum fine equal to the greatest of $250,000 or twice the pecuniary gain by the defendant or loss by any victims. Russell’s sentencing is scheduled for Nov. 29, 2018.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Cari Fais and Jihee Suh of the Special Prosecutions Division.
The charges and allegations against Batts and Thompson are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Statement of U.S. Attorney Geoffrey S. Berman on the Conviction of Buffalo Billion DefendantsRead the Press Release
Manhattan U.S. Attorney Geoffrey S. Berman said: “The inscription, ‘The true administration of justice is the firmest pillar of good government,’ is set in stone in the New York County courthouse. Those words have never been more poignant for the citizens of New York, as in quick succession less than four months apart they have seen this Office secure convictions in separate prosecutions against the State Assembly Speaker, a close confidant and executive aide to the governor, and now the president of SUNY Polytech, the executive leading the expansive ‘Buffalo Billion’ initiative. The guiding principle of the Southern District holds that true justice can only be achieved through independence from politics or influence, and that has never been more important than today. I commend the career prosecutors of our Public Corruption unit for their enduring commitment to true justice in our government.”
Slater Man Indicted for Transporting a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – A Slater, Mo., man has been indicted by a federal grand jury for transporting a 16-year-old victim across state lines for illegal sexual activity.
Daniel Lee Kirby, 34, was charged in an indictment returned by a federal grand jury in Jefferson City, Mo., on Wednesday, July 11, 2018. The federal indictment replaces a criminal complaint that was filed against Kirby on July 3, 2018.
The federal indictment alleges that Kirby transported an individual under the age of 17 between March 4, 2018, and June 25, 2018, with the intent to engage in sexual activity.
According to an affidavit filed in support of the original criminal complaint, the 16-year-old victim was discovered missing from her bedroom in East Ridge, Tenn., at approximately 1:20 a.m. on March 4, 2018. Kirby was employed as a truck driver with Celadon Trucking, who reported their GPS tracking of Kirby’s rig showed him at a nearby parking lot, with its motor off, at approximately the same time. Kirby denied having contact with the child victim. Celadon Trucking searched Kirby’s rig for the child victim on multiple occasions.
On June 25, 2018, law enforcement received information that the child victim was living with Kirby in Slater. She was located with Kirby, who was arrested, and placed into emergency foster care by the Missouri Department of Social Services Children’s Division.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Slater, Mo., Police Department, the FBI and the State Technical Assistance Team.
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."