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13 July 2018
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.”
Follow us on Twitter: SDWVNews
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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."
Singaporean Shipping Company to Pay $1 Million Fine for Oil Tank Vessel PollutionRead the Press Release
HONOLULU – Earlier today, U.S. District Court Judge Helen Gillmor sentenced Hai Soon Ship Management, a Singaporean shipping company, to pay a fine of $1 million and serve a two-year term of probation for charges stemming from its the failure to maintain an accurate oil record book in violation of the Act to Prevent Pollution from Ships (APPS), and false statements concerning the illegal dumping of oil contaminated bilge water at sea. The company pled guilty to the charges on June 14, 2018. Pursuant to its plea agreement with the U.S. Attorney’s Office, Hai Soon Ship Management’s vessels operating in U.S. waters will be required to comply with a comprehensive environmental compliance plan that provides for regular inspections under the supervision of an independent auditor.
According to court documents and information presented in court, Hai Soon Ship Management is the operator of the 3,878 gross ton oil tank vessel called the Hai Soon 39. The Hai Soon 39 provided refueling services to fishing vessels operating at sea. International and U.S. law require that vessels like the Hai Soon 39 use pollution prevention equipment to prevent the discharge of oil-contaminated bilge into the sea. Should any overboard discharges occur, they must be recorded in an oil record book, a log that is inspected by the U.S. Coast Guard. In October of 2017, the Chief Engineer of the Hai Soon 39, along with other engine room staff, constructed a hose in the engine room to bypass the ship’s pollution prevention equipment, including its oil water separator, and pump oily waste directly overboard. The resultant discharges were never recorded in the ship’s oil record book, as required by APPS, and the Chief Engineer made false entries in the oil record book to make it appear that the discharges had been routed through the oil water separator when in fact they had not.
“The marine environment that surrounds the Hawaiian Islands is unique, and part of the Islands’ natural beauty,” said U.S. Attorney Kenji M. Price. “This Office will continue to work with the U.S. Coast Guard and use every tool at its disposal to bring to justice those who violate the law by polluting the sea.”
As part of its sentence, Hai Soon Ship Management will be placed on a two-year term of probation that includes the environmental compliance plan to ensure, among other things, that all of the ships the company operates that come to the United States fully comply with all applicable marine environmental protection requirements established by national and international laws. The compliance plan will be implemented by an independent auditing company and supervised by a court-appointed monitor.
The case was investigated by the U.S. Coast Guard’s Investigative Service and prosecuted by Assistant U.S. Attorneys Ken Sorenson and Amalia Fenton.
Shreveport tax preparer sentenced to 36 months in prison for filing false tax returns for self, customersRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a woman who owned a Shreveport tax preparation business was sentenced Wednesday to three years in prison for filing false tax returns for herself and her clients.
Deborah A. Turner, 47, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of making and subscribing a false tax return and one count of aiding and assisting in making and subscribing a false return. She was also sentenced to one year of supervised release and ordered to pay $128,828 restitution. According to the January 22, 2018 guilty plea, Turner owned Tax Express Refund, a tax preparation business located in Shreveport. The IRS revoked her Electronic Filing Identification Number (EFIN) in January 2014, but she instead started using her daughter’s EFIN to continue filing tax returns. She filed numerous tax returns for clients for tax years 2011 to 2013 containing false information so they could claim deductions, credits and expenses to increase the size of their refunds. She also filed a false individual tax return for tax year 2013 where she failed to report $336,865 of income she received from her business.
“Those who file federal taxes on the behalf of others have a responsibility to follow the law and conduct business honestly and ethically,” Joseph stated. “I want to thank the IRS agents and prosecutors assigned to this case for their hard work in holding this tax preparer accountable.”
“As a paid preparer, Deborah Turner was afforded a high level of trust from both her clients and the United States government,” Special Agent in Charge, Thomas J. Holloman, III, IRS – Criminal Investigation Atlanta Field Office, stated. “Turner violated that trust when she filed false income tax returns for herself and others, earning herself significant jail time. IRS - CI will continue to pursue the prosecution of return preparers who engage in the same or similar criminal activities.”
IRS-Criminal Investigations conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath and Supervisory Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Shreveport felon sentenced for possession of pistolRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that a Shreveport felon was sentenced to 57 months in prison for illegally possessing a pistol after being convicted of multiple felonies.
Gabriel Jones, 37, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release. According to the January 26, 2018 guilty plea, Shreveport police officers were executing a warrant for someone else on August 7, 2017 at Jones’ residence. During a search of the residence, police found marijuana in plain view, and they found a Ruger, Model P85, 9 mm pistol, crack cocaine and additional marijuana in the back bedroom closet. The pistol had a 30-round extended magazine inside it. The other occupants of the residence denied ownership of the gun and said it belonged to Jones. Police also searched Jones’ cell phone and found images and data showing the pistol belonged to him.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF, U.S. Marshals Service and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
Sentencings for July 9 & 11, 2018Read the Press Release
JUAN CASTILLO-PADILLA, 24, of Guadalajara, Mexico was sentenced by Federal District Court Judge Nancy D. Freudenthal on July 9, 2018 for conspiracy to distribute heroin. Castillo-Padilla was arrested in Cheyenne, Wyoming. He received sixty months of imprisonment, to be followed by forty-eight months of supervised release. The Wyoming Division of Criminal Investigation and Wyoming Highway Patrol investigated this case.
YONIK ARMENDARIZ-HERNANDEZ, 22, of Mexico was sentenced by Federal District Court Judge Alan B. Johnson on July 11, 2018 for illegal re-entry of a previously deported alien into the United States. Armendariz-Hernandez was arrested in Gillette, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment at the time of deportation. The U.S. Immigration and Customs Enforcement Agency investigated this case.
San Antonio Man Sentenced to Federal Prison for Shooting a U.S. Mail CarrierRead the Press Release
In San Antonio today, a federal judge sentenced 24-year-old Bradley Ahearn to 20 years in federal prison for shooting a U.S. Mail carrier last year in Spring Branch, TX, announced United States Attorney John F. Bash; Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division; and, San Antonio Police Chief William McManus.
In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that Ahearn pay $13,540.88 in restitution and be placed on supervised release for a period of five years after completing his prison term.
On February 22, 2018, Ahearn pleaded guilty to seven a total of seven federal charges including aiding and abetting carjacking; aiding and abetting use of a firearm during a crime of violence; aiding and abetting robbery of U.S. Mail; and, four counts of aiding and abetting assault on a federal officer.
By pleading guilty, Ahearn admitted that on February 11, 2017, he shot a female U.S. Mail carrier as she was delivering mail to a cluster of mailboxes in Spring Branch, TX, because the victim would not give him her cell phone. The victim is still recovering from the gunshot that pierced both of her legs. Ahearn left the scene in the victim’s pickup truck while it still contained the victim’s purse and personal effects as well as a considerable amount of U.S. Mail. According to court records, Ahearn’s co-defendant, 27-year-old Sarah Richford, followed Ahearn in a maroon/brown colored Toyota Venza as he left the scene.
Two days after the shooting, a U.S. Postal Inspector spotted the Toyota Venza at a restaurant near the location of the shooting. The Postal Inspector attempted to initiate an investigative stop, but was unsuccessful as Ahearn fired a handgun in the direction of the federal officer. Ahearn admitted to firing his weapon at the U.S. Postal Inspector and another federal agent during a subsequent 19-mile-long, high-speed pursuit. Ahearn and Richford managed to avoid capture.
According to court records, on February 14, 2017, employees of a local motel notified investigators of the presence of a large amount of U.S. Mail and a handgun case in one of the motel rooms. Much of the discovered mail, originating from locations across the country, was destined for addresses in the Spring Branch, TX area. That same day, not far from the motel, investigators recovered the abandoned Toyota Venza. From motel surveillance footage, investigators discovered Ahearn, Richford and 41-year-old Piper Lee leave the motel in Lee’s yellow Volkswagen and requested San Antonio police to initiate a stop of the vehicle. While failing to yield to SAPD officers, Ahearn began shooting at the police officers and another high-speed pursuit ensued. Ultimately, the defendants abandoned their vehicle inside a parking garage of a local mall and managed to elude capture by law enforcement.
On February 15, 2017, San Antonio police officers, acting on information provided to investigators, arrested Ahearn, Richford and Lee without incident in a parking lot of a different local motel.
Richford, who remains in federal custody, is scheduled to be sentenced on September 6, 2018. She faces 20 years in federal prison after pleading guilty on February 23, 2018, to five charges--aiding and abetting carjacking; aiding and abetting use of a firearm during a crime of violence; aiding and abetting robbery of U.S. Mail; and, two counts of aiding and abetting assault on a federal officer.
Lee, who also remains in federal custody, is charged with two counts of aiding and abetting the assault of a federal officer; one count of aiding and abetting use of a firearm during a crime of violence; and, one count of possession of stolen mail. He is currently set for jury selection on August 20, 2018, before Chief U.S. District Judge Orlando L. Garcia.
It is important to note that an indictment is merely a charge and should not be evidence of guilt. A defendant is considered innocent until proven guilty in a court of law.
The U.S. Postal Inspection Service together with the San Antonio Police Department, Texas Department of Public Safety, Texas Rangers, Comal County Sheriff’s Office, Bulverde Police Department, Federal Bureau of Investigation, U.S. Marshals Service and Homeland Security Investigations (HSI) investigated this case. Assistant United States Attorneys Bettina Richardson and Christina Playton are prosecuting this case on behalf of the Government.
Rome Man Sentenced to More than 15 Years in Prison for Drug Trafficking ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Eugene James, age 34, of Rome, New York, was sentenced today to serve 188 months incarceration in connection with his guilty plea to federal drug trafficking charges, announced United States Attorney Grant C. Jaquith and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division. The Court further ordered James to serve a term of supervised release of 8 years following his release from prison, and to forfeit a money judgment of $90,000.00.
As part of his guilty plea, the defendant admitted that, for more than a year from 2016 into 2017, he was involved in a conspiracy to distribute cocaine, heroin, and crack cocaine in Oneida County. The defendant further admitted that he, and others working at his direction, made multiple trips to drug suppliers in New York City and Long Island, New York; and that on other occasions, the defendant’s suppliers traveled to the Utica, New York, area to deliver drugs to James. In total, the defendant trafficked multiple kilograms of cocaine, as well as additional quantities of heroin and crack cocaine.
This case was investigated by the U.S. Drug Enforcement Administration (DEA), the Oneida County Sheriff’s Office, the New York State Police, the Nassau County District Attorney’s Office, the Nassau County Police Department, the City of Rome Police Department, and the Utica Police Department, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Richardson Homes Owner Receives Three Years in Prison for Theft and Gun OffensesRead the Press Release
OKLAHOMA CITY – DENNIS LEE, 45, of Nichols Hills, has been sentenced to 36 months in federal prison for possession of stolen property that crossed a state boundary and possession of a firearm after a felony conviction, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
A five-count indictment filed on June 20, 2017, alleged Lee was involved in the theft of motor vehicles and other items from Texas, Kansas, Missouri, and Nebraska. Those involved in the theft were alleged to have transported the stolen property to the Oklahoma City area, where they "fenced" it for profit. According to the indictment, some of the property was stored at Lee’s business, Richardson Homes, LLC, on South Portland Avenue in Oklahoma City. Count Two charged Lee with receiving, possessing, concealing, and storing a stolen tractor in September 2016. Lee was charged in Count Five with being a felon in possession of firearms. It also alleged Lee had been convicted of a crime punishable by one year or more in prison, which made it a federal felony for him to possess a firearm. According the indictment, Lee possessed eighteen guns, including revolvers, shotguns, and rifles.
Lee pleaded guilty to both of these counts on November 3, 2017.
Today U.S. District Judge David L. Russell sentenced Lee to 36 months in prison, to be followed by two years of supervised release. Lee will be required to pay restitution to victims in an amount to be determined later and will forfeit sixteen firearms. In imposing the 36-month sentence, the court noted that Lee participated in theft over a period of time rather than on one occasion.
This case is the result of an investigation by the FBI Major Theft Task Force, the Oklahoma Department of Agriculture, Food & Forestry Investigative Service ("ODAFF"), and the Oklahoma City Police Department. The Major Theft Task Force consists of the FBI, ODAFF, the Oklahoma State Bureau of Investigation, and the Garvin County Sheriff’s Office. Assistant U.S. Attorney Edward J. Kumiega prosecuted the case.
Reference is made to court records for further information.
Renee Tartaglione Sentenced to 82 Months in Federal Prison for Fraud Scheme that Looted Millions of Dollars from Nonprofit ClinicRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that the former president of a mental health clinic was sentenced today to 82 months in federal prison for perpetrating a multiyear fraud scheme through which the defendant stole over two million dollars that was supposed to be spent to help some of the most at-risk individuals in her community.
Over a year ago, on June 23rd, 2017, a jury found Renee Tartaglione, 62, of Philadelphia, PA, guilty on 53 counts of conspiracy, fraud, theft, and tax crimes. In addition to today’s sentence, U.S. District Court Judge Joel H. Slomsky previously ordered Tartaglione to forfeit $2.4 million in proceeds from her scheme and today ordered her to pay $2,076,024 in restitution to the Pennsylvania Attorney General’s Office, which will hold that money in trust until a successor charitable organization can be identified.
“The defendant funneled millions of dollars, meant to help economically disadvantaged people with mental health issues, into her own pockets for her own pleasure,” said U.S. Attorney McSwain. “Nonprofit organizations – especially those that provide important services to the disadvantaged – exist for the people they serve and not for the personal enrichment of their leaders. Tartaglione can contemplate that fact while she sits in prison, where she belongs.”
According to the evidence presented at trial, between 2007 and 2015, Tartaglione, as President of the Board of Directors of the Juniata Community Mental Health Clinic (“JCMHC”), defrauded and stole money from JCMHC through a series of actions designed to benefit her personally at the expense of the clinic. For example, Tartaglione purchased the building on 3rd Street in Philadelphia that housed the clinic and then proceeded to raise the rent repeatedly, causing the clinic’s rent for the 3rd Street building to increase from $4,500 per month to $25,000 per month.
Additionally, as of 2010, Tartaglione’s company, Norris Hancock LLC, acquired an interest in a building on 5th Street in Philadelphia, and Tartaglione caused the clinic to spend money to fix up that building. In December 2012, Tartaglione leased that building to JCMHC under a lease that called for rent of $35,000 per month for the first two years, and $75,000 per month for the next three years. The rent Tartaglione charged the nonprofit clinic at both buildings was wildly in excess of the market rent.
None of the JCMHC rent increases or the lease agreements were approved by JCMHC’s Board of Directors. Tartaglione and her co-conspirators created false and fictitious documents in an attempt to make the transactions appear legitimate.
In previously ordering the forfeiture of proceeds in April 2018, Judge Slomsky ordered the forfeiture to be paid from the proceeds of the sale of Tartaglione’s properties on 3rd Street and 5th Street in Philadelphia, as well as other properties, including two homes at the New Jersey shore.
"Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money as well as skirt their tax obligations," said Guy Ficco, Special Agent in Charge, IRS-Criminal Investigation. “It is time for Renee Tartaglione to face the consequences of her actions, which includes going to prison and being branded a convicted felon for the rest of her life.”
“I am pleased to partner with U.S. Attorney Bill McSwain to investigate, prosecute and root out public corruption wherever we find it,” said Pennsylvania Attorney General Josh Shapiro. “In this case, one of our legal experts provided testimony and will assist in the restitution process. This type of collaboration is key to protecting our democracy and ensuring honest government. I commend U.S. Attorney McSwain for his fine leadership.”
This case was investigated by the FBI, IRS Criminal Investigation, and the Philadelphia Office of the Inspector General, with additional assistance from the Pennsylvania Attorney General’s Office. The case was prosecuted by Assistant U.S. Attorney Bea L. Witzleben and Department of Justice Trial Attorney Peter Halpern.
Quitman Men Sentenced for Credit Card and Bank FraudRead the Press Release
VALDOSTA: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on July 11, 2018, Senior United States District Court Judge Hugh Lawson sentenced Darius Hollis, age 25, of Quitman, Georgia, to 26 months to serve in federal prison and Leon Thomas, Jr., age 28, of Quitman, Georgia, to 24 months to serve in federal prison for their parts in a credit card and bank fraud scheme. Mr. Hollis was also sentenced to pay $130,168.84 in restitution to banks and individuals in Valdosta and Thomasville and national banks that were defrauded. Mr. Thomas was sentenced to pay $28,550.47, jointly with Mr. Hollis, in restitution to one of the out of state banks defrauded.
The investigation in this matter was initiated in September 2016, when the United States Secret Service in Albany, Georgia was contacted by the Louisville, Kentucky Police Department regarding fraudulent money transfers being debited from the Kentucky Fair and Expo Center’s bank account with Fifth Third Bank. The payments were being applied to a Capital One credit card and a Synchrony Bank Belt credit card. Mr. Hollis was the account holder of the Capital One card and Mr. Thomas was the account holder of the Belk card. The investigation revealed that 78 fraudulent payments, totaling more than $40,000, were made by wire transfer from the Kentucky Fair and Expo Center bank account.
The conspiracy also included fraud against financial institutions in South Georgia, including Thomasville National Bank and First Federal Savings and Loan in Valdosta, Georgia. Multiple credit cards were opened by Mr. Hollis under various individuals’ names, and nearly $90,000 in funds from business and individual bank accounts in Valdosta and Thomasville were fraudulently used to pay the amounts due on the credit card accounts.
A total of $130,168.84 in loss, the restitution amount ordered, is attributable to the scheme.
"Mr. Hollis and Mr. Thomas were clever enough to swindle these banks and their customers for a while, but they weren't smart enough to indefinitely elude apprehension and punishment for their misdeeds," said United States Attorney Peeler. "I commend the fine work done by our federal and local law enforcement for unravelling this greed-driven scheme and bringing these defendants to justice."
This case was investigated by the United Stated Secret Service, the Thomas and Lowndes County, Georgia Sheriff’s Offices, and the Louisville, Kentucky Police Department. Assistant United States Attorney Robert D. McCullers 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.
Queens Man Pleads Guilty to Six Gunpoint RobberiesRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Sean Jack pleaded guilty to a Hobbs Act robbery conspiracy and multiple Hobbs Act robberies as well as to brandishing firearms during the commission of robberies. The charges arise from Jack’s role in robbing six gas stations and convenience stores in Queens, New York. Today’s plea took place before United States Magistrate Judge Vera M. Scanlon.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the plea.
“As he has now admitted, Sean Jack participated in numerous armed robberies including one in which an employee of a gas station was pistol-whipped,” stated United States Attorney Donoghue. “Combatting gun-related crime is a priority of this Office and, together with our law enforcement partners, we will work tirelessly to prosecute criminals like the defendant who terrorize hard-working citizens of our community.”
Each of the robberies followed the same pattern. The defendant and a co-conspirator would enter the store or gas station and shop for various items. After bringing their selections to the counter, one of the robbers would brandish a firearm while the second robber would take money from the cash register. In each of the robberies, one or both of the robbers wore a wig.
When sentenced, Jack faces up to life and a minimum of seven years in prison.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys Nicholas Moscow and Erin Reid are in charge of the prosecution.
The Defendant:
SEAN JACK
Age: 36
Jamaica, New YorkE.D.N.Y. Docket No. 17-CR-569 (RRM)
President of Michigan Trucking Business Pleads Guilty to Wire Fraud and Failure to File A Tax ReturnRead the Press Release
The president of a Michigan truck hauling business pleaded guilty today in Detroit federal district court to wire fraud and to willfully failing to file a tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to information presented in open court and filed documents, Arshawn Kenard Hall, a resident of Farmington, Michigan, operated a truck hauling business called RAMA Enterprise, Inc. Hall was hired to transport plastic crates filled with automobile parts on behalf of an automobile company. After transporting the parts, Hall was expected to return the empty crates to a facility in Detroit. Instead, Hall diverted these plastic crates and sold them to a plastic recycling company for approximately $460,000. The actual value of the plastic crates that Hall stole was approximately $2,921,000.
In addition, Hall failed to file a 2012 federal income tax return on behalf of RAMA and failed to pay the taxes due. The tax loss associated with Hall’s conduct is $142,069.
U.S. District Judge Terrence G. Berg scheduled sentencing for November 29, 2018. Hall faces a statutory maximum sentence of twenty years in prison for his wire fraud conviction, and one year in prison for failing to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Abigail Burger Chingos and Kenneth C. Vert, who are prosecuting the case, as well as Tax Division Paralegal Tiffany Thompson.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Pittsburgh Teen Charged with Federal Drug Trafficking and Firearms CrimesRead the Press Release
PITTSBURGH, PA – Daryl Williams has been indicted by a federal grand jury in Pittsburgh for committing drug trafficking and firearm crimes, United States Attorney Scott W. Brady announced today.
The indictment, returned on July 10 and unsealed today, charges Williams, age 19, of Pittsburgh, with possession of a mixture of heroin and para-fluoroisobutyryl fentanyl with intent to distribute on May 6, 2018; possession of a firearm in furtherance of a drug trafficking crime on May 6, 2018; possession of mixtures of heroin and para-fluoroisobutyryl fentanyl, heroin and fentanyl, and heroin with intent to distribute on May 29, 2018; and possession of a firearm in furtherance of a drug trafficking crime on May 29, 2018.
The law provides for a maximum total sentence of not less than 30 years and up to life in prison, and a fine of up to $2,500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime. The Green Tree Police Department, the Pittsburgh Bureau of Police, the Federal Bureau of Investigation, and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Phony “Prince” Charged with Committing Child Sex OffensesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that a Philadelphia man was charged by indictment today with 16 counts of child sex offenses.
David Milliner, 49, was charged with four counts of enticement of a minor to engage in illicit sexual conduct, six counts of manufacture and attempted manufacture of child pornography, one count of transfer of obscene material to a minor, four counts of receipt of child pornography, and one count of possession of child pornography.
The indictment stems from Milliner’s alleged online sexual communications with at least four minor boys, and his inducing the boys to manufacture sexually explicit images of themselves and send them to Milliner. According to the indictment, as part of his scheme to sexually exploit the boys, Milliner allegedly falsely represented himself to be a wealthy prince by the name of Daniel David De’Rothschild, and claimed to be living in Beverly Hills, California. In reality, Milliner was unemployed and living in Philadelphia. Some of Milliner’s victims were as young as eight years of age.
If convicted, Milliner faces a statutory maximum sentence of life imprisonment, a 15-year mandatory minimum term of incarceration, 5 years up to a lifetime of supervised release, a $4,000,000 fine, mandatory restitution to his victims, and $76,600 in special assessments.
The case was investigated by the FBI, the Philadelphia Police Department, and the Wayland, Michigan Police Department. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
Pair Plead Guilty to Distribution of CocaineRead the Press Release
VALDOSTA: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on July 12, 2018, Miguel Angel Lebron-Santana, age 19, of the Bronx, New York, and Aneudy Ortega-Tejada, age 28, of Miami, Florida, pled guilty before Senior United States District Court Judge Hugh Lawson in Valdosta to Possession with Intent to Distribute Cocaine.
At their guilty plea hearing, Mr. Lebron-Santana and Mr. Ortega-Tejada admitted that they were traveling North on Interstate 75 on a La Cubana bus when agents from the Lowndes County Sheriff’s Office and the Drug Enforcement Administration conducted a search of the bus and discovered suitcases belonging to the pair containing approximately 40 kilograms of cocaine.
“I commend the diligence and good work of the Lowndes County Deputies and DEA agents who worked this case. Their efforts show that no matter how clever drug smugglers attempt to be, law enforcement authorities will find them out and bring them to justice,” said United States Attorney Peeler.
The case was investigated by the Lowndes County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Julia C. Bowen 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.
Owner of New Jersey Hedge Fund Sentenced to Six Years in Prison for Wire Fraud and Securities Fraud for Defrauding Investors of $4 MillionRead the Press Release
NEWARK, N.J. – The owner and manager of a New Jersey hedge fund was sentenced today to 72 months in prison for defrauding two investors of $4 million, U.S. Attorney Craig Carpenito announced.
Nicholas Lattanzio, 62, of Montclair, New Jersey, was previously convicted on all counts of an indictment charging him with two counts of wire fraud and two counts of securities fraud following a three-week trial before U.S. District Judge Kevin McNulty, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
From June 2013 through November 2014, Lattanzio orchestrated a large-scale scheme through which he, his hedge fund, the Black Diamond Capital Appreciation Fund L.P. (BD Fund), and several other related entities collected millions of dollars in upfront fees from two unsuspecting corporate investors in exchange for the promise of future loans or investment opportunities that did not materialize. Instead of investing the victims’ money as promised, Lattanzio stole the majority of the funds and used them to pay himself more than $500,000 in salary. He used the money for numerous personal expenses, including the purchase of a $1 million home in Montclair, New Jersey, a new Range Rover, a $10,000 diamond ring, and the payment of $500,000 in credit card debt that he incurred for other personal expenses. Lattanzio lied to the victims about the status of their funds to conceal the scheme and mislead them into believing that their investments were safe.
In addition to the prison term, Judge McNulty sentenced Lattanzio to three years of supervised release and ordered him to pay restitution of $3.93 million.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, for the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Marc P. Berger, and the N.J. Bureau of Securities, within the State Attorney General’s Division of Consumer Affairs, under the direction of Attorney General Gurbir S. Grewal.
The government is represented by Assistant U.S. Attorneys Nicholas P. Grippo and Daniel V. Shapiro of the Economic Crimes Unit, and Assistant U.S. Attorney Peter Gaeta of the Office’s Asset Recovery and Money Laundering Unit.
Nicaraguan National Sentenced for Illegal Re-Entry of a Removed Alien Previously Convicted of a FelonyRead the Press Release
U. S. Attorney Duane A. Evans announced that NORWIN CASTELLON-LOPEZ, age 35, a citizen and national of Nicaragua, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with illegally re-entering the United States having previously been deported as an illegal alien who had been previously convicted of a felony.
According to court documents, CASTELLON-LOPEZ was found in the United States on or about January 11, 2017, after having been previously removed from the United States on December 22, 2010, and October 7, 2015. Further, on August 30, 2010, CASTELLON-LOPEZ was convicted of a felony in Orleans Parish Criminal District Court.
United States District Judge Lance M. Africk sentenced CASTELLON-LOPEZ to a term of imprisonment of thirty months, a term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Evans praised the work of the U. S. Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Michael M. Simpson is in charge of the prosecution.
New London Man Sentenced to 6 Years in Prison for Gun and Drug Offenses, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JAMES BOWERS, 32, of New London, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 72 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and distributing marijuana while on federal supervised release.
According to court documents and statements made in court, on October 6, 2008, BOWERS was sentenced in U.S. District Court in New Haven to 120 months of imprisonment and eight years of supervised release for possession of a firearm by a previously convicted felon and possession with intent to distribute crack cocaine. He was released from federal prison in December 2014.
On June 30, 2016, while BOWERS was on supervised release, law enforcement officers conducted a court-authorized search of BOWERS’ New London residence and seized a loaded .45 caliber handgun, more than one kilogram of marijuana packaged for distribution, other items used to process and package marijuana, and $2,600 in cash. The firearm had been reported stolen in Ohio.
BOWERS has been detained since his arrest on related state charges on June 30, 2016. On February 17, 2017, he pleaded guilty to one count of possession of a firearm by a previously convicted felon, and one count of possession with intent to distribute marijuana.
Judge Chatigny sentenced BOWERS to 60 months of imprisonment for the firearm and marijuana offenses, and a consecutive 12 months of imprisonment for violating the conditions of his supervised release.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Connecticut State Police Statewide Narcotics Task Force-East, which includes members from the Norwich, Groton City and New London Police Departments. The case was prosecuted by U.S. Attorney Durham.
New Hampshire Man Charged with Laundering Money Stolen from Texas RetireesRead the Press Release
Federal and state authorities arrested 34-year-old Lukman Shina Aminu in Manchester, NH, today for his alleged scheme to launder thousands of dollars from multiple fraudulent schemes, including thousands stolen from former Texas state employees retirement plans, announced United States Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Department of Public Safety Director Steven McCraw.
A federal complaint unsealed in Austin today charges Aminu with one count of conspiracy to commit money laundering. The complaint alleges that beginning in June 2017, personally identifiable information (PII) from state employees was used to make changes to their accounts in the Employees Retirement System of Texas internet portal. Bank deposit information on file in the system was changed which re-routed retirement payments to a debit card Aminu controlled. Aminu then used the debit card for cash withdrawals and to purchase money orders which were used for personal expenses and to purchase used vehicles to be shipped overseas to Nigeria and Benin for resale. The complaint also alleges that Aminu received multiple transfers from victims of other schemes on other debit cards that had been opened using their PII. The complaint states that this scheme involving used car purchases and shipments is a common way for perpetrators of fraud in the United States to send money back to Nigeria (in the value of the shipped car), while simultaneously laundering the funds or “cleaning the money” to make the money appear as legitimate income.
Aminu remains in federal custody following his arrest. He is awaiting a detention hearing in the District of New Hampshire and a subsequent transfer to the Austin Division of the Western District of Texas. Upon conviction, Aminu faces up to 20 years in federal prison.
This criminal complaint resulted from a continuing investigation by the FBI and the Texas Department of Public Safety – Public Integrity Unit. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.