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Thursday 24 May 2018
Bridgeport Grocery Store Owner Pleads Guilty to Federal Tax ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that SAMIR FATTAH, 55, of Oxford, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of filing a false tax return.
According to court documents and statements made in court, FATTAH and his father jointly own Abu-Goush Market, doing business as International Farmers Market (“AGM”), a grocery store in Bridgeport. FATTAH was responsible for AGM’s day-to-day operations, including making cash deposits to AGM’s business bank accounts. During 2011, 2012 and 2014, without his father’s knowledge and approval, FATTAH deposited hundreds of thousands of dollars of AGM’s net cash receipts into his personal bank accounts. FATTAH used some of the funds to pay AGM’s business expenses, but embezzled a total of $213,086 through this scheme.
FATTAH failed to pay federal income taxes on the embezzled income for the 2011, 2012 and 2014 tax years resulting in a total tax loss of $54,067.
FATTAH is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on August 16, 2018, at which time he faces a maximum term of imprisonment of three years and a fine of up to $100,000. FATTAH also has agreed to repay the U.S. Treasury $54,067 in restitution for the taxes he failed to pay, and additional penalties and interest that have accrued on his unpaid taxes.
FATTAH is released on bond pending sentencing.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Bozeman Man Sentenced to over 15 Years in Prison for Drug Trafficking OffenseRead the Press Release
HELENA – Edward Paul Ellington, a 38-year-old resident of Bozeman, Montana, was sentenced today to 190 months in prison followed by 5 years supervised release after pleading guilty to conspiracy to possess methamphetamine with intent to distribute. U.S. Senior District Judge Charles C. Lovell handed down the sentence.
From July 2016 to May 2017, Ellington was involved in a large drug conspiracy operating in Gallatin and Broadwater Counties. Ellington was the leader of the drug conspiracy and would sell methamphetamine to at least 12 different people. One of those individuals was Ryan Cervantes who would then sell the methamphetamine to 40 to 50 people. Ed Ellington was considered to be the biggest drug supplier in the Bozeman and Belgrade area.
The investigation showed that Ellington would often give drugs to people on a “front” and then personally collect the drug debt or send others to threaten or beat up the drug distributors to pay him the money they owed him. The investigation also showed that Ellington was in possession of firearms during his drug trafficking.
On April 15th, 2017, Ellington was driving a 2014 Chevy Cruz and was stopped near Three Forks by Montana Highway Patrol. Ellington was on his way back from Spokane to Bozeman with a drug load. Officers obtained a warrant for Ellington’s vehicle and found approximately 200 grams of methamphetamine in Ellington’s possession. In addition, the investigation showed that Ellington first started selling ½ ounce quantities of methamphetamine, but those amounts increased rapidly. By December 2017, Ellington was distributing ¾ of a pound of methamphetamine. In total, Ellington was held responsible for distributing 1,618.72 grams of methamphetamine. That converts to 12,949 individual dosage units of the drug which reached drug users in Montana.
Ellington’s co-conspirator, Ryan Cervantes was also charged, pled guilty, and sentenced on April 12, 2018 to 10 years imprisonment.
The case was prosecuted by Assistant U.S. Attorney Bryan R. Whittaker and investigated by the Federal Bureau of Investigation, the Missouri River Drug Task Force, and the Montana Highway Patrol.
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.
Boylston Man Sentenced on Child Pornography ChargesRead the Press Release
BOSTON – A Boylston man was sentenced today in federal court in Worcester for possessing and distributing child pornography.
Randy Alan Chaplis, 33, was sentenced by U.S. District Court Judge Timothy S. Hillman to seven years in prison and five years of supervised release. In December 2017, Chaplis pleaded guilty to one count of distributing child pornography and one count of possessing child pornography involving a prepubescent minor and a minor who had not attained 12 years of age. Chaplis was arrested and charged by criminal complaint on March 16, 2017, and has been detained since his arrest.
On Feb. 9, 2017, Chaplis sent two emails to an undercover law enforcement officer that included dozens of images of child pornography, including prepubescent girls engaged in sex acts with adult men. In other email communications with the undercover officer, Chaplis stated that he likes three-to-10 year olds, and that he has “fun” with his girlfriend’s five-year-old daughter when her mother is not home. Chaplis emailed graphic descriptions of the sexual acts he purportedly performed on his girlfriend’s child starting when the child was two-years-old. He asked whether the undercover officer intended to have sexual intercourse with the undercover officer’s infant daughter once she turned three or four.
A search of Chaplis’ residence on March 15, 2017, resulted in the seizure of an external hard drive and a desktop computer that included multiple images of child pornography.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Beachwood woman charged for collecting her mother's Social Security payments years after her deathRead the Press Release
Daphna J. Goren of Beachwood was charged in federal court for theft of public money and bank fraud.
Goren fraudulently converted to her own use, her mother’s Social Security Retirement and Survivor’s benefits that continued to be deposited after her mother died in July 2011. Goren’s theft resulted in a loss to SSA of approximately $91,403, according to a criminal information.
Goren also is alleged to have forged her mother’s signature on TIAA-CREF payment checks and deposited into her Key Bank account.
Special Agent Manuel Muniz from the United States Social Security Administration Office of the Inspector General conducted the investigation. The case is being prosecuted by Special Assistant United States Attorney Payum Doroodian.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Attorney General Sessions Meets with Croatian Interior Minister and Justice MinisterRead the Press Release
A Department of Justice official released the following statement at the conclusion of Attorney General Jeff Sessions' meetings with Croatian Interior Minister Davor Božinović and Justice Minister Dražen Bošnjaković:
"Attorney General Sessions had productive meetings with Interior Minister Božinović and Justice Minister Bošnjaković, and the Attorney General reiterated his commitment to build on the strong U.S.-Croatia relationship. The Attorney General recognized Croatia's support for the regional Rule of Law training programs in the Western Balkans, for which the ministers have provided more than five years of expertise. Attorney General Sessions also thanked the ministers for their continued collaboration with the Justice Department's Office of Overseas Prosecutorial Development Assistance and Training (OPDAT) and International Criminal Investigative Training Assistance Program (ICITAP), programs that help police, prosecutors, and judges in the region fight corruption and transnational organized crime. Finally, Attorney General Sessions expressed his support for an updated bilateral extradition treaty to enhance cooperation and reflect the increasingly transnational nature of crime."Please find Attorney General Jeff Sessions’ remarks from the U.S.-Croatia press availability here.
Attorney General Appoints Zachary Terwilliger Interim U.S. AttorneyRead the Press Release
ALEXANDRIA, Va. – Attorney General Jeff Sessions announced today the appointment of G. Zachary Terwilliger as Interim United States Attorney for the Eastern District of Virginia, pursuant to 28 U.S.C. § 546, effective May 25.
“Zach Terwilliger has a strong record that any prosecutor would be proud of,” Attorney General Sessions said. “He rose through the ranks in the Eastern District of Virginia, from summer intern to Assistant United States Attorney who made a name for himself successfully prosecuting MS-13 members, Bloods members, and firearm offenders and putting them behind bars. He has excelled both in the courtroom and now in some of the highest leadership roles at the Department of Justice. I am confident that he will continue to serve with distinction in this important new role.”
As the chief federal law enforcement officer in the Eastern District of Virginia (EDVA), Terwilliger will supervise the prosecution of all federal crimes and the litigation of all civil matters in which the United States has an interest. Additionally, Terwilliger will lead a staff of over 250 prosecutors, civil litigators, and support personnel located in Alexandria, Newport News, Norfolk, and Richmond.
Terwilliger began his career at EDVA as an intern in 1999, and returned in 2005 to serve as a summer law clerk. In 2008, after serving as a law clerk for the Honorable K. Michael Moore in the United States District Court for the Southern District of Florida, Terwilliger was appointed as a Special Assistant U.S. Attorney through a partnership with the Virginia Attorney General’s Office, where he was an integral member of the Alexandria Division’s Project Safe Neighborhood initiative that focused on removing the most violent criminals from the community. Terwilliger was hired as an Assistant U.S. Attorney in 2010 and assigned to the Major Crimes Unit, where he prosecuted numerous violent crime, fraud, organized crime, and human trafficking cases, and managed law enforcement task forces focusing on human trafficking and firearms. In addition to his prosecutorial duties, Terwilliger served as a counselor to former U.S. Attorney Neil H. MacBride, providing advice on legal, ethical, and personnel issues, and served as a spokesperson for EDVA.
Since January 2017, Terwilliger has served on detail as an Associate Deputy Attorney General. In December 2017, he added the role of Chief of Staff in the Office of the Deputy Attorney General. In these roles, he has been a principal advisor to the Department of Justice leadership in areas such as corporate compliance, federal, state and local law enforcement cooperation, violent crime reduction, and other critical matters.
Terwilliger earned a Bachelor of Arts degree in Government and Foreign Affairs from the University of Virginia, and graduated with the highest honors from the William & Mary School of Law.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Atlanta man for indicted for assaulting a federal officer, drug trafficking and firearm violationsRead the Press Release
ATLANTA - Wendell Lamar Senior, a/k/a “Dareal Chico,” has been indicted by a federal grand jury for assaulting a federal officer, possessing marijuana with intent to distribute, possessing firearms in furtherance of a drug trafficking crime, and possessing firearms while under indictment.
“The accusations in this case are especially egregious, as the defendant allegedly shot at a house occupied by a woman and her children, struck a federal law enforcement officer while eluding authorities, and abducted two children prior to his eventual arrest,” said U.S. Attorney Byung J. “BJay” Pak. “This case is an excellent example of federal and local law enforcement officers working together to apprehend a violent and dangerous criminal.”
“This case is not only an example of the threat alleged violent offenders pose to the public while on the run, but also the threat they pose to the FBI agents and task force officers who try to apprehend them,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Despite that threat, the FBI’s Atlanta Metro Major Offender (AMMO) Task Force is determined to protect our citizens by removing the most violent criminal offenders from our streets.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: On February 16, 2018, a state grand jury in Fulton County indicted Senior for aggravated assault in connection with a shooting of an apartment occupied by a woman and her three children. March 26, 2018, FBI agents accompanied Atlanta Police Department officers to arrest Senior, at which time, he allegedly jumped from a two-story window, struck an FBI Task Force Officer, and fled.
On April 11, 2018, local law enforcement officers saw Senior driving two children to a gas station after he abducted them. The police arrested Senior inside the gas station, while rescuing the children from the car. The officers recovered marijuana, a scale, $2,050 in cash, and two firearms inside the vehicle. At the time of arrest, Senior was under indictment for the assault charge in Fulton County and possession with intent to distribute marijuana in Cherokee County.
Wendell Lamar Senior, a/k/a “Dareal Chico,” 27, of Atlanta, Georgia was indicted on May 22, 2018, by a federal grand jury for assaulting a federal officer, possessing marijuana with intent to distribute, possessing firearms in furtherance of a drug trafficking crime, and possessing firearms while under indictment. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and Atlanta Police Department.
Assistant U.S. Attorney Joseph A. Plummer is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
The U.S. Attorney’s Office in Atlanta also recommends that 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.
Atlanta Man Who Threatened Charlottesville Schools Arrested, Facing Federal ChargesRead the Press Release
Charlottesville, VIRGINIA – An Atlanta man has been charged with posting threatening messages against Charlottesville schools that caused all schools within the City of Charlottesville to go into a modified lockdown for two days in October 2017, United States Attorney Thomas T. Cullen and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division announced.
Michael Anthony Townes, 48, of Atlanta, was arrested May 20, 2018 in Georgia and charged in a federal criminal complaint with one count of transmitting in interstate commerce a communication containing a threat to injure the person of another. Townes will be transferred to the Western District of Virginia where he will have his initial court appearance in the near future.
“The defendant’s alleged threats terrified students, parents, teachers, and administrators and triggered an immediate response by our federal, state, and local law enforcement partners,” U.S. Attorney Cullen stated. “We are grateful to the FBI for coordinating this rapid response and ensuring the safety of the local community. As this and other recent cases indicate, the U.S. Attorney’s Office takes these types of threats seriously and will respond accordingly.”
“The FBI stands with our schools and will vigorously investigate threats made to them – whether legitimate or a hoax. Law enforcement and other first responders have some of the most difficult jobs in our society. They encounter danger every day and keep our communities safe from violence and injury. To spread panic and fear through hoax threats to our schools – at this moment, while our nation mourns its many recent mass shooting victims – and encumber the limited resources of our first responders, is truly despicable. It’s not cute. It’s not funny and it will land you in jail,” Special Agent in Charge Lee said today.
According to the complaint and affidavit filed in the case, Townes, using the user name “mike” posted several comments in reply to a Yahoo! News story entitled “Police Issue Warrant for Black Man Beaten by White Supremacists in Charlottesville.”
Among the comments alleged posted by Townes was:
“@Terry not until I pull off a copycat of vegas in charloettsville [sic] va at a all white charter school..It should’t be hard to find one…”
“Im thinking of a copycat to vegas in Charloettsville (sic) Va is going to happened (sic)…Im thinking maybe a school this time though!”
In response to the postings, Charlottesville schools entered a modified lockdown with police presence at all schools on October 11 and 12, 2017.
The investigation of the case was conducted by Federal Bureau of Investigation with assistance from the Charlottesville City Police Department. Special Assistant United States Attorney Rachel Barish Swartz and Assistant United States Attorney Christopher Kavanaugh will prosecute the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Akron man indicted for making threatsRead the Press Release
An Akron man was indicted in federal court for making threats against police and others, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Brian Newell, 24, was indicted on three counts of transmitting threats across state lines.
Newell made several threats against police and other law enforcement officers on Facebook in October 2017 and again in April 2018.
According to the indictment:
Newell wrote several messages over three four days in October 2017, including:
“Def feel like I can beat the vegas shooter’s high score.”
“Better prayer God with y’all cause I’m def not praying for your safety.”
“As Allah is my witness any cop or law enforcement who approaches me in any way will be fire on. Yes I’m high on them hard drugs and carrying a weapons. Just leave me alone I’ve lost everything I don’t mind losing my life #Allahuakbar #gamg”
On April 7, 2018, Newell wrote several messages, including: “Kill cops” and “I BET I KILL A COP TODAY P*****S”
On April 7, 2018, Newell threatened to kill an individual during a phone call placed from the Summit County Jail in which he said: “And I’m killing you and them kids b***h.”
Herdman said: “We take all threats seriously. People will be held accountable when they threaten violence against our police and law enforcement officers, to commit mass shootings or to otherwise harm children and other innocent people.”
"Those who serve and protect the citizenry of our communities should not have death threats against them,” Anthony said. “The FBI will continue to work with our law enforcement partners to identify threats and hold those responsible accountable."
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Robert Bulford.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron man charged with selling fentanyl that caused Wadsworth man's deathRead the Press Release
A superseding indictment was filed in federal court charging Akron man with selling fentanyl that resulted in the fatal overdose of a Wadsworth man.
LeTroy Vaughn, 26, was indicted on one count of distribution of fentanyl. The charge carries a potential sentencing enhancement because the fentanyl resulted in death.
Vaughn sold the fentanyl on Sept. 27, 2015, to a man identified in court documents as E.W. E.W. died after ingesting the fentanyl sold to him by Vaughn, according to the indictment
“This defendant will be held accountable selling fentanyl that killed someone’s son and friend,” Herdman said. “Law enforcement will continue to work together to disrupt the flow of deadly fentanyl into our region and hold accountable those who profit from this epidemic.”
Akron Police Chief Kenneth Ball said: "The cooperative effort of law enforcement is always at work, pursuing justice and determined to make our communities safer. The arrest of Letroy Vaughn is evidence of this partnership. I am very proud of the accomplishments of members of the Akron Police Department. I am also thankful for continued work of our local and federal partners who add so much to this process.”
“This shows the great collaboration between the County Prosecutor’s Office and the U.S. Attorney’s Office,” said Summit County Prosecutor Sherri Bevan Walsh. “We are relieved for the victim’s family that this offender will not escape justice on a legal technicality. I would personally like to thank Justin Herdman, the U.S. Attorney for the Northern District of Ohio, for ensuring justice for Eric Ward’s family.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the Akron Police Department’s Narcotics Unit.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
2nd Former Newport Police Union Official Admits Guilt in Fraud CaseRead the Press Release
PROVIDENCE – The former treasurer of the Newport, R.I., Police Department Fraternal Order of Police (FOP), Newport Lodge No. 8, pleaded guilty in federal court in Providence today to a fraud charge, admitting to fraudulently converting more than $31,000 in FOP funds for his own personal use.
Adam Conheeny, 46 of Portsmouth, R.I., a former Newport Police Department Officer, pleaded guilty to one count of wire fraud, announced Michael Mikulka, Special Agent in Charge, New York Region, U.S. Department of Labor Office of Inspector General, and Superintendent of the Rhode Island State Police Ann C. Assumpico.
Appearing before U.S. District Court Chief Judge William E. Smith, Conheeny admitted that between August 2009 and December 2014, he used an FOP debit card to pay for his own personal expenses, and wrote checks payable to himself and withdrew cash from the FOP bank account for his own personal use. Conheeny admitted to fraudulently converting approximately $31,413 in FOP funds for his own use.
As Treasurer of the FOP, Conheeny was not paid any wages or salary, nor did he receive an allowance. Conheeny had no authority to spend FOP funds for personal expenses.
In a related case, Christopher Hayes, 49, of Middletown, R.I., a former Newport Police Department Sergeant and former President of the Fraternal Order of Police (FOP), Newport Lodge No. 8, was sentenced in July 2017, by U.S. District Court Chief Judge William E. Smith to a total sentence of 12 months, 6 months imprisonment followed by 6 months of home confinement, for converting approximately $71,523 in FOP funds for his personal use. Hayes pleaded guilty to wire fraud on May 1, 2017.
“Theft of union funds by union officials is a serious crime that can have a devastating impact on union members. As a police officer, Adam Conheeny’s conduct is particularly egregious because he violated the very laws he took an oath to uphold. We will continue to work with our federal and state law enforcement partners to safeguard union funds and protect the financial interests of union members,” stated Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General.
Conheeny is scheduled to be sentenced on September 14, 2018.
The case, investigated by the United States Department of Labor Office of Inspector General, United States Department of Labor Office of Labor Management Standards, and the Rhode Island State Police Financial Crimes Unit, is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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11 Defendants Charged in Manhattan Federal Court with Multimillion-Dollar Identity Theft and Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging JAMAL SIMON, DAVID BOYD, a/k/a “Fresh,” MELVIN BROWN, a/k/a “Flint,” DARREN DAVIDSON, a/k/a “Eddie Gray,” DWIGHT FORDE, YVETTE LUBRUN, RASHAUN McKAY, a/k/a “Buster,” MEGAN MONTOYA, DEMALI MOSELY, DWAYNE NORVILLE, a/k/a “Lux,” and JILLIAN WALCOTT with conspiring to commit access device fraud and wire fraud, and aggravated identity theft. SIMON and WALCOTT also are charged with wrongfully obtaining and disclosing individually identifiable health information. Eight of the defendants were arrested on these charges yesterday in California, New Jersey, and New York. BROWN, LUBRUN, McKAY, MOSELY, and WALCOTT were presented and arraigned yesterday before United States Magistrate Judge Katharine H. Parker in Manhattan federal court. BOYD and DAVIDSON will be presented and arraigned today before Judge Parker. MONTOYA will be presented today in federal court in the Northern District of California. In addition, NORVILLE is currently in custody on state charges in Brooklyn, New York, and will be transferred to federal custody. SIMON and FORDE remain at large. The case has been assigned to United States District Judge Paul A. Crotty.
U.S. Attorney Geoffrey S. Berman said: “These 11 defendants allegedly developed a sophisticated scheme to steal from financial institutions and their customers. Through brazen identity theft and fraud, the defendants allegedly stole millions of dollars from credit card companies and banks to line their own pockets. Thanks to the skilled investigative work of the FBI, the defendants’ alleged crime spree has been brought to a halt.”
FBI Assistant Director William F. Sweeney Jr. said: “While most people are careful to secure their financial accounts and personally identifiable information, there are others who are skilled at finding this information, despite any safeguards that have been put in place to protect it, and using it to their advantage. Today’s defendants are charged with doing just that. At the end of the day, more than $3.5 million was swindled from innocent victims and financial institutions. While we work to bring these criminals to justice, the public should be reminded to remain aware and report any suspicious activity that could serve as an attempt to exploit their identity.”
According to the allegations in the Indictment[1]:
From March 2017 through at least July 2017, SIMON, BOYD, BROWN, DAVIDSON, FORDE, LUBRUN, McKAY, MONTOYA, MOSELY, NORVILLE, and WALCOTT carried out a wide-ranging fraudulent scheme that involved unlawfully obtaining individually identifiable information of other individuals (including names, addresses, phone numbers, email addresses, birthdates, bank account numbers, credit and debit card numbers, and cellphone service provider account numbers); impersonating those individuals in order to obtain unauthorized access to their bank accounts, credit and debit card accounts, and cellphone service provider accounts; and then using such access to, among other things, facilitate the fraudulent transfer of funds to bank accounts controlled by members of the conspiracy and the unauthorized purchasing of merchandise and gift cards at retail stores. The defendants’ scheme defrauded financial institutions and individual victims of more than $3.5 million.
SIMON and his co-conspirators obtained individually identifiable information of prospective victims from, among other sources, WALCOTT, who stole patient information during her employment at an urgent care clinic in Manhattan, New York.
* * *
SIMON, 30, BOYD, 29, BROWN, 33, DAVIDSON, 33, FORDE, 31, LUBRUN, 27, McKAY, 35, MOSELY, 29, NORVILLE, 30, and WALCOTT, 34, each of Brooklyn, New York, and MONTOYA, 27, of Oakland, California, are each charged with one count of conspiring to commit access device fraud, which carries a maximum sentence of seven-and-a-half years in prison; one count of conspiring to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison that must be imposed consecutively to any other sentence. SIMON and WALCOTT also are each charged with one count of wrongfully obtaining individually identifiable health information and one count of wrongfully obtaining and disclosing individually identifiable health information, each of which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Nicholas W. Chiuchiolo and Robert B. Sobelman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Wednesday 23 May 2018
Worcester Man Sentenced for Attempting to Bribe Witness Testifying in Federal LawsuitRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Boston for offering to pay a witness who was testifying in a federal lawsuit.
Jerome Smith, 40, was sentenced by U.S. District Court Chief Judge Patti B. Saris to six months in prison to be served consecutively to an 11-13 year state sentence he is currently serving. In February 2018, Smith pleaded guilty to one count of witness bribery.
Smith was the plaintiff in a federal lawsuit seeking monetary damages against the City of Worcester and others in connection with an alleged incident involving the Worcester Police Department. Smith offered to pay two witnesses in connection with their testimony in the federal court proceedings. The two witnesses each testified falsely during depositions conducted in connection with the federal lawsuit. For example, one witness stated that she saw a police officer hitting Smith with a fire extinguisher and kicking Smith, though the witness later admitted that she did not see any police officer hit Smith with a fire extinguisher or kick Smith. Smith’s lawyer attempted to introduce the deposition testimony of this witness at trial, despite the witness having told the lawyer about Smith’s offer to pay her.
United States Attorney Andrew Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office prosecuted the case.
Winnemucca Felon Arrested and Charged for Possession of an Explosive DeviceRead the Press Release
RENO, Nev. — A former felon who was arrested Tuesday in Winnemucca for possession of an explosive device had his initial court appearance today in U.S. District Court in Reno, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
The indictment, returned last week and unsealed today, charges Terry J. Hanson Jr., 36, of Winnemucca, with one count of felon in possession of an explosive. He appeared before U.S. Magistrate Judge William G. Cobb. A jury trial is set for July 17, 2018.
According to the indictment, Hanson unlawfully possessed Thermalite Igniter Cord, an explosive material under federal law. He has a prior felony conviction in Humboldt County for possession of a controlled substance.
The maximum penalty is 10 years in prison and a $250,000 fine.
The arrest and charge are the result of an investigation by the FBI with assistance by the Nevada Department of Public Safety - NDI, Humboldt County Sheriff's Office, Winnemucca Police Department, Elko Police Department, Elko Sheriff's Office, Washoe County Sheriff's Office, Reno Police Department, and the Nevada Department of Agriculture. Assistant U.S. Attorney Megan Rachow is prosecuting the case.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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Wilmington Man Indicted on Child Pornography ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that a Federal grand jury in Raleigh has returned a five-count indictment charging Isai Sanchez, age 22, of Wilmington, North Carolina, with four counts of Receipt of Child Pornography and one count of Possession of Child Pornography.
The indictment alleges that, beginning at a time unknown and ending on May 4, 2017, Sanchez received at least four files containing visual depictions of minors engaged in sexually explicit conduct. The indictment further alleges that on May 4, 2017, Sanchez was found to be in possession of digital media containing images and videos involving minors engaged in sexually explicit conduct.
If convicted of these charges, SANCHEZ would face a maximum of twenty years’ imprisonment and up to a lifetime of supervised release following any term of imprisonment.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the FBI Violent Crimes Against Children Task Force comprised of the FBI, New Hanover County Sheriff's Office and the Wilington Police Department. Assistant United States Attorney Jake D. Pugh is prosecuting the case for the government.
Washington County Drug Dealer Headed Back to Federal Prison for Violating the Conditions of His Supervised ReleaseRead the Press Release
PITTSBURGH, PA - A resident of Washington County, Pennsylvania, was found to have violated the terms of his federal supervision, United States Attorney Scott W. Brady announced today.
According to information presented to the Court, Darryl Lee Arnold, Jr., aka "Boulders," was previously charged with federal drug trafficking offenses nearly 10 years ago, on June 24, 2008. On January 21, 2010, Arnold was sentenced to serve 84 months of imprisonment, followed by 5 years of supervision. In 2018, the United States Probation Office filed a petition alleging that Arnold was again dealing drugs and Arnold was placed on house arrest pending a supervised release violation hearing.
At that hearing, held on May 23, 2018, United States District Court Judge David S. Cercone determined that Arnold had violated his Supervised Release and ordered the United States Marshal Service to take the defendant into custody.
The law provides for a total sentence of up to three more years in prison, and an additional period of supervision. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration (DEA) conducted the investigation that led to the prosecution of Arnold. The DEA joined forces with many other state and local law enforcement agencies including the Canonsburg Police Department, the Pennsylvania State Police, the Monessen Police Department and the Washington County Sheriff’s Office in an effort to address the extraordinary number of opiate overdoses since August of 2015.
U.S. Attorney Announces the Indictment of Four Individuals on Federal Drug and Gun ChargesRead the Press Release
Memphis, TN – On May 15, 2018, a federal grand jury indicted four individuals for federal drug charges. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today.
According to the indictments, the defendants are charged with conspiracy to distribute and possess with the intent to distribute heroin, cocaine, methylenedioxymethamphetamne (MDMA), methadone, hydrocodone, morphine, oxycodone and possession of a firearm in furtherance of a drug trafficking crime.
U.S. Attorney D. Michael Dunavant said: "Drug trafficking is an inherently dangerous and violent business that is often conducted by the illegal use and possession of firearms. These indictments demonstrate our commitment to remove armed drug traffickers from our streets by seeking significant mandatory sentences for selling poison in our community."
The defendants charged in the indictment and currently in custody are:
Antonio Rucker, 39, Memphis, Tennessee
Eric Crawford, 44, Memphis, Tennessee
Dewana Bogan, 38, Memphis, Tennessee
Angela Dominique Pittman, 33, Memphis, TennesseeCounts 1, 2, and 3 of the indictment charges Antonio Rucker and Eric Crawford with possession with intent to distribute 100 grams of heroin, 125 grams of cocaine, and over 100 oxycodone pills.
In another three count indictment, counts 1 and 2 charges Angela Dominique Pittman with possession with intent to distribute more than 100 grams of heroin and conspiracy. Count 3 charges Pittman with possessing a Glock 19 9mm caliber pistol in furtherance of a drug trafficking crime.
Counts 1 through 14 of a third separate indictment charges Dewana Bogan with intent to distribute heroin, methylenedioxymethamphetamine (MDMA), methadone, hydrocodone, morphine and cocaine. Bogan is also charged with two counts of felony possession of firearms in the furtherance of a drug trafficking crime.
If convicted, defendants face a mandatory minimum sentence of up to 20 years imprisonment.
This case is being investigated by the Drug Enforcement Administration, Memphis Police Department Organized Crime Unit and Bartlett Police Department.
Special Assistant U.S. Attorney Joseph Griffith is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Men Guilty of Federal Charges Related to Large-Scale Fencing OperationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found GEORGE J. CONNELLY, JR., 48, of New Haven, and WILLIAM REIDELL, 41, of Branford, guilty of federal offenses related to their role in a large-scale fencing operation. The trial before U.S. District Judge Michael P. Shea began on May 10 and the jury returned the guilty verdicts this afternoon.
According to the evidence at trial, CONNELLY and Paul Muzyka operated a licensed secondhand store, Ace Amusements, located at 42 Kimberly Avenue in New Haven. At Ace Amusements, CONNELLY and Muzyka knowingly purchased stolen property from “boosters,” who typically were shoplifters with opioid addictions. The boosters stole the goods from retail stores such as Home Depot, Target, CVS, and Lowe’s, and sold the goods at Ace Amusements for approximately one-third of their retail prices. CONNELLY and Muzyka then resold the stolen goods at Ace Amusements, and also online at websites such as eBay. CONNELLY and Muzyka also sold property to resellers, including REIDELL, who then resold the property online using online websites.
The trial evidence showed at least $1.5 million in sales on eBay from 2007 to 2016 by individuals, including REIDELL, who purchased stolen items at Ace Amusements to resell online.
The jury found CONNELLY and REIDELL guilty of one count of conspiracy to commit the interstate transport of stolen property, an offense that carries a maximum term of imprisonment of five years. The jury also found CONNELLY guilty of two counts, and REIDELL guilty of one count, of interstate transport of stolen property, an an offense that carries a maximum term of imprisonment of 10 years on each count. The jury found CONNELLY not guilty of one count of interstate transport of stolen property.
CONNELLY and REIDELL are released on $100,000 bonds pending sentencing. Sentencing dates are not yet scheduled.
On March 16, 2018, Muzyka, of North Haven, pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property. He awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David T. Huang.
Two East Idaho Men Plead Guilty in Separate Cases to Transportation of Child PornographyRead the Press Release
POCATELLO – Monday, in separate cases, Buster Locklear, 39, of Blackfoot, and Christopher Holtry, 41, of Pocatello, pleaded guilty to transportation of child pornography, U.S. Attorney Bart M. Davis announced.
According to Locklear’s plea agreement, between February and August 2017, the National Center for Missing and Exploited Children received 16 reports of child pornography being uploaded to internet utilities and websites related to two of Locklear’s e-mail accounts. In some instances, Locklear registered for the online utilities and websites in his own name. When federal agents reviewed Locklear’s Google accounts, they found 239 files containing child pornography, including 13 videos and 226 images.
Federal agents also searched Locklear’s residence and seized a number of electronic devices. Forensic analysis of the devices resulted in the discovery of additional child pornography files. When combined with the Google accounts, agents found a total of approximately 16,311 images and 306 videos of child pornography. Investigators identified 1,603 images and 24 video files from the defendant’s collection as belonging to 166 known series of child pornography images, wherein the victims have been previously identified by law enforcement.
According to Holtry’s plea agreement, Homeland Security Investigations received an investigative lead from the Royal Canadian Mounted Police National Child Exploitation Coordination Centre regarding users of a chatroom called “Tabou5.” In the chatroom, a user shared an image of child pornography and made assertions that the female child depicted in the image was his daughter. The internet protocol addresses associated with the chatroom user’s online activity were registered to Holtry at his Pocatello residence. When law enforcement agents executed a search warrant at Holtry’s residence, they seized a number of phones and computers. A forensic search of these devices revealed 134 images and 20 videos of child pornography. In an interview, Holtry admitted to uploading and receiving child pornography. He estimated having viewed and possessed approximately 1,000 images of child pornography.
The charge of transportation of child pornography is punishable by 5 to 20 years in prison, a maximum fine of $250,000, and a term of supervised release of five years to life.
Sentencings for both men are set for August 27, 2018, before U.S. District Court Judge David C. Nye at the federal courthouse in Pocatello.
The case against Locklear was investigated by Homeland Security Investigations (HSI), with the assistance of the Blackfoot Police Department, the Bingham County Sheriff’s Office, and the Idaho Department of Correction.
The case against Holtry was investigated by HSI, with the assistance of the Pocatello Police Department and the Idaho Internet Crimes Against Children Task Force.
These cases were 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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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.”
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Two Boston Gang Members Plead Guilty to Distributing Drugs in and Around Public Housing DevelopmentRead the Press Release
BOSTON – Two Heath Street gang members pleaded guilty yesterday in federal court in Boston to distributing drugs in and around the Mildred C. Hailey Apartments in Jamaica Plain.
Kevin Smith, a/k/a “Works,” 27, and Javonte Robinson, a/k/a “Biggie,” and “Big Dog,” 21, pleaded guilty to conspiracy to distribute cocaine base and to distributing cocaine base within 1000 feet of a public housing facility. U.S. District Court Judge William G. Young scheduled sentencing for July 27, 2018.
Following a two-year investigation, Smith, Robinson and seven co-defendants were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments, formerly known as the Bromley Heath Housing Development.
On March 25, 2017, Smith arranged a drug sale for Robinson, who sold crack cocaine to a cooperating witness near the Mildred C. Hailey Apartments. In sum, Smith and Robinson also accepted responsibility for five additional sales that were not charged in the indictment. All of the sales took place either inside or within a 1000 feet of the Mildred C. Hailey Apartments.
According to court documents, Smith served 18 months in jail after he was convicted of carrying a firearm and resisting arrest. Although Smith was on Boston Housing Authority’s No Trespass List at one time, records show that he was arrested in the hallways and courtyards of the housing development at least seven times.
The investigation and arrests sought to reduce violence and improve the quality of life for residents in and around the Mildred C. Hailey Apartments by removing individuals who trafficked drugs and who were actively involved in violence and gang disputes.
The charges provide for a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Beckley Men Sentenced to Federal Prison for Drug CrimesRead the Press Release
BECKLEY, W.Va. – Two Beckley men were sentenced to federal prison today for drug crimes, announced United States Attorney Mike Stuart. Benjamin Payne, 51, of Beckley, was sentenced to 10 years in prison after previously pleading guilty to distributing a quantity of cocaine base. Because Payne was on supervised release when he committed the crime, he was sentenced to an additional year to run consecutively with his 10 year sentence. In a separate prosecution, Raushan W. McDougald, 38, of Beckley, was sentenced to 84 months years in prison after being convicted of distributing a quantity of cocaine base. U.S. Attorney Stuart applauded the Beckley Police Department for the investigation of Payne and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for the investigation of McDougald.
“I commend the tireless efforts of our federal, state and local law enforcement partners to rid West Virginia communities of illicit drugs,” said United States Attorney Mike Stuart. “Cocaine is a growing threat once again. These guys are off the streets and in the federal pen they’ve earned.”
Payne admitted that on October 26, 2017, at or near Beckley, Raleigh County, West Virginia, he distributed a quantity of cocaine base to a confidential informant working with law enforcement officers. As part of his plea agreement, Payne agreed to forfeit over $23,000 in drug proceeds and a handgun.
McDougald admitted that at or near Beckley, Raleigh County, West Virginia, he distributed a quantity of cocaine base to a confidential informant working with law enforcement officer. McDougald agreed to forfeit $14,000 in U.S. Currency and a firearm.
This cases was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
United States District Judge Irene C. Berger imposed the sentence in the both cases.
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Two Aliens Indicted on Illegal Reentry ChargesRead the Press Release
WILMINGTON – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Wilmington has returned indictments charging EDGARDO GANDARILLA-NUNEZ, age 28, of Mexico, and RUBEN ESTRADA-MARTINEZ, age 38, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, GANDARILLA-NUNEZ, found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry of an alien subsequent to an aggravated felony conviction (conspiracy to distribute methamphetamine), ESTRADA-MARTINEZ, found in Nash County, would face a maximum imprisonment term of twenty years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations.
Three Waterloo Men Sentenced to Federal Prison for Selling Crack CocaineRead the Press Release
Naiqondis Maurice Spates, age 33, Devonte Denterrio Jenkins, age 26, and Gary Lind Krueger, age 71, all from Waterloo, Iowa, received the prison terms on May 22, 2018, after each pled guilty to conspiracy to distribute crack cocaine. Spates also pled guilty to distribution of crack cocaine within a 1,000 feet of a protected location. Jenkins and Krueger each also pled guilty to a count of distribution of crack cocaine. Evidence at previous hearings showed that the investigation by law enforcement included a wiretap that recorded numerous telephone calls related to the buying and selling of crack cocaine. Evidence also showed that law enforcement made multiple controlled buys of crack cocaine from all three men.
Spates was sentenced to 91 months’ imprisonment. He must also serve an 8-year term of supervised release after the prison term. Spates’ has previously been convicted of delivery of a controlled substance and also has two prior domestic assault convictions. Spates was also found to be an organizer or leader of the conspiracy and to have possessed a dangerous weapon.
Jenkins was sentenced to 120 months’ imprisonment. He must also serve an 8-year term of supervised release after the prison term. Jenkins’ criminal history included a deferred judgement for possession of crack cocaine with the intent to deliver in 2014.
Krueger was sentenced to 120 months’ imprisonment and fined $12,000. He must also serve an 8-year term of supervised release after the prison term. Krueger’s criminal history included convictions for delivery of cocaine base in 2003 and a conviction for pimping in 2000.
All three men were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. There is no parole in the federal system. All three are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2043.
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Three Family Members Indicted for Bankruptcy FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On May 22, 2018, a federal grand jury indicted Patricia Mulford, age 66, and Joseph Mulford, age 67, formerly of Berlin, Maryland; and Maria Denise Gangler a/k/a “Aunt Denise,” age 62, of Essex, Maryland, on charges of conspiracy to commit bankruptcy fraud, bankruptcy fraud, and tax evasion.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; and Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service – Criminal Investigation.
According to the four-count indictment, from July 2011 through November 2017, the Mulfords and Gangler committed bankruptcy fraud by knowingly and fraudulently concealing their assets from their creditors and trustees in bankruptcy proceedings. The assets concealed by the defendants consisted primarily of proceeds from the sale of approximately $375,000 in foreign real estate, namely their interests in a property at Sueno Escondido Estates in Costa Rica. The defendants converted proceeds from the real estate sale into cash stored in a safe deposit box and bank accounts held in relatives’ names. The Mulfords also reinvested proceeds in a second property in Costa Rica and failed to disclose their ownership of that property. The defendants’ bankruptcy fraud caused their creditors to suffer losses of more than $350,000.
The Mulfords are also alleged to have concealed assets from the Internal Revenue Service (IRS) so as to avoid an outstanding tax debt. According to the indictment, beginning in 2009, the Mulfords willfully attempted to evade paying taxes for the calendar year of 2009, and did so by concealing from the IRS gold and silver coins the Mulfords had purchased after liquidating their IRAs. The Mulfords also concealed from the IRS the proceeds of the sale of real estate in Costa Rica. The Mulfords’ bankruptcy fraud allowed them to avoid paying approximately $39,000 then due to the IRS in connection with taxes for 2009.
The Mulfords and Gangler face a maximum sentence of five years in prison and fines of up to $250,000 for the conspiracy, bankruptcy fraud, and tax evasion offenses. An initial appearance for the defendants has not been scheduled at this time.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the IRS for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Harry Gruber and Dana Brusca, who are prosecuting the case.
Tax Preparer Pleads Guilty to Identity Theft, False ClaimsRead the Press Release
ALBANY, NEW YORK – Bryant C. Hardnett, age 45, of Cohoes, New York, pled guilty yesterday to stealing the personally identifying information of children and using it to falsely claim the children as his own dependents on his tax returns.
The announcement was made by United States Attorney Grant C. Jaquith and James D. Robnett, Special Agent in Charge of the New York Field Office of Internal Revenue Service (IRS)-Criminal Investigation.
As part of his plea, Hardnett admitted that he formerly operated a tax preparation business, BH Tax Services, from a storefront in downtown Troy, New York. Through that business, Hardnett met a woman who asked him to file a tax return in her name for the year 2013. She provided her two children’s personally identifying information, including their names and Social Security Numbers. Hardnett never filed a tax return in the woman’s name, and instead falsely claimed the two children as his nephews and dependents on his tax returns filed with the IRS in 2013, 2014 and 2015.
Hardnett faces at least 2 years and up to 15 years in prison, as well as up to 3 years of post-imprisonment supervised release, when he is sentenced on September 19, 2018 by United States District Judge David N. Hurd in Utica, New York. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Hardnett has also agreed to pay at least $25,000 in restitution to the IRS, and to be permanently enjoined from ever filing a tax return for anyone other than himself.
As part of the same investigation, Guy Rochelle, age 59, of Troy, pled guilty to filing false tax returns for the tax years 2011 through 2014. Hardnett prepared these returns, in which Rochelle falsely claimed two children as his nieces and dependents; Hardnett supplied the children’s personally identifying information and filed the returns. Rochelle faces up to 3 years in prison when he is sentenced on September 10, 2018 by Senior United States District Judge Thomas J. McAvoy.
These cases were investigated by the New York Field Office of IRS-Criminal Investigation, and are being prosecuted by Assistant U.S. Attorneys Michael Barnett and Alicia G. Suarez.
Surveillance Photos Led to Identification of Mt. Washington Bank Robber who Pleaded Guilty TodayRead the Press Release
PITTSBURGH, PA – A resident of Allegheny County, Pennsylvania, has pleaded guilty to a charge of bank robbery, United States Attorney Scott W. Brady announced today.
Matthew Gallo, age 34, formerly of Pittsburgh, Pennsylvania, pleaded guilty before United States District Judge David S. Cercone.
In connection with the guilty plea, the Court was advised that on December 4, 2017, an individual, later identified as the Matthew Gallo, robbed the First National Bank in the Mt. Washington section of the City of Pittsburgh. He fled the bank with $730.00 before authorities could apprehend him. Surveillance photos from the robbery were shown on the local news. FBI received two separate tips identifying Matthew Gallo as the individual responsible for the bank robbery. On January 10, 2018, Allegheny County Sheriff’s personnel arrested Gallo on an unrelated matter. Gallo later confessed to committing the bank robbery. Gallo was also shown a surveillance photograph of the bank robber and signed the back of a photograph identifying himself as the robber.
Judge Cercone scheduled sentencing for October 4, 2018. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, City of Pittsburgh Bureau of Police and the Allegheny County Sheriff’s Office conducted the investigation in this case.
Suburban Man Indicted on Federal Drug Charges for Allegedly Importing a Fentanyl Analogue from ChinaRead the Press Release
CHICAGO — An Elmwood Park man has been charged with federal drug offenses for allegedly importing a fentanyl analogue from China to the Chicago area.
ROLANDO ESTRADA, 42, imported furanyl fentanyl from China in the summer of 2016, according to an indictment returned this week in federal court in Chicago. Estrada arranged to have the substances shipped to the Chicago area from a Chinese chemical company, according to a criminal complaint filed against him in 2016. In June 2016, law enforcement agents intercepted and seized two packages from China that contained approximately four kilograms of furanyl fentanyl, the complaint states. The following month, authorities seized more than five kilograms of cocaine and $90,000 in cash from Estrada’s residence in Elmwood Park.
Estrada fled to Mexico in July 2016, and a warrant was issued for his arrest. He was taken into custody last month in Querètaro, Mexico.
The five-count indictment was returned Tuesday. It charges Estrada with two counts of distribution of a controlled substance, two counts of importing a controlled substance from outside the U.S., and one count of possession of a controlled substance with the intent to distribute. Arraignment is set for May 24, 2018, at 11:00 a.m., before U.S. Magistrate Judge Maria Valdez.
The arrest and indictment were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian M. McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and William Hedrick, Acting Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. Substantial assistance was provided by the Downers Grove Police Department, Chicago Police Department, U.S. Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, Illinois State Police, and Berwyn Police Department. The government is represented by Assistant U.S. Attorneys Eric Pruitt and Matthew Kutcher.
The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF) Chicago Strike Force, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking organizations.
According to a search warrant and affidavit previously filed in the case, Estrada continued to coordinate shipments of fentanyl to Chicago after fleeing to Mexico. The fentanyl was allegedly mixed with other substances before being sold to customers in the Chicago area. After the sales, Estrada allegedly directed an associate to convert some of the proceeds into Bitcoin, a virtual currency typically circulated via the internet. Estrada also allegedly instructed the associate on how to use a cellphone application to transfer Bitcoin to Estrada’s virtual wallet.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charges against Estrada carry a maximum potential sentence of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Raleigh Man Indicted on Bank Robbery ChargeRead the Press Release
WILMINGTON – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that a Federal grand jury in Raleigh has returned an indictment charging DANNIE SIMON PARKER, JR., 47, of Raleigh, with bank robbery.
If convicted of this charge, PARKER would face a statutory maximum of twenty years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
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.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the Federal Bureau of Investigation, the Roanoke Rapids Police Department, and the Halifax County Sheriff’s Office.
Quebec Man Sentenced to 120 Months for Marijuana SmugglingRead the Press Release
ALBANY, NEW YORK – Mathieu Forget, age 32, of St-Anicet, Quebec, Canada, was sentenced yesterday to 120 months in prison for conspiring to distribute marijuana.
The announcement was made by United States Attorney Grant C. Jaquith and Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division.
Following his extradition from Canada, Forget admitted that he and his co-conspirators smuggled thousands of pounds of marijuana into the United States from Canada through the Akwesasne Mohawk Indian Reservation. The marijuana was distributed throughout the northeastern United States. Forget admitted to transporting hundreds of pounds of marijuana across the St. Lawrence River in a boat at least 20 times, and on 30 other occasions, helping transport hundreds of pounds of marijuana smuggled in vehicles to locations in New York and New England.
Chief United States District Judge Glenn T. Suddaby also imposed a 5-year term of supervised release following Forget’s term of imprisonment. Forget’s co-defendant, Allan Peters, was sentenced on February 12, 2015 to 144 months in prison for his role in the conspiracy. A third defendant, Colin Stewart, pled guilty and is awaiting sentencing on August 8, 2018.
This case was the result of a joint investigation by the DEA, Homeland Security Investigations (HSI), the United States Border Patrol, U.S. Customs and Border Protection Air and Marine Operations, the New York State Police, the St. Regis Mohawk Tribal Police Department, the Akwesasne Mohawk Police Services, and the District Attorneys of Franklin and Clinton Counties.
The case is being prosecuted by Assistant U.S. Attorneys Katherine E. Kopita and Douglas G. Collyer.
Portland Man Pleads Guilty to Gambling, Money Laundering and False Tax Return ChargesRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Stephen Mardigan, 61, of Portland, Maine, pleaded guilty today in U.S. District Court to running an illegal gambling business, money laundering, and subscribing to a false income tax return.
According to court records, between 2003 and April 7, 2017, Mardigan ran an illegal multi-million dollar sports gambling business in Portland that received bets on professional and college sporting events. Mardigan used proceeds from the illegal gambling business to buy, maintain, improve, and pay expenses related to numerous real properties located in the greater Portland area. In 2015, Mardigan received substantial income from the illegal gambling business that he failed to report on his federal income tax return. On April 7, 2017, agents seized betting records; $142,974 from Mardigan’s residence; $500,000 from a safe deposit box; and $104,072.70 from a business bank account in Mardigan’s name d/b/a “Avenue Auto” that Mardigan used to launder his gambling proceeds.
The defendant faces up to five years in jail and twice the gain on the gambling charge, 20 years and twice the value of the property laundered on the money laundering charge, and three years and $100,000 on the tax charge. The defendant agreed to forfeit over $1,375,000 and 18 real properties located in Portland, Westbrook, Gorham and Cape Elizabeth, and to pay $1,338,891 in restitution to the Internal Revenue Service (“IRS”). He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the FBI’s Southern Maine Gang Task Force; the Portland, South Portland, Lewiston, Westbrook, Bangor, and Cape Elizabeth Police Departments; the Maine State Police; IRS, Criminal Investigation; and the U.S. Postal Inspection Service.
Pompano Beach Resident Sentenced to 15 Years in Prison for Being Felon in Possession of a FirearmRead the Press Release
A Pompano Beach resident was sentenced yesterday to 15 years in federal prison, after having been convicted at trial of being a felon in possession of a firearm.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
On March 6, 2018, Tedarel Preston, 44, of Pompano Beach, was convicted by a trial jury of being a felon in possession of a firearm. Yesterday, United States District Court Judge Beth Bloom ruled that Preston was an armed career criminal and sentenced him to 180 months in prison, to be followed by 3 years of supervised release.
According to the court record, including evidence presented during the defendant’s trial, in late December of 2017, BSO detectives received information alleging the Preston was going to be involved in a retaliatory gang shooting. On December 29, 2017, detectives received additional information that the defendant was in possession of a firearm and observed the defendant seated in the back seat of a vehicle. As the detectives approached Preston, they observed him remove a firearm from his waistband and attempt to hide it under the passenger seat. Law enforcement then removed Preston from the vehicle and placed him under arrest. A loaded, .40 caliber semi-automatic pistol was found in the vehicle, near where Preston’s feet had been positioned. At the time of his arrest, Preston was a convicted felon and prohibited from possessing a firearm.
Mr. Greenberg commended the investigative efforts of the FBI and BSO in this matter. This case was prosecuted by Assistant U.S. Attorney Bruce Brown.
Court documents and information related to this case 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.
Owner of Queens Karaoke Bar Pleads Guilty to Failure to Pay Employment TaxRead the Press Release
A resident of Queens, New York, pleaded guilty today to failing to collect and pay over employment tax, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Kae Wook Lee was the sole owner and chief executive officer of Mona Lisa 7 Corporation, through which he operated a karaoke bar in the Flushing neighborhood of Queens. Between 2011 and 2013, Lee diverted part of his karaoke business’s receipts to bank accounts in the names of shell corporations he created. Lee then withdrew funds from those bank accounts to pay employees’ wages in cash without collecting or paying over employment taxes to the Internal Revenue Service (IRS). Lee concealed the cash payroll from his accountant and signed and filed false tax returns that underreported employee wages. The tax loss to the IRS caused by the defendant’s conduct was $612,500.
U.S. District Judge I. Leo Glasser scheduled sentencing for September 6, 2018. Lee faces a statutory maximum sentence of five years in prison, as well as 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 Mark Kotila and Sean Green, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
One Federal Inmate Pleads Guilty, Another Indicted in Fort Dix Prison Child Pornography RingRead the Press Release
CAMDEN, N.J. – A Tennessee man became the seventh defendant to plead guilty while a Massachusetts man was indicted in connection to a child pornography ring at Federal Correctional Institution Fort Dix that was operated by inmates who were imprisoned for related offenses, U.S. Attorney Craig Carpenito announced.
Charles Wesley Bush, 38, of Knoxville, Tennessee, pleaded guilty today before Senior U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of possession of child pornography.
William H. Noble, 52, of Lowell, Massachusetts, was charged by indictment today with conspiracy to receive and distribute child pornography, receipt of child pornography, distribution of child pornography, possession of child pornography, and accessing child pornography with intent to view on federal property. He will be arraigned at a later date.
According to documents filed in this case and statements made in court:
Bush admitted that he possessed a micro SD Card containing 2,471 images and 95 videos of child pornography, including depictions of sexual abuse of pre-pubescent children, bestiality, and sadistic and masochistic conduct. In connection with his plea, Bush also admitted that he used a cellular telephone inside the prison to obtain and possess child pornography and that he knowingly engaged in the distribution of child pornography by agreeing to transfer the micro SD card to another inmate.
Noble allegedly transferred the same micro SD card to a government informant at FCI-Fort Dix on April 19, 2017. Noble allegedly downloaded the child pornography himself and with the assistance of another inmate in the prison. Noble previously pleaded guilty in the District of Massachusetts to transportation and distribution of child pornography and was serving an 81-month sentence with a scheduled release date of March 8, 2018 at the time the alleged offenses were committed. He is currently in custody pending trial on the charges in today’s indictment.
At sentencing, Bush faces a mandatory minimum term of 10 years in prison and a lifetime of supervised release. Bush’s sentencing is scheduled for Sept. 10, 2018.
If convicted, Noble faces mandatory minimum terms of 10 and 15 years in prison, a potential maximum of 40 years in prison, and a lifetime of supervised release. The pending charges and allegations against Noble are merely accusations, and he is presumed innocent unless and until proven guilty.
Bush, Noble, and six other inmates were arrested in April 2017 and February 2018 following an FBI investigation involving multiple covert recordings and several cooperating inmates. The investigation revealed that Bush, Noble, and other inmates utilized contraband cellphones, micro SD cards, and access to the internet to obtain, view, and distribute child pornography within the prison. A co-defendant organized and helped facilitate this criminal activity by maintaining cloud accounts that were used as repositories for child pornography.
Five other inmates – Anthony C. Jeffries, 32, of Orange, Virginia, Jordan T. Allen, 31, of Plain City, Ohio, Brian J. McKay, 47, of Brookhaven, Pennsylvania, Jacob S. Good, 26, of Fredericksburg, Virginia, and Christopher D. Roffler, 30, of Virginia Beach, Virginia – have also pleaded guilty to possession of child pornography and await sentencing.
A sixth inmate, Erik M. Smith, 36, of Iron Mountain, Michigan, pleaded guilty to the same charge and was sentenced on May 7, 2018 to an additional 151 months in prison.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officials of the Bureau of Prisons at Federal Correctional Institution Fort Dix for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel:
Bush: David Rudenstein Esq., Philadelphia
Noble: Martin Isenberg, Esq., Gibbsboro, New JerseyNigerian Man Using False Identification Convicted in Scheme to Commit Disaster FraudRead the Press Release
HOUSTON ‐ A man using a false identification has entered a guilty plea in a scheme to obtain a fraudulent government loan for damage sustained from Hurricane Irma, announced U.S. Attorney Ryan K. Patrick.
Oluseyi Jeremiah Olagoke Adebayo aka Jeremiah Adebayo Oluyesi, 44, a Nigerian man who illegally resided in Houston, pleaded guilty to fraud in connection with a major disaster. He admitted that from October 2017 to February 2018, he used the identification of an Orlando, Florida, resident in an attempt to obtain a fraudulent disaster home loan from the Small Business Administration (SBA) in connection to Hurricane Irma.
The SBA provides long-term low-interest loans to businesses and non-profit organizations in the aftermath of a declared disaster. Loan proceeds are to be used solely for the repair or replacement of real estate, inventory, supplies, machinery and equipment damaged during a declared disaster. Hurricane Irma impacted the Gulf Coast region, including the state of Florida, and was declared a disaster in September 2017.
Adebayo admitted he aided and abetted others in submitting an application to the SBA in October 2017 for a $118,900 home disaster loan which contained several potential fraud indicators. Further, Adebayo admitted he attempted to collect on the loan for the Florida property.
Adebayo appeared at a U.S. Post Office in Houston on Feb. 7, 2018, to obtain the fraudulent loan disbursement check. At that time, he used a counterfeit passport with the identification of the Florida resident to obtain the check. At that time, he was also found in possession of a counterfeit U.S. visa.
U.S. District Judge Gray Miller accepted the plea and set sentencing for Aug. 16, 2018, at which time Adebayo faces up to 30 years in prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
SBA-Office of Inspector General and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.
New York Woman Pleads Guilty to Trafficking over $3 Million in Counterfeit Footwear and Handbags Through Port of NewarkRead the Press Release
NEWARK, N.J. – A Flushing, New York, woman today admitted her plan to distribute counterfeit Nike sneakers, Louis Vuitton handbags, and other phony merchandise that was shipped into the Port of Newark, U.S. Attorney Craig Carpenito announced.
Xiao Xia Zhao, 41, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging her with one count of trafficking in counterfeit goods. Zhao was originally arrested and charged by complaint on June 23, 2017.
According to documents filed in this case and statements made in court:
From November 2013 through February 2017, Zhao received certain shipping container numbers from an individual overseas that identified at least three containers containing counterfeit merchandise. Zhao asked individuals working at the Port of Newark to remove the containers from the port before they could be examined by U.S. Customs and Border Protection. Once the containers were removed, Zhao directed that they be delivered to other individuals, who would then distribute the merchandise in New Jersey and elsewhere.
However, law enforcement intercepted the containers before Zhao could distribute the goods. At no time was Zhao authorized to import Nike footwear, Louis Vuitton handbags, or any of the other counterfeit merchandise in the containers.
In total, Zhao trafficked in thousands of pairs of fake Nike footwear, Louis Vuitton handbags, and other counterfeit items, with a total estimated retail value of over $3 million. Zhao also paid individuals over $75,000 in exchange for the delivery of the containers.
The trafficking in counterfeit goods charge carries a maximum potential penalty of 10 years in prison and a $2 million fine. Zhao’s sentencing is scheduled for Sept. 5, 2018.
U.S. Attorney Carpenito credited officers of U.S. Customs and Border Protection, under the direction of Leon Hayward, Acting Director, New York Field Operations; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark
New Hampshire Man Sentenced for Role in Lawrence-Based Opioid Trafficking ConspiracyRead the Press Release
BOSTON – A New Hampshire man was sentenced yesterday in federal court in Boston for his role in a widespread heroin and fentanyl trafficking conspiracy operating in Lawrence.
Melvin Weatherspoon, 58, of Rochester, N.H., was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to time served and three years of supervised release. In October 2017, Weatherspoon pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine and fentanyl.
On May 30, 2017, after a year-long investigation aimed at attacking the fentanyl and heroin crisis in Lawrence and surrounding areas, federal, state and local law enforcement officers executed a federal drug sweep to dismantle a Lawrence-based drug trafficking organization allegedly run by Juan Anibal Patrone. Weatherspoon was arrested and charged along with Patrone and dozens of co-conspirators.
Weatherspoon obtained heroin and fentanyl from Patrone and redistributed it to his own customers in New Hampshire.
Patrone has pleaded not guilty and is awaiting trial.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Lawrence Police Chief Roy P. Vasque made the announcement. The DEA Cross Border Initiative, comprised of the DEA and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments, conducted the investigation jointly with the Massachusetts State Police. Assistant U.S. Attorney Susan Winkler of Lelling’s Narcotics and Money Laundering Unit is prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Multi-Million-Dollar Gift-Card Fraud Leads to More Than Fifteen Years PrisonRead the Press Release
OKLAHOMA CITY – LEONARD RAY FOSTER, 48, of Oklahoma City, has been sentenced to 188 months in prison for fraud and money laundering in connection with a scheme to defraud retailers of millions of dollars through gift cards, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
According to charges filed on October 31, 2017, Foster owned and operated Acquisitions Unlimited, LLC, also known as A-to-Z Giftcards. This business bought unused or partially used retail gift cards, also known as store value cards, for a fraction of the cards’ face value. With Foster’s personal involvement, the business then sold the value on the cards to Giftcard Zen, an online retail gift card exchange based in Phoenix, Arizona.
According to the charges, from May 2015 to March 2017, individuals affiliated with Foster or his business shoplifted large quantities of high-dollar items from retail stores, including Walmart, Lowe’s, Target, and Home Depot. They then returned these stolen items, without a receipt, to the retailer for a store value card in the amount of the returned merchandise. Each day, Foster purchased multiple cards from these individuals for a small fraction of the cards’ face values. He knew the cards had been obtained through fraud. Indeed, Foster sometimes directed the shoplifters himself. Through A-to-Z Giftcards, he then sold the face value on the cards to Giftcard Zen, in violation of terms of service that prohibited selling store value cards obtained through fraud.
Foster was charged with wire fraud in connection with a $59,035.38 transfer on December 9, 2015, from Giftcard Zen’s out-of-state bank to an account of Acquisitions Unlimited at Bank of America in Oklahoma. He was also charged with money laundering, based on a December 10, 2015, withdrawal from Bank of America in the amount of $18,000.
Foster pleaded guilty to both wire fraud and money laundering on November 3, 2017. On November 22, 2017, the court revoked his bond based on a positive test for the use of methamphetamine. He has been in federal custody since that date.
Today U.S. District Judge David L. Russell sentenced Foster to 188 months in prison, to be followed by three years of supervised release. He must pay $7,025,681.29 in restitution to retailers. The court also ordered forfeiture of a 1969 Mustang and more than $20,000 in various bank accounts. Foster will also be subject to a forfeiture money judgment in the amount of $3,142,500.
This case is the result of an investigation by the Oklahoma City Police Department, the Internal Revenue Service–Criminal Investigations, and the United States Postal Inspection Service. It was prosecuted by Assistant U.S. Attorneys Julia E. Barry, Ashley L. Altshuler, and Wilson McGarry.
Reference is made to court records for further information.
Mingo County Woman Pleads Guilty for Role in Pharmacy TheftRead the Press Release
CHARLESTON, W.Va. - United States Attorney Mike Stuart announced that Marcia Evans, 60, of Gilbert, pled guilty in federal court to conspiracy to distribute the controlled substance Suboxone. Stuart praised the investigation conducted by the Drug Enforcement Administration with assistance from the West Virginia Board of Pharmacy.
“The largest pharmacy theft in West Virginia since records have been maintained,” said United States Attorney Mike Stuart. “Apparently, wisdom doesn’t always come with experience. The opiate crisis, including suboxone, comes in all shapes and sizes. Young and old. Rich and poor. Suboxone, like other opiates, has had a devastating effect on families all over West Virginia, and now this 60-year-old woman must may the price for her terrible judgment.”
As part of her plea, Evans admitted her role in what the West Virginia Board of Pharmacy has called the largest pharmacy theft in West Virginia since records have been maintained by the Board. Evans was previously employed as a pharmacy technician at Riverside Pharmacy in Gilbert. Evans admitted that from 2014 to September 2016, she conspired with others to take Suboxone and Xanax from the supply at the pharmacy. In order to conceal the shortage of controlled substances, Evans manipulated the controlled substance count in the pharmacy’s computers. An audit was performed comparing shipment records with distribution records at the pharmacy, and a shortage of over 23,000 dosage units of Suboxone and over 137,000 dosage units of Xanax was revealed. Evans further admitted that she sold some of the Suboxone she stole from the pharmacy. In a related prosecution, Evans’ coconspirator, Kimberly McCoy, also admitted to her role in stealing Suboxone and Xanax from Riverside Pharmacy. McCoy previously pled guilty to obtaining Suboxone by fraud.
When she is sentenced on October 2, 2018, Evans faces up to10 years in prison. McCoy faces up to 4 years in prison when she is sentenced on August 29, 2018.
United States District Court Judge David A. Faber is presiding over the cases which are being handled by Assistant United States Attorney Haley Bunn. These investigations are the result of the formation of the Opioid Fraud Abuse and Detection Unit (OFADU), a Department of Justice initiative that uses data to identify and prosecute individuals that are contributors to the national opioid crisis. The Southern District of West Virginia is one of 12 districts nationally to participate in the pilot program.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Mexican National Sentenced for Cocaine TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Mexican national, stopped en route from Arizona to Ohio, was sentenced in federal court today for possessing at least five kilograms of cocaine with the intent to distribute.
Adriana Gutierrez-Ramirez, also known as Adriana Peralta, 43, a citizen of Mexico residing in Phoenix, Ariz., was sentenced by U.S. District Judge M. Douglas Harpool to 10 years and one month in federal prison without parole.
Gutierrez-Ramirez was found guilty at trial on Dec. 5, 2017. Co-defendant Luis J. Duarte, 60, also a citizen of Mexico residing in Phoenix, pleaded guilty to possessing at least 500 grams of cocaine with the intent to distribute and was sentenced on Jan. 24, 2018, to 29 months in prison.
Duarte was driving a 2016 Ford F350 cargo utility truck, with Gutierrez-Ramirez in the passenger seat, when they were stopped by a state trooper on I-44 in Strafford, Mo., on Feb. 25, 2017. Duarte had rented the truck in Phoenix two days earlier for a one-way trip.
When the trooper searched the vehicle, he found a kilogram-sized package of cocaine inside a cardboard box containing clothing in the cargo area of the truck and placed Duarte and Gutierrez-Ramirez under arrest. Four more kilogram-sized packages of cocaine were found during a search of the vehicle after it was transported to headquarters.
Duarte admitted that he was solicited by an unidentified person to drive the truck to Ohio. That person gave Duarte $1,500 to rent the truck and for expenses during the trip. Duarte told investigators he was unsure how much he was being paid for the trip but expected to receive payment when he reached the destination. When Duarte picked up the truck, Gutierrez-Ramirez – whom he had never met – was already sitting inside.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Missouri State Highway Patrol.
Methuen Man and Dominican National Charged with Fentanyl ConspiracyRead the Press Release
BOSTON – A Methuen man and a Dominican national were indicted today in federal court in Boston in connection with a fentanyl trafficking conspiracy.
Carlos Torres, 26, of Methuen, was charged with one count of conspiracy to distribute 400 grams or more of fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime. Carlos Rodriguez, 19, a Dominican national, residing in Lawrence, was charged with one count of conspiracy to distribute 40 grams or more of fentanyl. Both men were arrested on April 19, 2018, and charged in a criminal complaint.
According to court documents, on April 19, 2018, investigators received information that Rodriguez would be delivering fentanyl in the Lawrence area. After stopping Rodriguez, investigators seized approximately 150 grams of fentanyl from him. Pursuant to a search warrant at Torres’ residence, investigators seized approximately 700 grams of fentanyl, a firearm and ammunition.
The charge of conspiracy to distribute 40 grams or more of fentanyl provides for a minimum mandatory sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. The charge of conspiracy to distribute 400 grams or more of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release, and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Andover Police Chief Patrick Keefe; Lawrence Police Chief Roy Vasque; and Methuen Police Chief Joe Solomon made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Meridian Man Pleads Guilty to Attempted Coercion and EnticementRead the Press Release
BOISE – Bruce Eugene Froman, 41, of Meridian, pleaded guilty yesterday in United States District Court to attempted coercion and enticement, U.S. Attorney Bart M. Davis announced. As part of his plea, Froman also agreed to forfeit the cell phone used in the commission of the charged offense.
According to the plea agreement, in March of 2018, detectives with the Idaho Internet Crimes Against Children (ICAC) Task Force posted an advertisement on Craigslist stating a mother and daughter were looking for a “mature man for play.” Froman responded to the advertisement. An ICAC detective represented himself to be a 35-year-old woman with a 15-year-old daughter “looking for a respectful man to come and teach her some stuff.” Froman stated his desire to have sexual contact with the 15-year-old. Froman made numerous statements to the purported mother and the 15-year-old daughter attempting to persuade, induce, and entice the 15-year-old to engage in sexual contact.
Froman agreed to come to the residence of the purported 15-year-old to engage in sexual contact with her. When he arrived at the residence, detectives arrested him. They seized a cell phone from his vehicle, and later discovered the text messages between Froman and the purported mother and daughter. Froman admitted he “gave into his deviant thoughts,” and admitted sending messages indicating his intent to engage in sexual contact with a 15-year-old.
Sentencing is set for August 14, 2018, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
Attempted coercion and enticement is punishable by not less than 10 years and up to life imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $5,100 special assessment.
This case was investigated as part of a joint operation conducted by the Department of Homeland Security, the Idaho Internet Crimes Against Children (ICAC) Task Force, the United States Attorney’s Office, the Ada County Prosecutor’s Office, the Ada County Sheriff’s Office, the Boise Police Department, the Bureau of Alcohol, Tobacco, and Firearms, the Canyon County Sheriff’s Office, the Canyon County Prosecutor’s Office, the Federal Bureau of Investigation, the Garden City Police Department, the United States Marshal’s Service, and the United States Postal Inspectors Service.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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.”
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Medical Office Manager Sentenced to 14 Years in Federal Prison for Leading Oxycodone Distribution RingRead the Press Release
PHILADELPHIA – A Bucks County medical office manager was sentenced yesterday to 14 years in prison by U.S. District Judge Gerald Pappert for his role in a conspiracy to distribute oxycodone and for health care fraud, announced U.S. Attorney William M. McSwain.
Michael Milchin, 37, of Philadelphia, the manager of Central Bucks Health Associates, was charged in 2017 with conspiring with 13 other defendants to fill hundreds of fraudulent prescriptions for oxycodone at various pharmacies in and around Philadelphia. Milchin then sold the fraudulently obtained pills to others. While the fraudulent prescriptions purported to be written by a physician with Central Bucks Health Associates, the physician in question had no affiliation with Central Bucks Health Associates and never authorized any of the prescriptions
“It is crimes like this that are perpetuating the opioid epidemic,” said U.S. Attorney McSwain. “Opioid abuse is killing people. It’s tearing apart families and ruining lives. As the court found, the defendant was driven only by greed, without regard to the public health hazard he was creating. My office will continue to aggressively investigate and prosecute any criminal scheme that contributes to the opioid epidemic.”
Milchin also worked with a chiropractor to defraud private insurance companies, Independence Blue Cross and Aetna, by billing those insurers more than $700,000 for chiropractic services that were never provided.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
McClelland, Iowa Man Sentenced to Prison for Tax EvasionRead the Press Release
COUNCIL BLUFFS, Iowa-- On May 11, 2018, United States District Court Judge Stephanie M. Rose sentenced Michael Collins, age 49, of McClelland, to one year and one day of imprisonment for tax evasion, announced United States Attorney Marc Krickbaum. Collins was ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $70,274.14 and pay a fine of $34,770. Collins will serve a three year term of supervised release following his prison term.
Collins pleaded guilty to tax evasion on December 21, 2017. According to documents and information provided to the Court, Collins was part-owner of a real-estate development firm that earned significant income in 2006. As a result of his ownership in the company, Collins received approximately $289,000 in income that year, but did not report it on his individual income tax return. In 2008, the IRS contacted Collins regarding the unreported income and Collins filed an amended return reporting the income and reflecting a tax due of more than $100,000. However, Collins did not pay the tax liability.
From 2006 through the present, Collins also operated an excavating and trucking company that generated more than $5.5 million in gross receipts. To evade payment of his outstanding tax liability, Collins registered the business as well as its bank accounts in the name of nominees, used nominee entities to conceal over $5 million in gross receipts from the business, filed fraudulent corporate tax returns that listed nominees as the owners of the business and paid his personal expenses using the business’ unreported income. Collins also filed fraudulent documents with the IRS claiming to have no gross business receipts for the company and falsely told IRS employees that his only source of income was unemployment benefits. He admitted to causing a tax loss of more than $250,000.
This case was prosecuted by Department of Justice, Tax Division Trial Attorneys Matthew Hoffman and Lee Langston and was investigated by Special Agents of Internal Revenue Service Criminal Investigation.
May Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 22 indictments charging 25 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Nelson Jeovanny Chavez, age 33, is charged with illegal reentry after deportation following an aggravated felony conviction on or about May 10, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* William Daugherty, age 26, Lonnie Arthaloney, age 53, Ramon Ceballo Gaspar, and Omar Rodriguez Lopez, age 30 are charged in a four-count Indictment. Count I charges the defendants with conspiracy to distribute 500 grams, or more of a mixture or substance containing methamphetamine beginning on or about December 1, 2017, and continuing to on or about April 26, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count II charges Ceballo Gaspar with possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine on or about April 24, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count III charges Daugherty and Arthaloney with possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine on or about April 24, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count IV charges Rodriguez Lopez with possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine on or about April 26, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about April 26, 2018.
* Hernan Equiarte Salcido, age 55, is charged with illegal reentry after deportation following an aggravated felony conviction on or about May 6, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Robert S. Goldman, age 60, of Palm Desert, California is charged in a five-Count Indictment with Wire Fraud on or about January, 2016, and continuing through at least on or about August, 2017. The Indictment alleges Goldman defrauded financial institutions causing losses of $221,414. The maximum possible penalty if convicted is 20 years imprisonment for each count, a $250,000 fine for each count, a 5 year term of supervised release for each count, and a $100 special assessment for each count.
* Julio Cesar Gonzalez-Hernandez, age 42, is charged with illegal reentry after deportation on or about May 7, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose Guzman-Ramirez, age 26, of Omaha, is charged in a two-count Indictment. Count I charges the defendant with conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine beginning on or about April 1, 2018, and continuing to on or about April 26, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine on or about April 26, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about April 26, 2018.
* Brenda K. Harmon, age 35 is charged in a twelve-count Indictment. Count I charges the defendant with conspiracy to distribute 50 grams or more of methamphetamine beginning on or about January 27, 2018, and continuing to on or about April 27, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count II charges the defendant with distribution of a mixture or substance containing methamphetamine on or about January 12, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. Count III charges the defendant with distribution of a mixture or substance containing methamphetamine on or about January 23, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. Count IV charges the defendant with possession with intent to distribute a mixture or substance containing methamphetamine on or about February 1, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. Count V charges the defendant with possession with intent to distribute 5 grams or more of methamphetamine on or about February 8, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count VI charges the defendant with distribution of 5 grams or more of methamphetamine on or about February 16, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count VII charges the defendant with distribution of 5 grams or more of methamphetamine on or about March 2, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count VIII charges the defendant with distribution of 5 grams or more of methamphetamine on or about March 13, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count IX charges the defendant with distribution of 5 grams or more of methamphetamine on or about March 23, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count X charges the defendant with conspiracy to distribute 50 grams or more of methamphetamine on or about April 6, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count XI charges the defendant with possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine on or about April 27, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count XII of the Indictment charges the defendant with using, carrying, or possessing a firearm in connection with a drug trafficking crime on or about April 27, 2018. The maximum possible penalty if convicted is Life consecutive imprisonment, a $250,000 fine, up to a 5 year term of supervised release and $100 special assessment.
* Salvador Herrera-Vargas, age 40, of Lincoln is charged with illegal reentry after deportation on or about May 7, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Robert Eugene Huff, age 69, of Chico, California, is charged in a two-count Indictment. Count I charges the defendant with using any facility in interstate commerce to promote or to distribute the proceeds of a business enterprise involving the distribution of controlled substances beginning on or about January 1, 2016, and continuing to on or about December 19, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with conspiracy to distribute 50 kilograms or more of a mixture or substance containing marijuana beginning on or about January 1, 2016, and continuing to on or about December 19, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency and a Ford F-350 truck seized on or about December 19, 2017.
* Kenneth S. Jones, age 37, is charged with Hobbs Act robbery taking jewelry by force from Pretty in Patina on or about February 17, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Luis Angel Lepes Chavez, age 28, is charged with illegal reentry after deportation on or about April 19, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Oscar Martinez Diaz, age 49, of Omaha, is charged with illegal reentry after deportation following a felony conviction on or about May 8, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Ernesto Morales-Martinez, age 40, is charged with illegal reentry after deportation on or about April 19, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose Manuel Ortega-Hernandez, age 26, of Lincoln is charged with illegal reentry after deportation on or about May 9, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Victor Palos Ortiz, age 37, of Lincoln is charged with illegal reentry after deportation on or about May 7, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ismael Pena Velazquez, age 40, of Omaha, is charged with illegal reentry after deportation following a felony conviction on or about May 15, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Ronald Pryor, age 53, is charged with felon in possession of a firearm on or about March 29, 2018. The maximum possible penalty if convicted is NMT 10 years imprisonment, a $250,000 fine, a NMT 3 year term of supervised release, and a $100 special assessment.
* Felipe Samuel-Gomez, age 31, of Grand Island, Nebraska is charged with illegal reentry after deportation on or about April 9, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose Manuel Uribe-Espino, age 26, is charged with illegal reentry after deportation on or about April 19, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Albino Velasquez Domingo, age 46, of Omaha is charged with illegal reentry after deportation on or about May 9, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Sebastian Velasquez-Ramos, age 43, is charged in a six-count Indictment. Count I charges the defendant with falsely representing a Social Security number on or about May 18, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraud and misuse of a Social Security number on or about May 18, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III charges the defendant with falsely claiming to be a United States citizen on or about May 18, 2017. The maximum possible penalty if convicted is 3 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV charges the defendant with aggravated identity theft on or about May 18, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count V charges the defendant with falsely claiming to be a United States citizen on or about November 17, 2017. The maximum possible penalty if convicted is 3 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count VI charges the defendant with aggravated identity theft on or about November 17, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Samuel Villalba, age 33, is charged in a three-count Indictment. Count I charges the defendant with falsely representing a Social Security number on or about February 2, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraud and misuse of a Social Security number on or about February 2, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III charges the defendant with falsely claiming to be a United States citizen on or about February 2, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Massachusetts Resident Detained for Allegedly Attempting to Entice a Minor and Attempting to Engage in Illicit SexRead the Press Release
PROVIDENCE, RI – A Massachusetts man has been ordered detained on a federal criminal complaint charging him with attempting to entice a minor, attempting to transfer obscene material to a minor, and traveling to Rhode Island with the intent to engage in illicit sexual conduct.
Cody J. Hansen, 34, of Orange, MA, was arrested on Tuesday by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force when he arrived at a designated location where he believed he would meet with a person who would assist him in meeting with and have sexual contact with a 12-year-old and an 8-year-old girl.
Hansen was ordered detained pending further proceedings by U.S. District Court Magistrate Judge Patricia A. Sullivan. A continuation of a detention hearing has been scheduled for May 30, 2018.
Hansen’s arrest and detention are announced by United States Attorney Stephen G. Dambruch, Rhode Island State Police Superintendent Colonel Ann C. Assumpico, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
According to court documents, it is alleged that on April 20, 2018, a Rhode Island State Police trooper assigned to the ICAC Task Force discovered an online classified advertisement of an individual seeking to engage in illicit sexual activity. The trooper responded in an undercover capacity, first posing as the boyfriend of a woman with two minor children, age 8 and 12, then as the 12-year-old girl. It is alleged that the conversation turned sexually explicit, and, during one of many email exchanges, Hansen allegedly sent a sexually explicit picture to the person he thought to be the 12-year-old girl.
According to court documents, it is alleged that on Monday, Hansen and the Rhode Island State trooper, again posing as the boyfriend of the mother of the two children, spoke by telephone to confirm arraignments for Hansen to travel to Rhode Island to meet with and engage in illicit sexual contact with the two minor girls. The two men exchanged text messages on Tuesday to again confirm the details of the meeting. When Hansen arrived at the designated location on Tuesday, he allegedly entered the state police trooper’s undercover vehicle and discussed with the trooper his intent to have sexual contact with the 12 and 8-year-old girls. On the trooper’s signal, members of the ICAC Task Force surrounded the vehicle and took Hansen into custody.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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Manitowoc Man Indicted for Orchestrating $3,000,000 Ponzi SchemeRead the Press Release
United States Attorney Matthew D. Krueger announced today that a federal grand jury in the Eastern District of Wisconsin indicted James A. Nickels (age 67) of Manitowoc, Wisconsin, on eighteen 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.
According to the indictment, from approximately September 2006 until August 2017, Nickels carried out a scheme to defraud by making materially false representations, omissions, and promises to induce people to invest in a business called The Fiscal Concierge. As part of the scheme, Nickels failed to inform potential investors that he was using money from new investors to pay interest and principal promised to previous investors, and to pay his personal expenses. Nickels obtained from investor victims more than $5 million in scheme proceeds, and the investors’ net loss was $3,193,616.
United States Attorney Krueger commented, “Investment schemes can destroy the dreams of victims whose hard-earned savings are stolen. We commend the excellent work of the IRS and the State of Wisconsin in joining forces to investigate this case.”
“Illegal activity involving the investment industry has brought financial ruin to many Americans. IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime,” said IRS Criminal Investigation, St. Paul Field Office Acting Special Agent in Charge David Talcott.
Each of the eighteen wire fraud charges carries a maximum possible penalty of up to twenty years in prison and a fine of up to $250,000. The money laundering charge carries a maximum possible penalty of up to ten years in prison and a fine of up to $250,000.
IRS Criminal Investigation and the Wisconsin Department of Financial Institutions investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Stephen A. Ingraham and Zachary J. Corey.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Man Sentenced to over Two Months in Prison after Illegally Reentering the U.S. and Committing Document FraudRead the Press Release
A Honduran man who had been deported, illegally returned to the United States, and then used false identification documents to obtain a job was sentenced today to more than two months in federal prison.
Edwin Melendez-Lopez, age 37, a citizen of Honduras illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a April 16, 2018, guilty plea to one count of unlawful use of an identification document and one count of illegal reentry into the United States.
At the guilty plea, Melendez-Lopez admitted he had previously been deported from the United States on April 27, 2007, and that he illegally reentered the United States without the permission of the United States government. Melendez-Lopez also admitted that on January 19, 2018, he used a social security card bearing an alias name when completing employment forms to obtain a job in Cedar Rapids, Iowa. The alias name and social security account number on the card used by Melendez-Lopez belonged to a United States citizen. On February 21, 2018, Melendez-Lopez was found by immigration officers during a traffic stop in Cedar Rapids, Iowa.
Melendez-Lopez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Melendez-Lopez was sentenced to 72 days’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Melendez-Lopez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 18-CR-11-LRR.
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Man Sentenced to 27 Months in Prison for Role in Identity Theft and Wire Fraud ConspiracyRead the Press Release
NEWARK N.J. – A Georgia man was sentenced today to 27 months in prison for using fake driver’s licenses in order to obtain checks issued in response to false statements and representations, U.S. Attorney Craig Carpenito announced.
Abdulrasheed Yusuf, 30, of Lilburn, Georgia, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of aggravated identity theft and one count of conspiracy to commit wire fraud. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Yusuf was a member of a conspiracy to obtain money fraudulently, including by committing identity theft, impersonating account holders and obtaining money from their accounts. On Aug. 8, 2017, a member of the conspiracy contacted an entity where an individual (Victim 1) had an account. The caller impersonated Victim 1 seeking to withdraw $34,636 from the victim’s account. The entity sent a check through a mail carrier to the account holder at caller’s address.
A member of the conspiracy caused the mail carrier to hold the packages containing the check for Victim 1 at one of its branch locations. On Aug. 14, 2017, Yusuf entered the branch and, using a driver’s license with Yusuf’s picture and Victim 1’s name and address, obtained a package he believed contained the check to Victim 1. Yusuf used a separate fake driver’s license in connection with obtaining a different check similarly issued in response to fraudulent statements.
In addition to the prison term, Judge Hayden sentenced Yusuf to three years of supervised release and ordered him to pay restitution of $46,425.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to today’s guilty plea. He also thanked the Unified Police Department of Greater Salt Lake, Utah, under the direction of Sheriff Rosie Rivera, for its role in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Man Pleads Guilty to Falsifying Water Testing in BranchvilleRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Caleb Elias Hartzog, Jr., age 59, of Orangeburg, pled guilty to Making a False Statement to a Government Agency, a violation of Title 18, United States Code, § 1001. Chief Judge Terry L. Wooten accepted the plea and will sentence Hartzog on September 11, 2018.
Evidence presented at the hearing established that Caleb Hartzog, a former drinking water operator for the town of Branchville, South Carolina, forged forms certifying that residents had collected drinking water samples from within their homes. Hartzog falsified forms for at least ten residential homes. Several residents claimed no one had been taking water samples from their homes for some time, and, in certain cases, ever. The samples were to be analyzed for potential lead and copper contamination. None of the ten residents had signed the forms in 2014, the year that is the basis for the criminal charges.
Testing performed after Hartzog was no longer the drinking water operator revealed no contamination of the Branchville water supply.
The maximum penalty faced by Hartzog is imprisonment for five years, with a potential fine up to $250,000.
The U.S. Environmental Protection Agency and South Carolina Department of Health and Environmental Control (DHEC) investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Long Island Doctor Convicted of Causing the Overdose Deaths of Two Patients and Illegally Distributing OxycodoneRead the Press Release
A federal jury in Central Islip today, following five weeks of trial, convicted Dr. Michael Belfiore of two counts of illegal distribution of oxycodone causing the deaths of two patients and 26 counts of illegal distribution of oxycodone. After the verdict, Dr. Belfiore was remanded to custody pending sentencing by United States District Judge Joseph F. Bianco. The defendant faces a mandatory minimum sentence of 20 years’ imprisonment, a $10 million fine and forfeiture in an amount to be determined by the Court.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the verdict.
“Dr. Belfiore was acting not as a healer, but as a drug dealer with a prescription pad,” stated United States Attorney Donoghue. “The defendant lined his pockets with cash from patients in exchange for illegally prescribing oxycodone, a particularly dangerous and addictive drug, with lethal results. The Department of Justice recognizes the importance of holding corrupt medical professionals like Dr. Belfiore accountable for their role in fueling the opioid epidemic.” The case was investigated by the DEA’s Long Island Tactical Diversion Squad comprising agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department, Suffolk County Police Department, Port Washington Police Department and Internal Revenue Service.
“From the time he was arrested, to today’s conviction, it was abundantly clear that Dr. Belfiore’s actions were not those of a medical doctor, but those of a drug dealer,” stated DEA Special Agent-in-Charge Hunt. “Lives were lost at the hands of Dr. Belfiore whose practice enabled addiction and overdose – both of which contribute to the current opioid crisis our nation is facing. I commend the diligent work of the DEA Tactical Diversion Squad in Long Island and the U.S. Attorney’s Office, Eastern District of New York, on this investigation and trial.”
“The conviction of defendant Dr. Michael Belfiore is a clear example of our zero tolerance approach toward dealing with the illegal prescribing of Oxycodone,” stated NCPD Commissioner Ryder. “We have seen all too often how these prescriptions have had serious and fatal effects on our communities and residents. I would like to congratulate all of the investigative agencies for their hard work and dedication during this investigation.”
The evidence at trial established that Dr. Belfiore, a doctor of osteopathic medicine who primarily operated out of an office in Merrick, illegally distributed oxycodone outside the usual course of professional practice and not for a legitimate medical purpose. Oxycodone is a powerful and highly addictive drug that is increasingly abused because of its potency when crushed into a powder and ingested. It is a scheduled controlled substance that may be dispensed by medical professionals only to patients suffering from significant pain that is documented through medical exams, diagnostic testing—such as x-rays and MRIs—and other objective proof. Although oxycodone is commonly prescribed in five milligram tablets, the trial evidence showed that Dr. Belfiore wrote thousands of 30 milligram prescriptions for oxycodone in quantities of up to 180 pills per month. Specifically, as proved at the trial:
On February 28, 2013, Dr. Belfiore gave an illegal prescription for 120 30 mg oxycodone pills to 42-year-old Edward Martin. On March 5, Mr. Martin overdosed and died in his bed after snorting the oxycodone obtained from Dr. Belfiore’s prescription.
On or about April 12, 2013, Dr. Belfiore gave an illegal prescription for 150 30 mg oxycodone to 32-year-old John Ubaghs, a veteran of the United States Marine Corps who served in the infantry during the war in Iraq. On April 13, 2013, Mr. Ubaghs was found unresponsive after overdosing on oxycodone prescribed by Dr. Belfiore, and was pronounced dead at the hospital.
Between March 2013 and August 2013, Dr. Belfiore intentionally dispensed six prescriptions of oxycodone without a legitimate medical purpose to an undercover detective with the NCPD’s Narcotics Vice Squad. Undercover surveillance videos demonstrated that Dr. Belfiore created fake medical charts to justify those prescriptions and that during office meetings with the detective, Dr. Belfiore’s “treatment” consisted of a discussion of the doctor’s $175,000 Porsche, a recent trip to San Diego and his interest in helicopters, yachts and cigarette boats.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles N. Rose and Bradley T. King are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor is in charge of the forfeiture.
The Defendant:
MICHAEL BELFIORE
Age: 52
Residence: Westbury, New YorkE.D.N.Y. Docket No. 15-CR-242 (JFB)