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27 June 2018
Member of Drug Trafficking Organization that Distributed High Grade Marijuana Throughout New Mexico Sentenced for Hashish Oil Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Daniel Nieto, 40, of Carlsbad, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 36 months in prison followed by three years of supervised release for his conviction on a hashish oil trafficking charge.
Nieto is one of ten defendants charged as the result of a two-year investigation by the FBI and IRS-Criminal Investigation into a drug trafficking organization led by Enrique Cavazos, 32, of Tijeras, N.M., that distributed high-grade marijuana throughout New Mexico and across the country. The investigation revealed that the Cavazos drug trafficking organization cultivated and purchased high-grade marijuana in California, distributed the marijuana throughout the country, and laundered its drug proceeds through a number of businesses and bank accounts in New Mexico.
Nieto, Enrique Cavazos, his wife Lindsey Cavazos, 33, his father Felix Cavazos, 59, of Albuquerque, Joaquin Alaniz, 41, of Carlsbad, Eliberto Nava, 36, of Madera, Calif., Antonio Ruelas, 32, of Rio Rancho, N.M., and Robert D. Moreno, 38, of Ukiah, Calif., were charged by indictment in Nov. 2015, with marijuana trafficking and money laundering offenses. The indictment charged the co-conspirators with participating in a marijuana trafficking conspiracy that existed from at least Jan. 2008 through Nov. 2015, and operated in the District of New Mexico and elsewhere.
According to court filings, Enrique Cavazos operated a marijuana trafficking business by directing his co-conspirators to purchase large quantities of marijuana in California and distribute the marijuana in New Mexico and other destinations across the country. Lindsey Cavazos was responsible for keeping the books on businesses she and her husband established with proceeds from their marijuana trafficking activities and for the purpose of laundering their drug proceeds. The couple engaged in a money laundering conspiracy and used bank accounts in the names of several of their businesses, including a restaurant and a car dealership, to launder their drug proceeds.
The indictment was superseded in Aug. 2016, to add money laundering charges against three new defendants: Steven Becerra, 62, the owner of the Becerra Group Tax and Accounting Firm in Albuquerque, who previously was employed by the IRS for 18 years; Deborah Gutierrez, 55, who operated Automated Financial Technologies, which is no longer in business; and Glen F. Lucero, 66, a retired school teacher. The superseding indictment also removed Felix Cavazos, Enrique Cavazos’s father who passed away after the original indictment was filed, from the list of defendants.
On May 25, 2017, Nieto pled guilty to one count of possession of hashish oil with intent to distribute. In entering the guilty plea, Nieto admitted that as part of the investigation into his co-defendants, law enforcement officers learned that Nieto had been selling marijuana and hashish oil primarily provided to Nieto by his co-defendants for approximately seven to eight years. Nieto further admitted that during a search of his residence in May 2015, law enforcement officers located approximately two pounds of hashish oil, prescription pills and two firearms. Nieto acknowledged that the hashish oil that was found in his residence was to be distributed to other individuals.
Six of Nieto’s co-defendants have entered guilty pleas, and two have been sentenced. Enrique Cavazos pled guilty on May 24, 2017, and was sentenced on May 9, 2018, to 72 months in federal prison followed by three years of supervised release. Ruelas pled guilty on Sept. 8, 2017, and was sentenced on May 2, 2018, to 30 months in federal prison followed by three years of supervised release. Lindsey A. Cavazos pled guilty on May 24, 2017, Navia pled guilty on May 22, 2018, and Moreno pled guilty on June 12, 2018. Sentencing hearings for these three defendants have yet to be scheduled.
The remaining four defendants, who have entered not guilty pleas to the superseding indictment, are pending trial, which is currently scheduled for July 2018. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The investigation of this case was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. It was conducted by the Albuquerque offices of the FBI and IRS Criminal Investigation and the Albuquerque Police Department. Assistant U.S. Attorneys Jennifer M. Rozzoni, Timothy S. Vasquez and Joel R. Meyers are prosecuting the case, and Assistant U.S. Attorney Stephen R. Kotz is handling the forfeiture matters.
McHenry Man Sentenced to More Than 17 Years in Federal Prison on Child Pornography ChargesRead the Press Release
ROCKFORD — A McHenry man was sentenced today by U.S. District Judge Frederick J. Kapala to 210 months in federal prison, to be followed by five years of supervised release, on child pornography charges.
Following a four-day jury trial in federal court, MICHAEL L. CHAPARRO, 29, was found guilty on Feb. 2, 2018, of one count of transporting child pornography via the internet, and two counts of accessing child pornography that had crossed state lines, including an image of a prepubescent minor and a minor under 12 years of age, with intent to view the child pornography.
According to the indictment and the evidence at trial, on Aug. 7, 2014, Chaparro knowingly transported to Pennsylvania and Texas materials depicting one or more actual minors engaged in sexually explicit conduct. In addition, evidence at trial indicated that Chaparro accessed a smart phone on Nov. 24, 2014, and computer hard drive on July 30, 2013, with intent to view child pornography, knowing that one or more persons depicted in an image involved a prepubescent minor or a minor who had not attained 12 years of age.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of Federal Bureau of Investigation; and Bill Prim, McHenry County Sheriff. The Illinois Internet Crimes Against Children Task Force assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Michael D. Love and Margaret J. Schneider.
Mansfield man charged with defrauding Social SecurityRead the Press Release
A Mansfield man was charged with theft of government funds.
Timothy L. Deener, 47, who receives Social Security benefits, falsely reported to the Social Security Administration for five years that he was not married and that he lived alone. As a result, Deener unlawfully obtained more in benefits than he was entitled to receive, according to the criminal information.
Special Agent Kelly Clark from the Social Security Administration Office of the Inspector General conducted the investigation. Special Assistant U.S. Attorney Payum Doroodian is prosecuting the case.
If convicted, the Court will determine the defendant’s sentence after a 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. 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.
Manhattan U.S. Attorney Settles Civil Fraud Lawsuit Against Fine Jewelry Designer for Evading Customs DutiesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Robert E. Perez, Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), and Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that the United States filed and settled civil fraud claims brought under the False Claims Act against TEMPLE ST. CLAIR LLC (“TEMPLE ST. CLAIR”), a fine jewelry designer, manufacturer, and importer based in New York, New York, with merchandise sold in retail stores and online throughout the United States. As alleged in the Government’s complaint, TEMPLE ST. CLAIR systematically and unlawfully avoided payment of customs duties it owed on goods imported from Thailand, Sri Lanka, and Italy by falsely stating to CBP that the value of the goods was substantially less than the true value, and by senior leadership of TEMPLE ST. CLAIR hand-carrying jewelry into the United States for commercial purposes without declaring it to CBP. Additionally, TEMPLE ST. CLAIR failed to properly affix to jewelry that was manufactured in Sri Lanka and Thailand permanent markings indicating its country of origin, in violation of CBP regulations. As part of the settlement, approved yesterday in Manhattan federal court by U.S. District Judge Katherine Polk Failla, TEMPLE ST. CLAIR admitted to and accepted responsibility for underpaying customs duties and failing to properly mark its merchandise, and agreed to pay $796,000 to the United States and implement corrective measures to prevent future customs violations.
Manhattan U.S. Attorney Geoffrey S. Berman said: “This Office is committed to pursuing customs fraud and holding importers accountable for evading customs duties and disregarding CBP requirements.”
ICE HSI Special Agent-in-Charge Angel M. Melendez said: “Temple St. Clair LLC employed fraudulent schemes that resulted in the underpayment of customs duties and the significant loss of revenue to the U.S. government. Unfair trade practices hurt industries and consumers alike. HSI stands committed with CBP, to vigorously investigate those people and businesses that seek to make a larger profit by circumventing, or even disregarding, customs regulations.”
CBP Director of New York Field Operations Robert E. Perez said: “Today’s settlement is a testament to the dedication of our partners in the United States Attorney's Office, Homeland Security Investigations, and the men and women of CBP in enforcing our nation’s trade laws and taking effective action against those who seek to defraud the government.”
As part of the settlement, TEMPLE ST. CLAIR admitted, acknowledged, and accepted responsibility for engaging in the following conduct:
- From January 2011 through July 2016, TEMPLE ST. CLAIR repeatedly understated the actual value of jewelry it imported from Italy, Sri Lanka, and Thailand in documents presented to CBP to establish the import duties owed on the jewelry.
- From January 2011 through July 2016, to obtain duty-free treatment pursuant to the Generalized System of Preferences trade-preference program, TEMPLE ST. CLAIR misrepresented to the United States that at least 35% of the value of jewelry was added in Sri Lanka or Thailand.
- In 2017, TEMPLE ST. CLAIR failed to ensure that the jewelry it was importing from Sri Lanka and Thailand was permanently marked with its country of origin at the time of entry.
- Between 2011 and 2016, TEMPLE ST. CLAIR senior management brought jewelry into the country for commercial purposes, and improperly failed to declare those items to CBP. As a result, TEMPLE ST. CLAIR improperly avoided paying import duties for those items.
The settlement also requires TEMPLE ST. CLAIR to implement procedures to properly mark its jewelry with the country of origin. TEMPLE ST. CLAIR must affix markings to the jewelry prior to the time of importation and with sufficient permanence to withstand normal shipping and handling.
The allegations of fraud stated in the Complaint were first brought to the attention of federal law enforcement by a whistle-blower who filed a lawsuit under the False Claims Act.
Mr. Berman praised the investigative work of HSI on this case. He also thanked CBP for its assistance.
This case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorneys Kirti Vaidya Reddy and Peter Aronoff are in charge of the case.
Man on Federal Supervised Release Pleads Guilty to Making False StatementRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALAN D. ZALESKI, 57, of New Britain, pleaded guilty today in New Haven federal court to one count of making a false statement to the U.S. Probation Office and the U.S. District Court.
According to court documents and statements made in court, on February 3, 2011, ZALESKI was sentenced in New Haven federal court to 101 months of imprisonment, followed by three years of supervised release, for illegally possessing machine guns and numerous other unregistered weapons. He was released from federal prison in December 2015 and began serving this three-year term of supervised release. As part of his reporting requirements while under court supervision, ZALESKI submits online monthly reports to the U.S. Probation Office and ultimately to the U.S. District Judge responsible for his criminal case. The online reporting form states that ZALESKI must answer the questions completely and correctly, and further warns ZALESKI that making a false statement may result in federal prosecution.
On his monthly reports to the U.S. Probation Office, ZALESKI has reported that he lives in New Britain.
On March 23, 2018, the FBI interviewed the owner of a property at 863 Shuttle Meadow Avenue in Berlin and learned that ZALESKI has rented this property for years and remains as the current renter. This was the same location the FBI searched in 2006 over a period of three days in which dozens of automatic machine guns and semi-automatic firearms, multiple rifles and handguns, as well as silencers, fragmentation grenades, chemical grenades, smoke grenades and various homemade pipe bombs and IEDs were located and seized. In 2006, the property was protected by booby-traps, including tripwires connected to percussion explosives and camouflaged plywood boards on the ground with nails protruding through them.
At no time has ZALESKI reported to the U.S. Probation Office his affiliation with any storage space or rental property, or association to any property located at 863 Shuttle Meadow Avenue in Berlin, thus preventing the U.S. Probation Office’s ability to supervise ZALESKI and ensure that he was in compliance with all of the conditions of his release.
ZALESKI is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on September 20, 2018, at which time he faces a maximum term of imprisonment of five years.
ZALESKI is released on bond pending sentencing.
This investigation has been conducted by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Man Sentenced to Gun Charge, Drug Conspiracy, and Possession with Intent to Distribute HeroinRead the Press Release
U.S. Attorney Duane A. Evans announced that KEVIN SAM, age 43, of New Orleans, was sentenced today, by the Honorable Susie Morgan, United States District Court Judge, to a 105 month term of imprisonment, to be followed a three year period of supervised release. On March 19, 2018, SAM plead guilty to a Superseding Bill of Information charging him with conspiracy to distribute and possession with the intent to distribute heroin, possession with the intent to distribute heroin, and being a felon in possession of a firearm.
According to court documents, SAM was the target of a narcotics investigation that was investigated by members of the Federal Bureau of Investigation. Members of the FBI received information that SAM was selling heroin from his residence, located in the 1300 block of Reyes Street in New Orleans, Louisiana. Agents obtained a search warrant of SAM’s residence and located multiple bags of heroin that were packaged for sale. A pistol was also located inside of the residence. SAM, a convicted felon, is prohibited by law from possessing a firearm. At the time of his arrest, agents, while conducting a pat down of SAM, located additional individually wrapped bags of heroin inside of SAM’s clothing.
In August of 2017, SAM was sentenced to serve 120 month term of imprisonment for his role in a drug conspiracy in the Eastern District of Texas (Beaumont Division). The sentence imposed today will run concurrent with the Texas sentence.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Man Sentenced to 50 Years Imprisonment for Committing Three Drug-Related HomicidesRead the Press Release
St. Louis, MO - Jacobi Temple, 27, of Saint Louis, MO, was sentenced to 50 years imprisonment for his for his killing of James Lacey, Paige Schaefer, and Tammie Thurmond on March 27, 2015. Mr. Lacey and Ms. Schaefer were shot and killed inside a residence located in the 4400 block of Itaska in the City of Saint Louis. Ms. Thurmond was found by police in an alley behind the 4200 block of South 37th Street. She died a short time later.
Temple was sentenced on one count of conspiracy to distribute heroin and two counts of discharge of a firearm in furtherance of drug trafficking where deaths resulted. United States District Court Judge John A. Ross imposed the sentence.
According to court documents, Temple, along with his two co-defendants, Demante Syms and Samuel Spires, traveled in a vehicle to the area of 4467 Itaska Street. Temple went there to obtain payment for heroin previously distributed by him that had not been paid for. Temple learned of the 4467 Itaska location from Tammie Thurmond who was the mother of Paige Schaefer. While inside 4467 Itaska demanding payment, Temple shot and killed James Lacey and Paige Schaefer. A third occupant, Brittney Brown, was shot in the head and severely injured. Shortly after, Temple, Syms and Spires located Ms. Thurmond. Temple took Ms. Thurmond to an alley, then shot and killed her.
After being shot in the head inside the Itaska residence, Brittney Brown struggled to, but successfully contacted 911. Ms. Brown survived but was hospitalized for a significant period of time. While hospitalized (and continuing after her release), Ms. Brown provided invaluable support and assistance to law enforcement officials. Ms. Brown provided a powerful, moving victim impact statement during today’s sentencing for the court’s consideration in fashioning an appropriate sentence:
“After 21 years of being uncertain of who I was, [Temple’s] actions changed that for me. I was stripped down to my core; you took away my worth, privacy, energy, time, safety and my confidence. Do you know how that feels? I do because of [Temple]. The one thing [Temple] did not take away was my voice, and with that, I found my wounds led me to my purpose, and I was able to change this tragic event into something positive. There were many bumps along the way, but I refuse to let them, [Temple] or my circumstances define me. Today, I love myself for who I am -- scars and imperfections. I have learned to be a better person. I have learned to show compassion because you never know how you might influence someone’s life. I believe in miracles, because I am one…I have somehow managed to piece together all of the broken pieces that [Temple] left for me…
One of the happiest moments in life is when you find the courage to let go of what you can’t change. I was brave, strong, and broken all at once, and I pulled through…The fact that I am standing here today, sober, walking, talking and living my life, is proof that I am not what happened to me. I am what I choose to become. Today I choose to be a survivor, not a victim.
I am a woman of substance; don’t define me by the way I look. I am way more than meets the eye. Define me by the tough battles that I fight each and every day. Define me by the courage that I have found to face [Temple] no matter how difficult. I will survive despite any struggle because I am strong through and through.”
Temple’s sentencing is the last of the three named defendants. It concludes a three-plus year investigation and federal prosecution resulting in the convictions of all three charged participants. Syms and Spires were previously sentenced to terms of life and 20 years imprisonment, respectively. Likewise, the investigation resulted in the separate prosecution and convictions of Syms and his mother, Tabitha Hunt, for witness tampering in connection with the underlying homicide investigation. Tabitha Hunt was previously sentenced to a period of supervised release.
United States Attorney Jeff Jensen again applauded the courage of Ms. Brown and the commitment of the investigative team, “it is impossible to understate the importance of strong people like Ms. Brown who courageously stand up to violent offenders like Jacobi Temple. She epitomizes the good people of St. Louis that our violent crime initiative seeks to help.”
This case was investigated as part of the on-going effort between the United States Attorney’s Office, the Saint Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to address the violent crime within the City of Saint Louis.
Luzerne County Woman Charged in Money Laundering SchemeRead the Press Release
SCRANTON - The United States Attorney's Office for the Middle District of Pennsylvania announced today that Joy Dykes, age 36, of Edwardsville, Pennsylvania was charged on June 26, 2018, in a criminal information for her participation in a money laundering scheme.
According to United States Attorney David J. Freed, the criminal information alleges that between November 2011 and February 2016, Dykes’ was involved in an on-line scheme to defraud an unsuspecting victim of money by creating multiple identities, luring the victim into a romantic relationship, and then soliciting money from the victim via threats and coercion, including the creation of a fraudulent identity of an FBI agent. The criminal information also alleges that Dykes unlawfully received approximately $124,000 from the victim of the fraud.
The case was investigated by the Internal Revenue Service, Criminal Investigation - Scranton. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the charge under the federal statutes is imprisonment for 20 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lonsdale Man Sentenced to over 6 Years in Federal Prison for Felon in Possession of A Firearm ViolationRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Steven Nelson a.k.a Steven Varnes, age 40, of Lonsdale, was sentenced yesterday to 78 months in federal prison followed by three years of supervised release on one count of Receiving and Possessing an Unregistered Firearm. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, in November 2016, officers with the Glenwood Police Department were dispatched to the scene of a two vehicle accident. One of the drivers was attempting to identify himself using a false name and birthdate with an expired identification card. Officers became suspicious and confronted the individual with this information, and the individual was identified as Nelson. Further investigation revealed that Nelson’s driver’s license was suspended and that he was a convicted felon. Nelson was then placed under arrest.
A search of Nelson revealed a live 12-gauge shotgun shell in his pocket and a search of the vehicle he operated revealed twenty-one (21) 12-gauge shotgun shells, and a short-barreled, 12-gauge shotgun. A subsequent search of the National Firearm Registration and Transfer record revealed that Nelson’s short-barreled shotgun was not registered to Nelson in violation of federal law.
Nelson was indicted by a federal grand jury in January 2017 and entered a guilty plea in September 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Glenwood Police Department. Assistant United States Attorney Amanda Donat prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Longtime Federal Prosecutor Among Inaugural North Carolina Lawyers Weekly Hall of Fame InducteesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Gill Paul Beck, Sr., a longtime federal prosecutor with the U.S. Attorney’s Office for the Western District of North Carolina, was among the 23 North Carolina lawyers inducted into the North Carolina Lawyers Weekly Hall of Fame. The ceremony for the Class of 2018 was held on June 26th at the City Club in downtown Raleigh.
Mr. Beck is an Assistant United States Attorney (AUSA) in Asheville, and currently serves as the Civil Chief of the Office’s Civil Division. Prior to joining the Western District, Mr. Beck served as the Civil Chief for the U.S. Attorney’s Office in the Middle District of North Carolina. A 26-year federal prosecutor, Mr. Beck guides the handling of the Office’s civil caseload, including representing the United States and federal agencies in federal and state courts. AUSA Beck is a past recipient of the Attorney General’s Distinguished Service Award, the NC Lawyers Weekly Lawyer of the Year (2016), and the NC Bar Association’s Citizen-Lawyer Award. He was born and raised in Lenoir, North Carolina.
Mr. Beck served as the first Army Judge Advocate to command a two-star U.S. Army Reserve unit, and also commanded the Army Reserve Legal Command. Over the course of his military career, Major General Beck has served the United States overseas, including in 2005 in Iraq, where he led a joint legal team prosecuting terrorists. During 2007, as an Associate Deputy General Counsel in the Office of General Counsel, Department of Defense, in the Pentagon, he provided legal advice on Iraq and Afghanistan issues in support of the surge in Iraq, and in 2008, he served as Executive Officer to the Army General Counsel, who was responsible for supervising Army attorneys throughout the world. From 2009-2011, he served as the Chief Judge (Individual Mobilization Augmentee) to the Army Court of Criminal Appeals. For his service, Major General Beck has been awarded the Bronze Star, the Legion of Merit, and numerous other awards.
Mr. Beck received his Bachelor’s Degree from Appalachian State University (Summa Cum Laude), his J.D. from Duke University School of Law (High Honors), and his Master’s Degree from the U.S. Army War College.
Livermore Resident Sentenced to 10 Years for Distributing Heroin in Afghanistan Bound for the United StatesRead the Press Release
SAN FRANCISCO – Shamsuddin Dost was sentenced today to 10 years in prison for distributing heroin in Afghanistan that was bound for the United States, announced Acting United States Attorney Alex G. Tse and Drug Enforcement Administration Special Agent in Charge Chris D. Nielsen. The sentence was handed down by the Honorable James Donato, United States District Judge.
On January 22, 2018, after a four-day trial, a jury convicted Dost, 23, of Livermore. During the trial, evidence showed that Dost contacted a confidential source to ask him to bring heroin from Afghanistan to the United States. Dost connected the confidential source with a heroin supplier in Jalalabad, Afghanistan, who provided two kilograms of heroin, for the purpose of bringing the drugs to the United States. Dost also sold another five kilograms in Afghanistan, again bound for the United States. When Dost was arrested, he was planning the sale of another one hundred kilograms of heroin in Afghanistan, destined for the same customer in the United States. In recorded conversations, Dost described his family’s ability to provide trailer trucks of heroin from laboratories in Kandahar and Khogyani, in Afghanistan, and discussed other schemes to send heroin to Moscow and Pakistan.
In other recorded conversations, Dost also described his willingness to use violence and his “close ties” to the Taliban in Pakistan, which he asserted controlled the drug trade on the Afghan-Pakistan border. Dost stated that if someone betrayed him, he would not hesitate to pay a thousand dollars to “slice him like ground beef,” and that he had previously had a Taliban governor threaten to “cut [a man’s] throat and hang him in public.”
On July 6, 2017, a federal grand jury returned a superseding indictment charging Dost with one count of conspiracy to distribute one kilogram or more of heroin for the purpose of unlawful importation, in violation of 21 U.S.C. § 963, and two counts of distribution of one kilogram or more of heroin for the purpose of unlawful importation, in violation of 21 U.S.C. § 959(a). The jury found Dost guilty of all three counts.
In addition to the prison term, Judge Donato sentenced the defendant to a five-year period of supervised release. Dost has been in custody since his arrest on November 18, 2016, and will begin serving his sentence immediately.
Assistant U.S. Attorneys Rita Lin and Nikhil Bhagat prosecuted the case with the assistance of Rawaty Yim and Linda Love. The prosecution is the result of an investigation by the Drug Enforcement Administration and the Federal Bureau of Investigation in Afghanistan and the Bay Area, with assistance from the Sensitive Investigations Unit of the Afghan National Police. This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Lewiston Residents Arrested and Charged with Crack TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Sylas Way, 44, Elijah Blake, 26, Keon Baptiste-Harris, 35, Jamie Perry, 46, and Davontae Perrybrooks, 26, all currently residing in Lewiston, were arrested and charged today by criminal complaint in U.S. District Court with distribution of cocaine base, commonly known as “crack.”
According to the complaints, the charges arose from an investigation into crack trafficking in Lewiston.
If convicted, the defendants face up to 20 years in prison and a $1,000,000 fine.
Baptise-Harris made an initial appearance in U.S. District Court today at 10:30 a.m. The other defendants are expected to make initial appearances in U.S. District Court later today starting at 2:00 p.m.
The investigation is being conducted by the FBI’s Southern Maine Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the U.S. Drug Enforcement Administration; the Maine Drug Enforcement Agency; the Maine State Police; and the Lewiston Police Department.
A criminal complaint is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Leakesville Man Sentenced to Almost 12 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss. – Marcus Ladelle Moody, 44, of Leakesville, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 143 months in federal prison followed by 3 years of supervised release for possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation.
Moody pled guilty on November 29, 2017 to one count of possession with intent to distribute methamphetamine. He was identified as a distributor of methamphetamine in Greene County. On July 14, 2017 a package intended for Moody was discovered by the U.S. Postal Service and Moody was arrested after a controlled delivery was made to his residence. It was later determined that the methamphetamine was in excess of 4 kilograms with a purity level of 90%.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John Meynardie.
Leader of Notorious Newark Heroin Distribution Ring Sentenced to 14 Years in Prison on Drug Conspiracy ChargesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 168 months in prison for his leadership role in a massive drug distribution ring responsible for selling millions of dollars’ worth of heroin out of a residential building near a high school in Newark, U.S. Attorney Craig Carpenito announced.
Quawee Jones, a/k/a “Hatman,” 34, of Newark, previously pleaded guilty before U.S. District Judge Jose L. Linares to a superseding information charging him with conspiracy to distribute heroin. Judge Linares imposed the sentence today in Newark federal court
According to documents filed in the case and statements made in court:
Jones and his co-defendants operated a heroin distribution marketplace out of the first floor hallway of a residential building at 25 Johnson Avenue in Newark. The building is just a few doors away from the Malcolm X. Shabazz High School and the Terrell James Park playground. The conspiracy was led by Quawee Jones and Almalik Anderson, who, along with other heroin dealers that worked with them, took advantage of the building’s location on a dead-end street, making it difficult for law enforcement to infiltrate the distribution network despite a constant stream of buyers entering the building at all hours of the day.
“Lookouts” were paid by the defendants to alert them to any police activity coming onto the block from the only access point on Clinton Avenue. Police could not infiltrate the building without lookouts detecting their presence and signaling the sellers. Members of the drug trafficking organization also set up an escape route whereby residents were paid to keep their doors unlocked. The dealers in the hallways would run through the building and exit via fire escapes at the rear of the building or simply hide within the apartments before police could apprehend them.
The drug conspiracy operated nearly 24 hours a day and was well-known among heroin users, who came from several different counties across New Jersey. The defendants allegedly worked in carefully planned “shifts” in order to handle the constant flow of heroin buyers. The heroin was sold in various “brands,” which were stamped onto the glassine envelopes that contained the heroin, allowing buyers to identify and purchase the brands that they preferred.
The defendants sold on average one to two kilograms of heroin per week between January 2013 and November 2015. Based upon the quantities sold, information from court-authorized wiretaps, and other evidence, the profit from the heroin distribution was estimated to be between $4 million and $7 million a year.In addition to the prison term, Judge Linares sentenced Jones to five years of supervised release.
All 16 defendants indicted for their roles in the heroin distribution conspiracy, including Anderson, have been convicted.
U.S. Attorney Carpenito credited special agents of the FBI and task force officers assigned to the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officers of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, the Essex County Sheriff’s Office under the direction of Armando B. Fontoura; the N.J. State Parole Board, under the direction of Chairman Samuel J. Plumeri Jr.; and the Orange Police Department, under Director Todd Warren, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Jonathan M. Peck and David E. Malagold, and Senior Litigation Counsel Robert Frazer of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Stacy Ann Biancamano Esq. and Dan Holzapfel Esq., Cranford, New Jersey
Lawrence Man Sentenced for Opioid Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man was sentenced in federal court in Boston today for his role in an opioid trafficking conspiracy involving the distribution of fentanyl, heroin, and oxycodone across Massachusetts and Florida.
Juan Reyes, 29, was sentenced by U.S. District Court Judge Denise J. Casper to 55 months in prison and three years of supervised release. In March 2018, Reyes pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone and one count of conspiracy to launder monetary instruments.
Reyes and several co-conspirators were arrested in March 2017 for their roles in a widespread conspiracy involving opioid trafficking and money laundering offenses in Massachusetts and Florida. Their arrests were the result of a three-year federal investigation into opioid-trafficking in New England.
From at least 2014, Reyes and co-conspirator Craig Drummond, of Sunny Isles Beach, Fla., transported sizeable quantities of oxycodone from Miami, Fla., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the illicit oxycodone sales were then transported back to Florida and laundered in various ways.
Drummond pleaded guilty and is scheduled to be sentenced on Oct. 12, 2018.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service; John Gibbons, U.S. Marshal for the District of Massachusetts; and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Biddeford (Maine), Framingham, Haverhill, Lawrence, Manchester (N.H.), Methuen, Millis, Natick, Stoughton, and Waltham Police Departments. Assistant U.S. Attorneys Nadine Pellegrini and Craig Estes of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Lakeside Pharmacy Pays $75,000 for Failing to Keep Accurate Records of OpioidsRead the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – June 26, 2018
SAN DIEGO – A pharmacy in Lakeside, California and its owners have paid $75,000 to resolve allegations that they failed to properly account for highly addictive and frequently abused opioids, including fentanyl.
The settlement is with Archana Corporation and its owners Rajeshbhai Zalavadiya and Ramesh Rakholia. The Archana Corporation, Zalavadiya, and Rakholia do business as Leo’s Lakeside Pharmacy.
This settlement arises from a Drug Enforcement Administration (DEA) investigation into Leo’s Lakeside Pharmacy’s opioid dispensing practices. In response to the Justice Department’s focus on combatting the opioid epidemic, the DEA has continued to conduct inspections and audits at pharmacies throughout the Southern District of California. Leo’s Lakeside Pharmacy was one of those pharmacies. Based on the DEA’s inventory audits, inspections, and other investigative activities, the United States asserts that Leo’s Lakeside Pharmacy violated the Controlled Substances Act (CSA).
The CSA applies to all registered controlled substances handlers, including pharmacies. The CSA also subjects registered pharmacies to strict requirements regarding inventory control and recordkeeping. These requirements ensure that pharmacies account for controlled substances from the time of purchase until they are dispensed to patients. The alleged violations include failure to keep accurate records associated with pharmaceutical fentanyl, oxycodone, and hydrocodone
“This settlement illustrates the United States Attorney’s Office’s continued commitment to combatting the opioid epidemic on all fronts,” said U.S. Attorney Adam Braverman. “Part of our strategy is making sure that registered opioid handlers keep accurate records of these highly addictive and extremely dangerous drugs. All pharmacies, whether large or small, will be held accountable.”
In addition to paying $75,000 in settlement to the government, Leo’s Lakeside Pharmacy has committed to implementing new inventory control procedures to assure full accountability of all controlled substances. .
“This investigation is a reminder to the pharmacy community that lax recordkeeping opens the door to the diversion of highly addictive pharmaceuticals,” states Drug Enforcement Administration San Diego Field Division Special Agent in Charge Karen Flowers. “These pills can and do make their way into the illegal distribution stream of narcotics which continue to fuel the opioid epidemic.”
Report illicit pharmaceutical activities and prescription abuse to DEA at 877-RX-Abuse (877-792-2873).
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California and the Drug Enforcement Administration.
KC Woman Sentenced for False Tax Return Related to $466,000 EmbezzlementRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman who embezzled from her family’s company was sentenced in federal court today for failing to pay taxes on at least $466,000.
Tammera Goodman, 56, was sentenced by U.S. District Judge Roseann Ketchmark to two years in federal prison without parole. The court also ordered Goodman to pay $144,631 in restitution to the Internal Revenue Service and the state of Missouri.
On Oct. 16, 2017, Goodman pleaded guilty to making false statements on a tax return.
Goodman worked as office manager for a business owned by her family, Restoration Remediation Resources Corporation d/b/a Rainbow International of Kansas City (Re-Corp). From 2011 to 2015, Goodman unlawfully used Re-Corp funds to pay at least seven personal credit cards, which she used exclusively for personal spending. She also wrote at least 26 fraudulent unauthorized Re-Corp checks to herself, and used unauthorized Re-Corp funds to pay her personal mortgage.
From 2011 to 2015, Goodman embezzled at least $466,274 from Re-Corp. Goodman stole money from re-Corp on hundreds of occasions, according to court documents, and on dozens of occasions forged her brother’s name. She spent the money she embezzled on retail purchases, restaurants, cash, and vehicles, among other items. She did not declare the embezzled income on her federal or state income tax returns. Re-Corp did not want to prosecute her for her embezzlement and allowed her to continue to work at the company.
Goodman pleaded guilty to a specific charge of claiming $33,164 in income on her federal income tax return for tax year 2015. In reality, Goodman’s income for 2015 (including stolen money) was $151,236.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue Criminal Investigation Bureau.
KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Shane E. Jones, 31, was sentenced by U.S. District Judge Stephen R. Bough to 15 years and 10 months in federal prison without parole. The court sentenced Jones as an armed career criminal due to his prior felony convictions. The court ordered the federal sentenced be served consecutively to Jones’s sentence in two unrelated state cases.
On Feb. 8, 2018, Jones pleaded guilty to being a felon in possession of a firearm. He was arrested following a traffic stop by Independence, Mo., police officers for having different license plates on the front and rear of his vehicle. Officers found a loaded Hi-Point .380-caliber semi-automatic pistol and a box of ammunition under the front driver’s seat.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jones has 17 adult felony convictions, including five prior felony convictions for sale of a controlled substance. He had been out of prison, and on probation, for approximately four months prior to his arrest.
This case was prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Independence, Mo., Police Department.
Justice Department Reaches Agreement with Teachers Test Prep to Ensure Equal Access for Individuals with DisabilitiesRead the Press Release
The Justice Department today reached a settlement agreement with Teachers Test Prep Inc, (TTP), to resolve allegations that it violated Title III of the Americans with Disabilities Act (ADA) by not offering its online courses in a manner accessible to individuals who are deaf or hard of hearing and by not providing its one-on-one tutoring sessions in an accessible manner.
TTP offers preparation courses for licensing and credentialing examinations in California. Its services include tutoring, online classes, and live classes at locations throughout California. The Department initiated its investigation in response to a complaint that TTP’s online video courses were inaccessible to deaf individuals because they did not provide closed captions and that TTP failed to offer one-on-one online tutoring in an accessible manner. The complainant enrolled in a TTP course to prepare to take the California Basic Educational Skills Test (CBEST), designed to test basic reading, mathematics, and writing skills. The complainant worked as a school counselor, and her employer required that she pass the CBEST as a condition of her employment. Because TTP’s course was not offered in a manner accessible to deaf individuals, the complainant was denied equal access to TTP’s test preparation services.
“Exam preparation courses should be provided in a manner that is accessible to individuals with disabilities,” said Acting Attorney General John Gore of the Civil Rights Division. “The Department of Justice will work to ensure that individuals who are deaf or hard of hearing have an equal opportunity to participate in such courses.”
The ADA mandates that a private entity that offers test preparation courses, such as TTP, provide its services in a manner accessible to individuals with disabilities. It also requires TTP to make modifications to its courses as are necessary to ensure that the courses are accessible to individuals with disabilities and to provide appropriate auxiliary aids and services, unless TTP can demonstrate that doing so would fundamentally alter the course or would result in an undue burden.
Under the two-year agreement, TTP will adopt ADA course-modification policies and procedures; provide ADA training to its staff; caption its online video content; and provide notice on its website about how to request course modifications and auxiliary aids or services, including sign language interpreters. In addition, TTP will pay the complainant $5,000 and allow the complainant to enroll in another course free of charge.
Those interested in finding out more about this settlement or the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
NOTE: The settlement agreement can be found here.
Joplin Man Sentenced to 25 Years for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for recording cell phone videos of his sexual assaults upon a 9-year-old victim.
Richard James York, 27, was sentenced by U.S. District Judge M. Douglas Harpool to 25 years in federal prison without parole.
On Jan. 31, 2018, York pleaded guilty to the sexual exploitation of a child. York admitted that he used a nine-year-old minor (identified as Jane Doe) to produce child pornography from March 1, 2017, to March 16, 2017. York sexually assaulted the child victim and made several videos of the assault with his cell phone. Those videos were discovered by another person, who contacted law enforcement.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Jasper County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jefferson County Woman Guilty of Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A 56-year-old Beaumont woman has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Minnie Annette Coleman pleaded guilty to conspiracy to possess with intent to distribute crack cocaine and conspiracy to launder money on June 26, 2018 before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, since December 2012, Coleman was involved in a drug trafficking organization that distributed crack cocaine in the Beaumont, Texas, area. During this time, Coleman allowed drugs and drug proceeds to be stored at her home in the 3300 block of Paris Street in Beaumont and she was personally responsible for delivering crack cocaine to others in the Beaumont area. Coleman was indicted by a federal grand jury and charged with drug trafficking violations on Feb. 7, 2018.
Under federal statutes, Coleman faces at least 10 years in federal prison at sentencing. The minimum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration and the Beaumont Police Department and is being prosecuted by Assistant U.S. Attorney Christopher T. Rapp.
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Jacksonville Felon Sentenced to More Than Eight Years for Committing Armed RobberyRead the Press Release
Jacksonville, FL – U.S. District Judge Timothy J. Corrigan today sentenced Roderick Randolph Lester (39, Jacksonville) to eight years and four months in federal prison for robbery, possessing a firearm as a convicted felon, and for violating his federal supervised release. The court also ordered Lester to forfeit the firearm and ammunition used in the offense.
Lester pleaded guilty on February 8, 2018.
According to court documents, on September 26, 2016, Lester went to a tire store in Jacksonville and asked the clerk for a used tire. Lester was quoted a price, and then told the clerk that he should not have to pay for the tire because of his business relationship with the owner of the store. The clerk informed Lester that he would need to contact the store’s owner to verify that information; Lester then cursed at the clerk and stated that he was taking the tire. Lester loaded the tire into his truck, at which point the clerk attempted to take the tire from him. Lester then pulled a pistol from a holster on his waist, pointed it at the clerk, and stated that he was taking the tire.
Officers with the Jacksonville Sheriff’s Office responded to the scene and apprehended Lester a few blocks from the tire store. A search of the scene revealed that Lester had discarded the pistol on top of a hedge nearby. The stolen tire was found in the back of Lester’s truck. During an interview with officers, Lester admitted that he had possessed the firearm and that he knew he was not allowed to carry firearms.
At the time of these incidents, Lester was on federal supervised release for a 2010 federal firearms conviction. He also had previous convictions for manslaughter, burglary, and an additional firearms possession charge, and therefore was prohibited by federal law from possessing firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Inmates at FCI-Berlin Sentenced after Assaulting another InmateRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Leonard Johnson and Robert Dales, both inmates at the Federal Correctional Institution FCI-Berlin, were sentenced to 12 months and 10 months, respectively for assaulting another inmate at the prison. The court ordered that their sentences run consecutively to the sentences they are currently serving.
According to documents filed with the court and statements made during the sentencing hearings, on May 23, 2017, Johnson and Dales were in Unit A-4 of the prison when they attacked another inmate. The attack, which was captured on videotape, included Johnson and Dales punching, kicking and stomping on their victim. Johnson and Dales continued the attack even though prison staff ordered them to stop. Only after the defendants were threatened with use of pepper spray did the attack end.
The victim was treated for his injuries at Androscoggin Valley Hospital. He suffered lacerations and bruising to his head, eyes, and ears.
Both defendants previously pleaded guilty to committing the assault.
The staff at FCI-Berlin conducted the investigation of this case. Assistant United States Attorney Donald A. Feith prosecuted the case.
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Inmate and Leader of Multi-State Drug Trafficking Organization SentencedRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Dustin Tiller, age 32, was sentenced to 220 months (or 18 years and 3 months) imprisonment in federal court in Greenville.
The evidence presented at Tiller’s guilty plea and sentencing hearings revealed that Tiller, an inmate in the South Carolina Department of Corrections, was the mastermind and leader of a multi-state drug trafficking organization that facilitated the transportation and distribution of multiple kilograms of methamphetamine in the Upstate of South Carolina, Atlanta, Georgia, Kentucky, and elsewhere. During the course of the conspiracy, Tiller directed other conspirators, both inmates in the South Carolina Department of Corrections and individuals on the outside, to travel to Atlanta, Georgia, to retrieve kilogram quantities of methamphetamine, to sell the methamphetamine in Greenville and Anderson Counties, and to transport drug proceeds back to the source(s) of supply in Georgia and elsewhere. The investigation culminated in the arrest of Tiller and others in August and September of 2016, after federal agents intercepted a load of methamphetamine that members of the organization were transporting from Georgia to South Carolina.
Assistant U.S. Attorney Andy Moorman, Deputy Chief for the Narcotics Unit, is the lead prosecutor.
The Drug Enforcement Administration, the Drug Enforcement Task Force, the Anderson County Sheriff’s Office, the Anderson Police Department, and the Franklin County (GA) Sheriff’s Office investigated the case.
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Indictment: Developer of Oread Hotel Collected $400,000+ in Fraudulent Tax RefundsRead the Press Release
TOPEKA, KAN. – The developer of the Oread Hotel and his bookkeeper were indicted Wednesday on federal charges of scheming to collect more than $400,000 in fraudulent tax refunds from the City of Lawrence.
Thomas S. Fritzel, 52, Lawrence, Kan., and Keela Lam, 46, Lawrence, Kan., are charged with one count of conspiracy to defraud the city and one count of interstate transportation of stolen funds. Also named as defendants are companies controlled by Fritzel including Oread Construction LC, Oread Wholesale LC, Oread Inn LC and R6 LC.
The indictment alleges that in 2008 Fritzel signed an agreement with the City of Lawrence to develop the Oread Hotel in Lawrence, a seven-story hotel with restaurants, bars and a gift shop.
The city set up a Tax Increment Financing District and a Transportation Development District around the hotel and agreed to reimburse Fritzel for his development costs. The funds to pay Fritzel were to come from property tax and sales taxes collected inside the redevelopment district.
The indictment alleges Fritzel and Lam conspired to defraud the city by seeking reimbursement for hundreds of transactions that were not generated within the redevelopment district. The indictment alleges the defendants fraudulently sought refunds for taxes paid on furniture and appliances, work on houses Fritzel owned in Lawrence and Colorado, landscaping materials, party tent rentals, car batteries, equipment for a car wash and other items.
A separate indictment alleges Fritzel and others violated the requirements of the Clean Air Act for disposal of asbestos.
The indictment charges Fritzel, Casey Stewart, 38, Lawrence, Kan., Wesley Lynch, 60, Lawrence, Kan. and Tucker Fritzel, 25, Lawrence, Kan., with one count of conspiracy (count one), one count of failing to notify the Environmental Protection Agency of the removal of asbestos materials (count two), one count of failing to wet materials that contained asbestos during demolition (count three) and one count of failing to dispose of asbestos waste in leak-tight containers (count four).
Also named as defendants in the second indictment are DFC Company of Lawrence, LC; Eagle 1968, LC of Lawrence and R&R Supply Company, LC of Lawrence.
The indictment alleges the defendants conspired with Fritzel to violate federal laws for handling asbestos in order for Fritzel to save money on demolition and renovations at the Alvamar Country Club in Lawrence.
In the first indictment, upon conviction, the defendants face up to five years in federal prison and a fine up to $250,000 on the conspiracy count, and up to 10 years and a fine up to $250,000 on the count charging interstate transportation of stolen funds.
In the second indictment, upon conviction, the defendants face up to five years in federal prison and a fine up to $250,000 on count one, up to two years and a fine up to $250,000 on count two and up to five years and a fine up to $250,000 on counts three and four.
The FBI and the Lawrence Police Department investigated the Oread Hotel indictment. The Environmental Protection Agency – Criminal Investigation Division investigated the other indictment. Assistant U.S. Attorney Richard Hathaway is prosecuting both cases.
OTHER INDICTMENTS
Alan J. Haag, 53, Wichita, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred June 13, 2018, in Sedgwick County, Kan.
If convicted he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney David Lind is prosecuting.
Kasey A. Haag, 25, Wichita, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred June 13, 2018, in Sedgwick County, Kan.
If convicted he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney David Lind is prosecuting.
Anthony Hervey, 36, is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred June 13, 2018, in Sedgwick County, Kan.
If convicted he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney David Lind is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Honduran National Police Officer Sentenced to 12 Years in Prison for Conspiring to Import Cocaine into the United StatesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Raymond Donovan, Special Agent in Charge of the Drug Enforcement Administration’s Special Operations Division, announced that Carlos Jose Zavala Velasquez, a former high-ranking member of the Honduran National Police, was sentenced yesterday to 12 years in prison for conspiring to import cocaine into the United States. VELASQUEZ previously pled guilty before U.S. District Judge Lorna G. Schofield, who imposed yesterday’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Carlos Jose Zavala Velasquez was a high-ranking Honduran police official who betrayed his duty and sold his office and sensitive law enforcement information to drug traffickers. Velasquez assisted a major trafficking organization and its leader by tipping them off about investigations and even accompanying them during a shipment of cocaine. Now he has been sentenced for his crimes.”
Special Agent in Charge Raymond Donovan said: “Any corrupt law enforcement official who contributes to instability and drug-related violence around the world deserves American justice and that is what Mr. Velasquez will get. Velasquez helped facilitate huge cocaine shipments bound for the United States and elsewhere and was a key facilitator for a significant Honduran drug trafficking and criminal network. DEA is pleased at the result of this investigation and we will continue to pursue and attack those who threaten the United States and do damage to countless lives, families, and communities.”
According to the Information, other court filings, and statements made during court proceedings:
From approximately 1991 through 2016, VELASQUEZ served as a member of the Honduran National Police, holding positions including, among others, second in command to the Chief of Police for the city San Pedro Sula; Chief of Police for the city Villanueva; Chief of Regional Special Services, a position responsible for investigations into organized crime; and the officer in charge of the “COBRAs” in San Pedro Sula, a commando-style unit dedicated to combatting organized crime. Between at least approximately 2009 and 2012, VELASQUEZ facilitated the drug trafficking activities of an organization operated by one of the most significant drug traffickers in Central America, Hector Emilio Fernandez Rosa, a/k/a “Don H.” On numerous occasions, and while VELASQUEZ was purportedly responsible for investigating Fernandez Rosa, VELASQUEZ provided information to Fernandez Rosa’s organization regarding ongoing law enforcement investigations so that the traffickers could plan transportation routes through Honduras for large loads of cocaine. On at least one occasion, VELASQUEZ accompanied members of the drug trafficking organization during the transportation of a load of cocaine. VELASQUEZ was paid between $5,000 and $20,000 each time he assisted the organization.
Six other former members of the Honduran National Police, including Mario Guillermo Mejia Vargas, Victor Oswaldo Lopez Flores, Ludwig Criss Zelaya Romero, Juan Manuel Avila Meza, and Carlos Alberto Valladares, are also charged in this case with firearms and/or drug trafficking offenses relating to a separate conspiracy to import cocaine into the United States. Each of those individuals has pled guilty in federal court, along with co-conspirator Fabio Porfirio Lobo. On September 5, 2017, Lobo was sentenced to 24 years in prison, and on February 6, 2018, Flores was sentenced to five years in prison. The remaining defendants await sentencing by Judge Schofield.
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In addition to the prison term, VELASQUEZ, 46, was sentenced to three years of supervised release.
Mr. Berman praised the outstanding efforts of the Special Operations Division of the DEA Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office. Mr. Berman also thanked the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Matthew Laroche are in charge of the prosecution.
Hartford Gang Member Sentenced to 40 Months in Federal Prison for Distributing Heroin and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERIC SMITH, also known as “Hood,” 30, of Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 40 months of imprisonment, followed by five years of supervised release, for distributing heroin and crack cocaine in Hartford.
According to court documents and statements made in court, this matter stems from an investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking by members and associates of the Orange Street Killas (OSK) in Hartford’s Parkville neighborhood. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members, including SMITH, acquired heroin and crack cocaine and then sold the drugs on the streets of Hartford.
SMITH has been detained since his arrest on February 10, 2017. On March 30, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack”) and heroin.
Sixteen individuals were charged as a result of the investigation.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Fraudster Pleads Guilty to Scamming Elderly Victims of more than $396,000 through Advance Fee SchemeRead the Press Release
Greenbelt, Maryland – Onijah Crighton, age 23, of Chillum, Maryland, pleaded guilty on June 26, 2018, to conspiracy to commit mail and wire fraud, in connection with a scheme to defraud more than 100 elderly victims through an advance fee scheme, specifically, by falsely representing that the victims had won a lottery or sweepstakes and demanding taxes or other fees before the victims could receive the prize.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, Matthew J. DeSarno; and Postal Inspector in Charge Eric Shen of the U.S. Postal Inspection Service – Washington Division.
According to his plea agreement, beginning in April 2013, Crighton and a co-conspirator began contacting Victim 1, an elderly man living in Virginia who suffered from Parkinson’s disease. Crighton falsely told Victim 1 that he was the second-place winner of the $10 million “grand prize draw” that Publisher’s Clearing House and the Better Business Bureau sponsored. Crighton fraudulently represented that the second-place prize was $2.5 million. Over the following months, Crighton and his co-conspirator contacted Victim 1 hundreds of times, convincing Victim 1 to send the conspirators 44 payments totaling approximately $112,000. Victim 1 made the payments through Western Union, by adding money to Green Dot cards controlled by Crighton and his co-conspirator, or by sending cash in the mail.
During the course of the conspiracy, Crighton emailed a “leads list provider” to purchase a list of names and personal identification information that Crighton could use to mass-market the lottery scam to elderly individuals across the country. Crighton and other members of the conspiracy successfully defrauded over 100 elderly victims of at least $396,157.
Crighton admitted that, beginning in 2012, he also used the personal identifying information of elderly individuals to fraudulently enroll debit cards in their names without their knowledge or consent. To conceal his involvement in the scheme, Crighton listed a number of different email addresses on the debit card applications, and listed street addresses on the applications that belonged to others involved in the scheme. In this manner, Crighton enrolled or caused to be enrolled hundreds of debit cards that were applied for using the stolen identities of at least 10 elderly individuals.
Crighton and the government have agreed that if the Court accepts the plea agreement, Crighton will be sentenced to 57 months in prison and will be required to pay restitution in the full amount of the victims’ losses, which is at least $396,157. U.S. District Judge Paula Xinis has scheduled sentencing for August 30, 2018 at 9:00 a.m.
Earlier this year, the Department of Justice and its law enforcement partners conducted the largest, coordinated sweep of elder fraud cases in history that involved more than 250 defendants and over one million American victims, most of whom were elderly.”
United States Attorney Robert K. Hur commended the FBI and the U.S. Postal Inspection Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Dana J. Brusca, who are prosecuting the case.
Franklin County Man Sentenced to over Seventeen Years’ Imprisonment for Conspiring to Distribute FentanylRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Chief United States District Court Judge Christopher C. Conner sentenced Nathan A. Ott, age 34, of Chambersburg, Pennsylvania, to 210 months’ imprisonment for conspiring to distribute fentanyl.
According to United States Attorney David J. Freed, Ott pled guilty in July 2017 to conspiring to distribute fentanyl in Chambersburg between October 2015 through May 2017.
Ott obtained kilogram quantities of fentanyl and then pressed and distributed the fentanyl pills. Ott began by using a manual pill press but was unable to keep up with demand and purchased a motorized press capable of making 5,000 pills an hour. Ott purchased the ingredients to manufacture the fentanyl pills on the internet through the “dark web.” Ott distributed the fentanyl pills via the internet and to his co-conspirators who further distributed the pills to consumers. Ott began to sell the pills over the internet, using the dark web, in March 2017.
Chief Judge Conner also ordered Ott to forfeit $164,010 in cash and 19.7128804 in Bitcoin (with a current value of approximately $120,000).
Ott was charged in July 2017 with six other individuals. All of his co-defendants are awaiting trial.
The case was investigated by the Federal Bureau of Investigation, the Franklin County District Attorney’s Office, the Franklin County Drug Task Force, the Chambersburg and the Shippensburg Police Departments and the Pennsylvania State Police. Assistant U.S. Attorney Daryl F. Bloom prosecuted the case.
Fentanyl is a powerful synthetic opioid analgesic that is similar to morphine, but is 50 to 100 times more potent than heroin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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FourWinds Consultant Gary Cain Sentenced to 68 Months in Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced FourWinds Logistics, Inc. (FourWinds) consultant Gary Cain to 68 months in federal prison, announced U.S. Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Internal Revenue Service-Criminal Investigation Special Agent in Charge D. Richard Goss, San Antonio Field Office.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Cain pay, jointly and severally, $6,345,441 restitution and be placed on supervised release for a period of three years after completing his prison term. Judge Ezra also ordered Cain to surrender by September 25, 2018, or upon notification by U.S. Bureau of Prisons officials, to begin serving his federal prison term.
Yesterday, Judge Ezra sentenced Cain’s co-defendant, San Antonio attorney and former District 19 Texas State Senator Carlos I. Uresti to 12 years in federal prison and the same amount of restitution.
In February, a jury found Cain and Uresti guilty on all charges for their roles in a Ponzi scheme that defrauded investors out of millions of dollars. Charges against Cain included one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering and seven counts of engaging in monetary transactions with property derived from specified unlawful activity. Charges against Uresti included one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, five substantive counts of wire fraud, two counts of securities fraud, one count of engaging in monetary transactions with property derived from specified unlawful activity, and one count of being an unregistered securities broker. Prior to jury selection, former FourWinds Chief Executive Officer Stanley P. Bates pleaded guilty to eight separate federal charges including securities fraud and money laundering.
Evidence presented during trial revealed that from February 2014 to December 2015, the defendants developed an investment Ponzi scheme to buy and sell hydraulic fracturing (fracking) sand for oil production. Evidence showed that the defendants made false statements and representations while soliciting investors in FourWinds. Collected funds were then used to pay earlier investors and for personal expenses including gifts, travel, luxury automobiles, controlled substances, and to hire prostitutes. Evidence and testimony also revealed that Uresti, Cain and Bates engaged in money laundering with the proceeds of wire fraud.
Bates is scheduled to be sentenced at 1:30pm on August 6, 2018, in front of Judge Ezra. For each fraud related charge, Bates faces up to 20 years in federal prison upon conviction. For each money laundering charge, Bates faces up to ten years in federal prison upon conviction.
The FBI’s Public Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, IRS-CI, Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant U.S. Joseph E. Blackwell, William R. Harris, Mark Roomberg, Erica Giese and Sean O’Connell are prosecuting this case on behalf of the Government.
Four Georgia Men Indicted for Heflin Bank RobberyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted four Georgia men for the May robbery of an east Alabama bank, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
A two-count indictment filed in U.S. District Court charges DERRICK ANTONIO OWENS, 47, KENYATTA DELAFAYETTE COSBY, 46, and BRICE MERCIVIOUS KIMBRO, 22, all of Atlanta, and TRAVIS OMERE MONTFORD, 30, of Decatur, Georgia, with conspiracy to rob and with robbing Small Town Bank in Heflin on May 2.
“I commend the quick and courageous actions taken by Heflin Police officers in apprehending these suspects in flight from the scene of a bank robbery,” Town said. “Because of their professional response, and great work done by the FBI, these four defendants all face federal felony bank robbery charges where, if convicted, they will face federal time in a federal prison.”
According to the indictment, the four men traveled together to the Heflin bank and robbed it as follows:
Cosby entered the bank, jumped the teller counter and shoved a teller to the floor. Montford and Kimbro stood in front of the teller line to take money from the tellers, while Owens remained at the door “urging his coconspirators to act expeditiously.”
Owens also drove the car that the four men sped away from the bank in after the robbery.
The maximum penalty for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty for bank robbery is 20 years in prison and a $250,000 fine.
Heflin Police and the FBI investigated the case, which Assistant U.S. Attorney William G. Simpson is prosecuting.
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
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Former Massachusetts Man Arraigned on Charges Linked to IRS Fraud SchemeRead the Press Release
BOSTON – An Illinois man, who previously lived in Massachusetts, was arraigned today in federal court in Worcester on charges associated with a wire fraud scheme whereby victims were told they owed money to the Internal Revenue Service (IRS).
Ashokkumar Patel, a/k/a Andy Patel, 28, of Hoffman Estates, Ill., and formerly of Plainville, Mass., was indicted on June 14, 2018, on one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of money laundering. In June 2017, Patel was arrested and charged by criminal complaint. He was released from custody on conditions.
According to the charging documents, from December 2013 to October 2014, Patel was part of a conspiracy whereby victims in the United States were contacted by individuals, primarily in India, and falsely told that they owed money to the IRS. The victims were told that in order to avoid imminent arrest, they had to purchase MoneyPak, or other types of prepaid stored value cards, load thousands of dollars onto the cards, and provide the serial numbers to the callers. After doing so, the victims’ money was quickly transferred to a prepaid debit card, such as Green Dot Debit Cards, and then the prepaid debit cards were used to purchase money orders. Patel was responsible for purchasing the prepaid debit cards, using the prepaid debit cards to purchase money orders and depositing the purchased money orders into various bank accounts, including his own.
The charges of conspiracy to commit wire fraud and wire fraud each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the property involved in the transaction. 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 and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former DMV Employee Found Guilty of Conspiring to Issue Fraudulent California Driver’s LicensesRead the Press Release
SACRAMENTO, Calif. — On Tuesday, after a four-day trial, a federal jury found Robert S. Turchin, 68, of Salinas, guilty of one count of conspiracy to commit bribery and identity fraud and three counts of identity fraud, U.S. Attorney McGregor W. Scott announced.
“This prosecution of a California state employee for bribery resulting in grave danger to public safety is very troubling,” U.S. Attorney Scott stated. ”It is alarming to think that unqualified persons were licensed to operate big rigs and buses on our public roadways. We will continue to do everything we can to root out public corruption at any level, and hold those in positions of trust accountable for their greed.”
According to evidence presented at trial, Turchin was an employee at the Salinas field office for the Department of Motor Vehicles, including between 2012 and 2015. Turchin was responsible for conducting tests for applicants for commercial licenses to operate 18-wheel tractor-trailers and commercial buses.
The trial evidence demonstrated that truck school owner Mangal Gill offered to get people commercial licenses without having to pass the written tests or even take the required behind-the-wheel tests. Gill worked with Turchin and another DMV employee, Emma Klem, to have them access the DMV database to fraudulently update the tests at Gill’s request.
During the investigation, confidential operatives were able to obtain three official commercial licenses in 2013 and 2014. Collectively, they paid Gill over $12,000 after Turchin and Klem accessed the DMV database to fraudulently enter passing scores for the operatives despite the fact that the operatives did not pass or otherwise take the required tests. The trial evidence also demonstrated that Gill and Turchin continued to be involved in this fraudulent conduct until March 28, 2015, days before agents executed search warrants and found in Turchin’s vehicle slips of paper containing the numbers of fraudulently updated driver license records as well as several envelopes full of cash totaling over $10,000. The trial evidence showed that Turchin and his co-conspirators falsified DMV database records for at least 40 individuals for the purpose of obtaining commercial licenses.
This case is the product of a series of ongoing investigations by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, and the California DMV Office of Internal Affairs. Assistant U.S. Attorneys Todd A. Pickles and Rosanne Rust are prosecuting the case.
Co-defendants Gill and Klem previously pleaded guilty to counts of conspiracy to commit bribery and identity fraud and are awaiting sentencing.
Turchin is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on September 21, 2018. Turchin faces a maximum statutory penalty of five years in prison for the conspiracy count and a maximum of 15 years in prison for the fraud involving identification documents counts, and up to a $250,000 fine per each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Florissant Man Indicted on Fentanyl and Weapons ChargesRead the Press Release
St. Louis, MO – Jaleel Zakee Adams, a/k/a “Jay,” 23, of Florissant, MO, was indicted on June 21, 2018 for allegedly distributing acetyl-fentanyl to R.I. on November 15, 2017, resulting in the death of R.I. In addition, Adams is charged with possessing a firearm during a drug trafficking crime, and with possessing a stolen firearm. Deputy United States Marshals arrested Adams on June 26, 2018 at a hotel in Hazelwood, Missouri, and he appeared the same day in federal court before United States Magistrate John Bodenhausen for his initial appearance.
R.I. was found deceased in his Florissant, MO home on November 15, 2017. The Medical Examiner determined that R.I. died as a result of acetyl-fentanyl intoxication. Acetyl-fentanyl is an analogue of Fentanyl and, unlike Fentanyl, acetyl-fentanyl has no legitimate medical use. Investigation revealed that Adams was the likely source of the acetyl-fentanyl, and the Florissant Police Department executed a search warrant at his parent’s home on December 29, 2017. During the search, the Florissant Police recovered six firearms, including a stolen handgun recovered from Adams’ rented vehicle.
If convicted of the distribution of a controlled substance resulting in death, Adams faces a minimum mandatory term of 20 years in prison, and he could be ordered to serve up to life. The offense also carries a fine of up to $1 million. Upon conviction of possession of a firearm in furtherance of a drug trafficking crime, Adams would be required to serve an additional term of at least five years, which must be served consecutively to any other sentence, along with a fine of up to $250,000. Possession of a stolen firearm carries a maximum penalty of 10 years in prison and/or a fine of $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
“The toxic drug fentanyl is a scourge on our community and represents a serious danger not only to its users but to the law enforcement officers who encounter it. I applaud the hard work of the Florissant Police Department and the skillful assistance of the ATF in bringing this offender to justice,” said U.S. Attorney Jeffrey B. Jensen.
This case was investigated by the Florissant Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
First Nationwide Undercover Operation Targeting Darknet Vendors Results in Arrests of More Than 35 Individuals Selling Illicit Goods and the Seizure of Weapons, Drugs and More Than $23.6 MillionRead the Press Release
WASHINGTON – On June 26, 2018, the Department of Justice, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Secret Service (USSS), the U.S. Postal Inspection Service (USPIS) and the U.S. Drug Enforcement Administration (DEA), announced the results of a year-long, coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet. Special Agents of the HSI New York Field Division, in coordination with the U.S. Attorney’s Office for the Southern District of New York, posed as a money launderer on Darknet market sites, exchanging U.S. currency for virtual currency. Through this operation, HSI New York was able to identify numerous vendors of illicit goods, leading to the opening of more than 90 active cases around the country. The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice’s Criminal Division, working with more than 40 U.S. Attorney’s Offices throughout the country, coordinated the nationwide investigation of over 65 targets, that lead to the arrest and impending prosecution of more than 35 Darknet vendors.
These results were announced by Deputy Attorney General Rod J. Rosenstein, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Special Agent-in-Charge Angel M. Melendez of HSI New York Field Office, Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service (USPIS) New York Division, Assistant Director Kenneth Jenkins of the U.S. Secret Service (USSS) Office of Investigations, and Special Agent in Charge James J. Hunt of the U.S. Drug Enforcement Administration (DEA) New York Division.
“Criminals who think that they are safe on the Darknet are wrong,” said Deputy Attorney General Rosenstein. “We can expose their networks, and we are determined to bring them to justice. Today, we arrested more than 35 alleged Darknet vendors. We seized their weapons, their drugs, and $23.6 million of their ill-gotten gains. This nationwide enforcement effort will reduce the supply of deadly drugs like fentanyl that are killing an unprecedented number of Americans. I want to thank our federal prosecutors, and the dedicated federal agents with DEA, Homeland Security Investigations, the Postal Inspection Service, and the Secret Service for their outstanding work.”
“The Darknet is ever-changing and increasingly more intricate, making locating and targeting those selling illicit items on this platform more complicated. But in this case, HSI special agents were able to walk amongst those in the cyber underworld to find those vendors who sell highly addictive drugs for a profit,” said HSI Executive Associate Director Benner. “The veil has been lifted. HSI has infiltrated the Darknet, and together with its law enforcement partners nationwide, it has proven, once again, that every criminal is within arm’s reach of the law.”
“Postal Inspectors and their law enforcement partners will spare no resource or expense to shine a light on the sale and distribution of illicit and dangerous items on the Darknet, that serve to destroy the lives of many through addiction and despair,” said Inspector in Charge Rendina. “Today’s announcement of our law enforcement partnership and operation sends a strong message to those who choose this illegal path, we are watching and will bring you to justice for your crimes against the American public.”
“The Secret Service is proud to work with our law enforcement partners to help combat one of the largest threats to the U.S. financial infrastructure, money laundering with virtual currency,” said U.S. Secret Service Assistant Director Jenkins. “The Secret Service continues to adapt along with these cyber criminals to maintain our level of success in stopping them.”
“At this crucial time of unprecedented drug related deaths, one of the greatest threats we face is cyber drug trafficking,” said DEA Special Agent in Charge Hunt. “Because the Darknet invites criminals into our homes, and provides unlimited access to illegal commerce, law enforcement is taking steps to identify and arrest those involved. I applaud all the agencies who participated in this groundbreaking investigation.”
The extensive operation, which culminated in four weeks of more than 100 enforcement actions around the country, resulted in the following:
- Federal arrests of more than 35 Darknet vendors who engaged in tens of thousands of sales of illicit goods;
- Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, more than 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence;
- Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher;
- Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity;
- Seizure of more than $3.6 million in U.S. currency and gold bars;
- Seizure of nearly 2,000 Bitcoins and other cryptocurrencies, with an approximate value of more than $20 million;
- Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
- Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.
Amongst those charged federally, include:
- Joshua Sweet, 26, of Hazleton, Pennsylvania, was charged in a criminal complaint by the U.S. Attorney’s Office for the Middle District of Pennsylvania with possession with intent to distribute controlled substances. Sweet operated an online drug business, obtaining alprazolam, typically sold under the brand name Xanax, LSD, and other substances from foreign sources and selling them on the dark web. At the time of arrest, agents had already seized over 18,000 alprazolam tablets and other controlled substances, 60.65 Bitcoin, and an additional $25,000 in cash. As part of this drug trafficking scheme, Sweet also laundered over $200,000 in bitcoin.
- Antonio Tirado, 26, and Jeffrey Morales, 32, of the Bronx, New York, were arrested on June 18, and separately charged by the U.S. Attorney’s Office for the Southern District of New York with distribution and possession with intent to distribute narcotics, including cocaine, LSD (also known as “acid”), marijuana, and hashish oil. Additionally, Tirado was charged with possession of a firearm in furtherance of his drug trafficking offenses. Following an investigation into a Darknet marketplace vendor using the moniker “Trapgod,” investigators executed search warrants at homes in two residential neighborhoods in the Bronx leading to Tirado and Morales. As alleged in the complaints, during the execution of the search warrants at the Tirado and Morales residences, agents seized controlled substances including powder cocaine, marijuana, and LSD, as well as various precursor powders, liquids, and reagents, and other narcotics-related paraphernalia including marijuana growing equipment, a home chemistry lab, scales, and heat sealing packaging materials. In Tirado’s home, agents recovered a fully loaded shotgun alongside a narcotics stash. Investigators in Tirado’s apartment recovered additional evidence of Darknet narcotics distribution, such as numerous U.S. Postal Service shipping boxes, already addressed to customers around the United States, which boxes contained hairbrushes some of which had already been packed with powder cocaine for distribution.
- Jian Qu, 30; Raymond Weng, 24; and Kai Wu, 22, all of Queens, New York, along with Dimitri Tseperkas, 22, and Cihad Akkaya, 22, of Middle Island and Port Jefferson, New York, respectively, were each arrested on June 18, and charged by the U.S. Attorney’s Office for the Southern District of New York with participation in a conspiracy to distribute more than 1,000 kilograms of marijuana. Tseperkas and Akkaya were also charged with firearms offenses relating to the drug conspiracy. Investigators monitoring Darknet marketplaces found accounts used by some of the conspirators, leading agents to execute search warrants at three addresses in residential communities in Flushing and Mt. Sinai, New York. From the residences, agents recovered approximately $400,000 in U.S. currency, 140 kilograms of suspected marijuana and an additional 10 kilograms of suspected marijuana vape cartridges, 12 kilograms of suspected Xanax pills, over half a kilogram of suspected ecstasy, four pill presses, mixers, and pill press parts, over a dozen kilograms of various powders, packaging materials, and paraphernalia. While searching the residence where Akkaya and Tseperkas were found, investigators recovered three loaded shotguns, including a tactical double-barreled shotgun loaded with 14 shells, and over 50 shotgun shells, as well as significant quantities of narcotics, packaging materials, and paraphernalia including a money-counting machine. Review of electronic evidence recovered from the residences proved the conspirators’ connections to Darknet marketplaces, use of cryptocurrency, and narcotics distribution schemes.
- Ryan Farace, 34, of Reisterstown, Maryland, and Robert Swain, 34, of Freeland, Maryland, were charged by the U.S Attorney’s Office for the District of Maryland related to a scheme to manufacture and distribute alprazolam tablets, which are typically sold under the brand name “Xanax.” The indictment alleges that Farace distributed the drugs through sales on the dark web in exchange for Bitcoin, and that Farace and Swain laundered the drug proceeds through financial transactions designed to conceal the source and ownership of the illegal funds. To date, law enforcement has seized various crypto currency, to include bitcoin, valued at over $22 million at the time of the seizures, and over $1.5 million in cash, which was seized from Farace’s residence upon the execution of a search warrant on Jan. 18. As part of the indictment, the government seeks the forfeiture of no less than $5.665 million, plus the value of 4,000 Bitcoin believed to be the proceeds of the illegal drug sales, two residences, and a vehicle used to facilitate the drug distribution.
- Nicholas J. Powell, 32, and Michael Gonzalez, 27, former and current residents of Parma, Ohio, respectively, were charged by the U.S. Attorney’s Office for the Northern District of Ohio with conspiracy to distribute controlled substances and laundering money using the dark web. The complaint alleges that Powell used various monikers on Darknet marketplaces as part of his criminal scheme, including “TheSource,” “BonnienClyde,” BnC,” “BCPHARMA,” and “Money TS.” The conspiracy operated on multiple Darknet marketplaces, including Silk Road 2, AlphaBay, and HANSA. The conspiracy involved distributing Xanax, steroids, marijuana and other drugs across the country using these and other Darknet monikers. Powell and Gonzalez would then launder the funds as cryptocurrencies such as Bitcoin, Etherium, and Komodo through individuals specializing in money laundering on Darknet marketplaces. At the time of arrest, law enforcement had already seized approximately $437,000 in cryptocurrencies from Powell.
- Jose Robert Porras III, 21, and Pasia Vue, 23, both of Sacramento, were charged with drug distribution, money laundering, and illegally possessing firearms, in a 16-count indictment returned by a grand jury in the Eastern District of California. According to the indictment, Porras and Vue were using the online monikers “Cannabars” and “TheFastPlug,” to distribute marijuana, Xanax, and methamphetamine on various dark web marketplaces, including Trade Route, Wall Street Market, and Dream Marketplace. Porras and Vue then laundered the Bitcoin proceeds of their drug distribution through the HSI undercover agent located in New York. After receiving the Bitcoin from Porras and Vue, the undercover agent mailed parcels of cash to them in Sacramento. HSI and USPIS agents seized nine weapons including an AK-47 magazine and ammunition, 30 pounds of marijuana, $10,000 in U.S. currency, a vehicle, and over 100 bars of Xanax.
- Sam Bent, 32, of St. Johnsbury, Vermont (and formerly of East Burke, Vermont), and his cousin, Djeneba Bent, 26, also of St. Johnsbury (and formerly East Burke) were charged with conspiracy to distribute LSD, MDMA (also known as “ecstasy”), cocaine, and marijuana in an indictment returned by a federal grand jury in the District of Vermont. The indictment alleges that the conspiracy involved setting up accounts on dark web marketplaces, establishing online identities, accepting Bitcoin in exchange for sales over the dark web, and mailing controlled substances from several different post offices in Northeastern Vermont and Northwestern New Hampshire in an effort to avoid detection. The indictment also charges Sam Bent with four counts of money laundering involving three different exchanges of bitcoin drug distribution proceeds for U.S. currency.
- In Fresno, California, a federal grand jury returned an 11-count indictment on May 17, against Daniel Boyd McMonegal, 35, of San Luis Obispo and Mariposa, California, charging him with drug distribution and money laundering in the Eastern District of California. According to the indictment, McMonegal, using the online monikers “Sawgrass,” “Ross4Less,” and “ChristmasTree,” distributed marijuana on various dark web marketplaces, including Dream Market. McMonegal was also the owner of a marijuana delivery service in San Luis Obispo called West Coast Organix, which claimed to be a non-profit medical marijuana cooperative. McMonegal then laundered the Bitcoin proceeds of his drug distribution through an undercover agent located in New York. After receiving the Bitcoin from McMonegal, the undercover agent mailed parcels of cash to McMonegal in San Luis Obispo and Mariposa.
More than 50 Darknet vendor accounts were identified and attributed to the real individuals selling illicit goods on Darknet market sites such as Silk Road, AlphaBay, Hansa, Dream, and others. HSI-New York Field Division and MLARS coordinated with law enforcement and federal prosecutors to investigate 65 targets identified by the undercover operation in more than 50 Federal districts, including: the District of Arizona, the Eastern District of Arkansas, the Western District of Arkansas, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the Middle District of Florida, the Northern District of Florida, the Southern District of Florida, the Northern District of Iowa, the District of Kansas, the District of Maryland, the Eastern District of Michigan, the District of Minnesota, the Eastern District of North Carolina, the Western District of North Carolina, the District of New Hampshire, the Northern District of New York, the Southern District of New York, the Western District of New York, the District of North Dakota, the Northern District of Ohio, the Southern District of Ohio, the District of Oregon, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Carolina, the District of South Dakota, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the Western District of Texas, the District of Utah, the Eastern District of Virginia, the District of Vermont, the Eastern District of Washington, and the Western District of Washington. FBI was part of the investigative team in the Northern District of California.
The investigation is ongoing.
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Financial Advisor Indicted on Fraud Charges for Allegedly Swindling Investors out of $4.7 MillionRead the Press Release
CHICAGO — A financial advisor who told clients they were guaranteed to make money by investing with him has been indicted for allegedly defrauding those clients out of $4.7 million.
DARAYL DAVIS falsely represented to clients that they were guaranteed to receive annual interest payments of at least 6% if they invested with Davis’s two firms, Washington, D.C.-based Financial Assurance Corp. and Los Angeles, Calif.-based Affluent Advisory Group LLC, according to a superseding indictment returned Tuesday in U.S. District Court in Chicago. Davis also claimed that his clients’ principal investments were protected against losses and that some of the purported investments were backed by a well-known multinational life insurance company, the superseding indictment states. The charges describe how Davis defrauded some of his 22 victims by causing them to “roll over” their retirement savings into an account controlled by Davis. In reality, Davis did not invest the funds as promised, and none of the purported investments offered by Davis through FAC and AAG had any affiliation with the life insurance company, the charges allege.
Instead of investing his clients’ money, Davis spent the money for his own personal benefit, including $706,000 on credit card payments, $476,500 to rent a mansion in Los Angeles, $102,000 on airline tickets, $45,000 on car rentals, $42,500 on membership in an exclusive club, $42,000 on luxury hotels, and $25,000 on theater tickets, the indictment states. Davis also used the investors’ funds to make Ponzi-type payments to newer investors to conceal the scam, the charges allege. The alleged fraud scheme began in 2003 and continued until this year.
The indictment charges Davis, 45, of Bowie, Md., with six counts of money laundering, five counts of wire fraud, four counts of mail fraud, and one count of aggravated identity theft. Arraignment is scheduled for June 28, 2018, at 9:30 a.m., before U.S. District Judge Robert W. Gettleman.
The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Valuable assistance was provided by the U.S. Securities and Exchange Commission, which previously filed a civil complaint against Davis.
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. Each count of wire fraud, mail fraud and money laundering is punishable by up to 20 years in prison, while aggravated identity theft carries a mandatory consecutive prison term of two years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Jennie H. Levin.
Film Producer Sentenced to 8 Years in Prison for Multimillion-Dollar Investment SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID BERGSTEIN, a film producer and entrepreneur, was sentenced today in Manhattan federal court to 8 years in prison for defrauding investors of more than $26 million. BERGSTEIN was found guilty on March 1, 2018 following a four-week jury trial before U.S. District Court Judge P. Kevin Castel, who imposed today’s sentence.
Manhattan U.S. Attorney Berman said: “As a Hollywood film producer and entrepreneur, David Bergstein is versed in common themes for fictional writing. Deception, truth, and lies fit the narrative for Bergstein’s real life scheme to bilk investors of more than $26 million. A unanimous jury has found Bergstein’s plot to be full of holes, and he has now been sentenced to 8 years in federal prison.”
The jury found Bergstein guilty of all counts of the Indictment, which charged him with one count of conspiracy to commit investment adviser fraud and securities fraud, two counts of investment adviser fraud, two counts of securities fraud, one count of conspiracy to commit wire fraud, and one count of wire fraud.
According to the Indictment, other filings in Manhattan federal court, and the evidence presented at trial:
From 2011 through 2012, BERGSTEIN engaged in a scheme to defraud investors in Weston Capital Asset Management (“WCAM”), a New York-based registered investment adviser, by (i) concealing material information from Weston investors about financial transactions involving their money; (ii) transferring funds from one pool of Weston’s investors to make payments to, provide a security interest for, or otherwise benefit, another pool of Weston’s investors, without the required disclosures to investors concerning conflicts of interest; and (iii) misappropriating a portion of funds transferred from investor accounts for their own and others’ benefit. BERGSTEIN orchestrated this scheme in part through two transactions involving Weston investors’ assets: first, a loan from a Weston fund called the Partners 2 (or “P2”) Fund, and, second, a swap agreement with a Weston fund called the Wimbledon TT Portfolio (the “TT Portfolio”).
The Partners 2 Loan Scheme
In 2010, Weston agreed to a transaction with an entity named Gerova Financial Corporation (“Gerova”), an international reinsurance company, in which Weston sent assets from one of its hedge funds (the Wimbledon Financing Fund, or “WFF”) to Gerova in exchange for restricted shares of Gerova stock. This exchange was intended to replace illiquid hedge fund assets with stock, which could be bought and sold more easily. In 2011, however, Gerova’s stock price plummeted. Weston subsequently sought to unwind the transaction, and Weston’s president was introduced to BERGSTEIN for this purpose. BERGSTEIN and Weston’s principals subsequently formulated the outlines of a structure in which Weston would return its Gerova stock, receive its assets back from Gerova, and place those assets into another entity called Arius Libra Inc. (“Arius Libra”) as part of an investment in a separate business. Certain payments would be made along the way to facilitate the transfers.
In order to complete this transaction, BERGSTEIN and Weston’s principals agreed to loan money from the P2 Fund, another Fund operated and managed by Weston, to Arius Libra. The purpose of this loan (the “P2 Loan”) was purportedly (i) to pay certain debts associated with Gerova, and (ii) to fund Arius Libra’s purported medical billing businesses. Bergstein arranged for the P2 Loan to be secured by certain of the assets of WFF. Thus, in the event the P2 Loan was not repaid, the P2 Fund had the ability to liquidate WFF assets to make P2 investors whole, to the detriment of investors in WFF. In total, approximately $9 million in investor money was disbursed from the P2 Fund pursuant to the P2 Loan.
As BERGSTEIN well knew, however, P2 Fund investors were neither informed of the existence of the P2 Loan nor given any information about Arius Libra. And no disclosures were made to inform either P2 Fund or WFF investors of the conflict of interest arising from the P2 Fund’s security interest in WFF assets, as BERGSTEIN also knew. And although BERGSTEIN had represented to Weston that disbursements made pursuant to the P2 Loan would be used both to pay off Gerova creditors and to fund Arius Libra’s medical billing businesses, in fact, BERGSTEIN misappropriated millions of dollars of P2 Loan proceeds and used them to pay for, among other things, his own personal expenses, including credit card bills and attorney’s fees.
The TT Portfolio Swap Agreement Scheme
In late 2011, BERGSTEIN and Weston’s principals secretly arranged for Weston’s TT Portfolio to enter into a swap agreement with an entity controlled by BERSTEIN known as Swartz IP Services (“Swartz IP”), a transaction that was not disclosed to TT Portfolio investors. As part of this swap agreement, Bergstein arranged for approximately $17.7 million from the TT Portfolio to be transferred to Swartz IP. In exchange, BERGSTEIN agreed to provide certain investment returns and to meet investor redemption requests. Bergstein induced this transaction by misrepresenting to Weston’s principals that a wealthy investor had capitalized Swartz IP and guaranteed the transaction.
The TT Portfolio transaction was completed without disclosure to investors, even though, for other swap agreements, Weston had amended the TT Portfolio offering memorandum to reflect the particular swap agreement at issue. Of the money that was transferred to Swartz IP, BERGSTEIN directed that approximately $3 million be transferred to the P2 Fund to pay back part of the P2 Loan. BERGSTEIN thus arranged for money from one set of Weston’s investors (the TT Portfolio investors) to be used to pay back part of a debt owed to another set of Weston’s investors (the P2 Fund investors) – another conflict of interest that was not disclosed to P2 or TT Portfolio investors.
As a further part of the scheme, BERGSTEIN made false representations about Swartz IP’s assets and ability to meet redemption requests and secretly diverted TT Portfolio investor proceeds to pay BERGSTEIN’s personal expenses, including credit card bills, impressionist artwork, and private jets.
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In addition to his prison term, BERGSTEIN, 55, of Hidden Hills, California, was sentenced to three years of supervised release, forfeiture and restitution amounts to be determined at a later time. BERGSTEIN was remanded on March 1, 2018, following the return of the jury’s verdict, and he remains in custody.
Mr. Berman praised the investigative work of the FBI, the IRS, and the Office’s Criminal Investigators. He also thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore, Robert W. Allen, and Elisha J. Kobre are in charge of the prosecution.
Federal Inmate Sentenced to Another Year in Prison for Illegally Possessing BuprenorphineRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and was sentenced to one year and one day in prison, consecutive to the current prison term he is serving, followed by three years’ supervised release, United States Attorney Scott W. Brady announced today.
Alexander Rodriguez-Melendez, 30, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 12, 2017, Rodriguez-Melendez possessed a quantity of Buprenorphine.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Rodriguez-Melendez.
Father and Son Admit to Fraudulent Sales of Titanium to Connecticut Defense SubcontractorRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN J. PALIE, JR., 62, of Tiverton, Rhode Island, and JOHN J. PALIE III, 42, of Plymouth, Massachusetts, waived their right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to fraud offenses stemming from their having sold titanium to a Connecticut defense subcontractor.
According to court documents and statements made in court, JOHN PALIE, JR. is the owner and Chief Executive Officer of A&P Alloys, Inc. (“A&P”), a company in West Bridgewater, Massachusetts, that acquired and sold specialty metals, including titanium. JOHN PALIE III was a manager at A&P, having responsibilities for, among other things, the purchase and sale of titanium, and the preparation of titanium orders for shipment and delivery to customers. In pleading guilty, PALIE JR. and PALIE III admitted that they arranged two separate titanium sales to a Connecticut-based aircraft parts manufacturer that involved false representations about the source and quality of the titanium. The aircraft parts manufacturer supplies titanium parts to a company that manufactures aircraft engines, including engines for U.S. Air Force fighter jets.
In April and May 2012, PALIE JR. and PALIE III arranged a sale of 11 pieces of titanium to the Connecticut aircraft parts manufacturer, representing that the titanium had been certified as meeting an advanced aerospace quality standard when, in fact, it had never been certified as such. The order listed the engine manufacturer as the end buyer of the titanium.
In 2013, PALIE JR. and PALIE III arranged another sale of titanium to the Connecticut aircraft parts manufacturer with the engine manufacturer as the end buyer. In August 2013, PALIE III arranged for 400 pieces of titanium, along with certificates stating that the titanium originated from a particular mill and satisfied an advanced aerospace quality standard, to be delivered to the aircraft parts manufacturer. Due to concerns about the quality of the titanium, the engine manufacturer directed the aircraft parts manufacturer not to accept the titanium. PALIE III agreed to replace the 400 pieces with other titanium that satisfied the quality standard in question. However, instead of replacing the titanium, he arranged for the returned 400 pieces to be sandblasted and re-stamped with the manufacturer’s mark of a different titanium mill so that they appeared to be replacements for the returned pieces. In November 2013, PALIE III had the falsely labeled pieces, along with false certificates, shipped back to the aircraft parts manufacturer.
The government contends that the losses sustained by the multiple victim companies that purchased fraudulently misrepresented titanium total $1,328,000.
PALIE JR. and PALIE III each pleaded guilty to two counts of mail fraud, an offense that carries a maximum term of imprisonment of 20 years on each count. Judge Underhill scheduled sentencing for September 19, 2018.
PALIE JR. and PALIE III are released pending sentencing.
This matter is being investigated by the Defense Criminal Investigative Service, the U.S. Department of Defense Office of Inspector General, the U.S. Air Force Office of Special Investigations, and the U.S. Department of Transportation, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel.
First Nationwide Undercover Operation Targeting Darknet Vendors Results in Arrests of More Than 35 Individuals Selling Illicit Goods and the Seizure of Weapons, Drugs and More Than $23.6 MillionRead the Press Release
WASHINGTON - Today, the Department of Justice, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Secret Service (USSS), the U.S. Postal Inspection Service (USPIS) and the U.S. Drug Enforcement Administration (DEA), announced the results of a year-long, coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet. Special Agents of the HSI New York Field Division, in coordination with the U.S. Attorney’s Office for the Southern District of New York, posed as a money launderer on Darknet market sites, exchanging U.S. currency for virtual currency. Through this operation, HSI New York was able to identify numerous vendors of illicit goods, leading to the opening of more than 90 active cases around the country. The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice’s Criminal Division, working with more than 40 U.S. Attorney’s Offices throughout the country, coordinated the nationwide investigation of over 65 targets, that lead to the arrest and impending prosecution of more than 35 Darknet vendors.
These results were announced by Deputy Attorney General Rod J. Rosenstein, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Special Agent-in-Charge Angel M. Melendez of HSI New York Field Office, Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service (USPIS) New York Division, Assistant Director Kenneth Jenkins of the U.S. Secret Service (USSS) Office of Investigations, and Special Agent in Charge James J. Hunt of the U.S. Drug Enforcement Administration (DEA) New York Division.
“Criminals who think that they are safe on the Darknet are wrong,” said Deputy Attorney General Rosenstein. “We can expose their networks, and we are determined to bring them to justice. Today, we arrested more than 35 alleged Darknet vendors. We seized their weapons, their drugs, and $23.6 million of their ill-gotten gains. This nationwide enforcement effort will reduce the supply of deadly drugs like fentanyl that are killing an unprecedented number of Americans. I want to thank our federal prosecutors, and the dedicated federal agents with DEA, Homeland Security Investigations, the Postal Inspection Service, and the Secret Service for their outstanding work.”
“The Darknet is ever-changing and increasingly more intricate, making locating and targeting those selling illicit items on this platform more complicated. But in this case, HSI special agents were able to walk amongst those in the cyber underworld to find those vendors who sell highly addictive drugs for a profit,” said HSI Executive Associate Director Benner. “The veil has been lifted. HSI has infiltrated the Darknet, and together with its law enforcement partners nationwide, it has proven, once again, that every criminal is within arm’s reach of the law.”
“Postal Inspectors and their law enforcement partners will spare no resource or expense to shine a light on the sale and distribution of illicit and dangerous items on the Darknet, that serve to destroy the lives of many through addiction and despair,” said Inspector in Charge Rendina. “Today’s announcement of our law enforcement partnership and operation sends a strong message to those who choose this illegal path, we are watching and will bring you to justice for your crimes against the American public.”
“The Secret Service is proud to work with our law enforcement partners to help combat one of the largest threats to the U.S. financial infrastructure, money laundering with virtual currency,” said U.S. Secret Service Assistant Director Jenkins. “The Secret Service continues to adapt along with these cyber criminals to maintain our level of success in stopping them.”
“At this crucial time of unprecedented drug related deaths, one of the greatest threats we face is cyber drug trafficking,” said DEA Special Agent in Charge Hunt. “Because the Darknet invites criminals into our homes, and provides unlimited access to illegal commerce, law enforcement is taking steps to identify and arrest those involved. I applaud all the agencies who participated in this groundbreaking investigation.”
The extensive operation, which culminated in four weeks of more than 100 enforcement actions around the country, resulted in the following:
• Federal arrests of more than 35 Darknet vendors who engaged in tens of thousands of sales of illicit goods; • Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, more than 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence; • Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher; • Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity; • Seizure of more than $3.6 million in U.S. currency and gold bars; • Seizure of nearly 2,000 Bitcoins and other cryptocurrencies, with an approximate value of more than $20 million; • Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
• Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.Amongst those charged federally, include:
• Antonio Tirado, 26, and Jeffrey Morales, 32, of the Bronx, New York, were arrested on June 18, and separately charged by the U.S. Attorney’s Office for the Southern District of New York with distribution and possession with intent to distribute narcotics, including cocaine, LSD (also known as “acid”), marijuana, and hashish oil. Additionally, Tirado was charged with possession of a firearm in furtherance of his drug trafficking offenses. Following an investigation into a Darknet marketplace vendor using the moniker “Trapgod,” investigators executed search warrants at homes in two residential neighborhoods in the Bronx leading to Tirado and Morales. As alleged in the complaints, during the execution of the search warrants at the Tirado and Morales residences, agents seized controlled substances including powder cocaine, marijuana, and LSD, as well as various precursor powders, liquids, and reagents, and other narcotics-related paraphernalia including marijuana growing equipment, a home chemistry lab, scales, and heat sealing packaging materials. In Tirado’s home, agents recovered a fully loaded shotgun alongside a narcotics stash. Investigators in Tirado’s apartment recovered additional evidence of Darknet narcotics distribution, such as numerous U.S. Postal Service shipping boxes, already addressed to customers around the United States, which boxes contained hairbrushes some of which had already been packed with powder cocaine for distribution.
• Jian Qu, 30; Raymond Weng, 24; and Kai Wu, 22, all of Queens, New York, along with Dimitri Tseperkas, 22, and Cihad Akkaya, 22, of Middle Island and Port Jefferson, New York, respectively, were each arrested on June 18, and charged by the U.S. Attorney’s Office for the Southern District of New York with participation in a conspiracy to distribute more than 1,000 kilograms of marijuana. Tseperkas and Akkaya were also charged with firearms offenses relating to the drug conspiracy. Investigators monitoring Darknet marketplaces found accounts used by some of the conspirators, leading agents to execute search warrants at three addresses in residential communities in Flushing and Mt. Sinai, New York. From the residences, agents recovered approximately $400,000 in U.S. currency, 140 kilograms of suspected marijuana and an additional 10 kilograms of suspected marijuana vape cartridges, 12 kilograms of suspected Xanax pills, over half a kilogram of suspected ecstasy, four pill presses, mixers, and pill press parts, over a dozen kilograms of various powders, packaging materials, and paraphernalia. While searching the residence where Akkaya and Tseperkas were found, investigators recovered three loaded shotguns, including a tactical double-barreled shotgun loaded with 14 shells, and over 50 shotgun shells, as well as significant quantities of narcotics, packaging materials, and paraphernalia including a money-counting machine. Review of electronic evidence recovered from the residences proved the conspirators’ connections to Darknet marketplaces, use of cryptocurrency, and narcotics distribution schemes.
• Ryan Farace, 34, of Reisterstown, Maryland, and Robert Swain, 34, of Freeland, Maryland, were charged by the U.S Attorney’s Office for the District of Maryland related to a scheme to manufacture and distribute alprazolam tablets, which are typically sold under the brand name “Xanax.” The indictment alleges that Farace distributed the drugs through sales on the dark web in exchange for Bitcoin, and that Farace and Swain laundered the drug proceeds through financial transactions designed to conceal the source and ownership of the illegal funds. To date, law enforcement has seized various crypto currency, to include bitcoin, valued at over $22 million at the time of the seizures, and over $1.5 million in cash, which was seized from Farace’s residence upon the execution of a search warrant on Jan. 18. As part of the indictment, the government seeks the forfeiture of no less than $5.665 million, plus the value of 4,000 Bitcoin believed to be the proceeds of the illegal drug sales, two residences, and a vehicle used to facilitate the drug distribution.
• Nicholas J. Powell, 32, and Michael Gonzalez, 27, former and current residents of Parma, Ohio, respectively, were charged by the U.S. Attorney’s Office for the Northern District of Ohio with conspiracy to distribute controlled substances and laundering money using the dark web. The complaint alleges that Powell used various monikers on Darknet marketplaces as part of his criminal scheme, including “TheSource,” “BonnienClyde,” BnC,” “BCPHARMA,” and “Money TS.” The conspiracy operated on multiple Darknet marketplaces, including Silk Road 2, AlphaBay, and HANSA. The conspiracy involved distributing Xanax, steroids, marijuana and other drugs across the country using these and other Darknet monikers. Powell and Gonzalez would then launder the funds as cryptocurrencies such as Bitcoin, Etherium, and Komodo through individuals specializing in money laundering on Darknet marketplaces. At the time of arrest, law enforcement had already seized approximately $437,000 in cryptocurrencies from Powell.
• Jose Robert Porras III, 21, and Pasia Vue, 23, both of Sacramento, were charged with drug distribution, money laundering, and illegally possessing firearms, in a 16-count indictment returned by a grand jury in the Eastern District of California. According to the indictment, Porras and Vue were using the online monikers “Cannabars” and “TheFastPlug,” to distribute marijuana, Xanax, and methamphetamine on various dark web marketplaces, including Trade Route, Wall Street Market, and Dream Marketplace. Porras and Vue then laundered the Bitcoin proceeds of their drug distribution through the HSI undercover agent located in New York. After receiving the Bitcoin from Porras and Vue, the undercover agent mailed parcels of cash to them in Sacramento. HSI and USPIS agents seized nine weapons including an AK-47 magazine and ammunition, 30 pounds of marijuana, $10,000 in U.S. currency, a vehicle, and over 100 bars of Xanax.
• Sam Bent, 32, of St. Johnsbury, Vermont (and formerly of East Burke, Vermont), and his cousin, Djeneba Bent, 26, also of St. Johnsbury (and formerly East Burke) were charged with conspiracy to distribute LSD, MDMA (also known as “ecstasy”), cocaine, and marijuana in an indictment returned by a federal grand jury in the District of Vermont. The indictment alleges that the conspiracy involved setting up accounts on dark web marketplaces, establishing online identities, accepting Bitcoin in exchange for sales over the dark web, and mailing controlled substances from several different post offices in Northeastern Vermont and Northwestern New Hampshire in an effort to avoid detection. The indictment also charges Sam Bent with four counts of money laundering involving three different exchanges of bitcoin drug distribution proceeds for U.S. currency.
• In Fresno, California, a federal grand jury returned an 11-count indictment on May 17, against Daniel Boyd McMonegal, 35, of San Luis Obispo and Mariposa, California, charging him with drug distribution and money laundering in the Eastern District of California. According to the indictment, McMonegal, using the online monikers “Sawgrass,” “Ross4Less,” and “ChristmasTree,” distributed marijuana on various dark web marketplaces, including Dream Market. McMonegal was also the owner of a marijuana delivery service in San Luis Obispo called West Coast Organix, which claimed to be a non-profit medical marijuana cooperative. McMonegal then laundered the Bitcoin proceeds of his drug distribution through an undercover agent located in New York. After receiving the Bitcoin from McMonegal, the undercover agent mailed parcels of cash to McMonegal in San Luis Obispo and Mariposa.
More than 50 Darknet vendor accounts were identified and attributed to the real individuals selling illicit goods on Darknet market sites such as Silk Road, AlphaBay, Hansa, Dream, and others. HSI-New York Field Division and MLARS coordinated with law enforcement and federal prosecutors to investigate 65 targets identified by the undercover operation in more than 50 Federal districts, including: the District of Arizona, the Eastern District of Arkansas, the Western District of Arkansas, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the Middle District of Florida, the Northern District of Florida, the Southern District of Florida, the Northern District of Iowa, the District of Kansas, the District of Maryland, the Eastern District of Michigan, the District of Minnesota, the Eastern District of North Carolina, the Western District of North Carolina, the District of New Hampshire, the Northern District of New York, the Southern District of New York, the Western District of New York, the District of North Dakota, the Northern District of Ohio, the Southern District of Ohio, the District of Oregon, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Carolina, the District of South Dakota, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the Western District of Texas, the District of Utah, the Eastern District of Virginia, the District of Vermont, the Eastern District of Washington, and the Western District of Washington. FBI was part of the investigative team in the Northern District of California.
The investigation is ongoing.
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Dunkirk Woman Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that a Minerva Maestre, 50, of Dunkirk, NY, who was convicted of possession with intent to distribute 28 grams or more of crack cocaine, was sentenced to serve 60 months in federal prison by Senior U.S. District Judge William M. Skretny. In addition, the defendant was ordered to forfeit more than $150,000 in drug proceeds.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on April 28, 2017, Dunkirk Police, the Southern Tier Regional Drug Task Force and the Drug Enforcement Administration executed a search warrant at the defendant’s residence located at 51 E. Second Street in Dunkirk. During the search, officers seized 60 grams of crack cocaine, 42 grams of cocaine, plastic baggies, and $171,962 in cash.
The sentencing is the result of an investigation by the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff Joseph Geraci; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the Dunkirk Police Department, under the direction of Chief David Ortolano.
Drug Traffickers Sentenced to 30 Years in Federal PrisonRead the Press Release
Hot Springs, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Shaun Booth, age 30, of Hot Springs, Arkansas was sentenced on June 26, 2018 to 90 months in federal prison followed by three years of supervised release, on one count of Aiding and Abetting the Possession with Intent to Distribute Methamphetamine, Steven Taylor, age 36, of Maud, Texas was sentenced today to 151 months in federal prison followed by three years of supervised release, on one count of Conspiracy to Distribute Methamphetamine and Kelsey Williams, age 24, of Olive Branch, Mississippi was sentenced on June 25, 2018 to 120 months in federal prison followed by three years of supervised release, on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, on June 7, 2016, officers with the 18th East Judicial Drug Taskforce in Garland County executed a state search warrant at the Economy Inn located in Hot Springs, which is within the Western District of Arkansas. Upon entry into the room, officers made contact with co-conspirator, Booth, who was the lone occupant of the room and in the far bed of the room. Booth had a valid warrant for his arrest and was placed in custody. During execution of the warrant, officers located a large amount of methamphetamine, as well as numerous items of drug paraphernalia. During the investigation agents learned that the methamphetamine had been brought in from Texas by Taylor and Williams and dropped off at the Economy Inn for further distribution by Booth. Investigators also learned that Taylor had the room rented in his name and had a key to the room.
The methamphetamine seized in this case was sent to the Arkansas State Crime lab where it tested positive for methamphetamine.
Booth, Taylor and Williams were all indicted by a federal grand jury in October 2016 and pled guilty in 2017.
This case was investigated by the 18th East Judicial Drug Taskforce. Assistant United States Attorney David Harris prosecuted the case for the United States.
Court Shuts Down Idaho Tax Return PreparerRead the Press Release
A federal court in Boise, Idaho permanently enjoined Jonathan Peirsol from preparing federal income tax returns for others, the Justice Department announced yesterday. Peirsol consented to the civil injunction order and admitted the allegations in the complaint. He previously pleaded guilty to aiding and assisting in the preparation of a false tax return and, in May 2017, was sentenced to 12 months and one day in prison.
According to the civil complaint, Peirsol prepared false income tax returns by adding fictitious itemized deductions without the knowledge or consent of his customers, including, most commonly, fraudulent medical expenses. Peirsol also added false education expenses to his customers’ income tax returns without their knowledge or consent, as alleged in the complaint. The complaint states that Peirsol’s conduct caused at least $62,441 in tax loss.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Convicted Felon Sentenced to More Than 10 Years for Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody has sentenced Lecardo Albury (32, Tampa) to 10 years and 8 months in federal prison for possessing a firearm as a convicted felon.
According to court documents, on July 13, 2017, Albury was pulled over for a traffic violation. A search of the vehicle revealed a .40 caliber pistol loaded with 10 rounds of ammunition, two plastic baggies with 114 grams of marijuana, a glass pipe, and a small scale. Albury has 13 prior felony convictions and therefore is prohibited from possessing a firearm or ammunition under federal law.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
Columbus Man Sentenced to More Than 24 Years for Creating Pornography of Toddler and Young GirlRead the Press Release
COLUMBUS, Ohio – Jordan L. Price, 29, of Columbus, was sentenced in U.S. District Court to 295 months in prison and 15 years of supervised release for production of child pornography. Price pleaded guilty to the crime in January 2018.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin, Franklin County Prosecutor Ron O’Brien and other members of the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down by Senior U.S. District Judge Michael H. Watson.
According to the Statement of Facts in this case, in July 2017, the National Center for Missing and Exploited Children (NCMEC) received two reports from Google regarding an email account that had been used to send numerous child pornography files.
A search warrant executed on the Gmail account revealed that the account belonged to Price. Further investigation of Price revealed that he had used his cell phone to take several pornographic pictures of two female children who were five years of age or younger. Price’s hand was visible in some of the pictures, moving the victims’ clothing aside to expose and manipulate their genitalia.
In addition to the pornography that Price produced, he was also found to possess more than 200 child pornography files, including depictions of the rape of toddlers, in his Dropbox account.
“The youngest victim in this case was a toddler,” U.S. Attorney Glassman said. “The defendant moved aside the toddler’s diaper in order to photograph her genitalia. That Price saw these very young children as sexual objects to be exploited rather than children to be cared for indicates the necessity of the significant prison sentence he received today.”
U.S. Attorney Glassman commended the investigation of this case by the Franklin County Sheriff’s Office as well as Assistant United States Attorney Heather A. Hill and Special Assistant United States Attorney Jennifer M. Rausch, Director, Franklin County Special Victim’s Unit, who are representing the United States in this case.
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Colombian Man Sentenced to More Than 15 Years for Transporting CocaineRead the Press Release
Tampa, FL – U.S. District Judge Steven Merryday has sentenced Francisco Moreno-Valencia (40, Colombia, South America) to 15 years and 6 months in federal prison for conspiring with others to distribute five kilograms or more of cocaine on vessels subject to the jurisdiction of the United States. Moreno-Valencia pleaded guilty on February 15, 2018.
According to court documents, Francisco Moreno-Valencia was the right hand of his brother, Luis Moreno-Valencia, who was the organizational head of his Colombian-based drug trafficking organization. Francisco Moreno-Valencia was responsible for storing the cocaine and dispatching the mariners for several maritime smuggling ventures in international waters of the Eastern Pacific Ocean. In November 2014 and December 2015, the United States Coast Guard interdicted over 800 kilograms of cocaine aboard vessels commonly referred to as “go fast boats.” Francisco Moreno-Valencia was involved in the transportation of cocaine from Choco, Colombia, to Panama.
Luis Moreno-Valencia was sentenced to 17 years and 6 months in federal prison on May 17, 2018.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorneys Thomas N. Palermo and Charlie Connally.
California and Florida Men Charged with Selling Synthetic Cannabinoids over the InternetRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and Peter R. Rendina, Inspector-in-Charge of the New York Field Division of the U.S. Postal Inspection Service (“USPIS”), announced today that JONATHAN RIENDEAU and JADE PLANTE have been charged with operating websites that sold more than $1 million of synthetic cannabinoids throughout the United States. Both defendants were arrested this morning. RIENDEAU will be presented today in federal court in the Southern District of California. PLANTE will be presented today in federal court in the Southern District of Florida. The case has been assigned to United States District Judge Naomi Reice Buchwald.
U.S. Attorney Geoffrey S. Berman said: “Trafficking of synthetic cannabinoids – sometimes called K2 or Spice – is on the rise and poses a serious threat to public health and safety. Packaged attractively to appeal to teenagers and young adults, synthetic cannabinoids are in reality a toxic cocktail that can be very dangerous to consume. As alleged, Jonathan Riendeau and Jade Plante used the internet to peddle massive quantities of synthetic cannabinoids. Thanks to our law enforcement partners, Riendeau and Plante have been arrested and their dangerous business has been dismantled.”
NYPD Commissioner James P. O’Neill said: “As NYPD detectives continue to do remarkable work in investigating those responsible for directing smokeable synthetic cannabinoids onto our streets – and the resulting scourge of related overdoses – we are grateful for the collaboration of our federal partners, whose reach and expertise greatly strengthens our impact on this crisis. The composition of these toxic chemicals varies by batch, and the results of taking them are unpredictable. What is predictable, however, is our relentless investigation of anyone who produces or sells so-called ‘synthetic marijuana’ in New York City or anywhere else in America.”
HSI Special Agent-in-Charge Angel M. Melendez said: “These individuals allegedly sold and distributed massive quantities of laced smokeable synthetic cannabinoids, throughout the country using the internet. These arrests are so timely, considering amount of K2 related overdoses we have experienced here in New York City. Law enforcement is full steam ahead on investigations to bring down those online drug dealers and prosecute them to the fullest extent of the law.”
USPIS Inspector-in-Charge Peter R. Rendina said: “Dealers in synthetic drugs never think of the lasting impact on the lives destroyed and the communities devastated by their greedy and illegal operation. Their only goal is to make money off of the users. Whether it be a clever name or packaging, these illegal operations will never go unnoticed by law enforcement. Today’s arrests are a strong message to drug traffickers that Postal Inspectors and their law enforcement partners will spare no resource or expense to protect our customers and the sanctity of the U.S. Mail.”
According to the allegations in the Indictment[1]:
From February 2014 until June 2018, RIENDEAU and PLANTE operated a scheme to distribute massive quantities of smokeable synthetic cannabinoids (“SSC”), containing controlled substances and controlled substance analogues, throughout the United States. SSC, which can be addictive, are often marketed as safe, legal alternatives to marijuana. In fact, SSC are not safe and may affect the brain much more powerfully than marijuana; their actual effects can be unpredictable and, in some cases, more dangerous or even life-threatening.
RIENDEAU and PLANTE operated three different websites on which they sold SSC, colloquially referred to as “K2” or “Spice,” which included dried, shredded plant material onto which synthetic cannabinoid chemicals had been sprayed, and liquids containing synthetic cannabinoid chemicals for users to vaporize and inhale with e-cigarettes or other similar devices. The SSC distributed by the scheme were branded with colorful graphics and distinctive names, including “Dead Man Walking,” “Brainfreeze,” “Klimax,” “Twilite,” “Delirium,” “Purple Haze,” “Diablo,” “AK-47,” “ScoobySnax,” “F*cking Crazy,” and “Dafuq.” Many of the SSC were marketed as having flavors, including chocolate, apple, and strawberry. The SSC were sometimes marked “not for human consumption,” or “potpourri.”
Over the course of the scheme, RIENDEAU and PLANTE shipped approximately 6,000 packages of SSC through the United States mail to customers throughout the U.S., including locations in Manhattan, the Bronx, and all 50 states, containing a total of more than 120 kilograms of SSC. RIENDEAU and PLANTE were paid more than $1 million for SSC in the course of the scheme.
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RIENDEAU, 38, of San Diego, California, is charged with three counts of conspiring to distribute narcotics. PLANTE, 39, of Port Saint Lucie, Florida, is charged with one count of conspiring to distribute narcotics. Each count carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI, USPIS, and the NYPD, and thanked the Drug Enforcement Administration for its assistance. The long-term investigation of this case was partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (“HIDTA”), which is a federally funded crime fighting initiative and part of the Organized Crime Drug Enforcement Task Force program.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Robert B. Sobelman is 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.
Boise Man Pleads Guilty to Access with Intent to View Child PornographyRead the Press Release
BOISE – Jose Luis “Joey” Sanchez, 39, of Boise, pleaded guilty yesterday in United States District Court to access with intent to view child pornography, U.S. Attorney Bart M. Davis announced.
According to court records, between October 2015 and January 2016, agents with Homeland Security Investigations monitored an online video conferencing application used to view and exchange images of child pornography. Agents identified Sanchez as a user from Idaho who had logged into the chatroom and viewed child pornography on seventeen separate occasions.
In May 2016, investigators with the Idaho Internet Crimes Against Children Task Force (ICAC) served a search warrant on Sanchez’s residence in Boise, Idaho, and seized a laptop computer. Sanchez admitted that he had used the video conferencing application and viewed images of child pornography. On Sanchez’s laptop, investigators found evidence that it was used to access the video conferencing application, that Sanchez had communicated with other users about sexual acts with children, and that Sanchez exchanged information on chatrooms where images of child pornography were available.
Sentencing is set for September 25, 2018, before Chief U.S. District Judge B. Lynn Winmill. Access with intent to view child pornography is punishable by up to 20 years 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. As part of his plea, Sanchez also agreed to forfeit the computer and electronic storage devices used in the commission of the charged offense.
This case was investigated by the ICAC Task Force and Homeland Security Investigations, and 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 United States Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office 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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Assumption Parish Man Sentenced After Pleading Guilty to Drug and Gun ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that U. S. District Judge Nannette Jolivette Brown sentenced TOMMY WAYNE THOMPSON, age 32, of Labadieville, Louisiana, to 85-months imprisonment and four years of supervised release after THOMPSON pled guilty to conspiracy to distribute and possess with intent to distribute cocaine hydrochloride, distribution of 28 grams or more of cocaine base (“crack”), and being a felon in possession of a firearm.
According to court documents, between November 2012, and June 2013, Special Agents of the Drug Enforcement Administration, using undercover agents and confidential sources, made several purchases of cocaine hydrochloride and crack cocaine from THOMPSON in Labadieville, Louisiana. In May 2013, agents obtained a wiretap of THOMPSON’S telephone and intercepted several telephone calls between THOMPSON and another individual, with whom THOMPSON discussed obtaining and purchasing drugs. On June 6, 2013, agents executed search warrants at THOMPSON’S residence in Napoleonville, Louisiana and a second residence frequented by THOMPSON in Labadieville. In the Napoleonville residence, agents located and seized a Lorcin 9mm handgun in a cabinet in the residence. THOMPSON, who had previously been convicted of a felony, was prohibited from possessing a firearm. In that same residence, agents seized $68,617.00 in cash from a utility room. In the Labadieville residence, agents located and seized $5,500.00 in cash from the top of a refrigerator. In THOMPSON’S vehicle located at the residence, agents found and seized a clear plastic bag containing cocaine hydrochloride.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, and the Assumption Parish Sheriff’s Office Narcotics Division. Assistant United States Attorney André Jones was in charge of the prosecution.
Aruban Telecommunications Purchasing Official Sentenced to Prison in Money Laundering Conspiracy Involving Violations of the Foreign Corrupt Practices ActRead the Press Release
An Aruban official residing in Florida was sentenced to 36 months in prison today for money laundering charges in connection with his role in a scheme to arrange and receive corrupt payments to influence the awarding of contracts with an Aruban state-owned telecommunications corporation.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Assistant Special Agent in Charge Paul Keenan of the FBI’s Miami, Florida Field Office made the announcement.
Egbert Yvan Ferdinand Koolman, 49, a Dutch citizen residing in Miami, was sentenced by U.S. District Judge Federico A. Moreno of the Southern District of Florida, who also ordered Koolman to serve three years of supervised release following his prison sentence and to pay over $1.3 million in restitution. Koolman was an official of Servicio di Telecommunicacion di Aruba N.V. (Setar), an instrumentality of the Aruban government. He pleaded guilty on April 13, before Judge Moreno to one count of conspiracy to commit money laundering.
According to admissions made as part of his plea agreement, between 2005 and 2016, Koolman operated a money laundering conspiracy from his position as Setar’s product manager. Koolman admitted that, as part of the scheme, he conspired with Parker and others to transmit funds from Florida and elsewhere in the United States to Aruba and Panama with the intent to promote a wire fraud scheme and a corrupt scheme that violated the Foreign Corrupt Practices Act (FCPA). Koolman was promised and received bribes from individuals and companies located in the United States and abroad in exchange for using his position at Setar to award lucrative mobile phone and accessory contracts. He received the corrupt payments via wire transfer from banks located in the United States, in cash during meetings in Miami and in Aruba, and by withdrawing cash in Aruba using a bank card that drew money from a U.S.-based bank account. In exchange for the more than $1.3 million in corrupt payments that he received, Koolman also admittedly provided favored vendors with Setar’s confidential information.
In connection with the scheme, Lawrence W. Parker, Jr., 42, of Miami, pleaded guilty on Dec. 28, 2017 before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida to one count of conspiracy to violate the FCPA and to commit wire fraud. He was sentenced on April 30, to serve 35 months in prison and was ordered to pay $701,750 in restitution.
The FBI’s International Corruption Unit in Miami is investigating the case. Trial Attorneys Jonathan Robell and Vanessa Snyder of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lois Foster-Steers of the Southern District of Florida are prosecuting the case. The Criminal Division’s Office of International Affairs, as well as law enforcement colleagues in Aruba and Panama, provided significant assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.