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27 June 2018
Amity Woman Sentenced to over 7 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Leslie Fryar, age 42, of Amity, Arkansas, was sentenced today to 87 months in federal prison followed by three years of supervised release on one count of Possession with Intent 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, during October 2016, investigators with the 18th East Judicial Drug Task Force, Arkansas State Police (ASP), and Department of Homeland Security began investigating Fryar, for the distribution of methamphetamine within Garland County, Arkansas. During March 2017, Arkansas State Police conducted a traffic stop on a vehicle and made contact with the driver, who was identified as Fryar. Fryar consented to a search of her vehicle and law enforcement found a plastic bag in the glove compartment which contained approximately 115.5 grams of suspected methamphetamine. Fryar was subsequently arrested. The suspected methamphetamine was submitted to the Arkansas State Crime Laboratory for analysis, and it was determined to be 109.94 grams of actual methamphetamine.
Fryar was indicted by a federal grand jury in April 2017 and entered a guilty plea in November 2017.
This case was investigated by the 18th East Judicial Drug Task Force, the Arkansas State Police, and the Department of Homeland Security. Assistant United States Attorney David Harris prosecuted the case for the United States.
Allentown Man Charged with Defrauding the Government, Theft of Government Funds, and Aggravated Identity TheftRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury indicted Julio Polanco Suarez, age 41, of Allentown, Pennsylvania, with conspiring to defraud the government, theft of government money, and aggravated identity theft. The indictment was returned on April 10, 2018, but remained under seal until Suarez’s apprehension.
According to United States Attorney David J. Freed, the indictment charges Suarez with conspiring to defraud the government between March 1, 2009 and September 20, 2016. The government money and identity theft charges are alleged to have occurred in Luzerne County, Pennsylvania, on September 20, 2016.
The indictment alleges that Suarez’s coconspirators stole individuals’ identities, used them to prepare and file false tax returns, and obtained the refund checks issued by the U.S. Treasury pursuant to those false tax returns. Suarez took possession of the refund checks, forged names and social security numbers on them, and cashed them at check cashing businesses in the Middle District of Pennsylvania. Suarez and his coconspirators are charged with cashing $522,613.80 in fraudulently obtained Treasury checks, and attempting to cash an additional $41,401.57 worth of checks.
The case was investigated by the Department of the Treasury’s Office of the Inspector General, the Internal Revenue Service Criminal Investigation, and other federal and state law enforcement agencies. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
Indictments 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 penalties under federal law for the most serious charges are up to 10 years of imprisonment. The aggravated identity theft charge carries a two-year consecutive mandatory minimum term of imprisonment. 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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Albany Woman Pleads Guilty to Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Katie Bessette, age 29, of Albany, pled guilty today to conspiring to distribute cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of her guilty plea, Bessette admitted that on December 3, 2017, she distributed approximately 527 grams of cocaine to another person at a shopping center in Albany County.
Sentencing is scheduled for October 17, 2018 before Senior United States District Judge Gary L. Sharpe. Bessette faces at least 5 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Ahmed Abu Khatallah Sentenced to 22 Years in Prison for September 2012 Attack in Benghazi, LibyaRead the Press Release
WASHINGTON – Ahmed Abu Khatallah, aka Ahmed Mukatallah, 47, a Libyan national, was sentenced today to 22 years in prison on federal terrorism charges and other offenses stemming from the September 11, 2012 terrorist attack on the U.S. Special Mission in Benghazi, Libya. Ambassador J. Christopher Stevens and U.S. government personnel Sean Smith, Tyrone Woods and Glen Doherty died in the attack at the Mission and the nearby Annex in Benghazi.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Columbia Jessie K. Liu, Assistant Director Michael McGarrity of the FBI’s Counterterrorism Division, and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office.
Khatallah was captured in Libya on June 15, 2014, and brought to the United States to face trial in the U.S. District Court for the District of Columbia. He was found guilty by a jury on November 28, 2017, following seven weeks of trial, of one count of conspiracy to provide material support or resources to terrorists, one count of providing material support or resources to terrorists, one count of maliciously destroying and injuring dwellings and property, and placing lives in jeopardy within the special maritime and territorial jurisdiction of the United States, and one count of using and carrying a semiautomatic assault rifle during a crime of violence. He was sentenced by the Honorable Christopher R. Cooper.
According to the government’s evidence, Khatallah was a leader of an extremist militia named Ubaydah bin Jarrah, which operated outside the law, and in the months prior to the attacks, he sought to incite violence by his and other militia groups against the presence of the United States in Libya. In early September of 2012, he and other members of his group mobilized for an attack by stockpiling truckloads of weaponry.
On the night of September 11, 2012, according to the government’s evidence, Khatallah directed his group to carry out the violence, striking first at the U.S. Special Mission in Benghazi. A group of men, armed with AK-47 rifles, grenades, and other weapons, swept into the Mission compound, setting fires and breaking into buildings. During that violence, Ambassador Stevens and Mr. Smith valiantly tried to protect themselves when the attackers stormed into a villa, but they were fatally overcome by thick, black smoke when the attackers set a fire. A State Department employee, who tried to guide them to safety, was injured.
Before, during and after the attack, Khatallah maintained contact with his group in a series of cellphone calls. Also, according to the government’s evidence, for much of the attack, he positioned himself on the perimeter of the compound and kept others, including emergency responders, from getting to the scene. The government’s evidence also showed that Khatallah made calls to leaders of other militia groups warning them not to interfere with the attack.
Following the attack at the Mission, in the early hours of September 12, 2012, the violence continued at a nearby CIA annex, first with gunfire and then with a precision mortar attack. Mr. Woods and Mr. Doherty died in the mortar attack, and a State Department employee and U.S. government security specialist were seriously wounded.
This case was investigated by the FBI New York Field Office’s Joint Terrorism Task Force with substantial assistance from various other government agencies, including the two victim agencies, the CIA, and the Department of State.
The case was prosecuted by Assistant U.S. Attorneys John Crabb, Jr., Michael C. DiLorenzo, and Julieanne Himelstein, all of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, and former Assistant U.S. Attorney Opher Shweiki. Assistance was provided by Trial Attorney C. Alexandria Bogle of the Counterterrorism Section of the Justice Department’s National Security Division, and Assistant U.S. Attorneys Kenneth Kohl and David Mudd of the U.S. Attorney’s Office for the District of Columbia.
Assistance also was provided by Victim/Witness Advocate Yvonne Bryant, Paralegal Specialists Rayneisha Booth and Jessica Moffatt, Legal Assistant Matthew Ruggiero, and Victim/Witness Services Coordinator Tonya Jones, all of the U.S. Attorney’s Office for the District of Columbia.
Ahmed Abu Khatallah Sentenced to 22 Years in Prison for September 2012 Attack in Benghazi, LibyaRead the Press Release
Ahmed Abu Khatallah, aka Ahmed Mukatallah, 47, a Libyan national, was sentenced today to 22 years in prison on federal terrorism charges and other offenses stemming from the Sept. 11, 2012 terrorist attack on the U.S. Special Mission in Benghazi, Libya. Ambassador J. Christopher Stevens and U.S. government personnel Sean Smith, Tyrone Woods and Glen Doherty died in the attack at the Mission and the nearby Annex in Benghazi.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the District of Columbia Jessie K. Liu, Assistant Director Michael McGarrity of the FBI’s Counterterrorism Division, and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office.
Khatallah was captured in Libya on June 15, 2014, and brought to the United States to face trial in the U.S. District Court for the District of Columbia. He was found guilty by a jury on Nov. 28, 2017, following seven weeks of trial, of one count of conspiracy to provide material support or resources to terrorists, one count of providing material support or resources to terrorists, one count of maliciously destroying and injuring dwellings and property, and placing lives in jeopardy within the special maritime and territorial jurisdiction of the United States, and one count of using and carrying a semiautomatic assault rifle during a crime of violence.
According to the government’s evidence, Khatallah was a leader of an extremist militia named Ubaydah bin Jarrah, which operated outside the law, and in the months prior to the attacks, he sought to incite violence by his and other militia groups against the presence of the United States in Libya. In early September of 2012, he and other members of his group mobilized for an attack by stockpiling truckloads of weaponry.
On the night of Sept. 11, 2012, according to the government’s evidence, Khatallah directed his group to carry out the violence, striking first at the U.S. Special Mission in Benghazi. A group of men, armed with AK-47 rifles, grenades, and other weapons, swept into the Mission compound, setting fires and breaking into buildings. During that violence, Ambassador Stevens and Mr. Smith valiantly tried to protect themselves when the attackers stormed into a villa, but they were fatally overcome by thick, black smoke when the attackers set a fire. A State Department employee, who tried to guide them to safety, was injured.
Before, during and after the attack, Khatallah maintained contact with his group in a series of cellphone calls. Also, according to the government’s evidence, for much of the attack, he positioned himself on the perimeter of the compound and kept others, including emergency responders, from getting to the scene. The government’s evidence also showed that Khatallah made calls to leaders of other militia groups warning them not to interfere with the attack.
Following the attack at the Mission, in the early hours of Sept. 12, 2012, the violence continued at a nearby CIA annex, first with gunfire and then with a precision mortar attack. Mr. Woods and Mr. Doherty died in the mortar attack, and a State Department employee and U.S. government security specialist were seriously wounded.
This case was investigated by the FBI New York Field Office’s Joint Terrorism Task Force with substantial assistance from various other government agencies, including the two victim agencies, the CIA and the Department of State.
The case was prosecuted by Assistant U.S. Attorneys John Crabb, Jr., Michael C. DiLorenzo, and Julieanne Himelstein of the District of Columbia, and former Assistant U.S. Attorney and Opher Shweiki. Assistance was provided by Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section, and Assistant U.S. Attorneys Kenneth Kohl and David Mudd of the District of Columbia.
Assistance also was provided by Victim/Witness Advocate Yvonne Bryant, Paralegal Specialists Rayneisha Booth and Jessica Moffatt, Legal Assistant Matthew Ruggiero, and Victim/Witness Services Coordinator Tonya Jones, all of the District of Columbia.
Additional Charges Against KC Daycare Owner Previously Indicted for $556,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Additional charges were brought today against the owner of a Kansas City, Mo., day care center who, along with the center’s director, was previously indicted by a federal grand jury for a conspiracy to fraudulently receive as much as $556,000 in federal benefits.
Sharif Karie, 40, of Olathe, Kan., was charged with 15 counts of money laundering in a superseding indictment returned by a federal grand jury in Kansas City, Mo. Today’s 23-count superseding indictment also contains the original eight counts charged against Karie and Sheri Beamon, 47, of Kansas City, Mo.
Karie, a naturalized U.S. citizen from Somalia, is the owner and CEO of a day care center established under two businesses and two names for the same location, with the same key employees: KARIE Day Care Center, LLC, and Tima Child Care Center, LLC, at 1019 Admiral Blvd., Kansas City, Mo. Beamon is the director of KARIE/Tima Childcare Center.
The original indictment, which was returned by a federal grand jury on Jan. 12, 2017, was the result of a nationwide sweep that targeted childcare center fraud schemes. The national law enforcement operation in Missouri and six other states was the result of separate, but related, federal investigations into childcare center fraud that resulted in a loss of more than $1 million to the government.
The money-laundering charges relate to financial transactions in which Karie allegedly attempted to conceal the source of the proceeds of illegal activity.
The indictment alleges that Karie and Beamon participated in a conspiracy from October 2013 to June 2016 to submit false claims to the government. They allegedly billed a federal grant program to provide childcare services to low-income families for more hours and children than actually attended the daycare center. As much as $556,000 was fraudulently billed in connection with this scheme, the indictment says.
The Child Care and Development Fund provides daycare subsidies for low-income families where the parents are employed or engaged in job training. Providers contract with the Children’s Division of the Missouri Department of Health and Senior Services and submit claims electronically.
According to the indictment, pole cameras were installed near the day care center and captured footage of the entrances and exits of the building during two time periods in 2015 and in 2016. Timesheets and billing records were reviewed and compared to the children seen on the pole cameras being dropped off and picked up from the daycare center during that time. There were significant discrepancies, the indictment says, between the timesheets, claims submitted and the pole camera footage.
In addition to the conspiracy, Karie and Beamon are charged together in one count of theft of public money, three counts of aiding and abetting each other to commit aggravated identity theft and three counts of wire fraud. The indictment also contains a forfeiture allegation, which would require Karie and Beamon to forfeit to the government any property derived from the proceeds of the alleged scheme.
According to the indictment, the state conducted a compliance review of the daycare center’s billing for May 2014 and July 2014. The review found several attendance records missing. The review also identified 14 out of the 15 families with children at the center who had a parent employed there. With only two classrooms, the indictment says, it is improbable that parents were not caring for their own children. One of these parents reported that her job was contingent on having all of her children placed in care at KARIE Day Care Center so her child care would be paid by the state. This same 2014 audit found several discrepancies on the time sheets submitted to the state.
Subsequent unannounced inspections at KARIE Day Care Center found the facility in violation of state regulations pertaining to child care licensing rules, the indictment says, including health and safety, staff ratios and the maintaining of attendance records. Each of the inspections resulted in violation findings.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, Office of Investigations, the FBI, the Missouri Department of Social Services – Division of Legal Services Investigations and the Kansas City, Mo., Police Department.
Acting United States Attorney Congratulates Recent Appointment of Rita Lin to the San Francisco Superior Court BenchRead the Press Release
SAN FRANCISCO –Acting United States Attorney Alex G. Tse congratulated Rita Lin on her appointment to the San Francisco County Superior Court. Lin, of San Francisco, has served as an Assistant U.S. Attorney at the U.S. Attorney’s Office, Northern District of California since 2014. Earlier today, Governor Edmund G. Brown Jr. announced his decision to appoint Lin to the bench along with nine other California superior court appointments.
“Rita is an excellent AUSA and carried out the mission of the Justice Department to the highest degree. We commend the Governor’s selection today, and as an office we are proud that she may now continue her public service as a judge for Superior Court of San Francisco.” said Acting U.S. Attorney Tse.
7 Dublin Residents Charged with Federal Firearms, Drug Distribution and Related OffensesRead the Press Release
DUBLIN, GA: Federal indictments were unsealed today against 7 Dublin residents charged with federal firearms, drug distribution, and related offenses. The charges are the result of joint federal, state, and local efforts to reduce violent crime and drug activities in the Dublin area.
Increases in violence and drug activity in Dublin has become of serious concern to law enforcement and local residents alike.
To address the apparent increase in violent crime and drug activities, the Dublin Police Department (DPD) and the Federal Bureau of Investigation (FBI), began a joint investigation to identify and arrest the criminals operating in and around Dublin. Law enforcement used a number of investigative techniques to identify the targets, including undercover purchases of drugs and firearms and extensive surveillance.
In early June 2018, the federal grand jury for the Southern District of Georgia indicted 7 defendants identified as a result of this investigation. Those indictments initially were returned under seal.
On June 27, 2018, local, state, and federal law enforcement officers executed arrests warrants. Today, the indictments and federal warrants were unsealed, and all of the charged defendants made their initial appearance in federal court.
The federal charges and maximum penalties include:
- Felon in Possession of Firearm, 18 U.S.C. § 922(g)(1), which typically carries a maximum sentence of 10 years’ imprisonment. However, if a defendant has three prior convictions for violent crimes or serious drug offenses, then the minimum sentence is 15 years’ imprisonment and the maximum sentence is life imprisonment.
- Distribution of Controlled Substances, and Possession of Controlled Substances with Intent to Distribute, 21 U.S.C. § 841(a)(1), which typically carries a maximum sentence of 20 years’ imprisonment, but may carry increased minimum and maximum terms of imprisonment based on the quantity of controlled substances involved and the prior drug convictions of the defendant.
- Carrying a Firearm During and in Relation To a Crime of Violence or Drug Trafficking Crime, 18 U.S.C. § 924(c), which carries a potential sentence of not less than 5 years’ imprisonment, and up to life imprisonment, consecutive to any other sentence imposed.
During the investigation, law enforcement investigators seized firearms and ammunition. Some of the firearms seized during this investigation had previously been stolen. Additionally, investigators seized quantities of numerous controlled substances, including cocaine, crack cocaine, methamphetamine and marijuana.
The Dublin residents charged with federal crimes include:
Lamar Cook, age 34,
Trevolis Coney, age 29,
Shanetra Coney, age 26,
Alexander Johnson, age 31,
Aldrickus T. Cuyler, age 23,
Michael D. Stephens, age 40,
Octavia M. Stephens, age 42.
At least one of the defendants was in possession of gang related literature when arrested on the charges that are alleged in the pending federal indictment.
United States Attorney Bobby L. Christine said, “In concert with the FBI, state and local law enforcement partners including the Dublin Police Department and District Attorney Craig Fraser of the Dublin Judicial Circuit, the United States Attorney’s Office for the Southern District of Georgia has today struck a blow at the heart of violent street level criminal activity on behalf of the law abiding citizens of the greater Dublin community. This will not be the last action taken on this front as we together make this district safer!”
“We believe these arrests will have an immediate impact on the safety of the law abiding citizens of the Dublin community,” said J.C. Hacker, Acting Special Agent in Charge (A/SAC) of FBI Atlanta. “Let this also be a warning to anyone else who believes they are above the law that the FBI, U.S. Attorney’s Office and the Dublin Police Department will continue working together to bring violent offenders to justice, and hold them accountable to stiff federal laws.”
DPD Chief Tim Chatman, said, “This is only the beginning. We will continue to collaborate with the FBI and federal prosecutors to rid our streets of this kind of behavior, gangs, drugs, etc. We thank the FBI and federal prosecutors for assisting us in this matter. We owe it to our citizens to look for better ways to make our streets safer.”
United States Attorney Christine emphasized that an indictment or criminal complaint is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Attorney General Jeff Sessions previously announced a recommitment of the United States Department of Justice to Project Safe Neighborhoods (PSN), a program dedicated to bringing together federal, state, and local law enforcement to reduce violent crime and make neighborhoods safer for everyone. The United States Attorney’s Office incorporated key components of the PSN strategy into the Dublin operation, including strong federal involvement, the cultivation of partnerships with local law enforcement and community stakeholders, targeted enforcement in those areas most affected by violent crime, and outreach efforts designed to prevent violent crime before it occurs.
Today's indictments arose out of a joint investigation led by the FBI and the Dublin Police Department, with assistance from the Laurens County Sheriff's Office, the District Attorney's Office for the Dublin Judicial Circuit, and the Georgia Department of Corrections K-9 Unit. Assistant United States Attorneys Patricia G. Rhodes, Henry W. Syms, and Tara M. Lyons are prosecuting these cases for the United States.
For any questions, please contact the U.S. Attorney’s Office at (912) 652-4422.
20 Members and Associates of Bronx Gang Charged in Manhattan Federal Court with Racketeering, Robbery, Narcotics, and Firearms OffensesRead 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 Police Department for the City of New York (“NYPD”), and James J. Hunt, the Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced the unsealing today of a Superseding Indictment charging a total of 20 members and associates of a branch of the MacBallas street gang operating primarily in and around the Andrew Jackson and Melrose Houses in the Bronx with racketeering, narcotics, robbery, and firearms offenses. Two defendants are charged with the 2011 murder of Daniel Delgado.
A total of 12 defendants were taken into custody today; three other defendants were already in federal custody; and three are in state custody. Fourteen of the 20 defendants will be presented and arraigned before U.S. Magistrate Judge Kevin N. Fox later today. The case is assigned to U.S. District Judge Denise L. Cote.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the Indictment, the defendants brought violence, fear, and drugs to the streets of New York. The people of this city will not stand for it, and neither will we. Thanks to the extraordinary work of the NYPD and DEA, the defendants will now face justice for their alleged crimes.”
NYPD Commissioner James P. O’Neill said: “Gang and crew activity, particularly in the Bronx as we’ve seen of late, is responsible for much of the violence in our city. This behavior will never be tolerated by New Yorkers, and I thank our federal partners at the DEA and the Southern District for strengthening the NYPD’s relentless efforts to rid our streets of these criminals.”
DEA Special Agent-in-Charge James J. Hunt said: “Gang violence begets violence and turns neighborhoods into battlegrounds. Law enforcement knows that shutting down gangs’ drug and gun networks lays a foundation for safer communities. Today’s arrests demonstrate that we are proactively safeguarding our communities by dismantling one gang at a time.”
As alleged in the Superseding Indictment unsealed today in Manhattan federal court and in other court papers[1]:
From 2011 through June 2018, in the Southern District of New York and elsewhere, TOSHNELLE FOSTER, a/k/a “Tosh,” CHRISTOPHER ASHE, a/k/a “Chips,” DAWAYNE BELL, JASON CHRISTIAN, a/k/a “Hungry,” NAVONE DOZIER, a/k/a “Dollaz,” KEVON GAITHER, a/k/a “KK,” CLARENCE GLASGO, a/k/a “Chuck,” XAVIER HOLMAN, a/k/a “Rico,” JAFARI JONES, a/k/a “JJ,” SEAN JONES, a/k/a “S Dot,” KEENAN MCFARLAND, AUSTIN MORRISHOW, a/k/a “Chuckey,” DEANDRE MORRISON, a/k/a “D Nice,” DEONTE MORRISON, a/k/a “Suki,” KEITH OUTLAW, a/k/a “Keefy,” LASYAH PALMER, a/k/a “Timbo,” JASON RAMOS, a/k/a “Chico,” FRANCISCO TORRES, a/k/a “Baby,” and BO WILLIAMS, a/k/a “Boski,” were all members and associates of the MacBallas street gang, whose territory was centered in and around the Andrew Jackson and Melrose housing projects in the Bronx, New York. In order to fund the gang, protect its territory, and promote its standing, members of the MacBallas engaged in, among other things, narcotics trafficking, robbery, and other acts of violence, including murder. MacBallas members sold heroin, crack cocaine, and marijuana in the gang’s territory, promoted their gang affiliation on social media sites like Facebook, possessed shared firearms, and engaged in shootings as part of their gang membership.
In particular, on August 1, 2011, DEANDRE MORRISON and NATHANIEL FLUDD murdered Daniel Delgado in order to maintain and increase their status in the MacBallas gang.
Members of the MacBallas gang also participated in a conspiracy to distribute narcotics in and around the MacBallas territory in the Bronx. In particular, CHRISTIAN, ASHE, DOZIER, GAITHER, JAFARI JONES, SEAN JONES, McFARLAND, MORRISHOW, DEONTE MORRISON, OUTLAW, PALMER, RAMOS, TORRES, and WILLIAMS participated in a conspiracy to distribute heroin, marijuana, and more than 280 grams of crack cocaine.
* * *
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD’s Bronx Violent Crimes Squad and the New York Field Division of the DEA.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jordan Estes, Maurene Comey, and Christopher Clore are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering
Conspiracy
18 U.S.C. § 1962(d)
TOSHNELLE FOSTER, 26
CHRISTOPHER ASHE, 21
DAWAYNE BELL, 27
JASON CHRISTIAN, 37
NAVONE DOZIER, 23
KEVON GAITHER, 22
CLARENCE GLASGO, 23
XAVIER HOLMAN, 28
JAFARI JONES, 23
SEAN JONES, 28
KEENAN McFARLAND, 22
AUSTIN MORRISHOW, 20
DEANDRE MORRISON, 26
DEONTE MORRISON, 24
KEITH OUTLAW, 26
LASYAH PALMER, 29
JASON RAMOS, 23
FRANCISCO TORRES, 27
BO WILLIAMS, 27
20 years
2
Narcotics
Conspiracy
21 U.S.C. § 846
JASON CHRISTIAN
CHRISTOPHER ASHE
NAVONE DOZIER
KEVON GAITHER
JAFARI JONES
SEAN JONES
KEENAN McFARLAND
AUSTIN MORRISHOW
DEONTE MORRISON
KEITH OUTLAW
LASYAH PALMER
JASON RAMOS
FRANCISCO TORRES
BO WILLIAMS
Life in prison
Mandatory minimum of 10 years in prison
3
Murder in Aid of
Racketeering
18 U.S.C. § 1959(a)(1)
NATHANIEL FLUDD
DEANDRE MORRISON
Death, or Life in prison
4
Causing Death through use of a Firearm
18 U.S.C. § 924(j)
NATHANIEL FLUDD
DEANDRE MORRISON
Death, or Life in prison
5
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), 1959(a)(5) and 2
SEAN JONES
NAVONE DOZIER
DAWAYNE BELL
CLARENCE GLASGO
20 years in prison
6
Firearms Offense
18 U.S.C. § 924(c)(1)(A)(iii) and 2
SEAN JONES
NAVONE DOZIER
DAWAYNE BELL
CLARENCE GLASGO
Life in prison
Mandatory minimum of 10 years in prison
7
Hobs Act Robbery
18 U.S.C. § 1951
JAFARI JONES
20 years in prison
8
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
JAFARI JONES
Life in prison
Mandatory minimum of 10 years in prison
9
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), 1959(a)(5) and 2
KEITH OUTLAW
20 years in prison
10
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
KEITH OUTLAW
Life in prison
Mandatory minimum of 10 years in prison
11
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), 1959(a)(5) and 2
DEONTE MORRISON
20 years in prison
12
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
DEONTE MORRISON
Life in prison
Mandatory minimum of 10 years in prison
13
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), 1959(a)(5) and 2
TOSHNELLE FOSTER
20 years in prison
14
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
TOSHNELLE FOSTER
Life in prison
Mandatory minimum of 10 years in prison
15
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), 1959(a)(5) and 2
KEITH OUTLAW
20 years in prison
16
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3), 1959(a)(5) and 2
XAVIER HOLMAN
20 years in prison
17
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
XAVIER HOLMAN
Life in prison
Mandatory minimum of 10 years in prison
18
Felon in Possession of Ammunition
18 U.S.C. § 922(g)
XAVIER HOLMAN
10 years in prison
19
Felon in Possession of Ammunition
18 U.S.C. § 922(g)
KEENAN McFARLAND
10 years in prison
20
Firearms Offense
18 U.S.C. § 924(c)(1)(A)(iii) and 2
JASON CHRISTIAN
KEENAN McFARLAND
AUSTIN MORRISHOW
LASYAH PALMER
JASON RAMOS
FRANCISCO TORRES
BO WILLIAMS
Life in prison
Mandatory minimum of 10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
26 June 2018
Wisconsin Man Sentenced for Passport FraudRead the Press Release
CHARLESTON, W. Va. -- An Indian national and Wisconsin resident who attempted to apply for a West Virginia birth certificate using a fake passport was sentenced yesterday to time served and three years of supervised release, announced United States Attorney Mike Stuart. Stuart commended the investigative work of the Diplomatic Security Service within the United States Department of State.
“Attempting to obtain or use false personal identification documents is a serious offense,” said United States Attorney Mike Stuart. “In turn, as a matter of national security, my Office will take cases like this very seriously and prosecute every case to the fullest extent possible.”
Mohammed Maaz, also known as Adam Rizk, 20, pleaded guilty on May 24, 2018, to passport fraud after he submitted a phony Canadian passport purporting to identify his mother to the West Virginia Department of Health and Human Resources in February 2017. He was attempting to obtain a birth certificate that he could then use to fraudulently secure a United States passport. Maaz had been detained since his arrest on March 5, 2018.
Assistant United States Attorney Gabriele Wohl handled the prosecution. The sentence was imposed by United States District Judge Joseph R. Goodwin.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Westfield Woman Arrested, Charged with Embezzling Thousands of Dollars from Health Care AgencyRead 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 Alicia Raynor, 40, of Westfield, NY, was arrested and charged by criminal complaint with embezzlement. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that according to the complaint, in 2012, the defendant was hired by Compassion at Home, Inc. as the Business Manager. Between November 2012 and August 2015, the defendant had access to the payroll processing service of Compassion at Home, which was used to deposit pay directly into employee bank accounts. Raynor used the service to divert funds from the company's bank account to accounts under her control. In August 2015, the President of the company terminated the defendant for using company funds to pay personal expenses.
In the middle of 2016, the President noticed that, although Raynor was no longer employed by Compassion at Home and was no longer entitled to any payments from the company, numerous wire transfers were being sent from a company bank account to the defendant. Realizing that Raynor had maintained access to the payroll processing service, the President eliminated the defendant's access to the payment processing service, which ceased the wire transfers to Raynor.
Between September 24, 2015, and June 30, 2016, Alicia Raynor received 139 electronic funds transfers from the company bank account into bank accounts under her control. The transfers involved variations of the defendant's name, bank names, credit card names, and names of employees of Compassion at Home. Raynor is accused of embezzling a total of $227,000.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The complaint is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Gary Loeffert, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Virginia man admits to cigarette smuggling chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Udayappan Subramanian, of Haymarket, Virginia has admitted to unlawful cigarette smuggling, United States Attorney Bill Powell announced today.
Subramanian, age 41, pled guilty to one count of “Trafficking of Contraband Cigarettes.” He transporting large quantities of contraband cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in other states, including New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Subramanian faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Michael Stein is prosecuting the case on behalf of the government. Homeland Security Investigations, the Frederick County, Virginia Sheriff’s Office, the Alcohol and Tobacco Tax and Trade Bureau, and the West Virginia State Police led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Virginia Man Pleads Guilty to Producing Images of Himself Sexually Abusing a ChildRead the Press Release
A Centreville, Virginia man pleaded guilty today to two counts of producing child pornography, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office, and Fairfax County Chief of Police Colonel Edwin C. Roessler Jr.
Kenneth Wayne Burk, 37, pleaded guilty before U.S. District Court Judge Leonie M. Brinkema of the Eastern District of Virginia. According to admissions made in connection with his plea, law enforcement began investigating Burk after a minor accused him of sexual abuse. In 2017, law enforcement seized electronic devices from Burk’s home in Centreville, and a forensic examination of these devices revealed numerous images of Burk sexually abusing the minor between 2013 and 2017.
Burk is scheduled to be sentenced on Sept. 14.
The case was investigated by the FBI and the Fairfax County Police Department. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Whitney D. Russell of the Eastern District of Virginia are prosecuting the case.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Reaches Settlement with Two Suburban Hospitals to Ensure Effective Communication with Deaf and Hard-of-Hearing PatientsRead the Press Release
CHICAGO — The U.S. Attorney’s Office today announced a settlement agreement with two west suburban hospitals to ensure effective communication with deaf and hard-of-hearing patients, pursuant to the Americans with Disabilities Act.
The agreement requires the hospitals – Adventist La Grange Memorial Hospital and Adventist Hinsdale Hospital – to provide appropriate auxiliary aids and services, including qualified American Sign Language interpreters, to ensure effective communication with deaf and hard-of-hearing patients and their companions. Per the terms of the agreement, the hospitals will provide mandatory training to their employees on how to address the needs of deaf and hard-of-hearing patients. The hospitals will also designate at least one employee as an ADA administrator, who will coordinate immediate access to the proper services – free of charge to the patient.
The settlement amicably resolves a complaint filed with the Department of Justice by a deaf patient who alleged that personnel at the hospitals discriminated against him by failing to provide the proper services under the ADA. The hospitals will pay $10,000 in damages to the complainant. Although the United States and the complainant agreed not to institute a civil lawsuit, the United States may review compliance with the settlement at any time, and reserves the right to file suit if it believes any portion has been violated.
The settlement, which became effective Monday, was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. The United States is represented by Assistant U.S. Attorneys Sarah J. North and Patrick Johnson.
The ADA prohibits public accommodations, including hospitals, from discriminating on the basis of disability in the full and equal enjoyment of their goods and services. The complainant alleged that the hospitals failed, during two visits in 2015, to provide sign language interpretive services in a manner that ensured effective communication. In both visits, the complainant said he requested an interpreter so he could fully communicate with medical personnel, but his requests were denied and the auxiliary aids and services that were provided did not ensure effective communication.
The agreement does not represent an admission of liability by the hospitals, which are part of Adventist Midwest Health, a system of health providers serving the western suburbs of Chicago and a component of Adventist Health Systems. Adventist Midwest Health fully cooperated in the U.S. Attorney’s Office’s investigation of this matter.
To learn more about the ADA and other laws protecting the rights of the deaf and hard of hearing, log on to www.ada.gov or call the Justice Department's toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD).
Two Men Responsible for ‘Bladed Bandit’ Robbery Spree Plead Guilty to Multiple Armed Robberies across Southern CaliforniaRead the Press Release
SANTA ANA, California – Two men who participated in a series of armed bank robberies attributed to the “Bladed Bandit” because one of the robbers brandished a large knife each have pleaded guilty in federal court to multiple counts of armed robbery.
Chad Dupape, 29, of Fountain Valley, and Vincent Edward Wilson, 53, of Long Beach, pleaded guilty Monday to committing the robberies.
During a hearing in United States District Court, Dupape admitted to committing four armed bank robberies and attempted bank robberies:
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a January 2 robbery of a Chase Bank branch in Seal Beach in which he obtained more than $21,000;
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a January 16 attempted robbery of a Farmers & Merchants Bank branch in Long Beach;
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a January 16 attempted robbery of a Wells Fargo Bank branch in Fountain Valley; and
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a January 18 robbery of a U.S. Bank branch in Fountain Valley.
When he pleaded guilty on Monday, Dupape admitted that during one of those robberies, he had displayed a knife, and during another, he had shown a black handgun to the teller.
Wilson pleaded guilty to the Chase Bank and U.S. Bank robberies, admitting that he had driven Dupape to both of those robberies and that he had acted as the look-out for the Chase Bank robbery.
Each of the armed bank robbery charges carries a statutory maximum penalty of 25 years in federal prison, meaning that Dupape could be sentenced to as much as 100 years in prison.
The two men pleaded guilty before United States District Judge David O. Carter, is scheduled to sentence Dupape on August 20 and Wilson on November 10.
The investigation into the string of robberies by the “Bladed Bandits” was conducted by the Orange County Bank Robbery Apprehension Team (BRAT), which includes special agents from the Federal Bureau of Investigation and deputies with the Orange County Sheriff’s Department. Officers from the Long Beach Police Department, the Seal Beach Police Department, and the Los Angeles County Sheriff’s Department provided substantial assistance during the investigation.
This case is being prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office.
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Two Maryland residents found guilty of heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kelvin Johnson, of Baltimore, Maryland and Sykebia Stewart, of Dundalk, Maryland were found guilty today by a federal jury on heroin distribution charges, United States Attorney Bill Powell announced.
After four hours of deliberation, a jury found Johnson, age 25, and Stewart, age 25, guilty on all counts. Johnson was found guilty of one count of “Distribution of Heroin,” and one count of “Aiding and Abetting the Distribution of Heroin Resulting in Death,” and Stewart is guilty of one count of “Aiding and Abetting the Distribution of Heroin Resulting in Death.” Johnson and Stewart distributed heroin in May 2016 in Berkeley County, resulting in death.
“I want to thank the jury for their service. This case once again tells the tragic story involving heroin and death. The story is told all too often. The prosecution team worked very hard, the jury did its duty, and the court will ultimately sentence these defendants. While neither the verdict nor sentence will bring the victims back, justice will be served. We will continue to aggressively prosecute all those who engage in deadly criminal conduct in our district,” said Powell.
Johnson faces up to 20 years incarceration and a fine of up to $1,000,000 for the “Distribution of Heroin” conviction. Johnson and Stewart each face incarceration of not less than twenty years or more than life, and a fine of up to $1,000,000 for the “Aiding and Abetting the Distribution of Heroin Resulting in Death” conviction. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Anna Z. Krasinski and Traci M. Cook prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force investigated.
Chief U.S. District Judge Gina M. Groh presided.
Two Individuals Charged for being Found in the Country after Prior RemovalRead the Press Release
The United States Attorney’s Office and the Swanton Sector of the United States Border Patrol announce that, in the early morning hours of June 23, 2018, Border Patrol agents arrested two adult individuals for being found in the United States, having been previously removed from the country. Lucio Hernandez-Martinez, an alien of Mexican citizenship, and Manuel Antonio Flores-Martinez, an alien of Peruvian citizenship, had their initial appearances in federal court in Burlington yesterday before The Honorable John M. Conroy, United States Magistrate Judge for the District of Vermont.
According to the criminal complaint, in the early morning of June 23, Border Patrol agents received a report of possible illegal activity in Norton, Vermont, in an area known for unlawful cross border activity. Agents responded to the area and found the two defendants hiding in a ditch. Both attempted to flee when they observed border patrol agents, and both were later apprehended. Investigation revealed that both men were aliens without permission to enter or remain in the U.S. Hernendez-Martinez was ordered removed on three previous occasions. Flores-Martinez was ordered removed on two prior occasions.
United States Attorney Christina E. Nolan commended Border Patrol for its efficient and effective handling of this matter, and for its diligence in protecting the integrity of Vermont’s northern border.
“I commend the agents involved in this arrest,” said Beecher Falls Station Patrol Agent in Charge Paul Kuhn. “Through their vigilance they were able to interdict two aliens, who had previously been removed, from furthering their illegal entry into the United States.”
The United States Attorney emphasizes that the charges are merely accusations, and that the defendants are presumed innocent unless and until they are proven guilty.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
The prosecutor in this case is Assistant U.S. Attorney Wendy Fuller. Lucio Hernandez-Martinez is represented by Frank J. Twarog. Manuel Antonio Flores-Martinez is represented by Maryanne E. Kampmann.
Two Honduran National Men Sentenced for Illegally Reentering the United StatesRead the Press Release
Both defendants had prior misdemeanor convictions for illegally entering the United States
BECKLEY, W.Va. – Jeyson Francisco Sanchez-Castillo and Olvin Alexis Ramos-Diaz both were sentenced to time served for the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Sanchez-Castillo, 19, of and Ramos-Diaz, 21, both of Honduras, pleaded guilty on May 2, 2018 and had been in custody since February 28, 2018—nearly four months of federal incarceration. United States District Judge Irene C. Berger remanded both men for deportation proceedings as immigration authorities had placed a detainer on them. United States Attorney Mike Stuart praised the work of Immigration and Customs Enforcement (ICE).
“The revolving door must end,” said United States Attorney Mike Stuart. “If we want a country, we must have a border. If people want to come here, they should get in line and enter legally. Otherwise, they can expect to be prosecuted and deported in every case.”
On February 28, 2018, both Sanchez-Castillo and Ramos-Diaz were arrested by ICE agents, who were conducting targeted law enforcement operations in the Beckley area. Agents observed defendants leaving a home on their way to work to at a restaurant in Beckley, West Virginia. After stopping the cars and confirming their identity, both men admitted they were not in the United States legally and were placed under arrest. ICE agents submitted Sanchez-Castillo’s and Ramos-Diaz’s fingerprints, forensically matching both of them to prior removals from the United States in 2017. They both also forensically matched Texas misdemeanor convictions of Illegal Entry into the United States. After being deported, Sanchez-Castillo and Ramos-Diaz both illegally reentered the United States without lawful permission from the Secretary of Homeland Security. Sanchez-Castillo and Ramos-Diaz are citizens of Honduras.
Assistant United States Attorney Erik S. Goes handled both prosecutions.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Three Men Arrested and Charged with Trading on Inside Information Misappropriated from A Credit Rating AgencyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrests of SEBASTIAN PINTO-THOMAZ, ABELL OUJADDOU, and JEREMY MILLUL for their participation in a scheme to trade on material, nonpublic information (the “Inside Information”) misappropriated by PINTO-THOMAZ from his employer, a credit rating agency based in New York (the “Firm”). The scheme yielded almost $300,000 in illegal profits.
PINTO-THOMAZ, OUJADDOU, and MILLUL were arrested this morning in New York, New York, and will be presented today before United States Magistrate Judge Nathaniel Kevin Fox. In a separate action, the Securities and Exchange Commission (“SEC”) filed civil charges against PINTO-THOMAZ, OUJADDOU and MILLUL.
U.S. Attorney Geoffrey Berman said: “As alleged, Sebastian Pinto-Thomaz used his position with a credit rating agency, where he was privy to business acquisition plans before they were publicly announced, to provide inside information to two friends who traded on the information and reaped thousands in profits. Then, when asked about this illicit trading, Pinto-Thomaz painted himself into a corner, falsely denying any relationship with his two co-conspirators. Our Office has always been – and remains – committed to ensuring that the nation’s securities markets remain fair for everyone, not just those who have friends in the know.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Aiming to fill their pockets, the defendants allegedly conspired to use Inside Information to advance their greedy agendas. This alleged fraud triangle produced nearly $300,000 in profit among the three defendants. As alleged, Pinto-Thomaz abandoned his duties of loyalty and confidentiality by passing material nonpublic information to his co-conspirators who then made illegal trades. We hope that today’s arrests will show all like-minded schemers that this alleged behavior ultimately does get you to the inside – of a federal prison.”
According to the allegations contained in the Complaint unsealed today in Manhattan federal court[1]:
Rating Evaluation Services and the Insider
When a company announces an acquisition, the acquiring company’s credit rating agency often evaluates, and ultimately issues a press release relating to, the impact that the acquisition could have on the acquiring company’s credit rating. Therefore, companies often contact rating agencies before an acquisition is publicly announced in order to secure the rating agency’s views on how a possible acquisition could affect a company’s credit rating. All the major rating agencies offer a product – sometimes known as a Rating Evaluation Service (“RES”) – that provides the company with a rating committee decision with respect to a proposed acquisition.
In March 2016, a credit rating agency in Manhattan (the “Firm”) assigned PINTO-THOMAZ, a credit ratings analyst, to work on an RES for the Sherwin-Williams Company (“Sherwin-Williams”) in advance of its contemplated but unannounced acquisition of the Valspar Corporation (“Valspar”). In connection with this assignment, PINTO-THOMAZ had access to Inside Information about Sherwin-Williams’s acquisition of Valspar prior to the public announcement of the acquisition. The Firm’s written policies prohibited the unauthorized disclosure of confidential information, which included the Inside Information. During his tenure at the Firm, PINTO-THOMAZ reviewed and certified his duties of loyalty and confidentiality to the Firm and its clients.
The Insider Trading Scheme
In March 2016, PINTO-THOMAZ misappropriated the Inside Information about the Sherwin-Williams acquisition of Valspar and passed it to OUJADDOU and MILLUL so they could use it to make profitable trades. On March 21, 2016, the first trading day after the public announcement of the acquisition, the price of Valspar stock increased approximately 23 percent over the prior day’s close.
OUJADDOU is a Manhattan hairstylist and salon owner who has a close relationship with PINTO-THOMAZ, as well as with a member of PINTO-THOMAZ’s immediate family (the “Relative”). PINTO-THOMAZ repeatedly provided OUJADDOU with Inside Information about the Valspar acquisition, oftentimes shortly after PINTO-THOMAZ became aware of the Inside Information through his work at the Firm. From March 10, 2016, through March 18, 2016, OUJADDOU, who had never previously purchased Valspar or Sherwin-Williams securities, used the Inside Information he had received from PINTO-THOMAZ to purchase 8,630 shares of Valspar stock. After the acquisition was publicly announced, OUJADDOU sold his Valspar shares for approximately $192,080 in profits.
MILLUL is a Manhattan jeweler who has a close personal friendship with PINTO-THOMAZ and the Relative. PINTO-THOMAZ also provided MILLUL with Inside Information about the Valspar acquisition. Although MILLUL had never owned a brokerage account in the United States and had never traded in U.S. securities prior to March 2016, he opened a brokerage account on March 13, 2016, and shortly thereafter purchased 480 shares of Valspar common stock. On March 18, 2016, the last trading day before the acquisition was publicly announced, MILLUL also purchased 75 Valspar out-of-the-money call options. After the acquisition was publicly announced, MILLUL sold his Valspar stock and options for approximately $106,806 in profits. In December 2016, MILLUL gave PINTO-THOMAZ $3,500 in cash.
PINTO-THOMAZ Makes False Statements About
OUJADDOU and MILLUL in Connection with a FINRA Inquiry
In June 2016, the Financial Industry Regulatory Authority (“FINRA”) sent the Firm a list of individuals and entities who had traded in Valspar in advance of the public announcement of the acquisition (the “List”). The Firm forwarded the List to its employees who had worked on the Sherwin-Williams RES, including PINTO-THOMAZ, asking the employees to respond by stating whether they had a past or present relationship with any individual or entity on the List. Although both OUJADDOU and MILLUL were on the List, PINTO-THOMAZ denied having a relationship with anyone on the List.
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PINTO-THOMAZ, 32, ABELL OUJADDOU, 55, and JEREMY MILLUL, 31, all of New York, New York, are each charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense, and one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. 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 would be determined by the Court.
In addition, the Government, pursuant to Court authorized seizure warrants, has seized $100,000 from a bank account belonging to MILLUL, and over 25,000 shares of BlackBerry stock from brokerage accounts belonging to OUJADDOU, as these assets constitute, or are traceable to, proceeds of the illegal conduct alleged in the Complaint.
Mr. Berman praised the work of the FBI, and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
Three Individuals Charged in Florida-Based Investment Fraud SchemeRead the Press Release
On June 21, 2018, a grand jury in Miami indicted three individuals for their alleged participation in an investment fraud scheme that targeted investors throughout the Nation, defrauding them out of approximately $2 million. The main office operated out of Broward County, Florida.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Florida Office of Financial Regulation (OFR), West Palm Division, made the announcement.
Thomas Michael White, 59, of Parkland, Florida, John Kevin Reech, 56, of Delray Beach, Florida, and Joseph Mario Genzone, 53, of Boca Raton, Florida, were all charged with conspiracy to commit mail fraud and wire fraud, as well as substantive mail fraud charges. In addition to those charges, White was also charged with wire fraud. The defendants had their initial appearances in U.S. Magistrate Court today.
The indictment charges the defendants with participating in an alleged conspiracy involving the sale of stock and debt equity in First Call Ventures, LLC and its subsidiaries, all of which were owned and operated by Thomas Michael White. According to the Indictment, from January 2012 to November 2014, the defendants solicited investors located throughout the United States to buy shares or ownership units in First Call Ventures, LLC and its subsidiaries, which included, First Call Auto Transport, Frist Call Freight and First Call List.
The indictment alleges that the defendants made materially false statements which included, but were not limited to, that First Call Ventures would provide a “safe and profitable investment” where “you won’t lose your money,” that investors would receive a guaranteed return on investments, that no fees would be charged to investors unless First Call Ventures turned a profit, that the value of the investment would increase significantly, that First Call Ventures was successful and profitable, and that investor funds would be used for sales and marketing, working capital and general corporate purposes.
In fact, over 80% of all First Call Ventures’ investor funds went to White for salaries, fees and other monetary distributions to himself, Reech, Genzone, and others.
Mr. Greenberg commended the investigative efforts of the FBI and the Florida Office of Financial Regulation, West Palm Division. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
Individuals who believe that they may be a victim in this case should contact the FBI at www.fbi.gov for more information.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Texas Man Sentenced to over 10 Years in Federal Prison for Methamphetamine ConspiracyRead the Press Release
Gulfport, MS – Deandrae Damonn Washington, 33, of Dallas, Texas, was sentenced today by U.S. District Judge Sul Ozerden to125 months in federal prison, followed by 5 years of supervised release, for conspiring to possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI). Washington was also ordered to pay a $3,000 fine.
On August 20, 2017, Washington’s vehicle was stopped at a checkpoint in Magee, Mississippi. During the stop, officers smelled marijuana emitting from the vehicle, and Washington admitted to smoking marijuana an hour before he was stopped. Upon consent to search the vehicle, officers located several packages of methamphetamine concealed in a backpack. Washington admitted to knowing the methamphetamine was in the vehicle and conspiring to transport it from Texas to Jackson County, Mississippi. He further admitted that he had previously transported methamphetamine on seven separate occasions to the Mississippi Gulf Coast. A laboratory analyzed the methamphetamine and determined it had a purity level of 100% and weighed almost 2 kilograms. Washington pled guilty on February 21, 2018.
The case was investigated by the Magee Police Department, South Mississippi Metropolitan Enforcement Team (SMMET), Mississippi Bureau of Narcotics (MBN), and FBI Safe Streets Task Force. The case was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Statement from Attorney General Jeff Sessions on Today's Supreme Court Decision in Favor of the Trump Administration in Trump v. HawaiiRead the Press Release
Today Attorney General Jeff Sessions issued the following statement on the Supreme Court's decision in Trump v. Hawaii: “Today is a great victory for the safety and security of all Americans. The Constitution and Acts of Congress confer on the President broad discretion to protect the interests of the United States. Today’s decision is critical to ensuring the continued authority of President Trump – and all future presidents – to protect the American people. We will continue to take and defend all lawful steps necessary to protect this great nation.”
Statement from Attorney General Jeff Sessions on Today's Free Speech Supreme Court Decision in Favor of Pro-Life Pregnancy Centers (NIFLA v. Becerra)Read the Press Release
Today Attorney General Jeff Sessions issued the following statement on the Supreme Court's ruling in NIFLA v. Becerra: “We are pleased that today’s decision protects Americans’ freedom of speech. Speakers should not be forced by their government to promote a message with which they disagree, and pro-life pregnancy centers in California should not be forced to advertise abortion and undermine the very reason they exist. This Department will continue to vigorously defend the freedom of all Americans to speak peacefully in accord with their deeply held beliefs and conscience."
Six Members of a Venezuelan-sourced Maritime Cocaine Smuggling Operation Convicted by a St. Croix, Virgin Islands JuryRead the Press Release
St. Croix, USVI – Following an eight-week re-trial, a St. Croix federal jury convicted six defendants on cocaine conspiracy and drug distribution charges, United States Attorney Gretchen C.F. Shappert announced today. Defendants Sergio Quinones-Davila, 43, of Orlando, Fla., Jose Hodge, 38, of St. Croix, and Omi Guitierrez-Calderon, 38, Anibal Vega-Arizmendi, 28, Jean Carlos Vega-Arizmendi, 26, Jesus Burgos-Montanez, 31, all from Puerto Rico, were convicted on all counts.
According to trial testimony, the defendants were members of an international cocaine trafficking from 2014 through 2016. Members of the conspiracy routinely retrieved cocaine shipments transported from Venezuela to mid-sea locations just south of St. Croix, Virgin Islands, where the cocaine was transferred to local vessels for transport into St. Croix. The cocaine was subsequently shipped to Puerto Rico for distribution.
Evidence at trial revealed that the organization planned for the retrieval of over 300 kilograms of cocaine during the period of the conspiracy. Approximately 223 kilograms of cocaine were actually distributed. Law enforcement efforts to interdict the drug shipments were successful, beginning in 2015. On November 14, 2015, law enforcement agents apprehended four members of the organization, including Hodge and Burgos, on a beach at Knight’s Bay on St. Croix and seized 87 kilograms of cocaine packed in four suitcases.
"This is one of the most significant transnational cocaine conspiracy investigations in recent memory, where large quantities of cocaine from Venezuela were shipped through the Virgin Islands and on to Puerto Rico. Apprehension and conviction of these defendants makes clear that federal agents and prosecutors will aggressively pursue the drug traffickers that threaten our islands," said U.S. Attorney Shappert. She also praised the agents and prosecution team who worked to bring these defendants to justice.
Fourteen individuals were originally charged as part of the drug trafficking organization. Prior to trial six defendants entered guilty pleas and were sentenced.
Defendant Gutierrez-Calderon faces a sentence of imprisonment of 20 years to life and a fine of up to $20,000,000. The remaining defendants face sentences of imprisonment of ten years to life and fines of up to $10,000,000. Sentencings hearings for the defendants convicted at trial have been scheduled for October.
The case was investigated by the U.S. Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorneys Alphonso G. Andrews, Jr. and Everard E. Potter.
Six Individuals Charged in a Cross Border Human Smuggling EventRead the Press Release
The United States Attorney’s Office and the Swanton Sector of the United States Border Patrol announce that, during late evening hours of June 22, 2018, Border Patrol agents arrested five adult Mexican citizens that had illegally entered the United States. Agents also arrested another man, also a citizen of Mexico, after he picked up the individuals who had crossed illegally. Four of the individuals who crossed the border illegally, Marlene Hernandez-Cruz, Alejandro Gomez-Diaz, Jose Armando Carrillo-Carrillo, and Oscar Gomez-Montejo, were charged with illegally entering the country. The fifth individual who crossed illegally, Luis Enrique Gonzalez-Jimenez, is charged with entering illegally having been previously removed from the country. The final individual, who picked up the other five, Evelio Balcazar-Correa, is charged with alien smuggling. All six defendants made their initial appearances in federal court in Burlington before The Honorable John M. Conroy, United States Magistrate Judge for the District of Vermont.
According to the criminal complaint, in the late evening of June 22, Border Patrol Agents received a report of possibly illegal activity east of Holland, Vermont. Agents responded to the area and observed suspicious activity in the area of a pickup truck. After stopping the truck, agents identified Balcazar as one of its passengers. They also located the remaining charged individuals in the back of the truck, with their clothes and shoes covered in dirt and mud. Balcazar and the five individuals in the back of the truck were confirmed to be aliens without documentation allowing them to be in the United States. Post-arrest statements revealed that Balcazar had coordinated with individuals in Canada to pick up the Mexican citizens and bring them to the United States. Balcazar stated that he had repeatedly engaged in alien smuggling.
United States Attorney Christina E. Nolan commended Border Patrol for its efficient and effective handling of this matter, and for its diligence in protecting the integrity of Vermont’s northern border.
“This arrest is another great example of the vigilance our Border Patrol agents display on a daily basis,” said Newport Station Patrol Agent in Charge Richard Ross. “These agents prevented a smuggler from bringing aliens into the interior of the United States.”
The United States Attorney emphasizes that the charges are merely accusations, and that the defendants are presumed innocent unless and until they are proven guilty.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
The prosecutor in this case is Assistant U.S. Attorney Wendy Fuller. Marlene Hernandez-Cruz, Alejandro Gomez-Diaz, Jose Armando Carrillo-Carrillo and Oscar Gomez-Montejo are represented by John-Claude Charbonneau. Luis Enrique Gonzalez-Jimenez is represented by Mark D. Oettinger. Evelio Balcazar-Correa is represented by Elizabeth Quinn.
Shawnee Man Sentenced for Armed Bank Robbery in Overland ParkRead the Press Release
KANSAS CITY, KAN. – A Shawnee man was sentenced today to 85 months in federal prison for robbing an Overland Park bank at gunpoint, U.S. Attorney Stephen McAllister said.
Mamoudou U. Kaba, 22, Shawnee, Kan., pleaded guilty to one count of bank robbery and one count of brandishing a firearm during the robbery. In his plea, he admitted he brandished a handgun on Sept 22, 2015, when he robbed U.S. Bank at 9900 West 87th in Overland Park, Kan.
He pointed a gun a 9 mm Ruger at a clerk and customers before fleeing the bank with stolen cash.
McAllister commended the Overland Park Police Department, the FBI and Assistant U.S. Attorney David Zabel for their work on the case.
Seventh Individual Pleads Guilty in Opa Locka Municipal Corruption InvestigationRead the Press Release
Dante Starks, a close associate of former City of Opa Locka Commissioner Luis Santiago, pled guilty yesterday, before United States District Judge Jose E. Martinez, to charges arising from his participation in the long-running Opa Locka municipal corruption conspiracy and his failure to file federal income tax returns.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Starks pled guilty to a two-count Superseding Information. Specifically, Starks pled guilty to conspiring to commit extortion under color of official right and federal programs bribery, in violation of Title 18, United States Code, Sections 371, 666(a)(1)(B), and 1951(a), and to failing to file his 2015 federal income tax return, in violation of Title 26, United states Code, Section 7203. Starks is scheduled to be sentenced on August 31, 2018, at 2:00 p.m. before Judge Martinez.
According to the court record, including the stipulated factual basis for the plea, Starks conspired with former Opa Locka City Commissioner Luis Santiago, former Opa Locka City Manager David Chiverton, and former Opa Locka Assistant Public Works Director Gregory Harris, to use the official positions and authority that Santiago, Chiverton, and Harris had with the City of Opa Locka to solicit, demand, and obtain personal payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their official dealings with the City of Opa Locka.
Although Starks was not an official or employee of the City of Opa Locka, he was closely associated with and had great influence over Santiago. Starks also had, and exercised significant influence over, numerous other city officials and employees, including Chiverton and Harris, and he regularly used that significant influence to pressure and advise city officials and employees to take official actions on matters relating to occupational licenses, code enforcement citations and fines, liens, water service and billing, zoning, and city contracting. Working together, Santiago and Starks solicited and obtained illegal payments from businesses and individuals in Opa Locka, and in exchange, Santiago would take official actions on their behalf, and Starks and Santiago would pressure and advise Chiverton, Harris, and other City of Opa Locka employees to take official actions on behalf of those businesses and individuals.
In addition, Starks participated in a conspiracy with Santiago and others to receive bribes in exchange for ensuring that a particular company received a city contract. In April 2015, Santiago and Starks met with Raul Sosa Sr. (“Sosa Sr.”), who agreed to pay them a $10,000 bribe to ensure that the company Sosa Sr. was associated with, referred to as the “Towing Company,” was selected as one of the companies receiving a city towing contract. Over the next two months, Starks collected $10,000 in cash payments from Raul Sosa Jr. (“Sosa Jr.”), the Towing Company’s manager, and in exchange, Starks arranged for Opa Locka’s Purchasing Director to assemble and prepare the Towing Company’s bid package. After this bid was submitted, Starks violated the city’s purchasing Cone of Silence by contacting a member of the city’s committee evaluating the towing bids and directing that individual to rank the Towing Company as the number one company. To complete the illegal arrangement, at the June 24, 2015, City Commission meeting authorizing the award of the towing contracts, Santiago used his position as a City Commissioner to bring forward and vote in favor of the resolution authorizing the City Manager to enter into a city contract with the Towing Company.
Starks also willfully failed to file federal income tax returns for the tax years 2014, 2015 and 2016.
Related cases arising from the Opa Locka corruption investigation are the following:
Santiago previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20971-CR). Santiago was sentenced to 51 months in prison.
Chiverton previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20596-CR). Chiverton was sentenced to 38 months in prison.
Harris previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20589-CR-BLOOM). Harris was the first defendant to plead guilty to charges arising from this investigation, and received a sentence of probation.
Sosa Sr. and Sosa Jr. previously pled guilty to conspiracy to commit Federal programs bribery (Case No. 18-20256-CR). They are pending sentencing in August 2018 before Judge Martinez.
Mr. Greenberg commended the investigative efforts of the FBI Miami Area Corruption Task Force and IRS-CI in this matter. Mr. Greenberg thanked the Miami-Dade Police Department and Hialeah Police Department for their assistance. This case is being prosecuted by Assistant U.S. Attorneys Edward N. Stamm and Maurice Johnson.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Serial Bank Robber Pleads Guilty in Brooklyn Federal CourtRead the Press Release
Earlier today, in federal court in Brooklyn, Sergey Demidenko pleaded guilty to six counts of bank robbery before United States District Court Judge Pamela K. Chen. When he is sentenced, Demidenko faces a statutory maximum sentence of 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“Sergey Demidenko committed a string of robberies across Brooklyn, Long Island and New Jersey and then brazenly gambled away the stolen cash in Atlantic City,” stated U.S. Attorney Donoghue. “Thanks to the efforts of the FBI and our state and local partners, Demidenko had no luck in getting away with these crimes, for which he has now pleaded guilty and will be held responsible.”
“After their month-long robbery spree, the defendants will now be brought to justice. Demidenko and his co-defendant strategically planned these robberies, just to gamble with their illegal proceeds in the end,” stated FBI Assistant Director-in-Charge Sweeney. “As shown by their guilty plea, they will now face the consequences of their self-driven actions.”
According to court filings and statements made during the guilty plea proceedings, between January 16, 2018 and January 26, 2018, Demidenko and his co-defendant James Boccanfusco robbed four banks, and attempted to rob two others in Brooklyn, Long Island and New Jersey. In each instance, Demidenko presented a note demanding money from the tellers. Demidenko’s co-defendant, Boccanfusco, waited outside the banks in a getaway car. After the robberies, the two drove to Atlantic City, New Jersey, where they used the robbery proceeds to gamble at various casinos.
The indictment charged Demidenko and Boccanfusco with the following robberies:
- Capital One Savings Bank branch in Brooklyn, New York, on January 16, 2018;
- Chase Bank branch in Manahawkin, New Jersey, on January 18, 2018;
- Wells Fargo Bank branch in Galloway Township, New Jersey, on January 24, 2018;
- Roslyn Savings Bank branch in Massapequa, New York, on January 25, 2018;
- Chase Bank branch in Brooklyn, New York, on January 25, 2018 (attempted), and
- Wells Fargo Bank branch in Manahawkin, New Jersey, on January 26, 2018 (attempted).
Demidenko’s co-defendant, Boccanfusco, previously pleaded guilty before Judge Chen on May 24, 2018 to four counts of bank robbery and two counts of attempted bank robbery.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney David Lizmi is in charge of the prosecution.
The Defendants: SERGEY DEMIDENKO
Age: 39JAMES BOCCANFUSCO
Age: 41E.D.N.Y. Docket No. 18-CR-104
Schenectady Man Pleads Guilty to Heroin ConspiracyRead the Press Release
ALBANY, NEW YORK – Corey J. White, aka “Stacks,” age 35, of Schenectady, New York, pled guilty today to conspiring to distribute heroin.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
White admitted that between August 1, 2016 and May 10, 2017, he worked with another person to distribute heroin in Schenectady. He also admitted that on May 11, 2017, he possessed, in his Schenectady residence, about 100 green-colored envelopes, each of which contained heroin packaged for sale, as well as 2 digital scales, drug packaging materials, and $4,462 in cash.
Sentencing is scheduled for October 25, 2018 before United States District Judge Mae A. D’Agostino. White faces up to 30 years in prison, and a term of post-imprisonment supervised release of at least 6 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Roanoke Attorney Pleads Guilty to Lying to Federal AgentsRead the Press Release
Roanoke, VIRGINIA – A Roanoke defense attorney, who engaged in sexual activities with his clients, exchanged legal services for sexual acts from his clients, possessed and used controlled substances, and lied to federal agents about his conduct, pleaded guilty today in U.S. District Court in Roanoke, United States Attorney Thomas T. Cullen announced.
Scott A. Webber, 38, of Roanoke, waived his right to be indicted and pleaded guilty today to a one count Information charging him with making materially false, fictitious and fraudulent statements in a matter within the jurisdiction of the Executive, Legislative, or Judicial branch of the Government of the United States. At sentencing, Webber faces a maximum statutory penalty of up to five years imprisonment and/or a fine of up to $250,000.
According to a statement of facts agreed to by Webber and read into the court record today by Assistant United States Attorney Zachary T. Lee, Webber was a licensed attorney and a member of the Virginia State bar whose practice included the representation of parties in both state and federal courts, and in both criminal and civil matters.
Beginning in 2014, Webber represented Client #1 in matters related to driving under the influence and petty larceny. On two occasions, Client #1 had sexual intercourse with Webber in exchange for reduced legal fees.
From approximately 2012-2015, Webber represented Client #2 in multiple criminal matters. On one occasion, Client #2 told Webber she did not have money to pay him for his representation, to which Webber told Client #2 that if she performed oral sex on him he would submit a letter to the court that he was representing Client #2 and promised her she would not go to jail. Client #2 did perform oral sex on Webber and he continued to represent her.
Between January 25 and January 27, 2016, Webber had conversations via text message with Client #3 in which they discussed meeting at his house and engaging in sexual activity in exchange for legal services.
Between August 2016 and December 2016, Webber and Client #4 engaged in sexual activity. On December 10, 2016, Webber discussed wanting Client #4 to engage in sexual acts with him before he would provide her representation in a custody matter.
In addition, the statement of facts addresses instances in which Webber was in contact with at least three clients with which he was receiving and or distributing small amounts of marijuana, Adderall and/or other prescription medications.
On January 26, 2017, Webber was asked by special agents with the Federal Bureau of Investigation if he ever had sexual relations with a client, to which he responded, “Yea. No, no, I’ve not had sex with clients. I’ve certainly not had sex with clients, I’ve not had sex for pay ah in lieu of legal fees…”
During the same interview, agents asked Webber if he ever received or distributed drugs. Webber answered “No,” “I haven’t distributed drugs,” “I haven’t used drugs period…”
The investigation of the case was conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police and the Roanoke City Police Department. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Recent Incidents Involving AK-47 Style Weapons Result in Federal Firearms Charges Against Two Mid-State MenRead the Press Release
Two mid-state men are facing federal firearms charges after recent incidents involving the use of assault rifles, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
“Some people just aren’t getting the message when it comes to violent gun crime,” said U.S. Attorney Cochran. “The U.S. Attorney’s Office and our local, state and federal law enforcement partners have mounted an all-out assault on violent crime. As evidenced here, when we bring federal charges for firearms offenses, we intend to seek justice swiftly - and that includes long prison sentences with no parole.”
Robert Johnson, 18, of Nashville, was charged yesterday in a criminal complaint with carjacking and using, carrying and brandishing a firearm during a crime of violence.
According to the complaint, on the evening of June 22, 2018, officers with the Metropolitan Nashville Police Department (MNPD) located a stolen Hyundai vehicle in the James Cayce Public Housing Development. When the officers attempted to stop the vehicle, the driver fled in the car and subsequently crashed near the Shell gas station, located at 1331 Briarville Road. The complaint alleges that the driver then used a rifle and carjacked a Ford Fusion from the vehicle’s occupant at the Shell station and fled to the Charter Village Apartments in Madison, where he entered an occupied apartment. The occupants of the apartment immediately fled and called police.
The MNPD SWAT Team subsequently arrived and took Johnson into custody. Officers also recovered an AK-47 style assault rifle at the scene.
If convicted, Johnson faces up to fifteen years in prison and an additional mandatory seven years, consecutive to any other sentence imposed.
In another prior incident on June 11, 2018, Raphael Mandez Utley, 32, of Springfield, Tennessee, was charged with being a convicted felon in possession of a firearm after Springfield police officers responded to a fight and shots being fired call on May 27, 2018. Responding officers saw Utley standing next to a vehicle and holding a rifle over the roof of the car. Officers also heard Utley exclaim, “Yeah, we gonna shoot the police, b—ch.” When the officers turned around to approach Utley, he fled on foot and was apprehended a short distance away. Springfield police officers recovered a loaded AK-47 style assault rifle in the bushes near the place they had initially observed him.
Utley was found to have previously been convicted of voluntary manslaughter, aggravated assault and reckless endangerment in Robertson County, Tennessee.
Utley faces up to at least 10 years in prison, if convicted.
U.S. Attorney Cochran commended the response and investigation of these cases by the ATF; the Metropolitan Nashville Police Department; the Springfield Police Department; and Assistant U.S. Attorney Robert McGuire, who is prosecuting the cases.
Charges in these cases are merely accusations. The defendants are presumed innocent until proven guilty in a court of law.
Raleigh Man Pleads Guilty to Falsely Pretending to be a General Officer in the U.S. ArmyRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that CHRISTIAN GERALD DESGROUX, age 57, of Raleigh, pled guilty today to pretending to be a United States Army Lieutenant General engaged in transporting a person for a classified briefing and under such guise having asserted authority to land a helicopter at Statistical Analysis Systems (SAS) headquarters, located in Cary, North Carolina – all in violation of Title 18, United States Code, Section 912.
At sentencing, set for the July 23, 2018 term of court, DESGROUX faces maximum penalties of 3 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The case is being investigated by the Department of Homeland Security and the Defense Criminal Investigative Service. Assistant United States Attorneys Jason Kellhofer and Eleanor Morales are prosecuting the case for the government.
Prince George’s County Man Sentenced to over 23 Years in Federal Prison for Production of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Jayron Khalil Foster, age 21, of Riverdale, Maryland, today to 282 months in prison, followed by lifetime supervised release, for production of child pornography. Judge Hazel also ordered that, upon his release from prison, Foster must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Henry P. Stawinski III of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to Foster’s plea agreement, from at least August 2016 through January 2017, Foster engaged in sexually explicit conduct with a 7-year-old female, in order to produce images and videos documenting the abuse. In April 2017, Maryland State Police (MSP) began investigating tips that were sent to the MSP Internet Crimes Against Children (ICAC) task force from the National Center for Missing and Exploited Children in reference to possible child pornography. On April 25, 2017, investigators executed a search warrant at Foster’s residence and seized a hard drive. The hard drive contained numerous images and videos depicting Foster engaged in sexually explicit conduct with the minor victim, sometimes while the victim was sleeping, as well as other images of child pornography.
As part of his plea agreement on the federal charges, Foster pleaded guilty to one count of sex abuse of a minor in Prince George’s County Circuit Court and is scheduled to be sentenced on August 3, 2018. Foster’s federal and state prison sentences will be served concurrently.
Foster remains detained.
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 Attorney’s 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.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI, the Maryland State Police, the Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Kelly O’Connell Hayes, who prosecuted the case.
Possession of Ricin Results in 37 Months in PrisonRead the Press Release
OKLAHOMA CITY – DANIELLE DANA LAYMAN, 38, of Ponca City, Oklahoma, has been sentenced to 37 months in prison for possessing the toxin ricin, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
According to a complaint filed on July 1, 2017, Layman used craigslist to locate someone interested in a "10 day gig overseas." On May 9, 2017, she met in Ponca City with a person who responded to the craigslist post. According to the affidavit, Layman gave that person written instructions on traveling to Tel Aviv, Israel, and using ricin to poison a specific taxi driver in exchange for $4,000 plus expenses. The affidavit states that Layman also gave the person a baggie that she claimed contained the ricin to be used in the murder. Ricin is an extremely hazardous substance derived from castor beans.
On June 30, 2017, the FBI executed a search warrant at Layman’s residence in Ponca City and found castor beans in the kitchen. The complaint alleges agents also found a mortar and pestle with residue that could be remnants of ground castor beans, along with instructions on how to make ricin. Layman was arrested later that day.
On August 1, 2017, a grand jury indicted Layman on one count of using interstate communications with the intent to hire someone to commit murder. On October 3, a grand jury returned a superseding indictment that added one count of possessing ricin without the required registration.
On February 8, 2018, Layman pleaded guilty to possessing ricin illegally. The government agreed to dismiss the murder-for-hire count at sentencing.
At today’s sentencing, United States District Court Judge Robin J. Cauthron ordered Layman to serve 37 months in prison, the top of the advisory range under the U.S. Sentencing Guidelines. The court noted that because she prepared ricin in her home, she put her own children at risk. After release from prison, Layman will be under supervision for three years.
"Keeping citizens safe is a top priority for federal law enforcement. I appreciate the FBI’s diligence in its thorough investigation of cases involving ricin and other substances that can be used as weapons," said Acting U.S. Attorney Troester.
This sentence is the result of an investigation by the FBI. FBI Special Agent-in-Charge Kate Peterson said: "Through the careful and methodical investigation conducted by agents of the FBI Oklahoma City Division, we were able to show the true callous and malicious nature to Ms. Layman’s crimes."
This case was prosecuted by Assistant U.S. Attorneys Ashley L. Altshuler and David P. Petermann, with assistance from the National Security Division’s Counterterrorism Section.
Reference is made to court records for further information.
Pennsylvania Man Admits Three Armed Robberies in South JerseyRead the Press Release
CAMDEN, N.J. – A Ridley Park, Pennsylvania, man today admitted committing three armed robberies in Salem, Ocean, and Cumberland counties in November 2017, U.S. Attorney Craig Carpenito announced.
Jeffrey Edmonds, 45, pleaded guilty before Senior U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of Hobbs Act robbery, two counts of bank robbery, and one count of possession of a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
On Nov. 1, 2017, Edmonds and Terrance Robinson, 31, of Havertown, Pennsylvania, drove together to a convenience store in Upper Pittsgrove Township, stopping along the way to pick up a handgun and remove the license plates from the car that Edmonds was driving. After arriving at the convenience store, Edmonds remained in the getaway car while Robinson entered the store with the handgun and stole approximately $179.
Edmonds and Robinson later robbed an Ocean First Bank in Upper Deerfield Township on Nov. 6, 2017 and a Fulton Savings Bank in Alloway Township on Nov. 14, 2017. Prior to robbing the banks, Edmonds and Robinson removed the license plates from the getaway car. Robinson stayed in the getaway car while Edmonds entered the banks and robbed them with a handgun.
Each of the three robbery offenses carries a maximum potential penalty of 20 years in prison. The possession of a firearm in furtherance of a crime of violence charge carries a consecutive minimum term of five years in prison and a maximum potential penalty of life imprisonment. Each offense also carries a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 5, 2018.
Robinson remains charged by complaint for his alleged roles in the robberies. The charges and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Gregory W. Ehrie, and officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan, with the investigation.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense Counsel: Wayne Powell Esq., Cherry Hill, New Jersey
Passaic County, New Jersey, Man Sentenced to 92 Months in Prison for String of Bank RobberiesRead the Press Release
TRENTON, N.J. – A Passaic, New Jersey, man was sentenced today to 92 months in prison for robbing six banks in Hudson, Union, and Passaic counties in June and July of 2016, U.S. Attorney Craig Carpenito announced.
Quentin Morales, a/k/a “Quinton Morales,” 27, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with three counts of bank robbery. He also admitted to robbing two additional banks and attempting to rob another. Judge Sheridan imposed the sentence today in Trenton federal court.
Prior to his arrest in August 2016, Morales was one of Newark FBI’s most wanted bank robbers.
According to documents filed in this case and statements made in court:
Morales robbed, or attempted to rob, the following New Jersey banks:
Bank
Location
Date
Wells Fargo Bank
Kearny, New Jersey
June 24, 2016
Capital One Bank (attempted)
Elizabeth, New Jersey
June 27, 2016
Wells Fargo Bank
Kenilworth, New Jersey
June 30, 2016
Wells Fargo Bank
Linden, New Jersey
July 6, 2016
Wells Fargo Bank
Clifton, New Jersey
July 13, 2016
Wells Fargo Bank
Union, New Jersey
July 25, 2016
At each bank, Morales presented a note demanding cash from bank tellers. For example, during the June 24, 2016, robbery, Morales handed the teller a note stating “You are being robbed. Give me all the large bills you have, no alarms, no noise.” On at least two occasions, Morales said he had a gun and urged bank tellers to hurry. He was apprehended on Aug. 2, 2016, by officers of the N.J. State Parole Board.
In addition to the prison term, Judge Sheridan sentenced Morales to three years of supervised release and ordered to pay restitution of $9,217.
U.S. Attorney Carpenito credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the N.J. State Parole Board and the Kearny, Elizabeth, Kenilworth, Linden, Clifton, Union Township and Newark police departments, as well as the Essex County Prosecutor’s Office for their efforts in the investigation and apprehension of Morales.
The government is represented by Assistant U.S. Attorney Elisa Wiygul of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Linda D. Foster Esq., Assistant Federal Public Defender (Newark)
Pascagoula Man Sentenced to over 24 Years in Federal Prison for His Involvement in Methamphetamine ConspiracyRead the Press Release
Gulfport, Miss. – Tharon Jamell Taylor, 27, of Pascagoula, was sentenced today by United States District Judge Sul Ozerden, to serve 295 months in federal prison, followed by 5 years of supervised release, for conspiring to possess with intent to distribute more than 500 grams of methamphetamine. Taylor was also ordered to pay a $3,000 fine.
On August 20, 2017, the FBI Safe Streets Task Force arrested Taylor as he attempted to obtain approximately 2 kilograms of methamphetamine shipped from Texas. During the investigation, agents learned that Taylor received methamphetamine on at least six different occasions. Upon arresting Taylor, law enforcement searched his apartment and found money, a scale, methamphetamine, cutting agents, and a gun. Taylor pled guilty on February 20, 2018.
The case was investigated by FBI Safe Streets Task Force in Pascagoula, Mississippi and prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Parma men among those charged as part of crackdown on Darknet vendorsRead the Press Release
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.
Ohio University Professor Indicted for Traveling to Missouri for Sex with a MinorRead the Press Release
KANSAS CITY, Mo. – An Ohio university professor was indicted by a federal grand jury today for traveling to Kansas City, Mo., to engage in sexual activity with a person whom he believed to be a 14-year-old girl.
Kevin Connor Armitage, 52, was charged with traveling across state lines to engage in illicit sexual conduct in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Armitage on May 31, 2018.
Armitage is a professor of American Studies at Miami University in Oxford, Ohio.
According to the affidavit filed in support of the original criminal complaint, an FBI online covert employee was monitoring public message threads on a website that hosts a discussion forum and private messaging services for men and women to communicate regarding prostitution. Armitage indicated that he would be visiting the Kansas City area and was interested in a recommendation.
Armitage, whom the affidavit describes as a senior member of the website, has 576 postings that detail his prior experiences with prostitutes in Ohio, Arizona, Tijuana, Kansas and Colorado.
Armitage was provided a phone number for a different FBI online covert employee, who was posing as a 14-year-old female. After several conversations, the affidavit says, Armitage agreed to meet the 14-year-old’s cousin at a restaurant on the Country Club Plaza in Kansas City. An FBI undercover employee, posing as the cousin, met Armitage at the restaurant and he was arrested.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Department of Health and Human Services, Office of Inspector General and the FBI.
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."
North Versailles Man Sentenced to Prison for Conspiring to Distribute Fentanyl and CocaineRead the Press Release
PITTSBURGH, PA. - A resident of North Versailles, Pennsylvania, has been sentenced in federal court to 51 months’ imprisonment, followed by six years’ supervised release, on his conviction of conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Dawndre Bivins, age 30.
According to information presented to the court at the time he entered a guilty plea, Bivins, as frequently as twice per month, purchased four to five grams of fentanyl, commonly known as "bricks", and two ounces of cocaine from his codefendant, Skyler Carter, for further distribution in the Clairton, Pennsylvania, area. The court found Bivens to be responsible for the total distribution of 1.9 kilograms of cocaine and 40 grams of fentanyl. He is the third of 21 defendants charged in the conspiracy to be sentenced. Bivins had a previous conviction for a felony drug trafficking offense, and as such, was subject to enhanced penalties.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Maryland Men Indicted on Charges Relating to Dark Web Drug Distribution and Money Laudering; Government Seized more than $22 Million in AssetsRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Ryan Farace, age 34, of Reisterstown, Maryland, and Robert Swain, age 34, of Freeland, Maryland, on charges 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. The superseding indictment was returned on February 22, 2018, and unsealed on June 22, 2018.
faraceryan.swainrobertssindictment.pdfThe indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don Hibbert of the Drug Enforcement Administration-Washington; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Postal Inspector in Charge Eric Shen of the U.S. Postal Inspection Service – Washington Division; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service (IRS) – Criminal Investigation; Maryland U.S. Marshal Johnny Hughes; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to the six-count indictment, from no later than November 2013 through June 2017, Farace purchased narcotics manufacturing equipment, including pill presses and counterfeit “Xanax” pill molds, which he used to press loose alprazolam powder into tablet or pill form, and which he intended to resemble legitimate Xanax pills. The indictment alleges that Farace solicited orders for the alprazolam pills on dark web marketplaces and sold alprazolam pills directly to buyers in exchange for Bitcoin. Farace allegedly communicated with his customers through encrypted electronic messages and shipped the completed pill orders through the U.S. Postal Service. According to the indictment, postage for these packages was often paid using pre-paid debit cards that Farace obtained in the names of, and with the personal identifying information of, other people. The indictment alleges that between May 10, 2016 and January 31, 2017, Farace distributed and possessed with the intent to distribute more than 6,900 alprazolam pills.
Further, the indictment alleges that Farace and Swain laundered the proceeds of the illegal drug sales by conducting financial transactions designed to conceal and disguise the nature, source, ownership and control of the illegal drug proceeds. To date, law enforcement has seized assets from the defendants and their co-conspirators valued at over $22 million at the time of the seizures, including approximately $17 million in Bitcoin and other cryptocurrencies, $2.5 million in computer equipment, and more than $1.5 million in cash.
As part of the indictment, the government seeks the forfeiture of no less than $5,665,000, plus the value of 4,000 Bitcoin believed to be the proceeds of the illegal drug sales, two residences, and two vehicles used to facilitate the drug distribution.
Farace faces a maximum sentence of five years in prison for conspiracy to manufacture, distribute, and possess with the intent to distribute alprazolam; five years in prison for each of three counts of distributing and possessing with intent to distribute alprazolam; and 20 years in prison for maintaining drug-involved premises. Farace and Swain face a maximum of 20 years in prison for money laundering conspiracy. An arraignment on the superseding indictment has been scheduled for July 13, 2018, in U.S. District Court in Baltimore. Farace is currently detained and Swain is released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was part of a year-long, coordinated national operation involving the collective participation of the Department of Homeland Security, the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division, the United States Secret Service, the United States Postal Inspection Service, the Drug Enforcement Administration, and 51 United States Attorney’s Offices, which used the first nationwide undercover action to target vendors of illicit goods on the darknet. Since its inception more than one year ago, the operation has led to the opening of more than 90 active cases around the country. Numerous individuals have been arrested and charged, and the operation has resulted in the seizure of weapons, drugs, virtual currency proceeds, United States currency, and computer equipment. https://www.justice.gov/opa/pr/first-nationwide-undercover-operation-targeting-darknet-vendors-results-arrests-more-35
United States Attorney Robert K. Hur commended the DEA, HSI, the U.S. Postal Inspection Service, the IRS-Criminal Investigation; the U.S. Marshals Service, and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Dana J. Brusca, Zachary B. Stendig, and Seema Mittal, who are prosecuting the case.
Marion County man admits to taking mail, ordered to pay back victimRead the Press Release
CLARKSBURG, WEST VIRGINIA – Mitchell Jay Haught, of Fairmont, West Virginia, has admitted to obstructing mail, United States Attorney Bill Powell announced.
Haught, age 30, pled guilty to one count of “Obstruction of Mails.” Haught admitted to taking a $500 Visa gift card after it was deposited for mail and before it was delivered to its intended recipient. The crime occurred January 27, 2017 in Marion County.
Haught was sentenced to 12 months probation and ordered to pay $500 in restitution.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The United States Postal Service Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Manhattan U.S. Attorney Announces Settlements with Two Native American Tribes Involved in Scott Tucker’s Payday Lending Scheme; Also Announces That More Than $500 Million in Forfeited Funds Will Be Returned to Victims of the SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced non-prosecution agreements (the “Agreements”) with tribal corporations controlled by two Native American tribes: the Modoc Tribe of Oklahoma and the Santee Sioux Tribe of Nebraska. As part of the Agreements, the tribal corporations agreed to forfeit, collectively, $3 million in proceeds from the illegal payday lending enterprise owned and operated by Scott Tucker. As part of the Agreements, the tribal corporations acknowledged, among other things, that Tucker used his agreements with the tribal corporations to evade state usury laws and that representatives of the tribes filed affidavits containing false statements in state enforcement actions against parts of Tucker’s payday lending enterprise.
Mr. Berman also announced that monies forfeited to the Office in connection with its investigation of Tucker’s scheme, including monies recovered as part of the Agreements, will be remitted to the Federal Trade Commission (“FTC”) for distribution to victims of the payday lending scheme. In total, the U.S. Attorney’s Office expects to remit in excess of $500 million to the FTC for victims.
U.S. Attorney Geoffrey S. Berman stated: “To hide their criminal payday lending scheme, Scott Tucker and Timothy Muir tried to claim their business was owned and operated by Native American tribes. Today’s settlements with two of those tribes will add $3 million to the hundreds of millions already recovered – from Tucker, from U.S. Bancorp, and from a non-prosecution agreement with a third native American tribe – to compensate Tucker’s millions of victims.”
Tucker’s Payday Lending Scheme
On January 5, 2018, Tucker was sentenced to 200 months in prison for operating a nationwide internet payday lending enterprise that systematically evaded state laws for more than 15 years in order to charge illegal interest rates as high as 1,000 percent on loans. Tucker’s co-defendant, Timothy Muir, an attorney, was sentenced to 84 months in prison for his participation in the scheme. In addition to their willful violation of state usury laws across the country, Tucker and Muir lied to millions of customers regarding the true cost of their loans to defraud them out of hundreds, and in some cases, thousands of dollars. In furtherance of their multi-year effort to evade law enforcement, Tucker and Muir formed sham relationships with Native American tribes and laundered billions of dollars obtained from customers through bank accounts nominally held by the tribes in order to hide Tucker’s ownership and control of the business. Tucker and Muir were sentenced following their convictions on all 14 counts against them after a five-week jury trial that concluded on October 13, 2017.
The Sham Tribal Ownership of Tucker’s Businesses
In response to complaints that Tucker’s payday lending enterprise was extending abusive loans in violation of their usury laws, several states filed actions to enjoin the enterprise from operating in their states. To thwart these state actions, Tucker devised a scheme to claim that his lending businesses were protected by sovereign immunity, a legal doctrine that, among other things, generally prevents states from enforcing their laws against Native American tribes. Beginning in 2003, Tucker entered into agreements with several Native American tribes (the “Tribes”), including the Modoc Tribe of Oklahoma, the Santee Sioux Tribe of Nebraska, and the Miami Tribe of Oklahoma. The purpose of these agreements was to make it appear that the Tribes owned and operated parts of Tucker’s payday lending enterprise so that when states sought to enforce laws prohibiting usurious loans, Tucker’s lending businesses could claim to be protected by sovereign immunity. In return, the Tribes received payments from Tucker, typically one percent of the revenues from the portion of Tucker’s payday lending business that the Tribes purported to own.
Recovery and Distribution of Money for Victims of Tucker’s Payday Lending Scheme
Through various actions, the U.S. Attorney’s Office has recovered hundreds of millions of dollars that will be remitted to victims of Tucker’s scheme. In addition to the recoveries from the Modoc and Santee Sioux Tribes announced today, the Office has also recovered $48 million pursuant to a non-prosecution agreement with the Miami Tribe of Oklahoma and tens of millions of dollars in cash and properties from Tucker. In addition, as announced on February 15, 2018, the Office intends to remit money recovered by the Government from U.S. Bancorp for Bank Secrecy Act (“BSA”) violations to victims of the scheme. In total, the Office has recovered in excess of $500 million for victims.
To facilitate distributions to victims, the Office is transferring the recovered funds to the FTC, which successfully brought a related civil action against Tucker and various entities involved in the illegal payday lending scheme. Monies recovered by this Office will be pooled with monies recovered by the FTC and distributed to victims by the FTC according to terms and in a manner to be announced later this year. Victims seeking restitution are encouraged to visit www.ftc.gov/amg for updated information regarding the FTC’s redress program and to sign up to receive email updates. www.ftc.gov/news-events/press-releases/2018/06/statement-ftc-chairman-simons-dojs-remitting-more-500-million-ftc
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html
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Mr. Berman praised the outstanding investigative work of the St. Louis Field Office of the Internal Revenue Service-Criminal Investigation. Mr. Berman also thanked the Criminal Investigators at the United States Attorney’s Office, the Federal Bureau of Investigation, and the Federal Trade Commission for their assistance with the case.
The prosecution is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Niketh Velamoor, Hagan Scotten, and Sagar Ravi are in charge of the prosecution.
Manhattan Man Arrested for Child Pornography, Enticing A Minor to Have SexRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of JOEL DAVIS on charges of enticement of a minor to engage in sexual activity, attempted sexual exploitation of a minor, and possession, receipt, and distribution of child pornography. DAVIS was arrested today and will be presented today in Manhattan federal court before the Honorable Kevin N. Fox.
U.S. Attorney Geoffrey S. Berman said: “Joel Davis started an organization devoted to stopping sexual violence, while allegedly engaged in the duplicitous behavior of sharing explicit images of infants engaged in sexual activity. Davis also allegedly solicited an undercover officer – whom he thought to be a willing participant – to send sexually explicit videos of his nine-year-old daughter, and even to set up a sexual encounter between himself and a two-year-old. The conduct alleged against Joel Davis is as unfathomable as it is sickening, and as this case demonstrates, law enforcement will keep its watchful eye on the darkest corners of the internet to bring predators to justice.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Having started an organization that pushed for the end of sexual violence, Davis displayed the highest degree of hypocrisy by his alleged attempts to sexually exploit multiple minors. As if this wasn’t repulsive enough, Davis allegedly possessed and distributed utterly explicit images of innocent infants and toddlers being sexually abused by adults. Crimes against children such as those alleged are taken very seriously by the FBI, and we continue to work tirelessly to investigate those who place the most helpless members of the American public at risk.”
According to the allegations in the Complaint sworn out today in Manhattan federal court and statements made during court proceedings:[1]
Over the course of several weeks in June 2018, DAVIS, who started an organization devoted to ending sexual violence, exchanged text messages with law enforcement officers operating in an undercover capacity. During the course of these conversations, DAVIS told the undercover officers that he was sexually interested in children of all ages. DAVIS sent the undercover officers sexually explicit photographs of infants and toddlers, including photographs in which the infants and toddlers were engaged in sexual activity with adults. During the course of text conversations with one of the undercover officers, DAVIS described explicit sexual activity that he intended to engage in with the purported nine-year-old daughter of the undercover officer and with the purported two-year-old daughter of the undercover officer’s girlfriend. DAVIS also repeatedly asked that undercover officer to take naked and sexually explicit pictures and videos of his purported daughter and his purported girlfriend’s toddler daughter and to send the pictures and videos to DAVIS.
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DAVIS, 22, of Manhattan, New York, is charged with one count of enticement of a minor under the age of 18 to engage in sexual activity, which carries a mandatory minimum term of 10 years in prison and a maximum of life in prison; one count of attempted sexual exploitation of a minor, which carries a mandatory minimum term of 15 years in prison and a maximum of 30 years in prison; one count of possession of child pornography, which carries a mandatory minimum term of 5 years in prison and a maximum of 20 years in prison; and one count of receipt and distribution of child pornography, which carries a maximum term of imprisonment of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Juliana N. Murray is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Lexington Methamphetamine ConspiracyRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that a total of fifteen defendants have been indicted as part of a drug conspiracy. In December 2017, four defendants, John Phillip Drawdy, age 39, Leigh Antley McCamy, age 36, Blake Allen Smith, age 28, and Kimberly Hartley, age 29, were indicted in a Superseding Indictment for Conspiracy to Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. These four defendants pleaded guilty to the Conspiracy charge in May 2017, each admitting to dealing 50 grams or more of methamphetamine. Each defendant is awaiting sentencing and faces a statutory mandatory minimum term of imprisonment of ten years and a maximum term of life.
Last week, a grand jury indicted an additional eleven Lexington County defendants in a related methamphetamine conspiracy, also in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. The eleven defendants, or co-conspirators, are:
Jennifer Logan, age 41
Terri Moore, age 40
Brian Lorick, age 45
Andrew Michael Chamberlain, age 31
James Lloyd, age 28
Willie Ricardo Gordon, a/k/a “Rico,” age 33
Jeremy Davis, age 31
Robert Pendleton, a/k/a “Bobby,” age 39
Marcus Young, a/k/a “Lay Low,” age 29
Kyndal Hancock, age 25
David Peeples, age 35
The Indictment also charges various firearm and drug-related offenses, in violation of Title 18, United States Code, Sections 922(g) and 924(c), and Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), and 841(b)(1)(C). If convicted, these eleven defendants face the same possible penalties as the previous four defendants: a statutory mandatory minimum term of imprisonment of ten years and a maximum term of life.
Additionally, one more Lexington County defendant, Jeffery Shane Tager, age 32, has been charged with possession with intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), and 841(b)(1)(A). Tager faces a statutory mandatory minimum term of imprisonment of ten years and a maximum term of life.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Lexington County Sheriff’s Department. ATF Resident Agent-In-Charge Eddie Eubanks had this to say, “From December 2016 to now, our office with the assistance of our state and local law enforcement partners conducted an investigation that resulted in the prosecution of over twenty-five defendants from Lexington and Aiken County. ATF is very proud of the investigation results and will continue to work with our law enforcement partners to reduce violent crime in our communities.”
United States Attorney Sherri A. Lydon had this to say, “We are committed to using our resources to address violent crime and drug distribution in our neighborhoods. Our partnerships with local law enforcement agencies are crucial to our efforts.” This case is being prosecuted as a part of Project Safe Neighborhoods, 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.
The United States Attorney also stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty. This case is being handled by Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office.
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Lexington Man Sentenced to 120 Months for Illegal Possession of a FirearmRead the Press Release
LEXINGTON, Ky. – A Lexington man, who previously admitted to being a felon in possession of a firearm, was sentenced today to 120 months in prison. This term has also been ordered to run consecutively to pending state court sentences.
Chief U.S. District Judge Karen K. Caldwell sentenced Antoine Lamar Burns, 36 years old, for unlawful possession of a firearm by a person convicted of a felony.
Burns previously admitted that, beginning in June 2015 and continuing through October 2015, he possessed a Bersa .380 semiautomatic pistol, after having been convicted of a felony offense. According to the plea agreement, Burns fired several shots at someone he suspected was cooperating with law enforcement, threatened and pointed the firearm at a former girlfriend, attempted to have his girlfriend make a false statement about ownership of the firearm, and attempted to hide the firearm in his girlfriend’s vehicle. Burns pleaded guilty in February.
Under federal law, Burns must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge, ATF; and Lawrence Weathers, Chief of the Lexington Division of Police, jointly announced the sentence.
The investigation was conducted by ATF and Lexington Police. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Ron L. Walker, Jr.
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.
Lehigh Acres Man Sentenced to Twelve Years on Drug and Firearm ChargesRead the Press Release
Fort Myers, Florida – U.S. District Judge Sherri Polster Chappell has sentenced Alejo Guerrero (36, Lehigh Acres) to 12 years in federal prison for multiple firearms and controlled substance offenses.
According to court documents, federal and state authorities conducted multiple operations in 2016 and 2017 during which Guerrero sold cocaine and firearms, including an AK-47-type pistol with high capacity magazines, to an informant. Guerrero also armed himself during the transactions, once flashing a gun tucked into his waistband to explain why he wasn’t worried about bystanders witnessing a deal. In October 2017, law enforcement officers executed a search warrant on his Lehigh Acres home and found Guerrero, his girlfriend and an infant child, a stash of cocaine, thousands of dollars in cash, a bullet proof vest, and a .357 revolver inside the home. The Court ordered Guerrero to forfeit the cash to the United States as proceeds of his criminal activity.
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 and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Lancaster Residents Plead to Federal Firearm Charges Relating to Firearms Stolen from National Guard ArmoryRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Austin Lee Ritter, age 32, and Kimberly Denise Cannon, age 40, both of Lancaster, each plead guilty in federal court to being a felon in possession of firearms, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e), and to possession of machineguns and destructive device not registered to them in the National Firearms Registration and Transfer Record, in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871. United States District Judge Michelle Childs, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on the early morning hours of November 26, 2017, an officer with the Lancaster Police Department conducted a traffic stop of a vehicle driven by Cannon after observing her littering. Further investigation during the traffic stop, revealed the following inside the vehicle: a FNH, model M249, 5.56mm machinegun, two (2) Colt, model M-16, 5.56mm machineguns, two (2) Beretta, model M9, 9mm pistols, a Colt, model M203, 40mm grenade launcher (“destructive device”), night vision goggles, and various military items stolen from the Lancaster National Guard Armory. Officers also recovered various items from WalMart, including an employee identification badge. After the traffic stop, Ritter and a co-defendant were located at the Carriage Inn Motel and found in possession of a small quantity of methamphetamine. A review of surveillance video from the motel showed Ritter, Cannon, and the co-defendant bringing the bags containing the firearms back and forth between the vehicle and the motel room. Additionally, searches of Ritter and Cannon’s cell phones revealed various photos and text messages relating to the firearms. Ritter and Cannon’s co-defendant’s case is still pending in federal court and he remains innocent unless and until he is proven guilty.
Both Ritter and Cannon are prohibited under federal law from possessing firearms and ammunition based upon their prior state convictions. Ritter has prior convictions for accessory after the fact of a felony, possession of a controlled substance, breach of trust, receiving stolen goods, and theft of a controlled substance. Cannon, who was on state probation at the time of this incident, has prior convictions for shoplifting, assault and battery, and obtaining property by false pretenses.
Ritter and Cannon each face a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on each of the firearm charges.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Lancaster Police Department, and the South Carolina State Law Enforcement Division (SLED) and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Justice Department Settles Claims Against Landscaping Company for Discriminating Against U.S. WorkersRead the Press Release
The Justice Department today reached a settlement agreement with Triple H Services LLC, (Triple H), a landscaping company based in Newland, North Carolina, that conducts business in Virginia and four other states. The agreement resolves the Department’s investigation into whether Triple H discriminated against qualified and available U.S. workers based on their citizenship status by preferring to hire temporary workers with H-2B visas, in violation of the Immigration and Nationality Act (INA).
The Department’s investigation found that although Triple H went through the motions of advertising over 450 landscape laborer vacancies in five states, it did so in a manner that misled U.S. workers about the available positions and prevented or deterred some from applying. The Department found that Triple H did not consider several qualified U.S. workers who applied for positions in Virginia during the recruitment period, and instead hired H-2B visa workers. In several states where jobs were available, the Department found that Triple H prematurely closed the online job application process for U.S. worker applicants, filled positions with H-2B visa workers without first advertising the jobs to U.S. workers in the relevant locations, or advertised vacancies in a manner that did not make the postings visible to job seekers using state workforce agency online services.
The Department concluded that in taking these actions, Triple H effectively denied U.S. workers access to jobs based on its preference for hiring temporary H-2B visa workers to fill the positions. Refusing to consider or hire qualified and available U.S. workers based on their citizenship status violates the INA’s anti-discrimination provision, regardless of whether an employer has complied with other rules governing the use of temporary employment-based visa programs.
Under the settlement, Triple H must establish a back pay fund, with a cap of $85,000, to compensate certain individuals who were harmed by its practices. The agreement also requires Triple H to pay $15,600 in civil penalties, engage in enhanced recruitment activities to attract U.S. workers, and be subject to Departmental monitoring for a three-year period.
“Federal law prohibits employers from discriminating against U.S. workers in hiring because of their citizenship status,” said Acting Assistant Attorney General John Gore. “The Department will continue to fight to ensure that U.S. workers are not disadvantaged because of their citizenship status. I commend Triple H for its cooperation with the Department and its willingness to undertake efforts to recruit U.S. workers that go well beyond the minimum requirements for participation in the H-2B visa worker program.”
Today’s settlement is part of the Civil Rights Division’s Protecting U.S. Workers Initiative, which is aimed at targeting, investigating, and taking enforcement actions against companies that discriminate against U.S. workers in favor of temporary visa workers. Under this Initiative, the Civil Rights Division has opened dozens of investigations, filed one lawsuit, and reached settlement agreements with three employers. Since the Initiative’s inception, employers have agreed to pay or have distributed over $285,000 in back pay to affected U.S. workers. The Division has also increased its collaboration with other federal agencies to combat discrimination and abuse by employers using foreign visa workers.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to: discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status or national origin; or retaliation should contact IER’s worker hotline for assistance.
Irwin Man Sentenced to 5 Years in Prison for Collecting and Trading Child Porn VideosRead the Press Release
PITTSBURGH, PA. – A resident of Westmoreland County, Pennsylvania, has been sentenced in federal court to a term of imprisonment of 60 months to be followed by five years of supervised release on his conviction of receipt of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Jeffrey John Valenta, age 57, formerly of Irwin, Pennsylvania.
According to the information presented to the court, in November 2010, the Pennsylvania State Police were conducting an undercover investigation into the internet sharing of child pornography. In connection with the investigation, the state police obtained evidence that led to Valenta’s home. Troopers executed a search warrant at the residence of Valenta on January 6, 2011. He admitted to collecting and trading child pornography. A forensic review of Valenta’s computer revealed 33 video files depicting child pornography.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.