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Wednesday 16 May 2018
Windsor Locks Woman Pleads Guilty to Federal Drug Trafficking and Money Laundering OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CHRISTINE MILES, 59, of Windsor Locks, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to drug trafficking and money laundering offenses related to the distribution of heroin and various prescription medications.
According to court documents and statements made in court, beginning in approximately 1998, MILES and others conspired to possess and distribute heroin, oxymorphone, hydrocodone and alprazolam. MILES is a retired nurse.
On August 4, 2016, members of the North Central Narcotics Task Force and the DEA conducted a court-authorized search of MILES’ residence at 350 North Street in Windsor Locks and seized a large quantity of various prescription medications, approximately two pounds of marijuana, $10,093 in cash and more than $13,000 in gift cards. MILES was arrested on state charges at that time.
The investigation revealed that, through this drug trafficking conspiracy, MILES and her husband amassed more than $700,000 in a number of individual and jointly held bank accounts. The investigation also revealed that, after her arrest on state drug charges in August 2016, MILES used $17,359 of drug proceeds to purchase 11 U.S. Postal Service money orders and a bank cashier’s check payable to a New Jersey-based moving company for a planned move from Connecticut to New Mexico.
MILES was arrested on federal charges on November 16, 2017, and she has been detained since her arrest. On February 2, 2018, another court-authorized search of her North Street residence revealed additional drug evidence and $41,904 in cash.
MILES pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam, an offense that carries a maximum term of imprisonment of 20 years, and one count of engaging and attempting to engage in a monetary transaction affecting interstate commerce, involving criminally derived property of a value greater than $10,000, an offense that carries a maximum term of imprisonment of 10 years.
In pleading guilty, MILES agreed to forfeit her interest in her Windsor Locks residence and $767,056.74 seized from the residence and multiple bank accounts.
Judge Meyer scheduled sentencing for August 7, 2018.
This matter is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the U.S. Marshals Service with the valuable assistance of the North Central Narcotics Task Force and the Windsor Locks, Enfield, Vernon, East Windsor, Manchester and Suffield Police Departments. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Patrick F. Caruso.
Visalia, California Man Sentenced to 151 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Aichu Saesee, age 30, of Visalia, California was sentenced to 151 months imprisonment and 5 years supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). The charge arose from an investigation by the Latimer County Sheriff’s Office and the Drug Enforcement Administration.
The Indictment alleged that on or about July 14, 2017, within the Eastern District of Oklahoma, the Defendant, Aichu Saesee, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
“Methamphetamine has destroyed lives, families and communities across our country. Those that are in the business of selling it must be held responsible for their criminal activity. The defendant in this case will be unable to participate in that deadly business for the over 12 years that he is in the custody of the Bureau of Prisons. He is being held accountable and communities are being protected,” said United States Attorney Brian J. Kuester. “I applaud the efforts of the Latimer County Sheriff’s Office, and DEA. Their joint investigation allowed the dedicated members of this office to successfully prosecute this case.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Kristin Harrington represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Virginia Man Pleads Guilty to Producing and Distributing Child PornographyRead the Press Release
A Manassas Park, Virginia man pleaded guilty today to producing and distributing child pornography.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady of the Eastern District of Virginia.
Michael Gerald Moody, 44, pleaded guilty to two counts of producing child pornography and one count of distributing child pornography. According to admissions made in connection with his guilty plea, Moody admitted that, between 2017 and February 2018, he used a child to engage in sexually explicit conduct and he captured numerous images of that conduct with his cellular phone. In addition, Moody engaged in text chats with other individuals through the online messaging application Kik Messenger. These chats principally focused on the exchange of child pornography and discussions of the sexual abuse of children. In the course of these chats, Moody distributed child pornography—including images that he himself produced, as well as other images—to at least eight other individuals.
Sentencing is scheduled for Sept. 14.
The case is being investigated by the FBI with the assistance of the Manassas Park Police Department. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Jay V. Prabhu 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 and Virginia Intervene in Metrorail Whistleblower LitigationRead the Press Release
ALEXANDRIA, Va. – The United States and the Commonwealth of Virginia have filed a notice of intervention in a whistleblower’s lawsuit that involves the provision of concrete panels to Phase II of the Dulles Metrorail Project (“Dulles Project”). The case was unsealed today.
In March 2016, the whistleblower, or “Relator”, filed an under seal qui tam complaint in the U.S. District Court for the Eastern District of Virginia pursuant to the whistleblower provisions of the federal False Claims Act and the Virginia Fraud Against Taxpayers Act. Following an investigation by the FBI’s Washington Field Office and the Department of Transportation’s Office of Inspector General, the United States and the Commonwealth of Virginia filed a combined notice of intervention against Universal Concrete Products Corporation, Donald Faust Jr., and Andrew Nolan. The United States and the Commonwealth of Virginia will file a complaint in the coming weeks.
The United States and the Commonwealth of Virginia did not intervene in the Relator’s allegations against the general contractor for Phase II of the Dulles Project, Capital Rail Constructors (CRC).
The United States is represented in this matter by the U.S. Attorney’s Office for the Eastern District of Virginia, and the Commonwealth of Virginia is represented by the Virginia Attorney General’s Office.
The qui tam complaint contains allegations only. There has been no determination of civil liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cv-316.
U.S. Attorney Attends South Dakota Law Enforcement Memorial ServicesRead the Press Release
Pierre, SD – United States Attorney Ron Parsons attended the South Dakota Law Enforcement Memorial held as part of National Police Week in Pierre on May 16, 2018. Services, memorials, and tributes honoring law enforcement officers are held throughout the United States during this week.
In October 1962, President John F. Kennedy proclaimed May 15 as National Peace Officers Memorial Day and the surrounding week as National Police Week. Each year at this time, our nation pays special recognition to those officers who have lost their lives in the line of duty for the safety and protection of others. In addition, we celebrate the contributions of all police officers, recognizing their hard work and dedication in keeping our communities safe.
The U.S. Department of Justice is committed to supporting law enforcement officers through the “Back the Blue” initiative created by President Donald J. Trump in his first executive order after taking office, and implemented by Attorney General Jeff Sessions.
“The most important thing that any government does is protect the safety and rights of its citizens,” said U.S. Attorney Parsons. “Everything else depends on it. And that is the daily calling of police officers. The women and men of law enforcement – whether federal, state, local, or tribal – should never doubt that they have our deepest admiration and gratitude.”
“Whenever something goes wrong or anyone is in distress, they are the ones who answer the call,” he added. “They are the thin blue line standing in the breach between safety and lawlessness. They keep the peace, protect us from danger, and uphold the rule of law. We must never forget how blessed we are by those who willingly dedicate their lives to this mission.”
This year’s memorial began with a Wreath Laying Ceremony at the Capitol Lake Monument, followed by a motorcade from the George S. Mickelson Building to the Madison Avenue Church of Christ. The memorial service at the church commenced with a welcome by Pierre Police Chief Jason Jones and Call to Order by Sioux Falls Police Captain Loren McManus.
After the Presentation of Colors by the Memorial Honor Guard, the Pledge of Allegiance was led by Mrs. Karla Blemaster’s Fourth Grade Class from Kennedy Elementary in Pierre. South Dakota Highway Patrol Trooper Tori Gordan sang the National Anthem and Father David Hussey, Chaplain of the Pierre Police Department, presented the Invocation.
A Proclamation issued by South Dakota Governor Dennis Daugaard honoring our fallen law enforcement officers was then read by Colonel Craig Price of the South Dakota Highway Patrol.
Chief Justice David Gilbertson of the South Dakota Supreme Court gave the Keynote Address, honoring the commitment, dedication, and sacrifice of law enforcement officers.
Following the keynote, Mrs. Blemaster’s class presented a poignant musical tribute to our fallen officers.
Sully County Sheriff Bill Stahl, President of the South Dakota Sheriffs’ Association, then read the Roll Call of South Dakota law enforcement officers who have given their lives in the line of duty. Since 1791, more than 22,000 law enforcement officers across the United States have made the ultimate sacrifice. At least 69 line of duty deaths have occurred in South Dakota since Territorial days. These fallen heroes are:
Aberdeen Police Department (1)
Joseph Daly (August 16, 1919)
Alcester Police Department (1)
Alf Amundsen (September 10, 1940)
Andover Police Department (1)
Daniel Passage (July 29, 1916)
Brown County Sheriff's Office (2)
Ike Fuller (July 1, 1923)
Ole Solberg (February 25, 1939)
Brule County Sheriff's Office (2)
James Boney (September 6, 1926)
Clarendon Miller (September 6, 1931)
Bureau of Indian Affairs (7)
Paul Afraid of Soldiers (December 15, 1890)
John Armstrong (December 15, 1890)
Henry Bullhead (December 19, 1890)
David Hawkman (December 15, 1890)
James Little Eagle (December 15, 1890)
Charles Shavehead (December 16, 1890)
Frank Horn Cloud (March 10, 1910)
Butte County Sheriff's Office (1)
Dave Malcolm (January 24, 1946)
Campbell County Sheriff’s Office (2)
Walter Salzsiedler (April 25, 1949)
John Bechtold (August 4, 2004)
Cheyenne River Sioux Tribal Police (1)
Merrill Bruguier (October 9, 2010)
Custer Police Department (1)
James Sawyer (June 13, 1972)
Dallas Marshals Office (1)
Walter Wood (February 25, 1921)
DeSmet Police Department (1)
Arthur Back (September 13, 1932)
Emery Marshals Office (1)
George Shocker (September 24, 1935)
Grant County Sheriff's Office (1)
Melbourne Lewis (July 30, 1941)
Gregory Police Department (1)
William Bearshield (July 26, 1976)
Haakon County Sheriff's Office (1)
Matthew Schofield (March 21, 1985)
Huron Police Department (3)
Clifford Hawley (September 7, 1909)
Virgil Deyo (November 29, 1966)
Thomas Callies (March 30, 1982)
Hyde County Sheriff's Office (1)
Hugh McNamara (April 30, 1926)
Lead Police Department (1)
Milan Miller (November 22, 1938)
Leola Police Department (1)
Clarence Berry (December 12, 1921)
Miller Police Department (1)
William Stender (May 15, 1963)
Mitchell Department of Public Safety (1)
John Pierce (April 9, 1884)
Moody County Sheriff’s Office (1)
William Davis (November 3, 2003)
Oglala Sioux Tribal Police (3)
John Red Horse (November 16, 1894)
Glenn Hollow Horn (April 5, 1980)
Kelmer One Feather (July 1, 2000)
Pierre Police Department (1)
Alva Burnett (June 12, 1944)
Rapid City Police Department (8)
Billy Wilson (November 6, 1885)
James Hawkes (December 28, 1916)
Jack O’Leary (November 6, 1926)
Elmer Simons (April 2, 1955)
Daniel Wickard (June 9, 1972)
Leslie Hollers (September 16, 1985)
Ryan McCandless (August 2, 2011)
Nick Armstrong (August 6, 2011)
Sioux Falls Police Department (2)
Edward Pike (September 23, 1922)
George Saville (October 6, 1935)
South Dakota Department of Corrections (4)
Eugene Reily (March 6, 1936)
Edward Jaworski (September 6, 1951)
Russell Anderson (March 3, 1998)
Ronald Johnson (April 12, 2011)
South Dakota Department of Game, Fish and Parks (2)
George Driscoll (April 26, 1964)
Ronald Brandt (December 20, 1979)
South Dakota Division of Criminal Investigation (1)
Thomas Matthews (January 24, 1946)
South Dakota Highway Patrol (5)
Bernard Benson (September 17, 1941)
Henry Russell (November 19, 1958)
Verlyn Mettler (March 9, 1976)
Steven Hoffman (March 12, 1980)
Oren Hindman (May 2, 1985)
South Dakota State Deputy Sheriff (1)
Charles Halpin (May 13, 1927)
Turner County Sheriff’s Office (1)
Chad Mechels (March 15, 2009)
United States Department of Justice Alcohol, Tobacco, & Firearms (2)
Charles Bintliff (May 13, 1927)
Oscar Hanson (March 28, 1928)
United States Federal Bureau of Investigation (2)
Jack Coler (June 26, 1975)
Ronald Williams (June 26, 1975)
United States Marshals Service (1)
Edward Flanery (March 28, 1928)
Webster Police Department (1)
Albert Hubsch (December 5, 1954)
White Lake Police Department (1)
Clyde Rogers (February 3, 1948)
On behalf of us all, the U.S. Attorney’s Office of the District of South Dakota and the U.S. Department of Justice honor and mourn our fallen law enforcement heroes, and express our deepest thanks to all law enforcement officers for their bravery and dedication to the safety of our communities and the rule of law.
Two Men Indicted for Armed Carjacking in MilwaukeeRead the Press Release
United States Attorney Matthew D. Krueger announced today that Jack Clayborne (Age: 30) and Sylvance Brown (Age: 43) have been indicted for an attempted armed carjacking in Milwaukee. Both defendants were charged with one count of motor vehicle robbery causing serious bodily injury, one count of discharging a firearm in furtherance of a crime of violence, and one count of possession of a firearm and ammunition by a felon. Those charges relate to a July 7, 2016, attempted carjacking on Hampton Avenue in Milwaukee, in which the victim was shot by the assailants. Clayborne and Brown were previously charged with the same crimes by criminal complaint on March 22, 2018. A third defendant, Eric Booker, was also convicted of participating in the attempted armed carjacking after a jury trial in January of 2017.
Clayborne and Brown each face up to 25 years in prison for the carjacking, a minimum mandatory consecutive sentence of 10 years to life in prison on the brandishing count, and up to 10 years in prison on the firearm possession count. Booker has already been sentenced to 13 years in prison for his role in the July 2016 crime.
In response to the indictment, United States Attorney Krueger stated, “If convicted, the defendants will face at least 10 years—and likely more—in federal prison. The United States Attorney’s Office, in partnership with law enforcement agencies, is committed to prosecuting gun violence aggressively.”
This case is being investigated and prosecuted under the Project Safe Neighborhoods (PSN) initiative. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The PSN strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods. This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. It is being prosecuted by Assistant United States Attorney Rebecca Taibleson.
The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
# # # # #
For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Two Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging CARLOS MARCIAL-GONZALEZ, age 41, of Mexico, and MARVIN ROMAN DIAZ-BARDALES, age 46, of Honduras, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, MARCIAL-GONZALEZ, found in Wake County, and DIAZ-BARDALES, found in Duplin County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations.
Turkish Banker Sentenced to 32 Months for Conspiring to Violate U.S. Sanctions Against Iran and Other OffensesRead the Press Release
Mehmet Hakan Atilla, 47, a resident and citizen of Turkey, was sentenced today to 32 months for his participation in a scheme to violate U.S. economic sanctions imposed on the Islamic Republic of Iran involving billions of dollars’ worth of Iranian oil proceeds held at Atilla’s employer (Turkish Bank-1). On Jan. 3, after a five-week jury trial, Atilla was convicted of conspiring with others to use the U.S. financial system to conduct transactions on behalf of the government of Iran and other Iranian entities, which were barred by U.S. sanctions, and to defraud U.S. financial institutions by concealing these transactions’ true nature.
Assistant Attorney General for National Security John C. Demers and U.S. Attorney Geoffrey S. Berman for the Southern District of New York made the announcement after sentencing by U.S. District Judge Richard M. Berman.
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
Beginning in or about 1979, the president, pursuant to the International Emergency Economic Powers Act (IEEPA), has repeatedly found that the actions and policies of the government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States and has declared a national emergency to deal with the threat. In accordance with these presidential declarations, the United States has instituted a host of economic sanctions against Iran and Iranian entities. This sanctions regime, among other things, prohibits financial transactions involving the United States or U.S. persons that were intended directly or indirectly for the government of Iran or Iranian entities. Other U.S. sanctions in effect during this case’s relevant time period also required foreign financial institutions to restrict the use of Iranian oil proceeds, if those foreign banks wished to continue to do business with the U.S. financial system.
Atilla and others conspired to provide access to restricted oil revenues through international financial networks, including U.S. financial institutions, to the government of Iran, Iranian entities, and entities identified by the Department of the Treasury Office of Foreign Assets Control as Specially Designated Nationals (SDNs). They did so by, among other things, using Turkish Bank-1, at which Atilla served as Deputy General Manager of International Banking, to engage in transactions involving billions of dollars’ worth of petroleum revenues held by the Central Bank of Iran and the National Iranian Oil Company. In particular, they facilitated and protected Turkish Bank-1 customer, international gold trader Reza Zarrab’s, ability to supply currency and gold to, and facilitate international financial transactions for, the Government of Iran, Iranian entities, and SDNs using Turkish Bank-1. Many of those financial transactions involved unwitting U.S. financial institutions, in violation of U.S. sanctions against Iran. The elaborate scheme established by Atilla and others also shielded Turkish Bank-1 from U.S. sanctions.
Atilla in particular lied to and deceived U.S. Treasury officials about Turkish Bank-1’s activities and its purported compliance efforts in order to avoid subjecting the bank to U.S. sanctions. Additionally, Atilla, Zarrab and others conspired to create and use false and fraudulent documents to disguise prohibited transactions for Iran and make those transactions falsely appear as transactions involving food, thus falling within humanitarian exceptions to the sanctions regime. As a result of this scheme, Atilla and his co-conspirators induced U.S. banks unknowingly to process international financial transactions in violation of the IEEPA, and to launder through the U.S. financial system funds promoting the scheme.
* * *
Mr. Berman praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and the Department of Justice’s National Security Division’s Counterintelligence and Export Control Section.
Assistant U.S. Attorneys Michael D. Lockard, Sidhardha Kamaraju and David W. Denton Jr. of the Southern District of New York are in charge of the prosecution, with assistance from Deputy Chief Elizabeth Cannon and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Turkish Banker Mehmet Hakan Atilla Sentenced to 32 Months for Conspiring to Violate U.S. Sanctions Against Iran and Other OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John C. Demers, Assistant Attorney General for National Security, announced that MEHMET HAKAN ATILLA was sentenced today to 32 months in prison for his participation in a scheme to violate U.S. economic sanctions imposed on the Islamic Republic of Iran involving billions of dollars’ worth of Iranian oil proceeds held at ATILLA’s employer (“Turkish Bank-1”). On January 3, 2018, after a five-week jury trial, ATILLA was convicted of conspiring with others to use the U.S. financial system to conduct transactions on behalf of the government of Iran and other Iranian entities, which were barred by U.S. sanctions, and to defraud U.S. financial institutions by concealing these transactions’ true nature. ATILLA was sentenced by United States District Judge Richard M. Berman.
U.S. Attorney Geoffrey S. Berman said: “As a unanimous jury found earlier this year, Mehmet Hakan Atilla helped execute an audacious scheme to circumvent our nation’s Iran sanctions regime by engaging in billions of dollars’ worth of deceptive transactions. Today, following full, fair, and public legal proceedings, Atilla has been sentenced for his crimes.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
Beginning in or about 1979, the president, pursuant to the International Emergency Economic Powers Act (the “IEEPA”), has repeatedly found that the actions and policies of the government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States and has declared a national emergency to deal with the threat. In accordance with these presidential declarations, the United States has instituted a host of economic sanctions against Iran and Iranian entities. This sanctions regime, among other things, prohibits financial transactions involving the United States or United States persons that were intended directly or indirectly for the government of Iran or Iranian entities. Other U.S. sanctions in effect during this case’s relevant time period also required foreign financial institutions to restrict the use of Iranian oil proceeds, if those foreign banks wished to continue to do business with the U.S. financial system.
ATILLA and others conspired to provide access to restricted oil revenues through international financial networks, including U.S. financial institutions, to the government of Iran, Iranian entities, and entities identified by the Department of the Treasury Office of Foreign Assets Control as Specially Designated Nationals (SDNs). They did so by, among other things, using Turkish Bank-1, at which ATILLA served as Deputy General Manager of International Banking, to engage in transactions involving billions of dollars’ worth of petroleum revenues held by the Central Bank of Iran and the National Iranian Oil Company. In particular, they facilitated and protected the ability of Turkish Bank-1 customer, international gold trader Reza Zarrab, to supply currency and gold to, and facilitate international financial transactions for, the Government of Iran, Iranian entities, and SDNs using Turkish Bank-1. Many of those financial transactions involved unwitting U.S. financial institutions, in violation of U.S. sanctions against Iran. The elaborate scheme established by ATILLA and others also shielded Turkish Bank-1 from U.S. sanctions.
ATILLA in particular lied to and deceived U.S. Treasury officials about Turkish Bank-1’s activities and its purported compliance efforts in order to avoid subjecting the bank to U.S. sanctions. Additionally, ATILLA, Zarrab, and others conspired to create and use false and fraudulent documents to disguise prohibited transactions for Iran and make those transactions falsely appear as transactions involving food, thus falling within humanitarian exceptions to the sanctions regime. As a result of this scheme, ATILLA and his co-conspirators induced U.S. banks unknowingly to process international financial transactions in violation of the IEEPA, and to launder through the U.S. financial system funds promoting the scheme.
* * *
Mr. Berman praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and the Department of Justice, National Security Division, Counterintelligence and Export Control Section.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard, Sidhardha Kamaraju, and David W. Denton Jr., and Special Assistant United States Attorney Dean Sovolos, are in charge of the prosecution, with assistance from Deputy Chief Elizabeth Cannon and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Three Florida Men Sentenced to Prison for Conspiring to Provide Material Support to ISISRead the Press Release
Gregory Hubbard, a/k/a, Jibreel, 54, of West Palm Beach, Florida; Dayne Antani Christian, a/k/a, Shakur, 33, of Lake Park, Florida; and Darren Arness Jackson, a/k/a, Daoud, 53, of West Palm Beach, were sentenced to prison today for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Assistant Attorney General for National Security John C. Demers, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement after sentencing by U.S. District Judge Robin L. Rosenberg.
“Individuals seeking to travel to take up arms with ISIS pose a threat to the security of all nations,” said U.S. Attorney Benjamin G. Greenberg. “As demonstrated today, this threat will be met with swift and certain justice. The U.S. Attorney’s Office, the FBI, and the Joint Terrorism Task Force continue to work proactively in order to stifle and disrupt any potential danger posed by terrorist organizations and their supporters.”
“Gregory Hubbard and his co-conspirators are a great example why the FBI’s number one priority is counterterrorism,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. "This is not a scenario where law enforcement can afford to wait and see what happens next. The FBI and our Joint Terrorism Task Force, along with many law enforcement partners, diligently investigated and disrupted this threat."
According to the court docket, including the factual basis for the guilty pleas, Hubbard was arrested on July 21, 2016, at Miami International Airport where he had been driven by co-defendant Jackson for a scheduled flight to Berlin, Germany. From Berlin, Hubbard intended to travel to Syria to join ISIS.
At various times during the conspiracy, which ran from approximately July 2015 until Hubbard’s arrest, Hubbard and his co-defendants, Christian and Jackson, talked about their support for ISIS and jihad, including acts of terrorism committed by and attributed to ISIS and its supporters. During the conspiracy, Hubbard and his co-defendants and others, practiced shooting weapons multiple times in preparation for Hubbard traveling to Syria to join ISIS.
Hubbard received a joint recommended sentenced of 12 years in prison, to be followed by a lifetime of supervised release.
Christian and Jackson who both pleaded guilty in 2017 and provided significant cooperation to the government, received sentences of eight years in prison and four years in prison, respectively. Both were also sentenced to five years of supervised release.
The FBI and JTTF investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; Transportation Security Administration; Miami International Airport Police Department; Boca Raton, Florida, Police Department; Palm Beach Sheriff’s Office; City of West Palm Beach Police Department; and Florida Fish and Wildlife Conservation Commission.
This case was prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Edward C. Nucci of the Southern District of Florida, and Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
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
Three Florida Men Sentenced for Conspiring to Provide Material Support to ISISRead the Press Release
Gregory Hubbard, aka, Jibreel, 54, of West Palm Beach, Florida; Dayne Antani Christian, aka, Shakur, 33, of Lake Park, Florida; and Darren Arness Jackson, aka, Daoud, 53, of West Palm Beach, were sentenced to prison today for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement after sentencing by U.S. District Judge Robin L. Rosenberg.
According to the court docket, including the factual basis for the guilty pleas, Hubbard was arrested on July 21, 2016, at Miami International Airport where he had been driven by co-defendant Jackson for a scheduled flight to Berlin, Germany. From Berlin, Hubbard intended to travel to Syria to join ISIS.
At various times during the conspiracy, which ran from approximately July 2015 until Hubbard’s arrest, Hubbard and his co-defendants, Christian and Jackson, talked about their support for ISIS and jihad, including acts of terrorism committed by and attributed to ISIS and its supporters. During the conspiracy, Hubbard and his co-defendants and others, practiced shooting weapons multiple times in preparation for Hubbard traveling to Syria to join ISIS.
Hubbard received a joint recommended sentenced of 12 years in prison, to be followed by a lifetime of supervised release.
Christian and Jackson who both pleaded guilty in 2017 and provided significant cooperation to the government, received sentences of eight years in prison and four years in prison, respectively. Both were also sentenced to five years of supervised release.
The FBI and JTTF investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; Transportation Security Administration; Miami International Airport Police Department; Boca Raton, Florida, Police Department; Palm Beach Sheriff’s Office; City of West Palm Beach Police Department; and Florida Fish and Wildlife Conservation Commission.
This case was prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Edward C. Nucci of the Southern District of Florida, and Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
The U.S. Attorney's Office for the Western District of North Carolina Pays Tribute to Fallen Law Enforcement Officers in Observance of "National Police Week"Read the Press Release
CHARLOTTE, N.C. – Communities across the United States gather during National Police Week to remember law enforcement officers who made the ultimate sacrifice in the line of duty, to share their stories of courage and sacrifice, and to honor their memory.
“National Police Week is a time to pay tribute to America’s fallen law enforcement offices for their bravery, their service, and their sacrifice. There is no deed more noble than the willingness to give up one’s own life to serve and protect the lives of others. Remembering those who died protecting us is our modest way of repaying our debt to them and their families. It is also our hope that our fallen heroes’ stories and legacy will serve as an inspiration to others and as an example of selfless public service,” said R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.”
In 1962, President Kennedy proclaimed May 15 as National Peace Officers Memorial Day, and the calendar week in which May 15 falls as National Police Week. Established by a joint resolution of Congress in 1962, National Police Week pays special recognition to those law enforcement officers who have lost their lives in the line of duty for the safety and protection of others.
This year, the names of 360 U.S. law enforcement officers killed in the line of duty will be added to the National Law Enforcement Officers Memorial in Washington, D.C., including the names of 129 officers who made the ultimate sacrifice during 2017, and 231 officers who died earlier in history but whose stories of sacrifice had not been previously documented. With the addition of the 360 names this year, a total of 21,541 officers’ names are engraved on the Memorial. The names represent fallen law enforcement officers from all 50 states, the District of Columbia, U.S. territories, federal law enforcement, and military police agencies.
Among those added this year will be:
- Major Jay R. Memmelaar, Jr., Goldsboro Police Department, who died in February 2017.
- Sargent Meggan L. Callahan, North Carolina Department of Public Safety – Division of Prisons, who died in April 2017.
- Officer Justin Smith, North Carolina Department of Public Safety – Division of Prisons, who died in October 2017.
- Officer Wendy Shannon, North Carolina Department of Public Safety – Division of Prisons, who died in October 2017.
- Correction Enterprises Manager Veronica Darden, North Carolina Department of Public Safety – Division of Prisons, who died in October 2017.
U.S. Attorney Murray noted that along with remembering the officers who made the ultimate sacrifice, “National Police Week is an opportunity to thank and recognize everyone in the law enforcement community, who bravely stand on the front lines each day. Like many others before them, these officers took an oath to serve and protect our neighborhoods, our homes, and our loved ones from harm. And they do it every day, willingly and bravely, despite the dangers and challenges that come with wearing their uniform. I am thankful for all they do to keep our communities safe and their willingness to answer the ultimate call of duty.”
On Friday, May 18, 2018, U.S. Attorney Murray will speak at the Peace Officer Memorial Service in Catawba County, sponsored by the Catawba County Fraternal Order of Police Lodge # 26. The Memorial Service will be held at the Catawba Memorial Park, located at 3060 Highway 70 SE, in Hickory, N.C.
Texas Man Sentenced to 10 Years in Prison for Cocaine ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that KEVIN DECUIR, age 24, of Brownsville, Texas, was sentenced today for charges relating to narcotics trafficking.
DECUIR pled guilty on January 3, 2018, to conspiring to distribute and to possess with the intent to distribute 5 kilograms or more of cocaine hydrochloride. According to court documents, DECUIR, along with co-defendants Roel RANGEL and Victor ESQUIVEL, conspired to distribute approximately 28 kilograms of cocaine hydrochloride.
Judge Ivan L. R. Lemelle sentenced DECUIR to 120 months in the Bureau of Prisons, as well as 5 years of supervised release following the term of imprisonment.
U.S. Attorney Evans praised the work of Homeland Security Investigations. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution
Texas Man Pleads Guilty to Federal Production of Child Pornography Charges in New MexicoRead the Press Release
ALBUQUERQUE – Luis Fernando Moreno, 38, of El Paso, Texas pled guilty today in federal court in Las Cruces, N.M., to three production of child pornography charges. At sentencing, Moreno faces a statutory mandatory minimum of 15 years and a maximum of 30 years of imprisonment as to each charge. Moreno will be required to register as a sex offender when he complete his prison sentence.
Homeland Security Investigations (HSI) charged Moreno by criminal complaint filed on Jan. 11, 2018, with producing and possessing child pornography in May 2013, in Dona Ana County, N.M. According to the complaint, the Sunland Park Police Department initiated an investigation into Moreno after responding to a sexual assault allegation by a 16-year-old. The minor victim alleged that Moreno video-recorded the victim with his cellular phone while the victim was showering. The complaint alleged that images and videos of child pornography created by Moreno and depicting another minor victim were found on Moreno’s cellular phone and laptop computers.
During today’s proceedings, Moreno pled guilty to a felony information charging him with three counts of producing visual depictions of a minor engaged in sexually explicit conduct. In entering the guilty plea, Moreno admitted that on March 31, 2013, he used a cellular phone to produce a video and an image of child pornography. Moreno also admitted using a cellular phone to produce a video that included child pornography on May 10, 2013,
Moreno has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of HSI, the Sunland Park Police Department and the Las Cruces Police Department with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Tennessee Man Indicted for Filing False Retaliatory Liens and Committing Tax CrimesRead the Press Release
A federal grand jury has returned an indictment, which was unsealed today, against a Rogersville, Tennessee resident charging him with obstruction of the internal revenue laws, filing fraudulent multi-million dollar liens against government employees, and filing false claims for tax refunds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Brian Leo Snow obstructed the internal revenue laws over a period of at least nine years by, among other things, filing false tax returns; filing false UCC Financing Statements against individuals seeking to collect his back taxes; and by filing a document with Hawkins County Register of Deeds in an attempt to terminate tax liens filed against him by the IRS.
The indictment further alleges that Snow has not filed timely and accurate income tax returns in almost two decades and owes the IRS over $150,000 in taxes. In response to IRS collection efforts, Snow allegedly filed false retaliatory liens worth millions of dollars against government officials including an IRS revenue officer, an Assistant United States Attorney, and a federal judge.
The indictment also charges that Snow filed three false claims with the IRS claiming over $144 million in tax refunds to which he was not entitled.
If convicted, Snow faces a statutory maximum sentence of five years in prison on the tax obstruction charge, 10 years in prison on each of the false retaliatory lien counts, and five years in prison on each of the false claims counts. In addition, he faces a period of supervised release and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of the offices of Treasury Inspector General for Tax Administration and IRS Criminal Investigation, who conducted the investigation, and Tax Division Senior Litigation Counsel Jen E. Ihlo and Trial Attorney Jason M. Scheff, who are prosecuting the case.
State and Local Law Enforcement Agencies to Receive More Than $730,296 in Federally-Forfeited FundsRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced today the distribution of $730,296 in federally-forfeited funds to state and local law enforcement agencies, resulting from a forfeiture action against convicted drug trafficker James Alexander Brown.
The Justice Department recovered more than $1 million from Brown, of which 80 percent will be shared with 15 law enforcement agencies pursuant to the Department of Justice’s Equitable Sharing Program.
“My office’s criminal and forfeiture prosecutors work hand in hand to put drug traffickers behind bars and to take away the proceeds of their illegal drug trade,” said U.S. Attorney Murray in making today’s announcement. “Asset forfeiture is a key tool in our efforts to stem the flow of drugs into our neighborhoods. Through the Equitable Sharing Program, we are able to seize drug traffickers’ ill-gotten gains and assist our law enforcement partners with obtaining the resources they need to effectively protect their communities.”
“Taking away the funds from drug trafficking organizations continues to be one of DEA’s top priorities. Doing so cripples and eventually topples these criminal enterprises. The cooperation with our law enforcement counterparts and the subsequent prosecution by the U.S. Attorney’s Office is crucial to the success of these forfeitures,” said Robert J. Murphy, Special Agent in Charge of the DEA’s Atlanta Field Division regarding the Equitable Sharing Program.
According to court documents, James Alexander Brown was part of a drug distribution ring, and he was responsible for trafficking large amounts of high grade marijuana from California into North Carolina. Brown stored the marijuana in storage units in Winston Salem, N.C. and distributed it in the Charlotte area. Over the course of the investigation, state and local law enforcement provided invaluable assistance to DEA including, among other things, surveillance operations, execution of search warrants, and Brown’s apprehension. As a result of the joint investigation, Brown was convicted of conspiracy to possess with intent to distribute marijuana and was sentenced to prison.
As part of his plea agreement, Brown forfeited to the United States a Lexus automobile, a Sea Ray boat he used for drug transactions, and $1,058,400 that Brown had transferred to a bank account in Singapore. The U.S. District Court ultimately ordered the forfeiture of the funds, the vehicle, and the boat. Net proceeds of the sale of the vehicle and boat were previously shared with the law enforcement agencies that assisted in the investigation.
Eighty percent of the more than $1 million in money seized and repatriated from Singapore will now be shared among state and local law enforcement agencies who devoted substantial resources to the investigation, including, but not limited to, the following agencies operating in and around Charlotte: the Pineville Police Department ($381,024); the North Carolina Division of Motor Vehicles ($52,920); the North Carolina Highway Patrol ($42,336); the Charlotte Mecklenburg Police Department ($42,336); the Cornelius Police Department ($42,336); the Huntersville Police Department ($42,336); the Mint Hill Police Department ($42,336); the Monroe Police Department ($42,336); and the Union County Sheriff’s Office ($42,336).
U.S. Attorney Murray commended the assistance and cooperation of the agencies involved in Brown’s investigation, all of which are identified below, and stated, “Brown was a large-scale drug trafficker, profiting at the expense of our communities. Now, through sharing, the Justice Department will use Brown’s money to reinvest in law enforcement and safety in those same communities that Brown’s criminal conduct targeted. My office is committed to using the Equitable Sharing Program to support our state and local law enforcement partners in fulfilling their mission to the people of the Western District. The practice of asset forfeiture, when done right, punishes offenders like Brown and takes the profit out of crime, thus serving as a serious deterrent.”
The asset forfeiture action was handled by Assistant U.S. Attorney Benjamin Bain-Creed. Assistant U.S. Attorney Dana Washington handled the criminal prosecution.
Agency
Sharing Percentage
Amount
15th Circuit Drug Enforcement Unit
3%
$ 31,752.00
Arkansas State Police Department
0.50%
$ 5,292.00
Charlotte-Mecklenburg Police Department
4%
$ 42,336.00
Cornelius Police Department
4%
$ 42,336.00
Horry County Police Department
2%
$ 21,168.00
Huntersville Police Department
4%
$ 42,336.00
Mint Hill Police Department
4%
$ 42,336.00
Monroe Police Department
4%
$ 42,336.00
N.C. Division of Motor Vehicles
5%
$ 52,920.00
N.C. Highway Patrol
4%
$ 42,336.00
Pineville Police Department
36%
$ 381,024.00
Salisbury Police Department
2%
$ 21,168.00
Vernon Police Department
3%
$ 31,752.00
Winston-Salem Police Department
0.50%
$ 5,292.00
Union County Sheriff’s Department
4%
$ 42,336.00
Assets Forfeiture Fund (DEA contribution)
20%
$ 211,680.00
TOTAL:
100%
$ 1,058,400.00
Southern District of Georgia Announces Largest Hospital Drug Diversion Civil Penalty Settlement in U.S. HistoryRead the Press Release
SAVANNAH, GA: In the nation’s largest settlement of its kind involving allegations of drug diversion at a hospital, Effingham Health System has agreed to pay the United States $4.1 million to resolve allegations that Effingham Health System failed to provide effective controls and procedures to guard against theft and loss of controlled substances, leading to a significant diversion of opioids, and failing to timely report the suspected diversion to the Drug Enforcement Administration (DEA).
DEA launched an investigation in 2017 after receiving reports of diversion at Effingham Health System. DEA determined that tens of thousands of oxycodone 30mg tablets were unaccounted for, and were believed to have been diverted over more than a four-year period, in violation of the hospital’s responsibilities under the Controlled Substances Act. DEA also determined that Effingham Health System failed to notify DEA of the suspected diversion within the time required by federal law.
“At a time when our country’s opioid crisis is ravaging communities across the country, hospitals like Effingham Health System have a critical responsibility to ensure that controlled substances are tracked and safeguarded from theft or loss and are not diverted for illegal uses,” said U.S. Attorney Bobby L. Christine. “Hospitals must adopt and maintain effective safeguards as a bulwark against diversion—the risk to the public is simply too great to accept anything less than what the law demands.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Hospitals put lives at risk when they fail to maintain accurate recordkeeping of their inventory. Such careless behavior allows for substances to be diverted and sold on the black market with no true measure of accountability. This record-setting civil penalty is a proactive step that DEA Diversion and our partners in the U.S. Attorney’s Office can take to discourage other healthcare providers from engaging in such reckless behavior.”
Effingham Health System cooperated with the DEA’s investigation and, prior to this investigation, overhauled its pharmacy operations to help ensure that it will avoid diversions in the future. Since the investigation began, Effingham Health System has worked cooperatively with the DEA and the U.S. Attorney’s Office to finalize a plan to address the identified deficiencies in Effingham Health System’s handling of controlled substances, and entered into an agreement with the DEA to memorialize the plan. Components of the plan include quarterly internal accountability audits and requirements to keep detailed records that track all controlled substances within the hospital.
On February 27, 2018, Attorney General Sessions announced the creation of the Department of Justice Prescription Interdiction & Litigation (“PIL”) Task Force, to fight the prescription opioid crisis. As Attorney General Sessions noted in his announcement, the Department of Justice will use all available remedies under the Controlled Substances Act against doctors, pharmacies, and others that break the law. If you have information about any individual or entity that you believe may be unlawfully diverting or dispensing opioids for illegitimate purposes or committing health care fraud related to the opioid epidemic, please contact Assistant United States Attorney J. Thomas Clarkson (912-652-4422).
U.S. Attorney Christine commended the hard work and dedication of the DEA Savannah Resident Office, which investigated the case. Group Supervisor George M. Taylor and Diversion Investigator Matthew G. Reddish led the investigation with assistance from Diversion Investigators George Zuban and Tierra Singleton.
Assistant United States Attorneys Jonathan A. Porter and Bradford C. Patrick led the investigation on behalf of the United States, with assistance from Civil Chief Shannon H. Statkus and Civil Deputy Chief J. Thomas Clarkson. The claims resolved by the settlement agreement are allegations only and there has been no determination of liability. This investigation remains ongoing.
For any questions about this release, please contact the United States Attorney’s Office at (912) 652-4422.
South Florida Resident Charged Federally for Mosque Bomb ThreatRead the Press Release
Dustin Allen Hughes, 26, of Cutler Bay, Florida, has been arrested and charged with making a bomb threat to a South Florida mosque.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Robert F. Lasky, Special Agent in Charge and Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Hughes was charged by criminal complaint with willfully making a bomb threat by telephone, in violation of Title 18, United States Code, Section 844(e). If convicted of the charged offense, Hughes faces a statutory maximum of 10 years in prison. Hughes made an initial appearance today before Magistrate Judge Alicia O. Valle and will remain in custody pending the outcome of a pre-trial detention hearing scheduled for May 22, 2018, at 11:00 a.m., before a U.S. Magistrate Judge in Ft. Lauderdale.
According to the criminal complaint, on May 5, 2018, at approximately 4:06 p.m., Hughes called the emergency contact number for the Jamaet Ul Muttaqueen Mosque of Pembroke Pines, Florida, and left a voice mail. In the voice mail message, Hughes stated, amongst other things: “I planted a bomb in your temple, I’m gonna blow your fucking temple up you fucking Muslim.. Where you guys have your sanctuary and worship Allah, I’m gonna blow that mother fucker up. I have a detonator [that Hughes stated he was going to activate]…[Y]ou guys are all gonna be up in flames after I’m done with you!” Within days of this call, three additional messages containing similar bomb threats were left by Hughes on the answering system for the Mosque’s non-emergency telephone number.
After retrieving the threating voice message, an official of the Mosque immediately contacted Pembroke Pines Police Department (PPPD), which subsequently responded to the Mosque and conducted an exterior and interior sweep for explosives. No presence of explosives were uncovered by the PPPD at or in vicinity of the Mosque.
On May 15, 2018, agents arrested Hughes at his residence in Miami-Dade County. During a post-arrest interview at the FBI’s field office in Miramar, Florida, agents played the May 5th voice mail message for Hughes. Hughes admitted placing that call and others to the Mosque that also were threatening in nature. Hughes also indicated that he had left the messages because he had wanted to make members of the Mosque scared and upset.
A criminal complaint merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mr. Greenberg commended the outstanding investigative efforts of the FBI and members of the FBI Miami Area Corruption Task Force. He also thanked the Pembroke Pines Police Department, the Miami-Dade Police Department, and the City of Miami Police Department for their assistance. This case is being prosecuted by Assistant U.S. Attorney Michael Davis.
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
South Bend, Indiana Man SentencedRead the Press Release
SOUTH BEND - Jeffery Henderson, age 34, of South Bend, Indiana, was sentenced before South Bend District Court Judge Jon E. DeGuilio for distributing cocaine, announced U.S. Attorney Kirsch.
Henderson was sentenced to 70 months in prison followed by 3 years of supervised release.
According to documents in this case, on September 19, 2017, Henderson sold cocaine base to a person who was working for law enforcement. Henderson has five felony convictions, several of which were drug related including one prior federal felony conviction. Mr. Henderson was on bond from a felony case involving a firearm when he sold cocaine.
This case was investigated by the Drug Enforcement Administration with assistance from the Mishawaka Police Department. The case was handled by Assistant U.S. Attorney Frank Schaffer.
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Siblings Indicted and Arrested for Money LaunderingRead the Press Release
SAN JUAN, Puerto Rico – On May 9, 2018, a federal grand jury returned an indictment charging two siblings for money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA) is in charge of the investigation with the collaboration of Homeland Security Investigations (HSI), the Puerto Rico Police Department (PRPD), and the Office of Inspector General (OIG) of the Puerto Rico Department of Justice.
The indictment charges Fabián Padilla-Baez with conspiracy to possess with intent to distribute more than five kilograms of cocaine from in or about 2013 through October 2014. The indictment also charges Fabián Padilla-Baez and his sister, Mabel Padilla-Baez, a Police of Puerto Rico Officer, with conspiracy to commit money laundering by agreeing with each other and other persons, to knowingly conduct a financial transaction affecting interstate and foreign commerce, which transaction involved the proceeds of dealing in controlled substances.
On May 15, 2013, both defendants conducted and attempted to purchase a property located at Parcel C, Sector Barrio Contorno, Barrio Galateo, Toa Alta, PR. This transaction involved the proceeds of a specified unlawful activity, that is, the felonious manufacture, importation, receiving, concealment, buying, selling, or otherwise dealing in controlled substances, knowing that the transaction was designed in whole and in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds of said specified unlawful activity; and knowing that the property involved in the financial transaction represented the proceeds of some form of unlawful activity.
“In their pursuit of personal gain, the siblings conspired to launder and conceal their drug trafficking proceeds,” said US Attorney Rosa Emilia Rodríguez-Vélez. “We commend our state and federal the law enforcement partners for their teamwork during this investigation, which resulted in today’s arrests.”
DEA’s Caribbean Division Assistant Special Agent in Charge Reinaldo López said: “Part of DEA’s mission is to bring to justice anyone who breaks the law, no matter who it is. It is always sad when is one of our own, but drug trafficking and money laundering organizations need to know that we’ll continue to track them down and bring them to justice. We are here and we will prevail.”
Assistant U.S. Attorney José Contreras is in charge of the prosecution of the case. If convicted, Fabián Padilla-Baez faces a minimum of ten years up to life in prison for count one and both defendants face up to 20 years in prison for the money laundering count. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force’s (OCDETF) Operation Lord of the Skies. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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Republic Man Sentenced for SBA Loan Fraud, Failure to Pay Employment TaxesRead the Press Release
SPRINGFIELD, Mo. – A former business owner was sentenced in federal court today for providing false information in order to receive a $1.45 million loan, and for failing to pay employment taxes for the now-defunct business.
Clinton Tackitt, 44, of Republic, was sentenced by U.S. District Judge Beth Phillips to two years in federal prison without parole. The court also ordered Tackitt to pay $1,571,578 in restitution to the Small Business Administration, Guaranty Bank and the IRS.
On April 19, 2017, Tackitt pleaded guilty to one count of making false statements on a loan application and one count of failing to pay over taxes.
Tackitt applied for a $1,450,000 SBA-guaranteed loan for his business, Allied Roofing Systems, LLC, on May 9, 2012. Tackitt admitted that the loan application he submitted to Guaranty Bank was false and incomplete. Tackitt failed to disclose all of his financial debts as required and failed to truthfully disclose an accurate financial status of his company or a complete listing of the debts he and his business owed, in that the company was heavily in debt and was about to claim bankruptcy. Tackitt also failed to disclose that a third party assisted him in the preparation and presentation of the application.
Tackitt also admitted that he failed to pay over to the government $262,066 in payroll taxes that he collected from his employees. He also failed to pay over the employer’s share of FICA taxes, which total $395,699. Beginning during the second quarter of 2012, ending on June 30, 2012, and continuing on until the dissolution of Allied Roofing Systems on Dec. 31, 2013, Tackitt collected federal employee taxes from the salaries paid to the individuals employed with his company. Tackitt, through his company, willfully failed to pay over all of the taxes collected from his employees.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation, the FBI and the Small Business Administration, Office of Inspector General.
Real Estate Developer Arrested in Federal Bribery CaseRead the Press Release
LOS ANGELES – A well-known commercial real estate developer was arrested this morning on federal bribery charges alleging that he paid monthly bribes to a Los Angeles County employee for six years and submitted offers to purchase the employee a Santa Rosa residence for nearly $1.1 million in exchange for the developer obtaining a $45 million county lease.
Arman Gabaee, known professionally as Arman Gabay, 57, of Beverly Hills, was arrested at his home without incident this morning by special agents with the Federal Bureau of Investigation. Gabaee, who is charged in a federal criminal complaint with one count of bribery, is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
Gabaee, a co‑founder and co‑managing partner of the Charles Company, a Hollywood-based real estate development firm, allegedly paid cash bribes to the county employee for more than six years. According to the complaint, the employee, who is not named and is cooperating with the FBI, negotiated leases for the county to rent office space from private parties and had “significant autonomy to contractually bind the county.”
The complaint alleges that Gabaee paid the employee cash bribes of $1,000 or more every month for six years “in exchange for county leases, non-public information, and other benefits.” According to the complaint, Gabaee paid the employee thousands of dollars during covertly recorded meetings in late 2016 and early 2017.
Further, in 2017, Gabaee allegedly offered to purchase a Northern California residence for the county employee in exchange for the employee’s assistance securing a county lease in the Hawthorne Mall, which Gabaee was redeveloping. According to the complaint, Gabaee wanted the county to enter into a 10-year, $45 million lease to rent space in the Hawthorne Mall for the Department of Public Social Services and other county departments.
“Business leaders who use their wealth and influence to corrupt our government are a scourge on our community,” United States Attorney Nicola T. Hanna said. “No one, no matter how prominent or wealthy, is above the law.”
During recorded meetings between Gabaee and the county employee, as well as phone conversations intercepted pursuant to federal wiretap orders, Gabaee allegedly offered to buy a million-dollar home for the county employee, in exchange for the employee’s assistance securing the $45 million county lease. According to the complaint, when Gabaee offered to buy the residence, Gabaee promised the employee even bigger bribes in the future, saying that things would only get “better” if the employee continued to assist Gabaee with securing other county contracts.
The FBI’s investigation and intercepted communications showed Gabaee taking numerous steps in 2017 to locate a property in Northern California to use as leverage to get the employee’s assistance obtaining the $45 million county lease, according to the complaint. Gabaee ultimately settled on a home on eight acres of land in Santa Rosa wine country that was listed for $1,095,000. Without ever seeing the property, Gabaee allegedly told an associate to “make the offer” on the home “ASAP” as a bribe for the employee. Intercepted communications allegedly showed Gabaee taking steps to try to disguise his ownership interest in the property, telling the associate that the offer on the property could not be in Gabaee’s name and that he wanted to conceal his ownership interest in the property through some type of entity.
In April 2017, Gabaee allegedly placed two offers on the Santa Rosa residence, first for $1,035,000 and later for $1,065,000. According to the complaint, immediately after FBI agents approached Gabaee and told him they were aware of the bribe arrangement, Gabaee’s latest offer on the property was withdrawn within hours.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of the bribery charge alleged in the complaint, Gabaee would face a statutory maximum sentence of 10 years in federal prison.
The ongoing investigation in this matter is being conducted by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorneys Ruth C. Pinkel and Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Prince George’s County Man Indicted on Charges of Sex Trafficking and Sexual Exploitation of A MinorRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Today a federal grand jury has indicted Rody L. Bowden, age 39, of Prince George’s County, Maryland, on charges of Sex Trafficking of a Minor, Sexual Exploitation of a Minor, and Transportation of Child Pornography. Bowden was also charged with committing these offenses as a registered sex offender.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Tim Altomare of the Anne Arundel County Police Department.
According to the four-count indictment, in December 2016, Bowden engaged in commercial sex acts with a 14-year-old ninth-grade student, including in Anne Arundel County motel rooms. On January 4, 2017, he recorded a video of the victim engaged in oral sex with him. On September 4, 2017, Bowden e-mailed a copy of the video to another account that he controlled.
Bowden was previously required to register as a sex offender, stemming from two convictions for third-degree sex offenses in Prince George’s County and Charles County. Bowden was previously arrested on a criminal complaint, and has been ordered detained in the custody of the U.S. Marshal pending trial.
Bowden faces a mandatory sentence of 10 years in prison and a maximum sentence of life, for Sex Trafficking of a Minor; a mandatory 35 years in prison and a maximum sentence of life, for Sexual Exploitation of a Minor; and a mandatory 15 years in prison and a maximum sentence of 40 years in prison, for Transportation of Child Pornography. He faces an additional 10 years in prison, consecutive to any other sentence, for allegedly committing these offenses as a registered sex offender. An initial appearance has been scheduled for 11:00 a.m. in U.S. District Court in Baltimore on May 25, 2018.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended HSI and the Anne Arundel County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Zachary A. Myers and Ray D. McKenzie, who are prosecuting the case.
Owner of New York Investment Fund Charged with $21 Million Scheme to Defraud InvestorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today that BRENT BORLAND, the owner and principal of a New York-based investment fund known as Belize Infrastructure Fund I LLC (“Belize Fund”), was arrested this morning and charged with conspiring to commit, and the commission of, securities and wire fraud in connection with a $21 million investment fraud scheme. BORLAND will be presented later today in Manhattan federal court before United States Magistrate Judge Barbara Moses.
Manhattan U.S. Attorney Berman said: “Brent Borland, owner of Belize Infrastructure Fund, allegedly induced investors to contribute over $21 million into the construction of an airport in Belize by promising a high rate of return, which was secured by real property owned by the fund. In reality, some of the real property investors were told secured the debt did not even exist; and Borland allegedly was using their money for personal expenses, such as luxury automobiles, a beach club membership, and private school tuition for his children. Cases such as this serve as a cautionary tale for investors – always carefully vet your investments – and if something seems too good to be true, it probably is.”
USPIS Inspector-in-Charge Bartlett said: “Brent Borland allegedly lied to investors and inappropriately used their investment funds to finance a life of luxury. Postal Inspectors remind investors, where there is high reward, there is high risk. If an investment offer sounds too good to be true, it’s most likely a scam.”
According to the Complaint unsealed in Manhattan federal court:[1]
From 2014 through March 2018, BORLAND solicited and received approximately $21.9 million through Belize Fund from approximately 40 investors based upon representations that BORLAND would use the investors’ money to construct an airport in Belize. BORLAND promised investors high rates of return on their investments, which he represented were temporary “bridge financing.” BORLAND also represented to investors that their investments would be fully secured by real property in Belize that was unencumbered by any liens or obligations.
In fact, however, BORLAND misappropriated millions of dollars of investors’ funds and used those funds for his own personal benefit. BORLAND diverted at least approximately thirty percent of the investments to pay for a variety of personal expenses, including his mortgage payments, credit card bills, luxury automobiles, a beach club membership, and private school tuition for his children. In contrast to BORLAND’s representations that investors would receive high rates of return within a specified time, all known investors in the scheme lost money. And while BORLAND represented that the investments would be secured by real property, the property purportedly serving as collateral was improperly pledged to multiple investors and, in some cases, did not even exist.
* * *
BORLAND, 48, of Sag Harbor, New York, is charged in a three-count criminal complaint with one count of conspiracy to commit securities fraud and wire fraud, which carries a maximum potential sentence of five years in prison; one count of securities fraud, which carries a maximum potential sentence of 20 years in prison; and one count of wire fraud, which carries a maximum potential sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the investigative work of the USPIS and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action. He added that the investigation is ongoing.
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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore and Negar Tekeei are 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 below constitute only allegations, and every fact described should be treated as an allegation.
Orinda Man Pleads Guilty to Transportation of Child PornographyRead the Press Release
SAN FRANCISCO– John D. Warbritton, III pleaded guilty today to transportation of child pornography, announced Acting United States Attorney Alex G. Tse, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin, Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The guilty plea was accepted by the Honorable Charles R. Breyer, U.S. District Judge.
According to his plea agreement, on March 27, 2016, Warbritton, 64, a former resident of Orinda, Calif., traveled from Bangkok, Thailand, to San Francisco International Airport (SFO) with electronic devices containing child pornography. Specifically, Warbritton was traveling with a laptop and a cellular telephone both of which contained images depicting children under the age of 12 engaged in sexually explicit conduct. The plea agreement describes some of the images that were on the devices, including depictions of grown men engaged in sexual acts with girls under the age of 12. Warbritton stipulated that between 150 and 300 images of child pornography were on his electronic devices as he traveled to SFO.
A federal grand jury indicted Warbritton on October 13, 2016, charging him with one count of transportation of child pornography and access with intent to view child pornography, in violation of 18 U.S.C. §§ 2252A(a) and (b). Pursuant to the plea agreement, Warbritton pleaded guilty to the charge.
Judge Breyer scheduled a sentencing hearing for August 8, 2018, at 10:00 a.m.. The maximum statutory sentence for violating 18 U.S.C. § 2252 is a 20-year prison term. Additional fines, victim restitution, and a term of supervised release also may be imposed; however, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Sheila Armbrust is prosecuting the case with the assistance of Ana Guerra. The prosecution is the result of an investigation by HSI, DEA, and IRS-CI.
If members of the public have any information relevant to this investigation or to suspected child predators or suspicious activity, they should contact Homeland Security Investigations through the toll-free Tip Line at 1-866-DHS-2-ICE or complete the online tip form at: https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Oregon Missionary Found Guilty of Sexually Abusing Six Cambodian Children at OrphanageRead the Press Release
A Coos Bay, Oregon man, who was a Christian missionary running an orphanage in Phnom Penh, Cambodia, was found guilty by a federal jury of six counts of engaging in illicit sexual conduct in a foreign place, traveling with the intent to engage in illicit sexual conduct and aggravated sexual abuse.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Billy J. Williams of the District of Oregon, and Special Agent in Charge Loren G. Cannon of the FBI, Portland Division, made the announcement after the verdict was accepted by U.S. District Judge Michael J. McShane of the District of Oregon.
Daniel Stephen Johnson, 40, was charged in December 2014 after serving a one-year sentence in Cambodia for sexually abusing some of the same victims. According to evidence at trial, Johnson was a Christian missionary who traveled between the United States and Cambodia, along with other countries in Southeast Asia. He started an orphanage in Phnom Penh, Cambodia, that housed several Cambodian children. Over a period of years beginning in 2005, Johnson engaged in sexual abuse and attempted to sexually abuse at least nine children who resided at his orphanage. The victims ranged in age from eight to 17-years-old. The sexual abuse continued until December 2013 when Johnson was arrested by the Cambodian National Police. Based on disclosures made by children at the orphanage, Cambodian officials charged Johnson and detained him pending trial. In May 2014, Johnson was convicted by a Cambodian judge of performing indecent acts on one or more children at the orphanage and sentenced to one year in prison. Following his release from prison, Johnson was escorted back to the United States by the FBI. He will be sentenced on Aug. 22 before U.S. District Court Judge Michael J. McShane.
“While Stephen Johnson held himself out as a selfless missionary helping orphans in Cambodia, in reality he exploited that cover to sexually abuse the children entrusted to his care,” said Acting Assistant Attorney General John Cronan. “Today’s conviction is a testament both to the courage of the victims, who traveled to the United States to provide critical testimony against their abuser, and to the steadfast commitment of our prosecutors and law enforcement partners to seeing that Johnson be held to account for his terrible crimes.”
“The despicable nature of this defendant’s conduct is beyond understanding,” said U.S. Attorney Williams. “Whether you are abusing children in this country or abroad, you will be pursued and held accountable in a court of law. The fact that this defendant abused children under the guise of being a missionary and orphanage operator is appalling.”
“Daniel Johnson’s promises of charity and a better life were nothing more than lies as he dragged these children into his dark world of abuse,” said FBI Special Agent in Charge Cannon. “This case should serve as warning to those predators who believe they can hide their crimes – whether here at home or half-a-world-away. We will always stand with the victims, and we will always work to bring justice in their names.”
According to evidence presented at trial, while in custody awaiting trial, Johnson made multiple efforts to tamper with witnesses and obstruct justice. Johnson contacted his victims online, encouraging them to lie and offering money and gifts. One message, sent via his relative’s Facebook account to an adult in Cambodia, discussed visiting a victim’s family and encouraging them to convince the victim to retract their statement, potentially in exchange for $10,000. Another message explains the need for a victim to say they were under duress and “pushed by police” to thumbprint a document.
The FBI investigated the case. Trial Attorney Lauren E. Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Jeffrey S. Sweet and Ravi Sinha of the District of Oregon prosecuted the case with assistance from Assistant U.S. Attorney Amy E. Potter for the District of Oregon. The Criminal Division’s Office of International Affairs also provided assistance in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Oregon Man Found Guilty of Sexually Abusing Children at Orphanage in CambodiaRead the Press Release
EUGENE, Ore. – A federal jury found Daniel Stephen Johnson, 40, of Coos Bay, Oregon, guilty today of repeatedly sexually abusing children who lived at an orphanage operated by the defendant in Cambodia. The verdict marks the end of the second foreign sexual exploitation trial held in the District of Oregon.
Johnson was convicted on six counts of engaging in illicit sexual conduct in a foreign place and one count each of travel with intent to engage in illicit sexual conduct and aggravated sexual assault with children.
“The despicable nature of this defendant’s conduct is beyond understanding. Whether you are abusing children in this country or abroad, you will be pursued and held accountable in a court of law,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “The fact that this defendant abused children under the guise of being a missionary and orphanage operator is appalling.”
“Daniel Johnson’s promises of charity and a better life were nothing more than lies as he dragged these children into his dark world of abuse,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “This case should serve as a warning to those predators who believe they can hide their crimes – whether here at home or half-a-world-away. We will always stand with the victims, and we will always work to bring justice in their names.”
According to court documents and information shared during trial, between November 2005 and his arrest in December 2013, Johnson systematically and repeatedly molested children who lived at an unlicensed orphanage he operated in Phnom Penh, Cambodia. To date, nine Cambodian victims—who ranged in age from seven to 18 years old at the time of abuse—have disclosed Johnson’s abuse or attempted abuse.
Victims describe a pattern of molestation that includes, among other things, Johnson making them perform oral sex on him and anally raping them. Multiple victims said they were, on numerous occasions, awoken to Johnson abusing them. Following the abuse, Johnson would sometimes provide his impoverished victims with small amounts of money or food. On one occasion, Johnson gave a victim the equivalent of $2.50 in Cambodian currency.
In 2013, a warrant was issued for Johnson’s arrest on an unrelated case by officials in Lincoln County, Oregon. Local law enforcement officers worked with the FBI to locate Johnson overseas. The FBI in turn worked with the U.S. Department of State to revoke Johnson’s passport based on the Oregon warrant. Through the work of the FBI, Action Pour Les Enfants, a non-governmental organization dedicated to ending child sexual abuse and exploitation in Cambodia, and the Cambodian National Police (CNP), Johnson was located in Phnom Penh.
On December 9, 2013, CNP arrested Johnson. Based on disclosures made by children at the orphanage, Cambodian officials charged Johnson and detained him pending trial. In May 2014, Johnson was convicted by a Cambodian judge of performing indecent acts on one or more children at the orphanage and sentenced to a year in prison. Following his release from prison, Johnson was escorted back to the U.S. by the FBI.
Based on the sexual-abuse allegations against him, the FBI undertook a lengthy investigation of Johnson. During the course of their investigation, agents interviewed more than a dozen children and adults who had resided at the orphanage. Many of the interviews were audio- and video-taped and, in several instances, conducted in Cambodia by trained child-forensic interviewers. Some victims were interviewed multiple times before disclosing Johnson’s abuse.
Johnson was indicted by a federal grand jury in Eugene, Oregon on December 20, 2014 on one count of engaging in illicit sexual conduct in a foreign place. Seven additional charges were added by superseding indictment on May 17, 2017.
While in custody awaiting trial, Johnson made multiple efforts to tamper with witnesses and obstruct justice. Johnson contacted his victims online, encouraging them to lie and offering money and gifts. One message, sent via his relative’s Facebook account to an adult in Cambodia, discussed visiting a victim’s family and encouraging them to convince the victim to retract their statement, potentially in exchange for $10,000. Another message explains the need for a victim to say they were under duress and “pushed by police” to thumbprint a document.
Johnson faces a maximum sentence of life in prison and is subject to a 30 year mandatory minimum. He will be sentenced on Wednesday, August 22, 2018 before U.S. District Court Judge Michael J. McShane.
This case was investigated by the FBI. It was prosecuted by Jeffrey S. Sweet and Ravi Sinha, Assistant U.S. Attorneys for the District of Oregon, and Lauren E. Britsch, Trial Attorney for the Justice Department’s Child Exploitation and Obscenity Section. Amy E. Potter, Assistant U.S. Attorney for the District of Oregon, assisted with the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s 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.projectsafechildhood.gov.
Omaha Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Joe Kelly announced today that on May 16, 2018, United State District Court Judge Robert F. Rossiter, Jr., sentenced Rodney Lillard, age 34, of Omaha, Nebraska, for his conviction for felon in possession of a firearm. Lillard was sentenced to a jail term of 30 months and was placed on supervised release for one year.
Defendant was arrested in May of 2017 for driving under the influence and possession of a handgun. At the time of the arrest, he had just been released from prison for another conviction for felon in possession of a firearm and was on supervised release for that crime. This is the defendant’s third conviction for possessing a firearm while a felon.
This case was investigated by Sarpy County Sheriff’s Office.
Oklahoma City Man Sentenced to 262 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jason Delaney Kiplinger, age 36, of Oklahoma City, Oklahoma was sentenced to 262 months imprisonment and 5 years supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2. The charge arose from an investigation by the Sallisaw Police Department, the Sequoyah County Sheriff’s Office, and the Drug Enforcement Administration.
The Indictment alleged that on or about February 6, 2017, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
“Methamphetamine distributors profit from their businesses while individuals, families, and communities are destroyed by their poisonous product. The defendant in this case possessed thousands of dosage units that would have arrived in various communities in Southeast Oklahoma if it weren’t for the work of the Sallisaw Police Department, Sequoyah County Sheriff’s Office, and the DEA,” said United States Attorney Brian J. Kuester. “Because of their thorough and professional investigation the members of this office were able to successfully prosecute the defendant thereby holding him accountable and ending his ability to distribute methamphetamine.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Christopher Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
New York Man Admits Role in Counterfeit Credit Card Scheme Targeting Western PA BusinessesRead the Press Release
PITTSBURGH, PA – A resident of Albans, New York, has pleaded guilty in federal court to a charge of conspiracy, United States Attorney Scott W. Brady announced today.
Dashamae Wayne, 27, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that in June 2016, Dashamae Wayne and conspirators used counterfeit credit cards at multiple stores in Western Pennsylvania to purchase gift cards and merchandise, which totaled approximately $91,000.
Judge Fischer scheduled the sentence for November 2, 2018 at 9 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both at each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of this defendant. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police, the Pennsylvania State Police, and the Robinson Township Police Department.
Navajo Man from McKinley County Sentenced to Prison for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Roland Skeets, 27, an enrolled member of the Navajo Nation who resides in Smith Lake, N.M., was sentenced today in federal court in Santa Fe, N.M., to 21 months in prison for his conviction on child abuse charges. Skeets will be on supervised release for three years after completing his prison sentence.
Skeets was arrested in Aug. 2017, on an indictment charging him with child abuse resulting in great bodily injury and child abuse. According to the indictment, the crimes took place on March 25, 2016, on the Navajo Indian Reservation in McKinley County, N.M.
On Dec. 6, 2017, Skeets pled guilty to an information charging him with assault resulting in substantial bodily injury. In entering the guilty plea, Skeets admitted that on March 25, 2016, he assaulted a four-year-old child by pushing the child to the ground and yanking him back up by the arm, which fractured the child’s clavicle. Skeets was intoxicated when he assaulted the child.
After assaulting the child, Skeets continued yelling, causing his girlfriend to flee with the injured child and other children to a neighbor’s house in order to call police.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Nicholas J. Marshall prosecuted the case.
Monongalia County man sentenced to nearly eight years for firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Roger Dale LaMar, of Morgantown, West Virginia, was sentenced today to 96 months and 18 days incarceration, to be served concurrently to with his state sentence, for a firearms charge, United States Attorney Bill Powell announced.
Lamar, age 49, pled guilty to one count of “Unlawful Possession of a Firearm” in December 2017. Lamar, having previously been convicted of second degree murder in Preston County Circuit Court in 2001, admitted to having three firearms in his possession. The crime occurred in February 2017 in Taylor County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Taylor County Sheriff’s Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Miranda Gilbert Pleads Guilty to Unlawfully Possessing Firearm and Ammunition, and Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Miranda Gilbert, 31, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws by unlawfully possessing a firearm and ammunition and assaulting a federal officer. The guilty plea was announced U.S. Attorney John C. Anderson, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Michael Geier of the Albuquerque Police Department (APD).
U.S. Attorney John C. Anderson said that Gilbert, whose criminal history includes ten prior felony convictions, is being prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target for federal prosecution violent or repeat offenders with the goal of making communities in New Mexico safer places for people to live and work.
“Today’s proceedings are a reminder that we will never stop working to obtain justice. ATF is committed to aggressively investigating and charging armed, violent criminals in the community. The actions, every day, by the U.S. Marshals and our other law enforcement partners to apprehend wanted, violent fugitives is as necessary as it is dangerous,” said Special Agent in Charge John J. Durastanti of the ATF Phoenix Field Division. “When our law enforcement partners come up against these violent criminals and are assaulted, they can rest assured that ATF will fully investigate the firearms violations surrounding the incident.”
“It is imperative that we use the full weight of the law to prosecute dangerous, career criminals who are willing to violate federal firearm laws and assault law enforcement officers,” APD Chief Michael Geier said. “Offenders who have no regard for law enforcement are more of a threat to civilians and a risk to public safety.”
Gilbert was charged in Oct. 2017, in a criminal complaint with being a felon in possession of a firearm and ammunition on Aug. 20, 2017. According to the criminal complaint, APD officers responded to a call reporting shots fired at a residence in northeast Albuquerque. APD officers learned that when the homeowners arrived at their home, they observed Gilbert parked in a vehicle in their driveway and attempted to block her in the driveway. The homeowners reported that Gilbert responded by pulling a handgun out of her purse, threatening them, and then firing shots close to where one of the homeowners was standing before leaving the area. Gilbert was arrested the next day after attempting to flee from police and ultimately causing an accident.
Gilbert was indicted on Nov. 1, 2017. The three-count indictment charged Gilbert with being a felon in possession of a firearm and ammunition in in Bernalillo County, N.M., on Aug. 20, 2017, and in Guadalupe County, N.M., on Aug. 21, 2017, and with assaulting a federal officer in Guadalupe County on Aug. 21, 2017. According to the indictment, Gilbert was prohibited from possessing firearms or ammunition because she has been convicted of at least ten felony offenses.
During today’s change of plea hearing, Gilbert pled guilty to the indictment without the benefit of a plea agreement.
During its presentation at today’s hearing, the United States proffered a summary of the evidence that it would have been introduced had the case proceeded to trial. That evidence would have included the firearm, a 9 mm caliber pistol, Gilbert possessed, brandished, and discharged in Bernalillo County on Aug. 20, 2017, and also possessed in Guadalupe County on Aug. 21, 2017. The evidence also would have established that on Aug. 21, 2017, in Guadalupe County, Gilbert forcibly assaulted a Supervisory Deputy U.S. Marshal, whom she knew to be engaged in the performance of his official duty based upon her own post-arrest statements made to law enforcement authorities. As Gilbert fled from law enforcement authorities, in an attempt to avoid apprehension, Gilbert used a vehicle as a dangerous weapon and struck the Supervisory Deputy U.S. Marshal, who was inside his vehicle and was required to take evasive action.
The United States’ proffer of evidence also included Gilbert’s ten prior felony convictions:
- residential burglary;
- conspiracy to commit residential burglary;
- trafficking controlled substances (possession with intent to distribute) (heroin);
- receiving or transferring a stolen motor vehicle (possession);
- conspiracy to commit receiving or transferring a stolen motor vehicle (possession);
- receiving or transferring stolen property (over $500 but not more than $2,500);
- escape from a community custody release program;
- possession of a controlled substance (methamphetamine);
- conspiracy to commit possession of a controlled substance (methamphetamine); and
- felon in possession of a firearm.
At sentencing, Gilbert faces a maximum statutory penalty of ten years of imprisonment on each of the two felon in possession of firearms charges. However, if the court determines that Gilbert is an armed career criminal, she faces an enhanced sentence of a mandatory minimum 15 years to a maximum of life imprisonment on the firearms charges. Gilbert also faces a statutory maximum penalty of 20 years of imprisonment on the assault on a federal officer charge.
Gilbert remains in custody pending a sentencing hearing, which has yet to be scheduled.
The Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the APD investigated the case with assistance from the U.S. Marshals Service, New Mexico State Police, and the New Mexico Adult Probation and Parole Division of the New Mexico Corrections Department. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
Mid-State Trucking Company Agrees to Settle Contract and Common Law AllegationsRead the Press Release
Tracie McCormick, Inc., d/b/a McCormick Trucking (“McCormick”), based in Murfreesboro, Tenn., has agreed to pay $750,000 to settle contract and common law allegations of double billing the United States Postal Service (“USPS”) under its contracts for hauling mail, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
“This Office remains committed to protecting the public fisc through affirmative civil enforcement investigations and litigation,” said U.S. Attorney Don Cochran. “Be it healthcare fraud or government contracting disputes, we will diligently pursue any violations of federal law that result in a loss of taxpayer funds.”
The settlement agreement addresses conduct that occurred from approximately January 2011 through November 2013. During that time, the United States alleged that McCormick used credit cards issued by the USPS on certain fuel index routes, the governing contracts of which already provided itemized payment to McCormick for fuel purchased for use on those routes. This double billing resulted in USPS paying twice for fuel used on the specified routes.
"We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative team and the U.S. Attorney’s Office,” said Scott Pierce, Special Agent in Charge, U.S. Postal Service Office of Inspector General. “Along with our law enforcement partners, the USPS OIG will continue to aggressively investigate issues that have a detrimental financial impact on the Postal Service.”
This matter was investigated by the USPS Office of Inspector General and the United States Attorney’s Office for the Middle District of Tennessee. The United States is represented by Assistant U.S. Attorney Christopher C. Sabis.
Massachusetts Man Sentenced to 25 Years for Buying Explosives and Firearms with Intent to Murder Federal Judge, Former AG, and Ex-Wife's HusbandRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Edward McLarnon, 69, of Malden, Massachusetts, was sentenced to serve 25 years in federal prison for receiving firearms with intent to commit murder and other related charges.
After a six-day trial, McLarnon was convicted on January 30, 2018, of: (1) receiving an unregistered silencer; (2) receiving firearms with the intent to commit murder; (3) receiving explosive materials; and (4) receiving an explosive with the intent to harm persons or property.
Evidence presented at trial showed that in October 2015, defendant McLarnon made contact with a person he believed to be an arms dealer (who was actually an undercover FBI agent) for the purpose of buying illegal weapons. After negotiating with the agent at a store in Chichester and paying a total of $700 cash, on November 6, 2015, the defendant took possession of a .22 caliber pistol with silencer, an AK-47 style semi-automatic rifle, and explosives, along with ammunition for the firearms. He then was arrested at a rest stop in Seabrook, NH. The evidence further showed that McLarnon intended to use the weapons to kill his ex-wife's husband, as well as a Boston federal judge and a former Massachusetts Attorney General.
In imposing the 25-year sentence, U.S. District Court Judge Steven J. McAuliffe said “But for some exceptional law enforcement work, you may have caused serious harm to the Commonwealth of Massachusetts, the Federal Judiciary and Mr. Douglas."
“This lengthy sentence is an appropriate punishment for this defendant, whose conduct was truly frightening and dangerous,” said U.S. Attorney Murray. “Because the defendant was frustrated with the legal system, he planned to engage in disturbing acts of violence. We should all be grateful that our law enforcement partners were able to prevent this defendant from putting his violent plan into action. The substantial prison sentence imposed by the court should act as a deterrent to others who might plan to commit violent crimes”.
"Mr. McLarnon went to great lengths and concocted a frightening plan to kill his ex-wife's husband, a sitting federal judge, and a former Massachusetts Attorney General, as a way to express his displeasure with the judicial system. Through the exceptional work and diligence of our Joint Terrorism Task Forces in New Hampshire and Massachusetts, we were able to uncover and disrupt his nefarious plot,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. "Today's sentence ensures that he will no longer be in a position to endanger innocent lives for a very long time.”
This matter was investigated by the FBI, U.S. Secret Service, Homeland Security Investigations, Boston, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney John S. Davis and Special Assistant U.S. Attorney Matthew T. Hunter.
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Maryland man facing counterfeit chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA –Barry Eugene Dragovich, of Cumberland, Maryland, appeared before a federal magistrate judge today after being indicted by a federal grand jury sitting in Clarksburg on May 1, 2018, on counterfeit charges, United States Attorney Bill Powell announced.
Dragovich, age 40, was indicted on five counts of “Uttering Counterfeit Obligations and Securities.” Dragovich is accused of passing counterfeit bills from May to August 2017 in Harrison County.
Dragovich faces up to 20 years incarceration and a fine of up to $250,000 for each count. 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. Attorney Sarah E. Wagner is prosecuting the cases on behalf of the government. The United States Secret Service and the Clarksburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Pleads Guilty to Producing and Distributing Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Manassas Park man pleaded guilty today to producing and distributing child pornography.
According to court documents, Michael Gerald Moody, 44, admitted that, between 2017 and February 2018, he used a child to engage in sexually explicit conduct and he captured numerous images of that conduct with his cell phone. In addition, Moody engaged in text chats with other individuals through the online messaging application Kik Messenger. These chats principally focused on the exchange of images of child sexual abuse and discussions of the sexual abuse of children. In the course of these chats, Moody distributed child pornography, including images that he himself produced, as well as other images, to at least eight other individuals.
Moody pleaded guilty to two counts of producing child pornography and one count of distributing child pornography and faces a mandatory minimum penalty of 15 years in prison when sentenced on September 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Jay V. Prabhu and Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-170.
MS-13 Leader Pleads Guilty to RICO ConspiracyRead the Press Release
BOSTON – An MS-13 member pleaded guilty today in federal court in Boston to racketeering conspiracy.
Jose Vasquez, a/k/a “Little Crazy,” 24, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Aug. 30, 2018.
Vasquez was a member and local leader of the Trece Locos Salvatrucha or TLS clique of MS-13. Vasquez personally participated in racketeering activity on behalf of MS-13. Among other things, on Sept. 8, 2014, Vasquez and another MS-13 member, Angel Pineda a/k/a “Bravo,” were involved in an attempted murder of a suspected gang rival in which the victim was stabbed multiple times.
Separately, Vasquez assisted other MS-13 members in burying evidence relating to a murder in East Boston in January 2016. On Jan. 10, 2016, Edwin Diaz, a/k/a “Demente,” Rigoberto Mejia, a/k/a “Ninja,” and other MS-13 members murdered a 16-year-old boy who MS-13 members believed to belong to the rival 18th Street gang. The victim was shot and stabbed multiple times. A few days after the murder, Vasquez—who did not personally commit the murder—helped another MS-13 member hide evidence related to the murder. Specifically, Vasquez helped bury the knife and machete used in the murder, as well as bloody clothes worn by those who committed the crime. This evidence was later recovered by law enforcement.
After a multi-year investigation, Vasquez was one of dozens of alleged leaders, members, and associates of MS-13 named in a superseding indictment unsealed in January 2016 that targeted MS-13’s criminal activities in Massachusetts. Vasquez is the 46th defendant to be convicted as part of that ongoing prosecution.
Pineda previously pleaded guilty and was sentenced to 93 months in prison. Diaz and Mejia previously pleaded guilty to racketeering conspiracy involving murder and are awaiting sentencing.
At today’s hearing, the Court accepted Vasquez’s guilty plea but deferred acceptance of the proposed plea agreement until the sentencing hearing. Under the terms of the proposed plea agreement, Vasquez will be sentenced to between 15 and 18 years in prison.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
The remaining defendants charged in this case are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Local Man Admits to Distributing Child Pornography ChargesRead the Press Release
CORPUS CHRISTI, Texas - A 36-year-old Corpus Christi man has admitted he distributed child pornography on at least two occasions, announced U.S. Attorney Ryan K. Patrick.
In September 2016, the FBI Child Exploitation Task Force conducted an investigation on a file sharing network looking for potential offenders sharing child pornography. An officer was eventually able to download many images of child pornography from a computer and a specific IP address linked to David Medina in Corpus Christi. Agents obtained a search warrant for Medina’s residence, after which agents seized several digital devices that led to the discovery of more than 3,500 images and 28 videos of child pornography.
Another investigation in 2017 led authorities to a different computer sharing child pornography which was traced to a second residence in Corpus Christi linked to Medina. He cellular phone was seized and allegedly found to contain more than 1,000 images and 95 videos of child pornography.
In Feb. 21, 2018, authorities received information that someone was downloading child pornography at a hotel in Corpus Christi. Medina was found to be renting a room at that location and seized his laptop as part of the investigation. At that time, Medina again admitting to distributing child pornography.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for Aug. 21, 2018. At that time, Medina faces a minimum of 5 years and up to 20 years in federal prison and a $250,000 maximum fine. Upon completion of any prison term imposed, Medina also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the internet.
The FBI conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which 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."
Leesburg Man Sentenced to 14 Years in Federal Prison for CarjackingRead the Press Release
Ocala, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Avery Tumer (24, Leesburg) to 14 years and 2 months in federal prison for carjacking, conspiracy to commit carjacking, brandishing a firearm in furtherance of a crime of violence, and possessing a firearm as a convicted felon.
According to court records, on December 23, 2016, Tumer, along with his co-conspirators Timotheus Reed, Jonathan Lanier, and Amy Scott conspired to rob an individual of his money, other personal items, and his car by arranging a meeting at a gas station in Leesburg between the victim and Scott. The victim believed that he was going to meet the woman only. However, shortly after the victim arrived, Tumer, Reed, and Lanier pulled the victim from his car and stole his wallet and other personal property. During the robbery, the three men wore masks and pointed firearms at the victim. Tumer later pistol-whipped the victim and took his car. All four individuals were arrested a short time later by officers from the Lake County Sheriff’s Office and the Leesburg Police Department.
On November 30, 2017, a federal jury found Tumer and Reed guilty for their roles in the crimes. Reed was previously sentenced to 12 years in federal prison. On November 15, 2017, a separate jury found Lanier guilty for his role and he was sentenced to 13 years in federal prison. Scott pleaded guilty for her involvement and was sentenced to 46 months’ imprisonment.
This case was investigated by the FBI (Daytona Resident Agency), the Lake County Sheriff’s Office, and the Leesburg Police Department. It was prosecuted by Assistant United States Attorney Dale Campion.
Lee County Man Sentenced for Narcotics and Firearms Offenses Under Project Safe NeighborhoodsRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on May 16, 2018, United States District Court Judge Leslie J. Abrams sentenced Chad Curry, age 51, of Leesburg, GA, to 130 months imprisonment for the offenses of Possession with Intent to Distribute Methamphetamine (70 months) and Possession of a Firearm in Furtherance of a Drug Trafficking Crime (60 months). The sentences will run consecutively.
There is no parole in the federal system.
At his guilty plea hearing earlier this year, Mr. Curry admitted that on July 1, 2016, he possessed with intent to distribute about one ounce of crystal methamphetamine, two bags of marijuana, a .25 caliber handgun and items consistent with the manufacture of methamphetamine, which were found in the execution of a search warrant at his residence in Leesburg, Georgia. Mr. Curry further admitted that he had been acquiring methamphetamine from sources in Atlanta, Georgia, and Phoenix City, Alabama, for redistribution, as well as manufacturing some quantities of methamphetamine himself.
“Mr. Curry not only sold highly addictive drugs but was willing to protect his illegal activity through violence if necessary, as evidenced by his possession of a handgun while doing so. Because of that weapon, he received a consecutive five year sentence in addition to what he received for selling drugs. Gun crime means extra time in the federal system,” said United States Attorney Peeler.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was investigated by the Lee County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Lawrence Man Sentenced for Federal Cocaine ChargeRead the Press Release
BOSTON – A Lawrence man pleaded guilty today in federal court in Boston to a federal drug charge.
Hector Gomez, 38, was sentenced by U.S. District Court Judge Richard G. Stearns to time served and three years of supervised release. In November 2017, Gomez pleaded guilty to one count of attempting to possess with intent to distribute cocaine. In December 2016, Gomez was arrested and charged along with five co-defendants: Juan Ulfany Mateo Soto; Angel Torres Leon; Maximo Rodriguez; Angel Figueras; and Wallington Garcia.
On Oct. 27, 2016, officers observed a cocaine transaction between Mateo Soto and Torres Leon. The officers followed the car in which Mateo Soto was transporting the cocaine after the transaction, stopped him, and towed the car because Mateo Soto did not have a valid driver’s license. The officers then found and seized six kilograms of cocaine from a backpack in the car.
Each of the defendants, including Gomez, attempted to retrieve the cocaine that the officers seized. Specifically, Gomez conducted surveillance on the tow truck to identify law enforcement vehicles that might be in the vicinity and reported back to Mateo Soto. Gomez and another defendant then went to the tow yard in an attempt to retrieve the car and the drugs contained in a backpack to return to Mateo Soto.
Maximo Rodriguez was scheduled for jury trial on Feb. 20, 2018, but failed to appear. He is currently a fugitive. Angel Torres Leon and Angel Figueras were sentenced in December 2017 to 40 months in prison and time-served, respectively. Mateo-Soto was sentenced in March 2018 to six years in prison; and Wallington Garcia’s case was dismissed.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Susan Winkler of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Latrobe Man, 22, Sentenced to More than 11 Years in Prison for Distributing Child PornographyRead the Press Release
PITTSBURGH, PA - A former resident of Westmoreland County, Pennsylvania, has been sentenced in federal court to 140 months’ imprisonment, followed by 20 years supervised release, on a charge of distribution of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Timothy David Piper, age 22, of Latrobe, Pennsylvania.
According to information presented to the court, on or about January 29, 2016, Piper knowingly distributed images containing material depicting the sexual exploitation of a minor. Specifically, Piper, groomed and sexually assaulted a minor male child, admitted to taking sexually explicit images and videos of the child using his cellular phone, and shared the images and videos over the Internet.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Scott W. Brady commended the Federal Bureau of Investigation and Greensburg Police Department for conducting the investigation leading to the successful prosecution of Piper.
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.justice.gov/psc.
Las Vegas Man Arranged for Marijuana to be Distributed on Western PA College Campuses, Including IUPRead the Press Release
PITTSBURGH - A resident of Las Vegas, Nevada, pleaded guilty in federal court to charges of conspiracy to distribute 100 kilograms or more of marijuana and conspiracy to launder proceeds of marijuana trafficking, United States Attorney Scott W. Brady announced today.
Ryan Schanck, age 30, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that the Drug Enforcement Administration and other agencies conducted a multi-year investigation of the marijuana trafficking conspiracy of Schanck and his co-conspirators. From 2012 through 2017, Schanck and his co-conspirators arranged for marijuana to be supplied from the West Coast and mailed to the Pittsburgh area through the United States Postal Service. Schanck and his co-conspirators would then distribute the marijuana in the Western District of Pennsylvania, primarily on college campuses, such as Indiana University of Pennsylvania. During the operation of the conspiracy, Schanck conspired to distribute from 700 to 1000 kilograms of marijuana. He also conspired to launder approximately $258,404 in proceeds from marijuana trafficking.
Judge Cercone scheduled sentencing for October 4, 2018. The law provides for a total sentence of not less than five years to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pittsburgh Bureau of Police, and the Indiana Borough Police conducted the investigation that led to the prosecution of Schanck. 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.
Jury Convicts Cyber-Criminal of Operating Counter Antivirus ServiceRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Latvian “non-citizen,” meaning a citizen of the former USSR who had been residing in Riga, Latvia, of three counts related to his operation of “Scan4you,” an online counter antivirus service that helped computer hackers to determine whether the computer viruses and other malicious software they created would be detected by antivirus software.
Ruslan Bondars, 37, was convicted after a five-day jury trial of one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of conspiracy to commit wire fraud, and one count of computer intrusion with intent to cause damage.
“Ruslan Bondars designed and operated a service that provided essential aid to some of the world’s most destructive hackers,” said Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia. “This verdict demonstrates our commitment to holding such actors accountable. I commend the work of the agents and prosecutors, both in the United States and in Latvia, who worked together to bring him to justice.”
According to court records and evidence presented at trial, from at least 2009 until 2016, Ruslans Bondars, 37, operated Scan4you, which for a fee provided computer hackers with information they used to determine whether their malware would be detected by antivirus software, including and especially by antivirus software used to protect major U.S. retailers, financial institutions and government agencies from computer intrusions.
“Ruslans Bondars helped hackers test and improve the malware they then used to inflict hundreds of millions of dollars in losses on American companies and consumers,” said John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division. “Today’s verdict should serve as a warning to those who aid and abet criminal hackers: the Criminal Division and our law enforcement partners consider you to be just as culpable as the hackers whose crimes you enable—and we will work tirelessly to identify you, prosecute you, and seek stiff sentences that reflect the seriousness of your crimes.”
For example, one Scan4you customer used the service to test malware that was subsequently used to steal approximately 40 million credit and debit card numbers, as well as approximately 70 million addresses, phone numbers and other pieces of personal identifying information, from retail store locations throughout the United States, causing one retailer approximately $292 million in expenses resulting from the intrusion.
Another Scan4you customer used the service to assist the development of “Citadel,” a widely used malware strain that was used to infect over 11 million computers worldwide, including in the United States, and resulted in over $500 million in fraud-related losses. The Citadel developer took advantage of a special feature of Scan4you that allowed its integration directly into the Citadel malware toolkit through an Application Programming Interface, or API. The API tool allowed Scan4you users the flexibility to scan malware without the need to directly submit the malware to Scan4you’s website.
At its height, Scan4you was the largest service of its kind and had at least thousands of users. Malware developed with the assistance of Scan4you included some of the most prolific malware known to the FBI and was used in major computer intrusions committed against American businesses.
Scan4you differed from legitimate antivirus scanning services in multiple ways. For example, while legitimate scanning services share data about uploaded files with the antivirus community and notify their users that they will do so, Scan4you instead informed its users that they could upload files anonymously and promised not to share information about the uploaded files with the antivirus community.
Bondars faces a maximum penalty of 35 years in prison when sentenced on September 21. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, John P. Cronan, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and Matthew J. DeSarno, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, made the announcement after U.S. District Judge Liam O’Grady accepted the verdict. Assistant U.S. Attorneys Kellen S. Dwyer and Laura Fong, along with Trial Attorneys C. Alden Pelker and Ryan Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), prosecuted the case.
The Government of Latvia, including the Latvia State Police International Cooperation Department, the Latvia State Police Cybercrime Unit, and the General Prosecutor’s Office of the Republic of Latvia – International Cooperation Division, provided assistance and support during the investigation. Additional assistance was provided by the Criminal Division’s Office of International Affairs, the FBI’s Atlanta Field Office and the Operational Technology Division, and the U.S. Attorney’s Offices for the District of Minnesota and the Northern District of Georgia.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-228.
Jacksonville Felon Pleads Guilty to Firearms OffenseRead the Press Release
Jacksonville, Florida – Daryl D. Shack (28, Jacksonville) yesterday pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on July 17, 2017, officers from the Jacksonville Sheriff’s Office conducted a traffic stop on a car in which Shack was a passenger. At the time, Shack possessed a loaded Beretta pistol, which had previously been reported stolen, between his feet. He also had a baggie of cocaine in his pocket. Officers later recovered a baggie of marijuana, a knife, and an axe from the vehicle. Shack has a previous felony conviction for armed robbery and, therefore, is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
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.
Investment Advisor Sentenced to More Than 5 Years in Prison for Misappropriating $6.5 Million in Client FundsRead the Press Release
CHICAGO — An investment advisor was sentenced today to more than five years in federal prison for stealing $6.5 million from several clients, including family members in the Chicago area.
HENRY MEYER, who owned HCM Asset Management LLC in Coral Gables, Fla., misappropriated the money from 2009 to 2016. Most of Meyer’s clients were his family members and friends, some of whom were elderly and had invested their retirement savings. Meyer used some of the stolen funds to pay personal expenses, including rent, utilities and car payments. His credit card statements reflect expensive purchases at restaurants, including lavish tips in the hundreds of dollars.
U.S. District Judge Charles R. Norgle imposed the 69-month prison sentence and ordered Meyer to pay $6.5 million in restitution to the victims. Meyer, 47, of Coral Gables, Fla., pleaded guilty last year to one count of mail fraud.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
“This case is about a bold and brash con man who has little concern for anybody but himself,” Assistant U.S. Attorney Sunil R. Harjani argued in the government’s sentencing memorandum. “The harm he has caused the victims is hard to overstate.”
According to his plea agreement, Meyer told investors that their funds would be placed in a “European Derivative Investment Program,” whose performance was purportedly premised on the failures of several European economies. In soliciting investors, Meyer claimed the program had partnerships with several European firms, and that he was part of a group of highly successful investment firms operating in the European derivatives markets. Meyer represented that his firm produced investment returns as high as 600%.
In reality, the European Derivative Investment Program did not exist. There was no support from other European companies, and Meyer’s firm never produced any successful returns.
In 2016, Meyer was arrested and a search warrant was executed at his apartment. Among other things, the FBI found a document on Meyer’s desk entitled “Battle Plan.” Part of the document discussed Meyer’s attempt to obtain more funding from new investors in order to make Ponzi-type payments to older investors. Another part of the document discussed how to expedite Meyer’s passport application as part of a plan to evade law enforcement. Meyer’s “Battle Plan” set forth a strategy to travel initially to a location in the southern United States, followed by an “international escape” to such locations as the Bahamas, Thailand, Singapore, Korea, Australia or New Zealand.
Inmate Sentenced to More Than 12 Years in Federal Prison for Attacking Corrections OfficerRead the Press Release
Ocala, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Miguel Angel Rodriguez-Lopez (47) to more than 12 years and 7 months in federal prison for forcibly assaulting a federal officer resulting in bodily injury. He pleaded guilty to the offense on December 13, 2017.
According to court documents and evidence presented at sentencing, Rodriguez-Lopez was an inmate at the Coleman Federal Correctional Complex, United States Penitentiary 2, in Sumter County, Florida. On June 23, 2013, while serving a sentence for assaulting another inmate, Rodriguez-Lopez attacked a federal corrections officer who was making rounds at the prison. He repeatedly punched and kicked the officer until subdued by other staff members. Rodriguez-Lopez, an illegal alien from Mexico, will be deported from the United States upon completion of this latest prison sentence.
This case was investigated by the FBI and the Bureau of Prisons. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Importer of Crystal Methamphetamine Sentenced to Federal PrisonRead the Press Release
LAREDO, Texas – A 20-year-old man has been ordered to prison following his conviction of conspiring to import nearly four kilograms of crystal methamphetamine, announced U.S. Attorney Ryan K. Patrick. Mark Gurrola, of Dallas, pleaded guilty Jan. 9, 2018.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve a total of 78 months in prison. In handing down the sentence, the court noted the serious problems methamphetamine causes for users and the surrounding communities.
On Oct. 14, 2017, Gurrola applied for entry into the United States from Mexico as a passenger on a commercial bus. Agents observed him acting suspicious and searched the area around him. Authorities located four bundles containing crystal methamphetamine.
Gurrola has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Giselle S. Guerra prosecuted the case.
Illegal Alien from Guatemala, Deported Five Times, Charged with Illegal Reentry into U.S.Read the Press Release
PITTSBURGH, PA - An illegal alien found in Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, United States Attorney Scott W. Brady announced today.
The one-count indictment named Joban Rodriguez-Nava, aka Joban Roderiguez, aka Jovan Rodriguez, age 31, of Guatemala, as the sole defendant.
According to the indictment presented to the court, Joban Rodriguez-Nava, an illegal alien, was formally removed from the United States by United States Immigration and Customs Enforcement on March 14, 2011, March 28, 2011, May 24, 2011, June 7, 2011 and June 15, 2012. Joban Rodriguez-Nava was found to be illegally present in Pittsburgh, Pennsylvania, on April 30, 2018.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.