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26 June 2018
Idaho Man Sentenced to Prison for Hostage TakingRead the Press Release
COEUR D’ALENE, IDAHO - On June 26, 2018, Chad Lee Vonk, a 22-year-old resident of Lenore, Idaho, was sentenced to a term of incarceration of 10 years followed by 5 years of supervised release by U.S. District Court Judge Edward J. Lodge on felony charges of Hostage Taking and Strangulation. Mr. Vonk pled guilty to both crimes on November 30, 2017. Vonk’s guilty pleas were related to two different indictments for a pair of consolidated cases in Northern Idaho.
On March 14, 2017, following a 17-hour standoff with law enforcement, a heavily armed suspect was taken into custody. Chad Lee Vonk, an enrolled member of an Alaska tribe, was extracted from his residence through a joint operation that included officers from the Nez Perce Tribal Police, the Nez Perce County Sheriff’s Office, the Lewis County Sheriff’s Office, the Idaho State Police, and the Federal Bureau of Investigation.
Nez Perce Tribal Police initially responded to reports of battery and domestic violence involving several victims at a residence in Lenore, ID. Upon arrival, they determined that Vonk had taken members of the residence hostage. After negotiations with law enforcement, the hostages were released and received medical treatment. Mr. Vonk, however, remained barricaded in the residence. An FBI S.W.A.T team from Montana and Idaho continued negotiations with Vonk in an attempt to have him leave the residence peacefully.
At 10:00 a.m. on the morning of March 14, the S.W.A.T. team forcibly removed Vonk from the residence. No shots were fired. According to a family friend, Vonk was transported to St. Joseph Regional Medical Center for injuries.
Mr. Vonk was then taken into the custody of the Nez Perce Tribe and was charged with domestic battery, resisting arrest, kidnapping, and a weapons offense. Vonk was later federally indicted for hostage-taking and kidnapping.
The Nez Perce County Sheriff, the Idaho State Police, Nez Perce Tribal Police, the Lewis County Sheriff and the FBI were able to peacefully resolve this highly volatile situation, according to Mary Jane Miles, Chairman of the Nez Perce Tribal Executive Committee. “All of the officers involved should be commended for the professional nature of their work in ensuring the safe release of the hostage and capture of the suspect.”
In a second, unrelated matter, Vonk also pled guilty to charges of strangulation in a case involving his domestic partner. In November 29th, 2016, Vonk strangled his then wife in Lenore, Idaho. The victim in that case survived the assault.
The United States Attorney for Montana Kurt G. Alme stated, “We are grateful to the Idaho US Attorney’s Office, the Idaho FBI, the members of the S.W.A.T. team, local and tribal law enforcement and the FBI Victim Witness Coordinators in the Coeur d’Alene Office for their cooperation in this case and support for the victims of these crimes.” This case was prosecuted by AUSA Adam Duerk from the District of Montana who was appointed by the United States Attorney General’s Office as a special prosecutor.
Honduran Man Charged with Transporting Local Minor for SexRead the Press Release
PENSACOLA, FLORIDA – Elvin Castron-Murcia, 19, a Honduran native residing between Louisiana and Tennessee, was arraigned today in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging him with traveling for illicit sexual conduct, transportation of a minor for criminal sexual activity, and false claim of U.S. citizenship. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, in May 2018, Castron-Murcia traveled for the purpose of engaging in illicit sexual conduct and also transported a minor under age 18 for sexual activity. The indictment further alleges that, on May 25, 2018, Castron-Murcia falsely represented himself to be a U.S. citizen.
The defendant was detained pending trial. The trial date is scheduled for August 7, 2018, at 8:00 a.m. at the U.S. Courthouse in Pensacola.
If convicted, Castron-Murcia faces a maximum of 30 years in prison for the sex traveling charge, a minimum of 10 years and a maximum of life in prison for the sex transportation charge, and a maximum of 3 years in prison for the false claim of U.S. citizenship.
The case is being investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Alabama Law Enforcement Agency, and the United States Immigration and Customs Enforcement Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney David Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Hazleton Man Sentenced to 262 Months’ Imprisonment for Shooting and Killing Another Man During A Drug DealRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on June 21, 2018, United States District Court Judge James M. Munley sentenced Christian Rosado to 262 months’ imprisonment on the federal charge of unlawfully possessing and discharging a firearm in furtherance of drug trafficking.
According to United States Attorney David J. Freed, on July 9, 2016, Rosado, age 28, was selling marijuana in Hazelton and a shootout with a customer ensued. Rosado fired his .40 caliber Glock handgun multiple times and killed the drug customer. Rosado was arrested the following day at the hospital where he was being treated for a gunshot wound. Under federal law, Rosado’s possession of the firearm in furtherance of drug trafficking is a federal offense.
The investigation was conducted by the Federal Bureau of Investigation and the Luzerne County District Attorney’s Office. Assistant United States Attorney Evan Gotlob prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
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Former State Street Executive Convicted in Scheme to Defraud Clients Through Secret Trading Commissions on Billions of Dollars of Securities TradesRead the Press Release
A former executive vice president of State Street Bank & Trust was convicted today by a federal jury in Boston in connection with engaging in a scheme to defraud at least six of the bank’s clients through secret commissions applied to billions of dollars of securities trades.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts and Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Division made the announcement.
After a three-week trial, Ross McLellan, 47, of Hingham, Massachusetts, was convicted of one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud and two counts of wire fraud. U.S. District Court Judge Leo T. Sorokin of the District of Massachusetts, who presided over the trial, scheduled sentencing for Oct. 10.
“State Street’s clients, including institutional investors managing pensions for retirees, entrusted McLellan and his subordinates to transition billions of dollars in assets,” said Acting Assistant Attorney General John Cronan. “Rather than living up to the responsibility to act in their clients’ best interests, McLellan and his coconspirators stole from these victims by charging hidden commissions and then lying about the scheme to cover their tracks. This conviction is a testament to the dedication of the FBI and prosecutors in the Criminal Division and U.S. Attorney’s Office to protecting innocent investors by investigating and prosecuting complex financial crimes.”
“Mr. McLellan defrauded State Street clients, violating his fiduciary duties and abusing his clients’ trust along the way,” said U.S. Attorney Lelling. “With systematic precision, Mr. McLellan and his conspirators added secret commissions to securities trades and took steps to conceal the scheme. In doing so, beyond directly defrauding institutional investors, Mr. McLellan chipped away at the savings of thousands of retirees whose pensions he was supposed to safeguard. After only five hours of deliberations, a jury found Mr. McLellan guilty of five of six counts in the indictment.”
“Motivated by sheer greed, Mr. McLellan devised an elaborate bait and switch scheme to defraud State Street’s clients out of millions of dollars, and now he’s finally being held accountable for his actions,” said FBI Special Agent in Charge Shaw. “This case should serve as a warning to others, the FBI and our law enforcement partners will aggressively pursue and bring to justice those who undermine our financial markets.”
In April 2016, McLellan, a former executive vice president of State Street who served as global head of its Portfolio Solutions Group and president of its U.S. broker-dealer, was indicted with Edward Pennings, 47, of Surrey, England, a former senior managing director of State Street and the head of its Portfolio Solutions Group for Europe, the Middle East and Africa.
As established by the evidence at trial, between February 2010 and September 2011, McLellan, Pennings and Richard Boomgaardt, 44, of Sevenoaks, England, a former managing director of State Street, conspired to add secret commissions to fixed income and equity trades performed for at least six clients of the bank’s “transition management” business, which helps institutional clients move their investments between and among asset managers or liquidate large investment portfolios. The commissions were charged on top of fees the clients had agreed to pay the bank, and despite written instructions to the bank’s traders that generally reflected that the clients were not to be charged trading commissions. McLellan, Pennings and Boomgaardt took steps to hide the commissions from the clients and others within the bank, including by directing that the commissions not be broken out in post-trade reports.
For example,
- In a telephone call in March 2010, Pennings instructed Boomgaardt not to talk about the plans to charge hidden commissions on one transaction “with anyone . . . because it’s not going to help our story. Don’t even share it with the rest of the team, to be honest.”
- In June 2010, McLellan and Boomgaardt requested that the bank’s traders provide them with the reported daily high and low prices of securities the bank had traded for the client so that they could determine the amount of the commissions to be applied to each security without attracting the client’s attention.
- In March 2011, McLellan instructed a U.S. fixed income trader to charge a commission of one basis point (0.01 percent) of yield to each trade conducted for another client – notwithstanding that the written trading instructions for the transaction said to charge zero commissions – and subsequently instructed the trader to delete any reference to the commissions from the trading results he sent to the transition manager assigned to the project.
In June 2011, when one of the affected clients inquired about whether it had, in fact, been charged commissions in breach of its agreement with the bank, Pennings initially denied that any commissions had been charged. Later – at McLellan’s direction – Pennings acknowledged only that “inadvertent commissions” had been applied to securities traded in the United States, but did not disclose that they had, in fact, been intentionally charged in both the United States and in Europe. McLellan and Pennings sought to mislead the bank’s compliance staff into believing that the commissions had been charged in error and that the amount of the overcharges was limited to the commissions applied on U.S. securities, the evidence showed.
In June 2017, Pennings pleaded guilty and is scheduled to be sentenced on July 18. Boomgaardt was charged separately and pleaded guilty in July 2017 to one count of conspiracy to commit securities fraud and wire fraud. Boomgaardt is scheduled to be sentenced on July 31.
The case was investigated by the FBI. Trial Attorney William Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney/Economic Crimes Chief Stephen E. Frank of the District of Massachusetts are prosecuting the case. Valuable assistance was provided by the Securities & Exchange Commission and the Justice Department’s Office of International Affairs.
Former State Street Executive Convicted in Scheme to Defraud Clients Through Secret Trading CommissionsRead the Press Release
BOSTON – A former executive vice president of State Street Corporation was convicted today by a federal jury in Boston in connection with engaging in a scheme to defraud at least six of the bank’s clients through secret commissions applied to billions of dollars of securities trades.
Ross McLellan, 47, of Hingham, Mass., was convicted of one count of conspiring to commit securities fraud and wire fraud, two counts of securities fraud and two counts of wire fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Oct. 10, 2018.
“Mr. McLellan defrauded State Street clients, violating his fiduciary duties and abusing his clients’ trust along the way,” said Andrew E. Lelling, United States Attorney for the District of Massachusetts. “With systematic precision, Mr. McLellan and his conspirators added secret commissions to securities trades and took steps to conceal the scheme. In doing so, beyond directly defrauding institutional investors, Mr. McLellan chipped away at the savings of thousands of retirees whose pensions he was supposed to safeguard. After only five hours of deliberations, a jury found Mr. McLellan guilty of five of six counts in the indictment.”
“State Street’s clients, including institutional investors managing pensions for retirees, entrusted McLellan and his subordinates to transition billions of dollars in assets,” said Acting Assistant Attorney General John Cronan. “Rather than living up to the responsibility to act in their clients’ best interests, McLellan and his coconspirators stole from these victims by charging hidden commissions and then lying about the scheme to cover their tracks. This conviction is a testament to the dedication of the FBI and prosecutors in the Criminal Division and U.S. Attorney’s Office to protecting innocent investors by investigating and prosecuting complex financial crimes.”
“Motivated by sheer greed, Mr. McLellan devised an elaborate bait and switch scheme to defraud State Street’s clients out of millions of dollars, and now he’s finally being held accountable for his actions,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office. “This case should serve as a warning to others, the FBI and our law enforcement partners will aggressively pursue and bring to justice those who undermine our financial markets.”
In April 2016, McLellan, a former executive vice president of State Street who served as global head of its Portfolio Solutions Group and president of its U.S. broker-dealer unit, was indicted with Edward Pennings, 47, of Surrey, England, a former senior managing director of State Street and the head of its Portfolio Solutions Group for Europe, the Middle East and Africa. In June 2017, Pennings pleaded guilty and is scheduled to be sentenced on July 18, 2018. Also in June 2017, Richard Boomgaardt, 44, of Sevenoaks, England, a former managing director of State Street, was charged separately and pleaded guilty in July 2017 to one count of conspiracy to commit securities fraud and wire fraud. Boomgaardt is scheduled to be sentenced on July 31, 2018.
Between February 2010 and September 2011, McLellan, Pennings, and Boomgaardt conspired to add secret commissions to fixed income and equity trades performed for at least six clients of the bank’s “transition management” business, which helps institutional clients move their investments between and among asset managers or liquidate large investment portfolios. The commissions were charged on top of fees the clients had agreed to pay the bank, and despite written instructions to the bank’s traders that generally reflected that the clients were not to be charged trading commissions. McLellan, Pennings, and Boomgaardt took steps to hide the commissions from the clients and others within the bank, including by directing that the commissions not be broken out in post-trade reports.
For example,
- In a telephone call in March 2010, Pennings instructed Boomgaardt not to talk about the plans to charge hidden commissions on one transaction “with anyone . . . because it’s not going to help our story. Don’t even share it with the rest of the team, to be honest.”
- In June 2010, McLellan and Boomgaardt requested that the bank’s traders provide them with the reported daily high and low prices of securities the bank had traded for the client so that they could determine the amount of the commissions to be applied to each security without attracting the client’s attention.
- In March 2011, McLellan instructed a U.S. fixed income trader to charge a commission of one basis point (0.01%) of yield to each trade conducted for another client – notwithstanding that the written trading instructions for the transaction said to charge zero commissions – and subsequently instructed the trader to delete any reference to the commissions from the trading results he sent to the transition manager assigned to the project.
In June 2011, when one of the affected clients inquired about whether it had, in fact, been charged commissions in breach of its agreement with the bank, Pennings initially denied that any commissions had been charged. Later, at McLellan’s direction, Pennings acknowledged only that “inadvertent commissions” had been applied to securities traded in the United States, but did not disclose that they had, in fact, been intentionally charged in both the United States and in Europe. McLellan and Pennings sought to mislead the bank’s compliance staff into believing that the commissions had been charged in error and that the amount of the overcharges was limited to the commissions applied on U.S. securities.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss. The charge of wire provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss. The charge of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $ 5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, Acting Assistant Attorney General Cronan, and FBI SAC Shaw made the announcement today. Valuable assistance was provided by the Securities & Exchange Commission and the Justice Department’s Office of International Affairs. Assistant U.S. Attorney Stephen E. Frank, Chief of Lelling’s Economic Crimes Unit and Trial Attorney William Johnston of the Criminal Division’s Fraud Section are prosecuting the case.
Former State Senator Carlos Uresti Sentenced to 12 Years in Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced San Antonio attorney and former District 19 Texas State Senator Carlos I. Uresti to 12 years in federal prison, announced U.S. Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Internal Revenue Service-Criminal Investigation Special Agent in Charge D. Richard Goss, San Antonio Field Office.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that Uresti pay $6,345,441 restitution and be placed on supervised release for a period of three years after completing his prison term.
“As Judge Ezra said, this is a sad day for the community. The judge imposed a just sentence of 12 years in prison that accounts for the fact that former Senator Uresti used his position of trust in the community to lure his victims to the fraudulent scheme at the heart of the case. I hope that this sentence sends the message to others that this office will not tolerate such outrageous abuses of power,” stated U.S. Attorney Bash.
“Today's sentence sends a strong message to those who would defraud and harm others for their own personal gain,” said FBI Special Agent in Charge Combs. “As an elected official, this individual took advantage of his position and power to personally enrich himself at the expense of those who trusted him. It is imperative that all individuals, but especially those who hold elected office, do so with honesty and integrity. The public can have confidence that the defendant is being held accountable for the crimes of which he has been convicted.”
“Today's sentencing of former Texas Senator Carlos Uresti exemplifies IRS Criminal Investigation’s intense focus on rooting out corruption.” said IRS-CI Acting Special Agent in Charge Goss. “No matter what your profession, it is unacceptable to help yourself to other people’s money and violate their trust. Honest taxpayers have been reassured today that no one is above the law.”
In February, a jury found Uresti and FourWinds Logistics, Inc., (FourWinds) consultant Gary L. Cain, guilty on all charges for their roles in a Ponzi scheme that defrauded investors out of millions of dollars. Charges against Uresti included one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, five substantive counts of wire fraud, two counts of securities fraud, one count of engaging in monetary transactions with property derived from specified unlawful activity, and one count of being an unregistered securities broker. Charges against Cain included one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering and seven counts of engaging in monetary transactions with property derived from specified unlawful activity. Prior to jury selection, former FourWinds Chief Executive Officer Stanley P. Bates pleaded guilty to eight separate federal charges including securities fraud and money laundering.
Evidence presented during trial revealed that from February 2014 to December 2015, the defendants developed an investment Ponzi scheme to buy and sell hydraulic fracturing (fracking) sand for oil production. Evidence showed that the defendants made false statements and representations while soliciting investors in FourWinds. Collected funds were then used to pay earlier investors and for personal expenses including gifts, travel, luxury automobiles, controlled substances, and to hire prostitutes.
Evidence also showed that Uresti recruited investors under false pretenses by lying about investing his own money in FourWinds as well as failing to disclose his receipt of a commission and a percentage of the profits resulting from investments in FourWinds. Evidence also revealed that Uresti was not registered as a broker with the Securities and Exchange Commission (SEC).
Evidence and testimony also revealed that Uresti, Cain and Bates engaged in money laundering with the proceeds of wire fraud.
Cain and Bates remain on bond pending sentencing. Cain is scheduled to be sentenced tomorrow at 1:30pm in front of Judge Ezra. Bates is scheduled to be sentenced at 1:30pm on August 6, 2018, in front of Judge Ezra. For each fraud related charge, the defendants face up to 20 years in federal prison upon conviction. For each money laundering charge, the defendants face up to ten years in federal prison upon conviction.
Uresti remains on bond awaiting a second federal trial on unrelated charges. Uresti and Vernon C. Farthing, III, of Lubbock, TX, are charged by a federal grand jury indictment with one count of conspiracy to commit bribery and one count of conspiracy to commit money laundering. The indictment alleges that from January 2006 to September 2016, the defendants conspired with others to pay and accept bribes in order to secure a Reeves County Correctional Center medical services contract for Farthing’s company. The indictment specifically alleges that Farthing paid Uresti $10,000 a month as a marketing consultant and that approximately half of that sum was then given to a Reeves County official for his support and vote to award the contract to Farthing’s company. Upon conviction of the charges contained in this indictment, Uresti and Farthing face up to five years in federal prison for conspiracy to commit bribery and up to 20 years in federal prison for conspiracy to commit money laundering. Jury selection is scheduled for October 22, 2018, in San Antonio before Judge Ezra.
The FBI’s Public Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, IRS-CI, Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant U.S. Joseph E. Blackwell, William R. Harris, Mark Roomberg, Erica Giese and Sean O’Connell are prosecuting this case on behalf of the Government.
Former Shelton Resident Admits Embezzling $326K from EmployerRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MIRIAM DUBAY, 65, of Purcellville, Virginia, waived her right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of wire fraud related to her embezzlement of over $326,000 from her employer.
According to court documents and statements made in court, DUBAY, who formerly resided in Shelton, was the bookkeeper for a small, family-owned business in Shelton. DUBAY was the only accounting person for the business, and she had access to the company’s bank accounts, check stock, accounting books and records, and petty cash. She also was responsible for depositing business checks and cash payments from customers into the company’s bank account.
From at least as early as April 2010 and continuing through October 2016, DUBAY engaged in a scheme to defraud her employer by writing checks on company check stock made out to “cash” and either forging the signature on the checks by hand or by using a fraudulently obtained signature stamp. DUBAY either deposited the checks into her personal bank account or cashed the checks at the bank where her employer maintained its business account. DUBAY forged 168 separate checks totaling $239,851.68.
As part of this embezzlement scheme, DUBAY also stole 108 customer cash payments totaling $86,279 instead of depositing the cash into the business’s bank account.
DUBAY is scheduled to be sentenced on September 17, 2018, at which time she faces a maximum term of imprisonment of 20 years.
DUBAY was released on a $20,000 bond pending sentencing.
This matter is being investigated by the Shelton Police Department, the U.S. Secret Service and the Connecticut Financial Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Former Roslindale Postal Service Employee Charged with Theft of MailRead the Press Release
BOSTON – A former Roslindale Post Office employee was arrested today and charged in federal court in Boston in connection with embezzling mail.
Megan Hawes, 28, of Roslindale, was indicted on one count of theft of mail matter by a Postal Service employee. She appeared in federal court in Boston this afternoon and was released on conditions.
According to the indictment, which was unsealed today, the offenses occurred from approximately March 2017 to May 10, 2018, while Hawes was an employee of the Postal Service in Roslindale.
The charge provides for a sentence of no greater than five years in prison, up to three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office; and Weymouth Police Chief Richard C. Grimes made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Prison Official Pleads Guilty to Sex OffensesRead the Press Release
BECKLEY, WV—United States Attorney Mike Stuart announced today that a former Federal Bureau of Prisons official pled guilty to unlawfully engaging in sexual activity with female inmates at the Federal Prison Camp at Alderson. Stuart commended the investigation conducted by the Federal Bureau of Prisons (BOP), the Department of Justice Office of Inspector General and the Federal Bureau of Investigation (FBI).
“The Federal Bureau of Prisons is charged with protecting public safety by ensuring federal offenders serve sentences of imprisonment in safe, secure and humane facilities,” said United States Attorney Mike Stuart. “Grimes’ criminal conduct undermines the very mission of the organization and is not representative of the professionalism BOP expects from employees. Prosecution of cases like this helps to ensure the protection of federal inmates and the integrity of the criminal justice system.”
Jarred Grimes, 39, of Inverness, Florida, pled guilty to four counts of sexual abuse of a ward and two counts of abusive sexual contact involving a ward. Grimes admitted to having sexual intercourse with four inmates and other sexual activity with two other inmates between about November 2016 and December 2017. Grimes was a captain when the crimes occurred, and was in charge of all correctional and security functions at the prison. Under federal law, the inmates were not capable of giving consent to engage in any sexual activity with Grimes. Grimes resigned from the Bureau of Prisons in December 2017. Under the terms of his plea agreement, he faces up to ten years in prison when he is sentenced on October 17, 2018.
Assistant United States Attorney John File is handling the prosecution. United States District Judge Irene C. Berger presided over the plea hearing.
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Former Army Contractor Pleads Guilty for "No Show" Job Involving Contract at Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – Eric D. Price, age 58, of Fayetteville, North Carolina pleaded guilty today to a charge of conspiracy to defraud the United States and commit wire fraud, related to payments to him for a "no show" job on a sub-contract under contracts awarded by the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, in March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. Task Orders 11, 77, and 115 were placed against this contract. John Kays had a leadership position as a civilian employee of the Army related to these task orders.
Matthew Barrow was the president and owner of MJ-6, LLC, a company which he and his wife formed in Ohio in 2008 to obtain military subcontracts. John Kays steered business on Task Orders 77, 11, and 115 to MJ-6.
According to Price’s plea agreement, Kays and Barrow agreed that Price would be added to the MJ-6 payroll. Price's job was purportedly to directly support Kays. Price purportedly worked remotely at Fayetteville, North Carolina while Kays worked at APG. From February 2010 through February 2012, Price fraudulently received more than $100,000 in salary payments for a "no show" job at MJ-6 for which MJ-6 billed over $400,000 to the prime contractor, which was passed through to the United States Army. Kays certified and approved MJ-6's work, including Price's "no show" job. To facilitate the “no show” job, Price submitted false and fictitious status reports and invoices through MJ-6 to the prime contractor.
In all, MJ-6 paid Price $105,556.17 for his “no show” job during the period from May 2010 through February 2012. Barrow, through MJ-6, billed the prime contractor, who in turn billed the Army, $422,704 for Price's purported work, which was certified by Kays. Price was unaware of the amount of mark-up to his salary by MJ-6.
As part of his plea agreement, Price will be required to pay restitution to the government of $105,556.17.
Price faces a maximum sentence of five years in prison for the conspiracy. U.S. District Judge George L. Russell, III has scheduled sentencing for September 28, 2018 at 2:30 p.m.
In connection with a larger bribery scheme involving John Kays, age 44, his wife Danielle Kays, age 43, both of Bel Air, Maryland, and Matthew Barrow, age 44, of Toledo, Ohio, Barrow pleaded guilty to paying bribes of approximately $800,000, including $500,000 in cash, to John Kays and Danielle Kays, who was also a government official. John Kays pleaded guilty to receiving bribes of approximately $800,000 from Barrow and was sentenced to six years in prison. Danielle Kays is presently serving an 18-month sentence for conspiracy to defraud the United States and bribery. Matthew Barrow is awaiting sentencing. John Kays, Danielle Kays, and Matthew Barrow all graduated from West Point where they were classmates.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Task Force includes the United States Attorney’s Offices, the FBI, the U.S. Inspectors General community, and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Robert K. Hur commended the DCIS, the Army Criminal Investigation Command, and the FBI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Harry M. Gruber, who are prosecuting the case.
First Nationwide Undercover Operation Targeting Darknet Vendors Results in Arrests of More Than 35 Individuals Selling Illicit Goods and the Seizure of Weapons, Drugs and More Than $23.6 MillionRead the Press Release
Today, the Department of Justice, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Secret Service (USSS), the U.S. Postal Inspection Service (USPIS) and the U.S. Drug Enforcement Administration (DEA), announced the results of a year-long, coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet. Special Agents of the HSI New York Field Division, in coordination with the U.S. Attorney’s Office for the Southern District of New York, posed as a money launderer on Darknet market sites, exchanging U.S. currency for virtual currency. Through this operation, HSI New York was able to identify numerous vendors of illicit goods, leading to the opening of more than 90 active cases around the country. The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice’s Criminal Division, working with more than 40 U.S. Attorney’s Offices throughout the country, coordinated the nationwide investigation of over 65 targets, that lead to the arrest and impending prosecution of more than 35 Darknet vendors.
These results were announced by Deputy Attorney General Rod J. Rosenstein, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Special Agent-in-Charge Angel M. Melendez of HSI New York Field Office, Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service (USPIS) New York Division, Assistant Director Kenneth Jenkins of the U.S. Secret Service (USSS) Office of Investigations, and Special Agent in Charge James J. Hunt of the U.S. Drug Enforcement Administration (DEA) New York Division.
“Criminals who think that they are safe on the Darknet are wrong,” said Deputy Attorney General Rosenstein. “We can expose their networks, and we are determined to bring them to justice. Today, we arrested more than 35 alleged Darknet vendors. We seized their weapons, their drugs, and $23.6 million of their ill-gotten gains. This nationwide enforcement effort will reduce the supply of deadly drugs like fentanyl that are killing an unprecedented number of Americans. I want to thank our federal prosecutors, and the dedicated federal agents with DEA, Homeland Security Investigations, the Postal Inspection Service, and the Secret Service for their outstanding work.”
“The Darknet is ever-changing and increasingly more intricate, making locating and targeting those selling illicit items on this platform more complicated. But in this case, HSI special agents were able to walk amongst those in the cyber underworld to find those vendors who sell highly addictive drugs for a profit,” said HSI Acting Executive Associate Director Benner. “The veil has been lifted. HSI has infiltrated the Darknet, and together with its law enforcement partners nationwide, it has proven, once again, that every criminal is within arm’s reach of the law.”
“Postal Inspectors and their law enforcement partners will spare no resource or expense to shine a light on the sale and distribution of illicit and dangerous items on the Darknet, that serve to destroy the lives of many through addiction and despair,” said Inspector in Charge Rendina. “Today’s announcement of our law enforcement partnership and operation sends a strong message to those who choose this illegal path, we are watching and will bring you to justice for your crimes against the American public.”
“The Secret Service is proud to work with our law enforcement partners to help combat one of the largest threats to the U.S. financial infrastructure, money laundering with virtual currency,” said U.S. Secret Service Assistant Director Jenkins. “The Secret Service continues to adapt along with these cyber criminals to maintain our level of success in stopping them.”
“At this crucial time of unprecedented drug related deaths, one of the greatest threats we face is cyber drug trafficking,” said DEA Special Agent in Charge Hunt. “Because the Darknet invites criminals into our homes, and provides unlimited access to illegal commerce, law enforcement is taking steps to identify and arrest those involved. I applaud all the agencies who participated in this groundbreaking investigation.”
The extensive operation, which culminated in four weeks of more than 100 enforcement actions around the country, resulted in the following:- Federal arrests of more than 35 Darknet vendors who engaged in tens of thousands of sales of illicit goods;
- Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, more than 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence;
- Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher;
- Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity;
- Seizure of more than $3.6 million in U.S. currency and gold bars;
- Seizure of nearly 2,000 Bitcoins and other cryptocurrencies, with an approximate value of more than $20 million;
- Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
- Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.
Amongst those charged federally, include:
- Antonio Tirado, 26, and Jeffrey Morales, 32, of the Bronx, New York, were arrested on June 18, and separately charged by the U.S. Attorney’s Office for the Southern District of New York with distribution and possession with intent to distribute narcotics, including cocaine, LSD (also known as “acid”), marijuana, and hashish oil. Additionally, Tirado was charged with possession of a firearm in furtherance of his drug trafficking offenses. Following an investigation into a Darknet marketplace vendor using the moniker “Trapgod,” investigators executed search warrants at homes in two residential neighborhoods in the Bronx leading to Tirado and Morales. As alleged in the complaints, during the execution of the search warrants at the Tirado and Morales residences, agents seized controlled substances including powder cocaine, marijuana, and LSD, as well as various precursor powders, liquids, and reagents, and other narcotics-related paraphernalia including marijuana growing equipment, a home chemistry lab, scales, and heat sealing packaging materials. In Tirado’s home, agents recovered a fully loaded shotgun alongside a narcotics stash. Investigators in Tirado’s apartment recovered additional evidence of Darknet narcotics distribution, such as numerous U.S. Postal Service shipping boxes, already addressed to customers around the United States, which boxes contained hairbrushes some of which had already been packed with powder cocaine for distribution.
- Jian Qu, 30; Raymond Weng, 24; and Kai Wu, 22, all of Queens, New York, along with Dimitri Tseperkas, 22, and Cihad Akkaya, 22, of Middle Island and Port Jefferson, New York, respectively, were each arrested on June 18, and charged by the U.S. Attorney’s Office for the Southern District of New York with participation in a conspiracy to distribute more than 1,000 kilograms of marijuana. Tseperkas and Akkaya were also charged with firearms offenses relating to the drug conspiracy. Investigators monitoring Darknet marketplaces found accounts used by some of the conspirators, leading agents to execute search warrants at three addresses in residential communities in Flushing and Mt. Sinai, New York. From the residences, agents recovered approximately $400,000 in U.S. currency, 140 kilograms of suspected marijuana and an additional 10 kilograms of suspected marijuana vape cartridges, 12 kilograms of suspected Xanax pills, over half a kilogram of suspected ecstasy, four pill presses, mixers, and pill press parts, over a dozen kilograms of various powders, packaging materials, and paraphernalia. While searching the residence where Akkaya and Tseperkas were found, investigators recovered three loaded shotguns, including a tactical double-barreled shotgun loaded with 14 shells, and over 50 shotgun shells, as well as significant quantities of narcotics, packaging materials, and paraphernalia including a money-counting machine. Review of electronic evidence recovered from the residences proved the conspirators’ connections to Darknet marketplaces, use of cryptocurrency, and narcotics distribution schemes.
- Ryan Farace, 34, of Reisterstown, Maryland, and Robert Swain, 34, of Freeland, Maryland, were charged by the U.S Attorney’s Office for the District of Maryland related to a scheme to manufacture and distribute alprazolam tablets, which are typically sold under the brand name “Xanax.” The indictment alleges that Farace distributed the drugs through sales on the dark web in exchange for Bitcoin, and that Farace and Swain laundered the drug proceeds through financial transactions designed to conceal the source and ownership of the illegal funds. To date, law enforcement has seized various crypto currency, to include bitcoin, valued at over $22 million at the time of the seizures, and over $1.5 million in cash, which was seized from Farace’s residence upon the execution of a search warrant on Jan. 18. As part of the indictment, the government seeks the forfeiture of no less than $5.665 million, plus the value of 4,000 Bitcoin believed to be the proceeds of the illegal drug sales, two residences, and a vehicle used to facilitate the drug distribution.
- Nicholas J. Powell, 32, and Michael Gonzalez, 27, former and current residents of Parma, Ohio, respectively, were charged by the U.S. Attorney’s Office for the Northern District of Ohio with conspiracy to distribute controlled substances and laundering money using the dark web. The complaint alleges that Powell used various monikers on Darknet marketplaces as part of his criminal scheme, including “TheSource,” “BonnienClyde,” BnC,” “BCPHARMA,” and “Money TS.” The conspiracy operated on multiple Darknet marketplaces, including Silk Road 2, AlphaBay, and HANSA. The conspiracy involved distributing Xanax, steroids, marijuana and other drugs across the country using these and other Darknet monikers. Powell and Gonzalez would then launder the funds as cryptocurrencies such as Bitcoin, Etherium, and Komodo through individuals specializing in money laundering on Darknet marketplaces. At the time of arrest, law enforcement had already seized approximately $437,000 in cryptocurrencies from Powell.
- Jose Robert Porras III, 21, and Pasia Vue, 23, both of Sacramento, were charged with drug distribution, money laundering, and illegally possessing firearms, in a 16-count indictment returned by a grand jury in the Eastern District of California. According to the indictment, Porras and Vue were using the online monikers “Cannabars” and “TheFastPlug,” to distribute marijuana, Xanax, and methamphetamine on various dark web marketplaces, including Trade Route, Wall Street Market, and Dream Marketplace. Porras and Vue then laundered the Bitcoin proceeds of their drug distribution through the HSI undercover agent located in New York. After receiving the Bitcoin from Porras and Vue, the undercover agent mailed parcels of cash to them in Sacramento. HSI and USPIS agents seized nine weapons including an AK-47 magazine and ammunition, 30 pounds of marijuana, $10,000 in U.S. currency, a vehicle, and over 100 bars of Xanax.
- Sam Bent, 32, of St. Johnsbury, Vermont (and formerly of East Burke, Vermont), and his cousin, Djeneba Bent, 26, also of St. Johnsbury (and formerly East Burke) were charged with conspiracy to distribute LSD, MDMA (also known as “ecstasy”), cocaine, and marijuana in an indictment returned by a federal grand jury in the District of Vermont. The indictment alleges that the conspiracy involved setting up accounts on dark web marketplaces, establishing online identities, accepting Bitcoin in exchange for sales over the dark web, and mailing controlled substances from several different post offices in Northeastern Vermont and Northwestern New Hampshire in an effort to avoid detection. The indictment also charges Sam Bent with four counts of money laundering involving three different exchanges of bitcoin drug distribution proceeds for U.S. currency.
- In Fresno, California, a federal grand jury returned an 11-count indictment on May 17, against Daniel Boyd McMonegal, 35, of San Luis Obispo and Mariposa, California, charging him with drug distribution and money laundering in the Eastern District of California. According to the indictment, McMonegal, using the online monikers “Sawgrass,” “Ross4Less,” and “ChristmasTree,” distributed marijuana on various dark web marketplaces, including Dream Market. McMonegal was also the owner of a marijuana delivery service in San Luis Obispo called West Coast Organix, which claimed to be a non-profit medical marijuana cooperative. McMonegal then laundered the Bitcoin proceeds of his drug distribution through an undercover agent located in New York. After receiving the Bitcoin from McMonegal, the undercover agent mailed parcels of cash to McMonegal in San Luis Obispo and Mariposa.
More than 50 Darknet vendor accounts were identified and attributed to the real individuals selling illicit goods on Darknet market sites such as Silk Road, AlphaBay, Hansa, Dream, and others. HSI-New York Field Division and MLARS coordinated with law enforcement and federal prosecutors to investigate 65 targets identified by the undercover operation in more than 50 Federal districts, including: the District of Arizona, the Eastern District of Arkansas, the Western District of Arkansas, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the Middle District of Florida, the Northern District of Florida, the Southern District of Florida, the Northern District of Iowa, the District of Kansas, the District of Maryland, the Eastern District of Michigan, the District of Minnesota, the Eastern District of North Carolina, the Western District of North Carolina, the District of New Hampshire, the Northern District of New York, the Southern District of New York, the Western District of New York, the District of North Dakota, the Northern District of Ohio, the Southern District of Ohio, the District of Oregon, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Carolina, the District of South Dakota, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the Western District of Texas, the Eastern District of Virginia, the District of Vermont, the Eastern District of Washington, and the Western District of Washington. FBI was part of the investigative team in the Northern District of California.
The investigation is ongoing.Fifteen Alleged Members of Peoria Street Gang Charged in Federal RICO Indictment for Gang Violence, Murder, Attempted MurderRead the Press Release
PEORIA, Ill. – A federal indictment unsealed today charges 15 alleged members of the Peoria street gang Bomb Squad with organized violent gang activity including murder and attempted murder. The indictment alleges that those charged are participants in a racketeering conspiracy that has committed numerous shootings and acts of violence, including the April 8, 2018, murder of a rival gang member and a bystander, a Bradley University student.
U.S. Attorney John E. Childress; ATF Resident Agent in Charge Tom Dart, Springfield Field Office; Peoria Interim Chief of Police Loren Marion III; DEA Assistant Special Agent in Charge Glenn Haas, Chicago Field Division; Peoria County State’s Attorney Jerry Brady; and Peoria Mayor Jim Ardis made the announcement.
The indictment charges the defendants with federal racketeering conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO). Under the RICO statute, the indictment alleges that from 2013 to the present, the defendants functioned as a criminal enterprise to achieve its objectives, including activities that affect interstate commerce. Members and associates of Bomb Squad allegedly engaged in acts of violence, including murder, attempted murder, assault with a dangerous weapon, arson, and drug trafficking. The enterprise used violence to protect itself, its members and associates from rival gangs and to protect the standing and reputation of Bomb Squad.
All of the 15 defendants named in the indictment are charged with one count of RICO conspiracy, an offense which carries a statutory penalty of up to life in prison, if convicted. Those charged include: Eugene Haywood, aka “Nunu,” 24; Raevaughn Rogers, aka “Lil Poppi,” 18; Kenwan Crowe, 19; Terry Moss, aka “Lil Man,” 23; Ezra Johnson, aka “Lil Wody,” 22; Jovan McCree, aka “Vano,” 36; Jahlin Wilson, aka “BD,” 21; Andre Neal-Ford, aka “Monkey Man,” 20; Lance Washington, 22; Torieuanno White, aka “T.A.,” 24; Sherman Williams, aka “Shady,” 26; Lloyd Dotson, 27; Keith Gregory, aka “Kilo,” 19; Mytrez Flora, aka “Trez,” 24; and Kentrevion Watkins, aka “Tutu,” 19.
Twelve of the defendants are also charged with one or more counts of Violent Crimes in Aid of Racketeering (VICAR) that include assault with a dangerous weapon and attempted murder, and with using firearms during the commission of a violent crime. In addition, the indictment includes charges of drug trafficking in marijuana, crack cocaine, and heroin, and possession of firearms by felons.
To further the conspiracy and achieve its objectives, the indictment alleges 46 overt acts in which gang members and associates engaged in murder, drug trafficking, witness tampering, arson, and robbery. Included among the overt acts alleged are the following:
- June 23, 2013, Haywood murdered Eric “Greedy” Brown, who he believed to be a rival gang member;
- July 15, 2013, Haywood, Flora, Dotson and deceased Bomb Squad leader Raheem Wilson, aka “Boosie,” conspired to shoot and murder Tyrann Chester, whom they believed to be supplying drugs to a dealer operating independently of Bomb Squad in Bomb Squad territory;
- May 12, 2016, Wilson robbed and shot unnamed victim during a dice game because he believed the victim was dealing drugs in Bomb Squad territory and not sharing the proceeds;
- June 13, 2016, McCree shot a .308 caliber rifle at a car he believed was occupied by rival gang members driving on Arago Street, in Bomb Squad territory. One of the bullets passed through the wall of a residence and struck an 11-year-old girl in the leg as she slept on a couch;
- Feb. 12, 2017, Moss attempted to set fire to the home of an individual he believed to be a rival gang member, in retaliation for the murder of deceased Bomb Squad leader Raheem Wilson, aka “Boosie;”
- Aug. 9, 2017, Williams, Crowe and other Bomb Squad members burglarized a house and stole a safe containing 12 guns which were then distributed to other Bomb Squad members;
- April 4, 2018, Johnson attempted to persuade a witness from testifying in a trial wherein Haywood is charged with shooting an individual with a firearm. When the witness refused to accept a bribe, Johnson threatened the witness;
- April 8, 2018, Watkins provided a juvenile Bomb Squad member with Crowe’s handgun which the juvenile then allegedly used to shoot and kill Anthony Polnitz and Nasjay Murry.
The indictment was returned by the grand jury on June 20, and sealed pending today’s arrests. ATF agents were assisted by the U.S. Marshals Service to make the arrests. Those arrested this morning are expected to make their respective initial appearances in federal court this afternoon. Five of the defendants already in state custody, in Peoria county for state cases or serving a sentence at the Illinois Department of Corrections, are expected to appear in federal court for their initial appearances later this week and early next week.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
The charges are the result of an ongoing investigation by an Organized Crime Drug Enforcement Task Force (OCDETF), a partnership of federal, state and local law enforcement agencies working together to identify, disrupt and dismantle drug trafficking organizations and violent street gangs.
Law enforcement agencies conducting the investigation include ATF, the Peoria Police Department, and DEA, in coordination with the Office of Peoria County State’s Attorney Jerry Brady. Assistant U.S. Attorney Ron Hanna is coordinating the investigation and prosecuting the case on behalf of the government in the Peoria Division, Central District of Illinois.
In addition, this case is part of Project Safe Neighborhoods (PSN), a federal program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The program was reinvigorated in 2017 as part of the Department of Justice’s renewed focus on targeting each community’s most violent criminals.
Felon Sentenced to over 6 Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Zeb Zachariah Wilson, age 29, of Mount Jackson, Virginia, on June 25, 2018 to 76 months in prison, followed by three years of supervised release, for being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department, and Colonel William H. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, on June 7, 2016, a Montgomery County Police officer saw Wilson driving a Volkswagen Jetta with an expired registration. The officer attempted to conduct a traffic stop. Wilson refused to stop the vehicle, leading to a pursuit that ended with Wilson crashing through the gate at Asbury Methodist Village and into a tree. Wilson and a passenger then ran away into a wooded area. With the assistance of a K-9 officer and a Maryland State Police helicopter, Wilson was located in a stream under a log. A search of Wilson after his arrest revealed that he possessed packets of the drug Suboxone.
Montgomery County Police Department officers also saw a handgun in the car Wilson was driving, next to the driver’s seat beside the center console. The handgun, a .380-caliber semi-automatic pistol with an obliterated serial number, was recovered. The Montgomery County Firearms Examination Unit was able to partially restore the serial number, which revealed that the handgun was stolen. The Jetta was also found to have been stolen in Harrisonburg, Virginia on June 2, 2016, and the license plates on the vehicle did not belong to the Jetta. A search of the vehicle recovered multiple stolen items related to ongoing cases in Shenandoah, Virginia, including a 12-gauge shotgun. Law enforcement also recovered 50 rounds of ammunition and a receipt from a Germantown, Maryland retailer indicating that the ammunition had been purchased after the vehicle was stolen.
At the time of the crime, Wilson was on probation in Virginia for a previous felony conviction, and was prohibited from possessing firearms or ammunition due to that and other felony convictions.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the ATF, the Montgomery County Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Ray D. McKenzie, who prosecuted the case.
Federal Jury Finds Brooklyn Park Man Guilty of Methamphetamine TraffickingRead the Press Release
United States Attorney Erica H. MacDonald announced the conviction of JOSE ANDRES VERA-GUTIERREZ, a/k/a “Bullet,” 36, for methamphetamine trafficking. After a six-day trial before U.S. District Judge Wilhelmina M. Wright in Saint Paul, Minnesota, the jury found VERA-GUTIERREZ guilty of one count of conspiracy to possess with intent to distribute methamphetamine. The jury was unable to reach a unanimous verdict on VERA-GUTIERREZ’S co-defendant, MARIBEL TORRES, who was also charged with one count of conspiracy.
“Jose Andres Vera-Gutierrez and his co-conspirators were responsible for trafficking significant amounts of methamphetamine across the country into Minnesota,” said Assistant United States Attorney LeeAnn K. Bell. “This guilty verdict demonstrates yet again law enforcement’s commitment to stopping methamphetamine traffickers from bringing this devastating drug into our communities.”
According to the evidence presented at trial, in December 2016, law enforcement commenced a wiretap investigation that led to a 25-pound methamphetamine seizure on January 18, 2017. VERA-GUTIERREZ and three co-conspirators arranged for the methamphetamine to be transported from California to Minnesota inside hidden compartments in an SUV. On January 18, 2017, the SUV and a trailing passenger car were traveling together on Interstate 35 when a Minnesota State Trooper stopped the SUV for speeding. During the traffic stop, the accompanying passenger car continued driving. Law enforcement found nine packages of methamphetamine hidden behind the panel above the SUV’s rear driver-side wheel and an additional 16 packages hidden behind the panel over the passenger-side wheel. The next morning, law enforcement determined that the passenger car had traveled to VERA-GUTIERREZ’S residence in Brooklyn Park, Minnesota.
This case is the result of an investigation by the Drug Enforcement Administration, the United States Postal Inspection Service, Homeland Security Investigations, the Minnesota State Patrol, the Dakota County Drug Task Force, Ramsey County Sheriff’s Office, Hennepin County Sheriff’s Office, Minneapolis/St. Paul Airport Police, Bloomington Police Department and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney LeeAnn K. Bell is prosecuting the case.
Defendant Information:
JOSE ANDRES VERA-GUTIERREZ, a/k/a “Bullet,” 36
Brooklyn Park, Minn.
Convicted:
- Conspiracy to possess with intent to distribute methamphetamine, 1 count
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Federal Jury Convicts Former Oil Company President for Orchestrating $30 Million Stock Manipulation SchemeRead the Press Release
United States Attorney Erica H. MacDonald announced the conviction of RYAN RANDALL GILBERTSON, 42, founder of Dakota Plains Holdings, Inc., and DOUGLAS VAUGHN HOSKINS, 50, for orchestrating a complex stock manipulation scheme that triggered more than $30 million dollars in fraudulent bonus payments. Following a 10-day trial before U.S. District Judge Patrick J. Schiltz in Minneapolis, Minnesota, the jury found the defendants guilty of multiple counts of wire fraud, conspiracy to commit securities fraud, and securities fraud.
“Ryan Gilbertson masterminded and carried out a complex scheme to manipulate the price of Dakota Plains stock. Although his scheme was complicated, Gilbertson's goal was simple—to line his own pockets at the expense of the company and its investors,” said U.S. Attorney Erica MacDonald. “Gilbertson, a former derivatives trader who co-founded a billion-dollar publicly-traded oil company, was a wealthy man. But like all too many white collar criminals, these defendants were motivated by nothing more than naked greed. The FBI, U.S. Postal Inspection Service, and IRS worked for years to understand, investigate, and prosecute Gilbertson's complex stock manipulation scheme. Thanks to their efforts, these defendants will not escape justice.”
“Postal Inspectors take very seriously their mission to deter the illegal use of the mails for any criminal activity,” said Postal Inspector in Charge, Craig Goldberg. “We are committed to working together with our law enforcement partners to identify, investigate and bring to justice those who would attempt to mask their criminal activity through the use of the mail. Today’s verdict reaffirms how critical a role the US Postal Inspection Service plays in protecting the American consumer from these types of fraudulent schemes.”
“A free market depends on honesty and integrity of those involved in publicly traded companies,” said Jill Sanborn, Special Agent in Charge of the Minneapolis Division of the FBI. “In this case, Gilbertson, the founder of Dakota Plains, along with his associate, conspired to manipulate the market for their own financial gain. We are grateful that the jury saw what we saw in this case – a scheme that looked complex, but was really about market rigging and self-dealing.”
According to the evidence presented at trial, in November 2008, GILBERTSON and his business partner founded Dakota Plains, Inc. (“Dakota Plains”), a privately held company based in Wayzata, Minnesota that owned and operated a transloading facility in New Town, North Dakota. From the outset, GILBERTSON and his partner concealed their involvement in the company by installing their fathers as the company’s executives and two-person board of directors. Rather than capitalize the company at the outset, GILBERTSON caused the company to issue $9 million in promissory notes to himself and other corporate insiders. The notes paid 12% annual interest and included a provision that paid GILBERTSON and the other noteholders a bonus payment based on the average trading price of Dakota Plains stock during the first 20 days of public trading. The bonus payment provision operated as an “embedded derivative” in which the value of the bonus payment would be based on the average price of Dakota Plains stock during the first 20 days of public trading.
GILBERTSON then caused the company to go public via a reverse merger with a company called Malibu Club Tan, which was a publicly traded shell company that operated a single defunct tanning salon in suburban Salt Lake City, Utah. GILBERTSON made it a secret condition of the reverse merger that DOUG HOSKINS, his friend and polo coach, be able to purchase the majority of the freely trading shares, the only shares that could trade publicly following the reverse merger. GILBERTSON then gave $30,000 to HOSKINS, who was deeply in debt and owed money to the IRS and other creditors, in order to purchase 50,000 shares of Dakota Plains stock at a price of $0.50 per share on March 23, 2012, the morning of the reverse merger. That same day, again at the direction of GILBERTSON, HOSKINS began selling his shares at the falsely inflated price of $12 per share.
According to the evidence presented at trial, on the first day of public trading, HOSKINS began selling his newly acquired shares for an inflated price of $12 per share at GILBERTSON’S direction, and continued to do so throughout the first 20 days of public trading following the reverse merger. At the same time, GILBERTSON directed a local stockbroker at a Minneapolis-based securities brokerage firm, to purchase shares of Dakota Plains stock on behalf of both himself and his clients at inflated prices. GILBERTSON also instructed a Salt Lake City-based business consultant to manipulate the price of the stock by ensuring that none of the shell company shareholders sold their stock for less than the $12 per share price offered by his friend and polo coach, HOSKINS. Indeed, on April 4, 2012, GILBERTSON sent a text message to the consultant in Utah bragging that the shell company shareholders “would be participating on sales at 7 bucks [a share] not 12 were it not for my involvement.”
Throughout the 20-day period following the reverse merger, GILBERTSON, with the help of HOSKINS and others, manipulated the price of Dakota Plains stock to increase the average trading price to $11.30 per share. This triggered a $32.8 million bonus payment to GILBERTSON and the other noteholders. GILBERTSON made millions as a result of his stock manipulation scheme. HOSKINS made less money, but still pocketed more than $125,000 from his stock sales, much of which he used to purchase an Argentine polo pony.
In the wake of the fraud scheme, HOSKINS was interviewed by the Securities and Exchange Commission about his involvement in these stock sales. HOSKINS repeatedly lied under oath during the deposition, covering up both his and GILBERTSON’S involvement in the stock manipulation scheme. Among other things, HOSKINS claimed that he did not discuss the stock trades with any other individuals. At trial, GILBERTSON falsely denied his role in the stock manipulation scheme, but conceded that he had arranged for HOSKINS to purchase Dakota Plains stock prior to the reverse merger and had provided HOSKINS with the money with which he purchased the stock.
This case is the result of an investigation conducted by the FBI, Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant United States Attorneys Joseph H. Thompson, Kimberly A. Svendsen, and Melinda A. Williams.
Defendant Information:
RYAN RANDALL GILBERTSON, 42
Delano, Minn.
Convicted:
- Wire fraud, 14 counts
- Conspiracy to commit securities fraud, 1 count
- Securities fraud, 6 counts
DOUGLAS VAUGHN HOSKINS, 50
Wayzata, Minn.
Convicted:- Wire fraud, 2 counts
- Conspiracy to commit securities fraud, 1 count
- Securities fraud, 3 counts
Federal Indictments Unsealed in Cheatham County Taser IncidentRead the Press Release
Federal indictments were unsealed today charging current and former supervisory corrections officers at the Cheatham County Jail in Ashland City, Tennessee, with federal civil rights and obstruction offenses, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John Gore of the Civil Rights Division. Former Corporal Mark Bryant is charged with two counts of deprivation of rights under color of law and two counts of obstruction of justice. Sergeant Gary Ola is charged with two counts of making false statements to federal investigators. Both were arrested earlier today and will make initial appearances before a U.S. Magistrate Judge later this afternoon.
Bryant’s indictment alleges that, on November 5, 2016, he twice used unlawful force on a restrained 18-year-old detainee inside the jail. In the first incident, Bryant used a Taser to stun the detainee four times for a total of approximately 50 seconds while the detainee was in a restraint chair. In a second incident that occurred on the same night, Bryant Tased the detainee for approximately 11 seconds without legitimate justification after the detainee was placed in handcuffs and surrounded by multiple officers. As a result of these unjustified uses of force, the detainee sustained bodily injury. The indictment further charges that Bryant obstructed justice by submitting false reports about both incidents.
Ola’s indictment alleges that he made materially false statements to investigators in two separate interviews during the investigation of Bryant’s Taser usage. In August 2017, Ola falsely told agents with the FBI and Tennessee Bureau of Investigation that he walked away from Bryant and did not see one or more of the Taser cycles that Bryant used on the restrained detainee. In a second interview with the FBI in May 2018, Ola stated falsely that he did not see Bryant Tase the detainee after officers placed the detainee in handcuffs.
If convicted, Bryant faces a maximum sentence of 10 years in prison for the color of law charges and 20 years in prison for the obstruction charges, three years of supervised release, and a fine of up to $250,000. Ola faces a maximum sentence of five years in prison, three years of supervised release, and a fine of up to $250,000.
These cases were investigated by the Federal Bureau of Investigation, and are being prosecuted by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee and Civil Rights Division Trial Attorney Michael J. Songer.
An indictment is merely an accusation and not evidence of guilt. The defendants are presumed innocent until proven guilty.
Duval County Man Sentenced to 57 Months in Federal Prison on Firearms ChargeRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Derrick Burney (40, Jacksonville) to 57 months in federal prison for possessing a firearm as a convicted felon. Burney pleaded guilty on March 20, 2018.
According to court documents, on October 24 and 25, 2017, a confidential source acting at the direction of law enforcement made purchases of marijuana from Burney at a residence in Jacksonville. On October 27, 2017, as federal agents executed a search warrant at that residence, agents encountered Burney and others in the house. In the living room area, agents located a .38 revolver loaded with six bullets and a SKS Norinco rifle with a large capacity magazine that contained 30 bullets. Federal agents also located marijuana and drug paraphernalia used in the sale of narcotics, along with additional ammunition, throughout the residence. Additional investigation by law enforcement revealed that Burney was a multi-time convicted felon and therefore was prohibited under federal law from possessing a firearm or ammunition.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case was investigated by the Federal Bureau of Investigation Violent Crime Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives Jacksonville Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
District Man Sentenced to Two Years in Prison for Felony Assault on Deputy U.S. MarshalRead the Press Release
WASHINGTON – Anthony Nowlin, 23, of Washington, D.C., was sentenced today to two years in prison on a federal charge stemming from a courthouse incident last year in which he assaulted a Deputy United States Marshal, announced U.S. Attorney Jessie K. Liu and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Nowlin pled guilty in February 2018, in the U.S. District Court for the District of Columbia, to a charge of assaulting, resisting or impeding a federal law enforcement officer. He was sentenced by the Honorable Tanya S. Chutkan. Following his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, on Sept. 6, 2017, Nowlin was appearing before the Honorable Maribeth Raffinan in the Superior Court of the District of Columbia for violating terms of his probation in an earlier assault case. Two deputy U.S. marshals were assigned to the courtroom. Judge Raffinan revoked Nowlin’s probation and ordered that he be remanded to the custody of the deputy marshals. Nowlin became loud and belligerent while in the courtroom, and started to walk towards the cellblock before Judge Raffinan finished her ruling.
One of the deputy marshals instructed Nowlin to wait until Judge Raffinan concluded her ruling before leaving the courtroom and going to the cell block. Then, once Judge Raffinan concluded the hearing, the two deputy marshals escorted Nowlin to the cellblock behind the courtroom. Nowlin continued to be belligerent while in the cellblock and resisted efforts by the deputy marshals to search him for weapons or contraband.
As he continued to resist, Nowlin spun around and threw a punch at one of the deputy marshals. A struggle ensued, with Nowlin continuing to punch the deputy marshal in the face and head area. Other deputy marshals responded and Nowlin was subdued. The deputy marshal who was struck by Nowlin was taken to a hospital for medical treatment.
In announcing the sentence, U.S. Attorney Liu and Marshal Hughes commended the work of those who handled the matter from the U.S. Marshals Service. They expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias. Finally, they commended the work of Assistant U.S. Attorney Emory V. Cole, who prosecuted the case.
Department of Justice Announces $110 Million Set Aside Grant Program to Assist Crime Victims in Indian CountryRead the Press Release
This year, for the first time, the 2018 Commerce, Justice, Science, and Related Agencies Appropriations Act provides for three percent of funds from the Crime Victims Fund to be used to support a broad set-aside program for Indian tribes to improve services to crime victims.
The Justice Department’s Office for Victims of Crime (OVC) is seeking applications for the FY 2018 Tribal Victim Services Set-Aside Program solicitation. Under the solicitation, OVC will award eligible tribes, tribal consortia, and tribal designees grants to support a wide-range of services for victims of crime. OVC anticipates making up to $110 million available through this solicitation to support tribes to improve victim services.
The Department of Justice has long recognized the critical need to fully and more effectively support American Indian and Alaska Native (AI/AN) victims of crime. In recent years, the department has conducted numerous tribal consultations and listening sessions to learn more about the needs and resources associated with supporting AI/AN crime victims. The FY 2018 set-aside program has expanded the types of crimes addressed to cover victims of human trafficking; victimization as a result of opioid/drug-related crisis, child abuse and neglect, as well as victims of cybercrime and financial crime, among other areas.
In developing the scope of activities allowable with this funding, OVC took into account input from tribal leaders and other stakeholders regarding needs for victim services in tribal communities. This solicitation has a streamlined, two-phase application process for this unique program.
OVC will conduct a Phase 1 pre-application webinar on Thursday, June 28. Webinar participation is optional but strongly encouraged. OVC staff will review the solicitation requirements and conduct a question and answer session with interested potential applicants. Phase 1 applications are due on August 6, 2018.
To find out more about the tribal set-aside program and to register for the webinar online, visit here.
Current and Former Supervisory Corrections Officers Indicted for Use of Unreasonable Force and Obstruction of JusticeRead the Press Release
Federal indictments were unsealed today charging current and former supervisory corrections officers at the Cheatham County Jail in Ashland City, Tennessee, with federal civil rights and obstruction offenses, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Don Cochran of the Middle District of Tennessee. Former Corporal Mark Bryant is charged with two counts of deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, and two counts of obstruction of justice, in violation of Title 18, United States Code, Section 1519. Sergeant Gary Ola is charged with two counts of making false statements to federal investigators, in violation of Title 18, United States Code, Section 1001. Both were arrested earlier today and will make initial appearances before a U.S. Magistrate Judge later this afternoon.
Bryant’s indictment alleges that, on Nov. 5, 2016, he twice used unlawful force on a restrained 18-year-old detainee inside the jail. In the first incident, Bryant used a Taser to stun the detainee four times for a total of approximately 50 seconds while the detainee was in a restraint chair. In a second incident that occurred on the same night, Bryant tased the detainee for approximately 11 seconds without legitimate justification after the detainee was placed in handcuffs and surrounded by multiple officers. As a result of these unjustified uses of force, the detainee sustained bodily injury. The indictment further charges that Bryant obstructed justice by submitting false reports about both incidents.
Ola’s indictment alleges that he made materially false statements to investigators in two separate interviews during the investigation of Bryant’s Taser usage. In August 2017, Ola falsely told agents with the FBI and Tennessee Bureau of Investigation that he walked away from Bryant and did not see one or more of the Taser cycles that Bryant used on the restrained detainee. In a second interview with the FBI in May 2018, Ola stated falsely that he did not see Bryant tase the detainee after officers placed the detainee in handcuffs.
If convicted, Bryant faces a maximum sentence of 10 years in prison for the color of law charges and 20 years in prison for the obstruction charges, three years of supervised release, and a fine of up to $250,000. Ola faces a maximum sentence of five years in prison, three years of supervised release, and a fine of up to $250,000.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless proven guilty.
These cases were investigated by the Federal Bureau of Investigation, and are being prosecuted by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee’s Nashville Office and Civil Rights Division Trial Attorney Michael J. Songer.
Convicted Sex Offender Is Sentenced to 27 Months for Threatening to Kill Gaston County District Attorney and State ProsecutorRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Larry Brandon Moore, 31, of Gastonia, N.C. was sentenced to 27 months in prison, followed by three years of supervised release, for threatening to kill Gaston County District Attorney Locke Bell and Assistant District Attorney (ADA) Deborah Gulledge.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to court documents and court proceedings, on March 1, 2017, while incarcerated in the Avery Mitchell Correctional Institution in Spruce Pine, N.C., Moore mailed a letter to a ADA Gulledge, in which he threatened to kill her and to murder her family. ADA Gulledge had successfully prosecuted Moore on state charges for sexually exploiting a minor, which resulted in Moore’s conviction and incarceration. Moore also threatened to kill two detectives employed by the Gastonia Police Department.
On or about March 1, 2017, Moore also sent a letter to Gaston County District Attorney Locke Bell, threatening to kill Mr. Bell’s family, to punish the District Attorney and to hold him accountable for ADA Gulledge’s actions.
Moore pleaded guilty to two counts of mailing threatening communications.
In announcing today’s sentence, U.S. District Judge Robert J. Conrad, Jr. stated in open court, “The fact that the defendant committed the offense while serving an active term of incarceration for exploitation of a minor justified a sentence at the very top of the sentencing guideline range.”
The FBI led the investigation. Assistant U.S. Attorney Dana Washington, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Clinton Man Pleads Guilty to $4.7 Million Cattle Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Clinton, Mo., man pleaded guilty in federal court today to a $4.7 million investment fraud scheme in which he defrauded 89 investors who believed they were purchasing cattle for resale at a profit.
Cameron J. Hager, 42, pleaded guilty before U.S. District Judge Gary A. Fenner to one count of wire fraud and one count of money laundering.
Hager, who operated 5A Holdings, LLC, admitted that he engaged in the fraud scheme from July 2015 to September 2017. Hager solicited victims to invest in a “cattle fund” that was used to purchase herds of cattle to be sold later at a substantial profit, although he never actually purchased or intended to purchase any cattle.
Hager received $4.7 million dollars from 89 investors, with investment amounts from $1,000 to $267,000. Hager deposited $394,074 into his business bank account. He also used the proceeds of the scheme, among other things, to make substantial payments on the mortgage of his 46.6-acre residential property (currently listed for sale with an asking price of $899,000), and to purchase a Ford F-150 pickup truck, a Toyota 4Runner, and two Winnebago travel trailers. Under the terms of today’s plea agreement, all of Hager’s interest in that property must be forfeited to the government.
Hager convinced his victims that he was locating herds of cattle that farmers in distress needed to sell. He told them he would use investor funds to buy such herds, then transport the cattle to pastures/feed lots owned by himself or his company, 5A Holdings, where the cattle would be cared for, fattened, and eventually sold to slaughterhouses where Hager had “contacts.” Hager consistently represented that these transactions would produce a net “return” of from 23 to 28 percent on each investment.
Investors filed complaints with the Missouri Secretary of State’s Securities Division, and that office opened an investigation. Hager sent the Securities Division a written response to the allegations of fraud; in that response he admitted that there were no cattle and that he had made false representations to investors.
The wire fraud charge relates to e-mails sent by Hager to a victim investor. The money laundering charge relates to Hager’s withdrawal of $21,500 from his business bank account to purchase a Ford F-150 pickup truck. The FBI determined that the money withdrawn by Hager for this transaction was derived from his wire fraud scheme.
Under federal statutes, Hager is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by First Assistant U.S. Attorney David M. Ketchmark and Assistant U.S. Attorney Thomas M. Larson. Assistant U.S. Attorney Stacey Perkins Rock is handling the forfeiture. This case was investigated by the FBI and the Missouri Secretary of State, Securities Division.
Choctaw Man Pleads Guilty to Sexual Abuse of a MinorRead the Press Release
Jackson, Miss. – Jaylon Thomas, 28, of Choctaw, Mississippi, pled guilty today before U.S. District Judge Daniel P. Jordan III to sexual abuse of a minor, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
On October 16, 2015, the Choctaw Police Department responded to a call for assistance in the Pearl River Community. Officers were able to speak with the minor victim who was transported to the University of Mississippi Medical Center in Jackson for treatment. Thomas admitted to his sexual abuse of the minor.
Judge Jordan will sentence Thomas on September 25, 2018, at 9:00 a.m. in Jackson. He faces a maximum penalty of life in prison and a $250,000 fine.
The case was investigated by the Mississippi Band of Choctaw Indians Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Glenda R. Haynes.
Cherry Hill, New Jersey, Man Admits Conspiring to Deal in Firearms without a LicenseRead the Press Release
CAMDEN, N.J. – A Cherry Hill, New Jersey, man today admitted his role in conspiring to sell at least 100 handguns without a federal firearms license, U.S. Attorney Craig Carpenito announced.
Fr’Neil Hickson, a/k/a “Philly,” 38, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to Count Two of an indictment charging him with conspiracy to deal in firearms without a federal firearms license.
According to documents filed in this case and statements made in court:
Hickson admitted that between December 2009 and April 2013 he sold or brokered the sale of at least 100 handguns obtained from sources outside of New Jersey. The investigation showed that Hickson obtained many of the weapons from Joshua Jackson, a/k/a “Apple,” a/k/a “Trent,” and that Jackson obtained most of the firearms through purchases at gun shows from unlicensed gun sellers without background checks. Some of the firearms were also purchased at Ohio gun stores by straw purchasers working for Jackson, who transported the handguns to New Jersey and resold them to Hickson and Terrance Laboo, a Camden drug dealer. Hickson admitted some of the weapons were equipped with extended magazines capable of holding more than 15 rounds of ammunition.
Hickson also sold handguns directly to Terrance Laboo. At the time of the gun sales, Laboo was engaged with others in drug trafficking, including the sale of PCP and cocaine at the corner of 4th and Chestnut streets in Camden. Hickson and Laboo sold, directed or brokered the sale of many of the firearms to other drug dealers and felons in Camden and surrounding areas.
The count of conspiracy to deal in firearms without a license to which Hickson pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 1, 2018.
Hickson has been in federal custody since his arrest in Atlanta, Georgia, on April 29, 2014. In a separate case in Atlanta, investigated jointly by ATF agents from the Atlanta office and the District of New Jersey, Hickson was arrested for illegal possession of 12 firearms. He pleaded guilty in Atlanta federal court to possession of firearms by a convicted felon and on Oct. 25, 2016, he was sentenced to four years in prison by U.S. District Judge Steve C. Jones. Hickson completed his sentence in that case in August 2017, but remained in federal custody on the indictment that resulted in today’s guilty plea.
This case was part of a long-term investigation of illegal gun trafficking referred to as “Operation Buckeye,” as the bulk of the illegal guns recovered from felons in the Camden, Philadelphia and surrounding areas were originally purchased in Ohio.
On July 21, 2016, Laboo, who had previously pleaded guilty to dealing in firearms without a license, conspiracy to deal in firearms without a license, possession of firearms by a convicted felon, and distribution of a controlled substance, was sentenced by Judge Kugler to six years in prison. On Oct. 25, 2016, Jackson, of Willingboro, New Jersey, who had previously entered a guilty plea to dealing in firearms without a license, conspiracy to deal in firearms without a license, and possession of firearms by a convicted felon, was sentenced to six years in prison.
The ATF investigation showed that the conspiracy involved the illegal acquisition, interstate transfer, and illegal sale of approximately 300 handguns to drug dealers and others.
U.S. Attorney Craig Carpenito credited special agents of the ATF Newark Field Division, under the direction of Special Agent in Charge John B. Devito; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Camden County Prosecutor’s Office, under the direction of Mary Eva Colalillo; and the Burlington County Prosecutor’s Office, under the direction of Scott A. Coffina, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Alyson Oswald of the U.S. Attorney’s Office in Camden.
Charleston Man Pleads Guilty to Federal Drug ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Charleston man caught selling methamphetamine in July 2017 pled guilty today to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Timothy Boggs, 21, entered his guilty plea to an indictment charging him with conspiracy to distribute five grams or more of methamphetamine. Stuart praised the joint investigation conducted by the Drug Enforcement Administration, the Violent Crime and Drug Task Force West, and the Kanawha County Sheriff’s Department STOP Team.
“Excellent teamwork by law enforcement resulted in the conviction of this meth dealer,” said United States Attorney Mike Stuart. “We continue to address the resurgence of meth throughout southern West Virginia communities with aggressive prosecution.”
Boggs admitted that from at least June 2017 to September 2017, he distributed methamphetamine for Melody Legg in Kanawha County. As part of the plea agreement, Boggs admitted to distributing approximately 13 grams of methamphetamine to a confidential informant in July 2017.
Boggs faces at least 5 years but not more than 40 years in federal prison when he is sentenced on October 4, 2018.
The plea hearing was held before United States District Judge Joseph R. Goodwin. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
The drug prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Carlsbad Felon Sentenced to 15 Years for Conviction on Federal Kidnapping and Firearms ChargesRead the Press Release
ALBUQUERQUE – Richard Fierro, 43, of Carlsbad, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 15 years of imprisonment for his conviction on kidnapping and firearms charges. Fierro will be on supervised release for three years after completing his prison sentence. 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 Shane Skinner of the Carlsbad Police Department (CPD) announced the sentence.
Fierro was 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 violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution offenders with the goal of making communities in New Mexico safer places for people to live and work.
The Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Fierro in Nov. 2016, on a criminal complaint charging him with violating the federal firearms laws on Oct. 28, 2016, in Carlsbad, in Eddy County, N.M. According to the complaint, Fierro forced two children into his vehicle at gunpoint, crashed the vehicle, and attempted to flee the scene before CPD officers arrested him. Officers found a firearm, ammunition, and marijuana in Fierro’s vehicle during a search incident to the arrest.
Fierro was indicted on Feb. 15, 2017, and was charged with kidnapping two victims, and with being a felon in possession of a firearm and ammunition on Oct. 28, 2016, in Eddy County. According to the indictment, Fierro was prohibited from possessing firearms or ammunition because he previously had been convicted on cocaine trafficking, aggravated battery, possession of a firearm by a felon, and possession of cocaine base with intent to distribute.
On Oct. 17, 2017, Fierro pled guilty to the indictment. In entering the guilty plea, Fierro admitted that on Oct. 28, 2016, he forced the two juveniles into his vehicle based on the belief that he needed to kidnap them in order to protect his daughter from harm. He later realized that this was not true. Fierro admitted driving around Carlsbad with the two kidnapped victims until he crashed into another vehicle and fled the scene. Fierro also admitted possessing a firearm and ammunition during the kidnapping even though he was prohibited from possessing firearms and ammunition due to his status as a convicted felon.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Carlsbad Police Department and was prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Canadian Accountant Pleads Guilty to Stealing Nearly $600,000 from Massachusetts CompanyRead the Press Release
BOSTON – A Canadian national who worked as an accountant for a Massachusetts company pleaded guilty today in federal court in Boston to stealing nearly $600,000 from her employer.
Thanh Tam Tao Huynh, a/k/a Tiffany Huynh, 30, most recently of Quincy, Mass., pleaded guilty to two counts of wire fraud in connection with a scheme to steal nearly $600,000 from her employer. U.S. District Court Judge Denise J. Casper scheduled sentencing for Oct. 4, 2018.
Huynh was employed as the accountant/bookkeeper by the company from approximately March 2016 through December 2017. Huynh used her position and access to the company’s bank accounts to wire about $425,000 from a company account at the Royal Bank of Canada to accounts in the United States that Huynh and her associates controlled. She also used a company credit card to make unauthorized purchases for herself and her friends. To conceal her actions, Huynh provided her employer with false balance information for the Canadian account, and withheld the personal charge information from the credit card statements she submitted for review. In total, Huynh defrauded her employer of approximately $588,278.
The wire fraud statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Economic Crimes Unit is prosecuting the case.
California Man Sentenced to over 23 Years for Violating Federal Drug LawsRead the Press Release
LOUISVILLE, Ky. – United States District Judge Greg N. Stivers sentenced Charles Henry Ickes, 36, to 280 months in prison followed by 10 years’ Supervised Release, announced United States Attorney Russell M. Coleman.
In March, a federal jury found Ickes guilty of conspiracy to possess with the intent to distribute 50 grams or more of actual methamphetamine after a two-day trial. The evidence introduced during trial showed that Ickes was the source of supply for 100% pure crystal methamphetamine being shipped to the Bowling Green, Kentucky, area from California.
“If like Mr. Ickes you choose to bring substantial amounts of drugs into Kentucky communities, you should expect to spend a substantial amount of time in federal prison” stated U.S. Attorney Russell M. Coleman.
Jordan Grider met Ickes while travelling in California. She later introduced him to Adaryll White, knowing that both were involved in drug trafficking. Ickes initially sent hash oil, dabs and pills – but the drugs didn’t move well. He later fronted eight ounces of crystal methamphetamine to White who distributed the drugs in Bowling Green, Kentucky, through Jason Dean Borden and Joshua Preston Moore.
Law enforcement officials became aware of the drug trafficking when a United States Priority Mail package was intercepted. Execution of a search warrant on the package revealed the presence of one and one-half pounds of crystal methamphetamine. Later forensic testing revealed 100% purity. The Warren County/Bowling Green Drug Task Force became involved in the controlled delivery of the package to White. Law enforcement officials monitored further delivery to Borden at which point he was arrested. Further investigation revealed that Borden used his nephew, Moore, to further the drug trafficking.
Bank records, telephone records, and recorded communications revealed Ickes as the source of supply for the methamphetamine. In the month of January 2015, alone, $14,100.00 was deposited into Ickes’ bank account separate from the VA disability. His only legitimate source of income was a VA disability check for approximately $3,100.00 each month. Trial evidence further showed that the methamphetamine had been imported from Mexico and that Ickes owed “Mexicans” for the drugs he had shipped to Kentucky.
There is no parole in the federal criminal justice system. Ickes faced a mandatory minimum term of imprisonment of 20 years because he had a prior drug felony conviction from California. In 2012, he was convicted of possessing one ounce of methamphetamine for the purpose of sale. He must serve at least 85% of the sentence before consideration for discharge. He remains in the custody of the United States Marshals service pending designation by the Bureau of Prisons.
Assistant United States Attorney Jo E. Lawless prosecuted the case with assistance from the Warren County Commonwealth’s Attorney’s Office and Warren County Attorney’s Office. The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation in conjunction with the Warren County/Bowling Green Drug Task Force. The Task Force is made up of law enforcement officials representing federal, state and local entities. Agencies involved in this investigation and prosecution included United States Postal Inspection Service, Kentucky State Police, and the Bowling Green Police Department.
California Man Apprehended at Cyril E. King Airport Sentenced to Incarceration for Possession of Marijuana with the Intent to DistributeRead the Press Release
St. Thomas, USVI – Kelley Hansen, 28, of California, was sentenced today before District Court Judge Curtis V. Gomez, to 2 ½ months incarceration for possession of marijuana with the intent to distribute, United States Attorney Gretchen C.F. Shappert announced. He was credited by the court for time he had served in custody, pending his sentencing. Judge Gomez also sentenced Hansen to 2 years of supervised released, 200 hours of community service, and a $100 special assessment.
According to the plea agreement, Hansen travelled from California to St. Thomas with the intention of distributing marijuana. Hansen arrived on St. Thomas onboard a commercial airline with approximately two kilograms of marijuana. He was apprehended at the Cyril E. King Airport with the drugs.
The case was investigated by the Drug Enforcement Administration (DEA) and the Department of Homeland Security U.S. Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Burlington County, New Jersey, Man Admits Collecting Disabled Brother’s Monthly Benefit ChecksRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted stealing his disabled brother’s Social Security benefits, U.S. Attorney Craig Carpenito announced.
Steven Mitchell, 43, of Marlton, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of theft of government funds.
According to documents filed in this case and statements made in court:
Mitchell admitted that prior to 2010 his brother was receiving Disabled Adult Child Survivor benefits from the Social Security Administration (SSA). After the death of their mother in 2009, Mitchell became the representative payee with the SSA for his disabled brother in 2010. Mitchell acknowledged that the SSA funds were to be used to pay for his brother’s care at a facility run by the N.J. Division of Developmental Disabilities. Mitchell was supposed to provide Prince Association for the Developmentally Disabled, which is part of the N.J. Division of Developmental Disabilities, with 75 percent of his brother’s survivor benefits to pay for his brother’s care and maintenance at the facility.
While Mitchell was the representative payee, the SSA paid benefits into his brother’s bank account. Mitchell admitted that instead of paying for his brother’s care, he accessed his bank account by making withdrawals and used that money to pay for his personal expenses, including utilities, food, and car payments. Mitchell admitted that from February 2010 to April 2017, he collected $110,495 to which he was not entitled.
The charge to which Mitchell pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 15, 2018.
U.S. Attorney Carpenito credited special agents of the SSA, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, with investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden and Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Trenton.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Bucks County Couple and Telemarketing Firm Agree to Pay Penalty to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA - U.S. Attorney William M. McSwain announced today that the United States filed a civil complaint against John Paul Ryan and Mary Motz Ryan, a married couple in Bucks County, Pennsylvania, and a telemarketing company that they operate together, Scholars in Print. The civil complaint alleges that they violated the False Claims Act by shipping unordered textbooks to the Federal Bureau of Prisons and demanding payment. Also today, the government filed a joint motion asking the court to enter a stipulated order and consent judgment to resolve the matter. The proposed resolution will require the court’s approval before it takes effect.
The government’s complaint alleges that Scholars and Print, acting through the Ryans, made unsolicited telemarketing calls to Bureau of Prisons facilities throughout the country in an attempt to sell textbooks for use in prison libraries. According to the complaint, most facilities said no, but Scholars in Print shipped textbooks anyway and then sent unpaid bills to collection agencies. When confronted, Scholars in Print allegedly stated that the facilities had ordered the textbooks during the telemarketing calls. The complaint alleges that those assertions were false. Other times, Scholars in Print allegedly offered to send the facilities a free sample, and then invoiced them—a classic bait and switch.
The complaint contains several examples of false claims. In one of them, a Bureau of Prisons official allegedly refused to purchase textbooks from Scholars in Print during an unsolicited telemarketing call. John Ryan allegedly hung up on him, prompting the official to email the company to confirm his refusal to order textbooks. A few weeks later, the company allegedly sent textbooks to the same official. During a subsequent call to report the delivery, Ryan allegedly described himself, falsely, as “Dr. Ryan, one of the volunteers here,” and falsely claimed to be “reading from a conversation” presumably documenting that the official had ordered the textbooks.
On another occasion, Ryan allegedly identified himself as Edward Teach—more famously known as Blackbeard, the eighteenth century pirate—and offered a free sample of textbooks to a prison psychologist. The complaint alleges that Ryan then invoiced the prison $331 for these “free” textbooks. According to the complaint, Ryan told investigators that he sometimes identified himself as Edward Teach during telemarketing calls because “you don’t want people to know your name.”
On still another occasion, Scholars in Print demanded that a prison facility pay $680.90 for textbooks that the facility did not order. This demand prompted the facility to send a letter asking the company to stop shipping books for review. Scholars in Print then sent the same facility additional books and an invoice demanding another $435.00.
If approved by the court, defendants will pay a civil penalty of $75,689 for submitting false claims. They will also refrain from marketing products to any federal agency through unsolicited communications or telemarketing.
“The False Claims Act is a powerful tool to stem the tide of fraud against the government, and the allegations in this complaint fall squarely in that category,” said U.S. Attorney William M. McSwain. “Those who try to cheat a federal agency out of taxpayer money will not get away with it, and this case demonstrates our Office is ready, willing, and able to put a stop to this kind of behavior.”
“The OIG is committed to investigating individuals who attempt to defraud taxpayers and the Bureau of Prisons. We will work tirelessly with our law enforcement partners to ensure those who try to cheat the system are held accountable,” stated Lewe F. Sessions, Special Agent-in-Charge of the U.S. Department of Justice Office of the Inspector General’s Fraud Detection Office.
Assistant U.S. Attorney Michael S. Macko handled the case, which arose from an investigation led by the U.S. Department of Justice, Office of the Inspector General.
The allegations against the Ryans and Scholars in Print are allegations only and not findings of liability.
Brooklyn Man Pleads Guilty to Government Contracting FraudRead the Press Release
ALEXANDRIA, Va. – A New York man pleaded guilty today to committing government contracting fraud.
According to court documents, Alter Stesel, aka Herman Stesel, aka Randy Stern, aka Henry Shtaiseel, 41, of Brooklyn, was a government contractor based in Brooklyn. Stesel and his company, A1 4 Electronics Inc., were placed in proposed debarment status by the U.S. Department of Homeland Security for providing counterfeit goods and for a history of failure to perform or unsatisfactory performance on contracts. After learning of his proposed debarment, Stesel created a new company called A1 Tech Pal, Inc., in order to continue obtaining government contracts, including contracts awarded by the General Services Administration and U.S. Department of State, despite his ineligibility due to his proposed debarment status. Stesel used a fake alias to falsely certify to the United States government that he was not currently proposed for debarment. A1 Tech Pal received approximately 37 contracts worth approximately $245,000 as a result of this false certification. Stesel later created another company called Pomegranate Office, Inc., and used another fake alias to falsely certify that he was not presently debarred, although by that time his debarment was in effect. Pomegranate Office received approximately seven contracts worth approximately $60,000 as a result of this false certification.
Stesel pleaded guilty to six counts of wire fraud and faces a maximum penalty of 20 years in prison when sentenced on September 20. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Carol Fortine Ochoa, Inspector General, General Services Administration, and Steve A. Linick, Inspector General for the Department of State, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorney Grace L. Hill and Special Assistant U.S. Attorney Russell Carlberg 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-175.
Bristol Man Pleads Guilty to Heroin Distribution Charge Stemming from Overdose InvestigationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROGER TUSCANO, 48, of Bristol, pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of possession with intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 26, 2017, the Southington Police Department and emergency medical personnel responded to a residence for an unresponsive 54-year-old female who had suffered an apparent drug overdose. Responders attempted lifesaving measures on the victim, including administering naloxone, with minimal effect. The victim was then transported to the hospital. At the scene, officers seized drug and non-drug evidence, including four wax folds that contained heroin.
The victim died on April 28, 2017.
The Connecticut Office of the Chief Medical Examiner determined that the victim’s death was caused by a combination of heroin and clonazepam.
On May 3, 2017, the Bristol Police Department conducted a court-authorized search of TUSCANO’s residence and seized 175 wax folds of suspected heroin, some of which had the same brand stamp as the wax folds found with the victim on April 26. Investigators also seized three cellphones from the residence.
The investigation, which included witness interviews and analysis of TUSCANO’s cell phones, revealed that the victim purchased heroin from TUSCANO at a gas station in New Britain on the morning of April 26, 2017.
TUSCANO was arrested on a federal criminal complaint on October 25, 2017.
Chief Judge Hall scheduled sentencing for September 18, 2018, at which time TUSCANO faces a maximum term of imprisonment of 20 years. TUSCANO is detained pending sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force and the Southington and Bristol Police Departments. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Brazilian National Sentenced for Role in ATM Skimming SchemeRead the Press Release
BOSTON – A Brazilian national pleaded guilty and was sentenced yesterday in federal court in Boston in connection with an ATM skimming operation.
Karem Kawamura, 25, pleaded guilty to one count of aiding and abetting the use of a counterfeit access device and was immediately sentenced by U.S. District Court Judge Richard G. Stearns to time served (three months) and one year of supervised release. Kawamura has agreed to be deported.
In November 2017, Kawamura and her husband, Alexandre Kawamura, entered the U.S. on six-month tourist visas. They traveled to Texas, where, with his wife’s knowledge, Mr. Kawamura placed skimming devices on ATMs in several cities. In January they traveled to the Boston area, and Mrs. Kawamura checked them into a hotel in Chelsea using a fake ID with the alias “Sheyla Porto.” She used this alias to receive two packages from Brazil, each containing ATM skimming equipment. Mr. Kawamura rented a storage unit in Everett using a fake ID with the alias “Alex Justo.” With his wife’s knowledge, he used the storage unit to store ATM skimming equipment. Also with his wife’s knowledge, between February 24 and March 15, 2018, Mr. Kawamura placed skimming devices on drive-up ATMs at Eastern Bank branches in Saugus, Medford, Stoneham, and Malden.
On March 16, 2018, the Kawamuras shopped at Dick’s Sporting Goods in Medford. Mr. Kawamura went to the register and used a credit card bearing his “Alex Justo” alias to pay for a shirt, jacket, and hat. The magnetic strip on the card contained a victim’s stolen bank account information, which Mrs. Kawamura knew about. Mr. Kawamura was arrested later that day and is facing federal charges. He has pleaded not guilty and is awaiting trial. Mrs. Kawamura was arrested two weeks after her husband.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Medford Police Chief Leo Sacco; Milton Police Chief John E. King; Saugus Police Chief Domenic J. DiMella; Stoneham Police Chief James T. McIntyre; and Woburn Police Chief Robert J. Ferullo Jr. made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the cases.
Augusta Man Sentenced for Theft of Government FundsRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Phillip Thompson of Augusta, Ga. was sentenced for conspiracy involving theft of government funds, a violation of Title 18, United States Code, § 371. United States District Judge J. Michelle Childs, of Columbia, sentenced Thompson to 23 months in jail after a sentencing hearing. The judge further ordered that Thompson repay $4,580,469.83 in restitution and, after his release from the Bureau of Prisons, that he serve three years on supervised release.
Facts presented in court established that Thompson worked at the Savannah River Site for Wise Services, and that, beginning in September of 2009 and continuing for several years, Thompson was involved in a scheme in which he and a codefendant stole money using false and fraudulent invoices. An investigation by the U. S. Department of Energy Office of the Inspector General and the Federal Bureau of Investigation revealed that Thompson and his codefendant stole more than six million dollars.
April G. Stephenson, Acting Inspector General for the Department of Energy Office of Inspector General, said: “The Office of Inspector General remains committed to ensuring the integrity of our contractors and subcontractors. Those who choose to abuse their positions of trust while hiding behind sophisticated embezzlement and fraud schemes, will be held accountable.
The U. S. Department of Energy Office of the Inspector General and the Federal Bureau of Investigation investigated the case. Assistant United States Attorney John C. Potterfield of the Columbia office prosecuted the case.
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Alamance County Man Sentenced on Child Pornography ChargeRead the Press Release
GREENSBORO, N.C. – A Snow Camp man who pleaded guilty to receipt of child pornography was sentenced today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
SAMUEL DEXTER RAY, 60, of Snow Camp, North Carolina, pleaded guilty on February 27, 2018, to one count of receipt of child pornography. He was sentenced by Chief United States District Judge Thomas D. Schroeder to 78 months of imprisonment followed by 8 years of supervised release. RAY was also ordered to pay $10,000 in restitution.
Investigators searched RAY’S home on September 15, 2017 and seized several of his electronic devices. They ultimately found thousands of child pornography files on RAY’s laptop and storage devices. RAY downloaded the child pornography from the “dark web” and peer-to-peer file-sharing networks.
This case was investigated by the Alamance County Sheriff’s Office, a member of the North Carolina Internet Crimes Against Children (ICAC) Task Force and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Eric L. Iverson.
It was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. 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.
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25 June 2018
U.S. Attorney Announces the Indictment of Sixteen Individuals on Federal Firearms Charges; Ten are Convicted FelonsRead the Press Release
Jackson, TN - On June 11, 2018, a federal grand jury indicted sixteen individuals for various federal violations originating from criminal conduct in eight counties across West Tennessee. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today. As charged in the indictments, ten of the defendants are prohibited by federal firearms laws from possessing firearms.
Several defendants charged in this series of indictments are alleged to be convicted felons. Under federal law, it is illegal for an individual convicted of a felony to possess a firearm. This is a violation of Title 18, United States Code, § 922(g)(1). A violation of this section is punishable by a term of up to 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of no less than two years. The penalty for a violation of § 922(g)(1) is enhanced when a defendant has a prior criminal record that includes three convictions for a violent felony or serious drug offenses. Under this enhanced sentencing provision, the defendant is subject to a mandatory minimum statutory sentence of at least 15 years imprisonment, with a maximum sentence of life imprisonment.
It is also against federal law to possess or use and carry a firearm during or in relation to a crime of violence or a drug trafficking crime. This is a violation of 18 USC § 924(c). A violation of this section is punishable by a mandatory minimum sentence of at least five years imprisonment to a maximum of life imprisonment.
U.S. Attorney D. Michael Dunavant said: "Violent crime reduction is the top priority of this office and the Department of Justice. Our strategy is to remove firearms from the hands of dangerous and prohibited people, and to remove those violent offenders from our communities. These indictments will impose significant consequences for illegal possession of firearms, and will make our district safer."
Christopher Bills, 25 of Bolivar, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
Jerrod Jennings 31, of Jackson, Tenn, was charged with being a convicted felon and unlawful user of a controlled substance in possession of a firearm, which had been shipped/transported in interstate commerce; and possession of a firearm during commission of a drug trafficking crime.
Mark Lockhart, 40, of Jackson, Tenn, was charged with being a convicted felon in possession of a stolen firearm, which had been shipped/transported in interstate commerce.
Kenneth Mitchell Fongers, 52, of Milan, Tenn, was charged with transporting a minor with intent to engage in unlawful sexual activity.
Carl Clarke, 28, of Dyersburg, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
Dexter Sowell, 34, of Jackson, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
William Martin Greene, 50, of Jackson, Tenn, was charged with being a convicted felon in possession and disposing of a firearm which had been shipped/transported in interstate commerce.
Charles Curry, 26, of Jackson, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
Houston Crafton, 22, of Jackson, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
Dacarlos Watkins, 37, of Jackson, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
Demarlon Gardner, 33, of Brownsville, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
An additional five indictments are under seal. The United States also seeks criminal forfeiture of any proceeds related to the crimes.
The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Memphis Men Sentenced to a total of 20 Years in Federal Prison for Distributing HeroinRead the Press Release
Memphis, TN – Two Memphis men have been sentenced to a total of 244 months imprisonment for distributing heroin. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, in August and September of 2017, Bartlett Police determined Mark Keith to be a heroin dealer in the Memphis area. After an investigation, Keith was arrested with a substantial amount of heroin and methamphetamines on his person. On October 3, 2017, a federal grand jury returned an indictment alleging possession with intent to distribute heroin and methamphetamines both in violation of Title 21 United States Code 841 (a)(1).
Between June and July of 2017, Bartlett Police received information that Frederick Hamilton was dealing heroin in North Memphis. After an investigation from law enforcement, Hamilton was arrested while trying to flee and found with heroin on his person. On November 21, 2017, a federal grand jury returned an indictment alleging possession with intent to distribute heroin in violation of Title 21 United States Code 841 (a)(1).
U.S. Attorney D. Michael Dunavant said: "Heroin is a deadly drug that is destroying countless lives across the country and right here in West Tennessee. Drug dealers who sow addiction and death into our communities by selling this poison will reap long prison sentences for their selfish and lawless conduct."
Both men pleaded guilty. On June 21, 2018, United States District Judge John T. Fowlkes Jr., sentenced both Keith and Hamilton; Keith to 144 months imprisonment and Hamilton 100 months in federal prison.
These cases were investigated by the Bartlett Police Department and the Drug Enforcement Administration.
Special Assistant U.S. Attorney Joseph F. Griffith prosecuted these cases on the government’s behalf.
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Toledo man sentenced to 20 years in prison for trafficking heroin and cocaine and firearms crimesRead the Press Release
A Toledo man was sentenced to 20 years in prison for trafficking heroin and cocaine and for firearms crimes.
Cornelius Henry, 44, pleaded guilty earlier this year to 45 counts, including conspiracy to possess with intent to distribute heroin and cocaine, money laundering, being a felon in possession of firearms and maintaining a drug house, among others.
Henry conspired with others from 2011 through 2016 to possess with intent to distribute large amounts of heroin and cocaine. He also possessed at least two firearms despite multiple felony convictions that made it illegal for him to have a firearm. He used the residence at 2214 Airport Highway in Toledo to store and distribute the drugs, according to court documents.
Henry also forfeited two properties on Airport Highway, three firearms and ammunition, six automobiles, one motorcycle and more than $10,000 in cash seized as part of the investigation.
This case was investigated by the Federal Bureau of Investigation’s Toledo office, the Internal Revenue Service and the Toledo Metro Drug Task Force. The case is being handled by Assistant U.S. Attorneys Alissa M. Sterling and Michael J. Freeman.
Three Sedalia Men Among Nine Indicted for Marijuana ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Three Sedalia, Mo., men are among nine men who have been indicted by a federal grand jury for their roles in a conspiracy to distribute marijuana in Pettis, Cooper, Boone, Morgan, Pulaski and Jackson counties.
Zachary Scott Nutt, also known as “Tuna,” 35, a Sedalia native living in Los Angeles, Calif.; Christopher Patrick Martin, 38, and Joshua Ryan Gilmore, 36, both of Sedalia; Charles Christopher Thomas, 36, of Otterville, Mo.; James Devon Garrett, 31, of Fulton, Mo.; Melvin Frank Lovejoy, 36, of Waynesville, Mo.; Nicholas Anders Glaholt, 35, of Independence, Mo.; James Edward Smalley III, 36, of Laytonville, Calif.; and Brian Michael Rodriguez, 39, of Willits, Calif.; were charged in a 20-count superseding indictment returned under seal by a federal grand jury in Jefferson City, Mo., on May 3, 2018.
The indictment has been unsealed. Rodriguez, the final co-defendant to be arrested, appeared in federal court today for his arraignment. This superseding indictment replaces an indictment returned on July 5, 2017, and adds seven new defendants.
The federal indictment alleges that all nine of the co-defendants participated in a conspiracy to distribute 1,000 kilograms or more of marijuana in Pettis, Cooper, Boone, Morgan, Pulaski and Jackson counties from Oct. 5, 2010, through June 13, 2017.
In addition to the conspiracy, several defendants are charged in various counts with possessing marijuana with the intent to distribute and with crossing state lines to promote the conspiracy. Additionally, Martin is charged with two counts of maintaining a place for the storage and distribution of marijuana.
Thomas is also charged with illegally possessing a firearm. The indictment alleges that Thomas, an unlawful user of a controlled substance, was in possession of a Glock 9mm semi-automatic handgun.
In addition to the drug-trafficking conspiracy, Nutt, Glaholt and Smalley are charged with participating in a money-laundering conspiracy.
According to an affidavit filed in support of the original criminal complaint, Nutt and Glaholt – who have leadership roles in the conspiracy – obtained marijuana from multiple sources, including a grow operation in California. They have directly supervised and executed the transportation and distribution of the marijuana obtained from California, the affidavit says.
Law enforcement officers executed search warrants at Glaholt’s residence and another residence in Kansas City, Mo., on June 13, 2017. At Glaholt’s residence they seized approximately $20,000 believed to be drug proceeds, several individual packages of marijuana, marijuana wax, digital scales, vacuum sealers, ledgers, computers, tablets and notes. At the Kansas City residence investigators seized approximately 261 pounds of marijuana (including packaging), cell phones, digital scales, drug packaging equipment, eight empty duffel bags, .22-caliber ammunition and drug ledgers from a safe.
The indictment also contains a forfeiture allegation, which would require Nutt, Glaholt, Smalley and Martin to forfeit to the government all property obtained from the drug-trafficking conspiracy or used to commit the conspiracy, including Martin’s commercial property for his business, Old 50 Auto & Marine in Sedalia; Smalley’s residential property in California; $22,339 seized from a bank account; and a money judgment equal to the amount obtained by each defendant involved in the conspiracy.
The charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Sedalia, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, IRS-Criminal Investigation, the Cooper County, Mo., Sheriff’s Department, the East Central Drug Task Force and the Missouri State Highway Patrol.
The Bureau of Justice Assistance Announces over $2 Million to Support Nevada Law Enforcement and First Responders from Las Vegas Mass ShootingRead the Press Release
The U.S. Department of Justice’s Bureau of Justice Assistance (BJA) today awarded $2,000,100 to the State of Nevada to cover expenses related to the law enforcement response to the Oct.1, 2017, mass shooting in Las Vegas. The shooting, which occurred during a country music festival, left 58 people dead and over 500 injured.
State and local law enforcement agencies mobilized officers who responded to the shooting and carried out critical operations and support. This award, which supplements an earlier award of $1 million announced last October, will reimburse the agencies for continued expenses resulting from services provided by sworn and non-sworn law enforcement personnel, including protecting and safeguarding those directly affected, including members of the public and local, and state personnel who responded to the tragedy.
"In this Department of Justice, we back the blue," said Attorney General Jeff Sessions. "That’s why, when there is a tragedy, we are there for police and first responders. Today we continue to help state and local police in Nevada to rebuild after the deadliest mass shooting in American history, providing a total of $3 million to cover their expenses since that terrible day. We honor and respect the 85 percent of law officers in this country who serve at the state, local, and tribal levels, and we continue to support them and their life-saving work every single day."
BJA invited the Nevada Department of Public Safety to apply for funding under the Bureau of Justice Assistance Fiscal Year 2018 Emergency Federal Law Enforcement Assistance Program. This program supports the Department of Justice’s mission of reducing crime and supporting public safety personnel in the context of an emergency situation in which state and local resources may be inadequate to protect the lives and property of citizens or to enforce criminal law.
For more information about the Bureau of Justice Assistance please visit www.bja.gov
Stamford Woman Pleads Guilty to Fraud Offense Stemming from Embezzlement SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CANDACE RISPOLI, 31, of Stamford, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud stemming from an embezzlement scheme.
According to court documents and statements made in court, from approximately January 2012 until June 2016, RISPOLI was employed by Lodestone Management Consultants, later known as Infosys Consulting (the “Company”). Beginning in approximately 2013, RISPOLI worked for the Company from her former home in East Haven, which she shared with her then-boyfriend, Michael Miano. In her capacity as a Company employee, RISPOLI had an American Express credit card to use to pay for travel, entertainment and other business expenses incurred by the Company’s employees and potential employees.
From approximately 2013 until July 2016, RISPOLI wrongfully charged more than $250,000 of her own and Miano’s personal expenses to the Company’s American Express card. RISPOLI also wrongfully transferred more than $800,000 in funds from the Company’s American Express card to PayPal and Venmo accounts controlled by RISPOLI and Miano. To conceal her scheme, RISPOLI altered the Company’s American Express account statements and created false billing summaries, which she emailed to the Company’s accounting firm.
In pleading guilty, RISPOLI has agreed to pay $1,098,176 in restitution.
Wire fraud carries a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
RISPOLI is released on a $100,000 bond pending sentencing.
On September 1, 2017, Miano, 31, of Branford, guilty to one count of conspiracy to commit wire fraud related to this scheme. He awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.
Second Defendant Sentenced in Multimillion Dollar Telemarketing Scam Targeting Elderly VictimsRead the Press Release
An individual who managed a multimillion dollar fraudulent telemarketing scam was sentenced on June 25, 2018, to serve 63 months in prison by a federal judge in Las Vegas, Nevada, the Department of Justice announced.
Michael Rossi, 52, of Las Vegas, was sentenced to 63 months in prison, followed by three years of supervised release. U.S. District Judge Jennifer A. Dorsey also ordered Rossi to pay $2,785,508.36 in restitution, reflecting the victim losses from the scheme.
Rossi pleaded guilty in December 2017 to conspiracy to commit mail and wire fraud based on his role in managing a telemarketing operation that defrauded thousands of victims, many of whom were elderly, out of millions of dollars. Co-defendant, Glen Burke, 58, of Las Vegas, was sentenced on March 12 to 87 months in prison.
“This case demonstrates the Department of Justice’s commitment to prosecuting scammers who defraud elderly Americans,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will continue to take every step possible to prosecute perpetrators of elder fraud scams and deliver justice for victims.”
“Seniors and caregivers should be alert to and mindful of these types of scams. Criminals who prey on and steal from seniors will face prosecution and be brought to justice,” said U.S. Attorney Dayle Elieson for the District of Nevada. “If someone believes they or someone they know is a victim of elder fraud, they should report it to the FTC at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.”
According to documents filed in court, Rossi managed the fraudulent telemarketing operation for Burke, who controlled the operation. Telemarketers working for Burke and Rossi falsely told victims that they had won one of five valuable prizes: a Chevy Camaro; a Boston Whaler boat; a diamond-and-sapphire bracelet; $3,000 cash; or a cruise that could be exchanged for $2,300. To claim the prize, consumers were told to pay hundreds, or in some cases thousands, of dollars. Once they paid, victims received a nearly worthless piece of costume jewelry or nothing at all.
Individuals who made an initial payment were sometimes called again, and misled into believing they had won an even better prize, in a process called “loading” or “reloading,” which could be repeated multiple times. This caused victims to lose thousands of dollars.
Acting Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service. He also thanked the Federal Trade Commission (FTC) for bringing a civil enforcement action that resulted in the shutdown of the defendants’ telemarketing operation and for the FTC’s assistance during the criminal investigation and prosecution. The case was prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Consumer Protection Branch of the Department of Justice’s Civil Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Nevada, visit its website at https://www.justice.gov/usao-nv.
Second Defendant Sentenced in Multimillion Dollar Telemarketing Scam Targeting Elderly VictimsRead the Press Release
LAS VEGAS, Nev. – An individual who managed a multimillion dollar fraudulent telemarketing scam was sentenced today to serve 63 months in prison by a federal judge in Las Vegas, Nevada, the Department of Justice announced.
Michael Rossi, 52, of Las Vegas, was sentenced to 63 months in prison, followed by three years of supervised release. United States District Judge Jennifer A. Dorsey also ordered Rossi to pay $2,785,508.36 in restitution, reflecting the victim losses from the scheme.
Rossi pleaded guilty in December 2017 to conspiracy to commit mail and wire fraud based on his role in managing a telemarketing operation that defrauded thousands of victims, many of whom were elderly, out of millions of dollars. Co-defendant, Glen Burke, 58, of Las Vegas, was sentenced on March 12, 2018, to 87 months in prison.
“This case demonstrates the Department of Justice’s commitment to prosecuting scammers who defraud elderly Americans,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will continue to take every step possible to prosecute perpetrators of elder fraud scams and deliver justice for victims.”
“Seniors and caregivers should be alert to and mindful of these types of scams. Criminals who prey on and steal from seniors will face prosecution and be brought to justice,” said U.S. Attorney Dayle Elieson for the District of Nevada. “If someone believes they or someone they know is a victim of elder fraud, they should report it to the FTC at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.”
According to documents filed in court, Rossi managed the fraudulent telemarketing operation for Burke, who controlled the operation. Telemarketers working for Burke and Rossi falsely told victims that they had won one of five valuable prizes: a Chevy Camaro; a Boston Whaler boat; a diamond-and-sapphire bracelet; $3,000 cash; or a cruise that could be exchanged for $2,300. To claim the prize, consumers were told to pay hundreds, or in some cases thousands, of dollars. Once they paid, victims received a nearly worthless piece of costume jewelry or nothing at all.
Individuals who made an initial payment were sometimes called again, and misled into believing they had won an even better prize, in a process called “loading” or “reloading,” which could be repeated multiple times. This caused victims to lose thousands of dollars.
Acting Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service. He also thanked the Federal Trade Commission (FTC) for bringing a civil enforcement action that resulted in the shutdown of the defendants’ telemarketing operation and for the FTC’s assistance during the criminal investigation and prosecution. The case was prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Consumer Protection Branch of the Department of Justice’s Civil Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Nevada, visit its website at https://www.justice.gov/usao-nv.
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Portland Man Sentenced to Seven Years for Crack TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Tem Tom, 24, of Portland, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby to seven years in prison and eight years of supervised release for possession with intent to distribute cocaine base, commonly known as “crack.” He pleaded guilty on November 15, 2017.
Court records reveal that on February 2, 2017, law enforcement agents conducting surveillance in Portland approached a vehicle in which Tom was a passenger following a suspected drug transaction and seized more than an ounce of crack and $3,580 from Tom.
The investigation was conducted by the U.S. Drug Enforcement Administration with assistance from the Portland Police Department.
Pascagoula Man Pleads Guilty to Being an Unlawful User of Controlled Substances in Possession of a FirearmRead the Press Release
Gulfport, Miss – Byron Ratliff, Jr., 20, of Pascagoula, Mississippi, pled guilty today before U.S. District Judge Sul Ozerden to being an unlawful user of controlled substances in possession of a firearm, announced U. S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ratliff will be sentenced by Judge Ozerden on October 4, 2018 at 10:00 a.m., and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case arose when the Pascagoula Police Department responded to a shots fired report on April 5, 2018. Based on witness descriptions of the car involved, police identified Ratliff as the shooter along with two others in the car in possession of marijuana and two firearms. Both guns were reported stolen out of Long Beach, Mississippi just a few hours before the shooting incident.
The Pascagoula Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It is being prosecuted by Assistant United States Attorney Annette Williams.
Notice to Vacate Federal Property Issued to "Occupy ICE PDX" Demonstrators in SW PortlandRead the Press Release
PORTLAND, Ore. – At approximately 10:30am today, law enforcement officers from the Federal Protective Service (FPS) began distributing notices to vacate federal property to individuals participating in the “Occupy ICE PDX” demonstration at 4310 SW Macadam Avenue, in Southwest Portland.
“The U.S. Attorney’s Office is working with FPS and ICE to reopen the federal building on Southwest Macadam that serves many critical functions requiring public and employee access. We acknowledge the community’s concerns driving these demonstrations. While demonstrators have a lawful right to assemble and voice their concerns, blocking the building’s driveways or entrances is not permitted under federal law,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
It is unlawful under 41 C.F.R. § 102-74.390 and § 102-74.450 to obstruct the entrances, foyers, lobbies, corridors, offices and parking lots of federal facilities. Under these regulations, demonstrators are not permitted to obstruct the driveway or entrance of the ICE facility located on SW Macadam Avenue.
Federal law does not restrict demonstrators from gathering on non-federal property adjacent to a federal facility. However, demonstrators are encouraged to review and adhere to all applicable state laws and local regulations.
Flyers communicating the notice to vacate were distributed by federal law enforcement officers throughout demonstrators’ encampment and posted at the entrances to the ICE facility.
Individuals who continue to obstruct the entrance of this federal facility will be subject to arrest and prosecution in federal court under the above listed regulations.
FPS provides integrated security and law enforcement services to more than 9,500 federal facilities throughout the U.S. and is the lead law enforcement agency for this action.
Norwalk Doctor Pleads Guilty to Drug Distribution, Health Care Fraud OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that Dr. BHARAT PATEL, 71, of Milford, pleaded guilty today in New Haven federal court to narcotics distribution and health care fraud offenses.
“The investigation revealed that this defendant profited by prescribing highly addictive painkillers to individuals who were either addicted to opioids, or who turned around and illegally distributed the pills they received,” said U.S. Attorney Durham. “As a result of his criminal conduct, tens of thousands of pills were dispensed to individuals who didn’t need them and shouldn’t have them. I thank the DEA’s Tactical Diversion Squad, the Norwalk Police Department and the Connecticut Attorney General’s Office for their efforts in this case, which has put a corrupt medical practice that helped fuel the opioid epidemic permanently out of business.”
“The DEA is committed to enforcing the Controlled Substance Act (CSA) by ensuring that all registrants are in compliance and abide by DEA’s distribution regulations,” said DEA Special Agent in Charge Boyle. “The actions by Dr. Patel contributed to the widespread abuse of opiates, which is a gateway to heroin addiction and is devastating our communities. In response to the ongoing opioid epidemic DEA is committed to improve public safety and public health by working with our law enforcement and regulatory partners to ensure these rules and regulations are strictly followed. This investigation demonstrates the strength of collaborative law enforcement in Connecticut and our great partnership with the U.S. Attorney’s Office.”
According to court documents and statements made in court, from approximately 2011 to July 2017, PATEL was a physician operating out of Family Health Urgent Care, formerly known as Immediate Health Care, located at 235 Main Street in Norwalk. During this time, PATEL saw numerous patients who had no legitimate medical purpose to see PATEL and only came to his medical practice in order to obtain prescriptions for controlled substances, primarily hydrocodone or oxycodone. Some of those patients were enrolled in Medicaid or Medicare and paid for PATEL’s services, and had the prescriptions paid for, by those programs.
PATEL knew, and also was advised by pharmacists and his staff, that the prescriptions he was providing to his patients were medically unnecessary. For example, PATEL had patients to whom he prescribed oxycodone or hydrocodone whose urine/blood tests showed no signs of opioid ingestion. He also had patients to whom he prescribed oxycodone or hydrocodone whose urine/blood tests showed that they had other narcotics in their systems and that a prescription for oxycodone or hydrocodone would be a contraindication. PATEL ignored the warnings and continued to prescribe controlled substances to these patients outside of the usual course of professional practice and not for a legitimate medical purpose.
On numerous occasions, PATEL wrote prescriptions to patients who paid him $100 in cash for each prescription. At times, PATEL provided patients medically unnecessary prescriptions for oxycodone or hydrocodone, which he left at a liquor store next door to his practice. Patients retrieved the prescriptions by exchanging an envelope with cash in it for the prescriptions.
In pleading guilty, PATEL admitted that he wrote hundreds of medically unnecessary prescriptions for oxycodone and hydrocodone, and received $158,523.95 as a result of this and related criminal conduct.
PATEL pleaded guilty to one count of conspiracy to distribute oxycodone and hydrocodone, an offense that carries a maximum term of imprisonment of 20 years, and one count health care fraud, an offense that carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on September 12, 2018.
PATEL has agreed to forfeit $158,523.95 to the government. He also agrees to forfeit and surrender his federal controlled substances registration to the Drug Enforcement Administration.
PATEL has been detained since his arrest on July 12, 2017.
This investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad and the Norwalk Police Department, with the critical assistance of the Connecticut Office of the Attorney General. The DEA Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
North Pole Man Convicted of Receiving and Distributing Child PornographyRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced today that on June 20, 2018, a federal jury in Fairbanks convicted Eric Whitebread, 42, of two counts of distribution of child pornography, and one count of receipt of child pornography.
The jury found Whitebread guilty after a five-day trial before U.S. District Judge Ralph R. Beistline of the District of Alaska. Sentencing is scheduled for Sept. 14, 2018, in Fairbanks. The maximum penalty for each of the counts of conviction is not less than five years and up to 20 years in prison, a fine of $250,000, and a term of supervised release of five years to life.
According to evidence presented at trial, on two different days in June 2015, Whitebread distributed files of child pornography through an online file-sharing network. Upon execution of a search warrant at Whitebread’s North Pole residence, law enforcement located his computer. Located on the computer were 618 images of child pornography that had been downloaded through the file-sharing network between July 14, 2015, and Aug. 24, 2015. Contextual evidence discovered by law enforcement during a forensic examination of Whitebread’s computer – including data recovered from millions of lines of computer code – located numerous indicators that child pornography was being downloaded and viewed on the computer at times when Whitebread’s text messages showed him to be home and online. In addition, the computer did not show any activity at times the evidence showed Whitebread was away from the house.
This case was investigated by the Federal Bureau of Investigation (FBI). The case is being prosecuted by Assistant U.S. Attorneys Anne Veldhuis and Kyle Reardon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the 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 more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New Hampshire woman sentenced for identity fraudRead the Press Release
WHEELING, WEST VIRGINIA – Stephanie Lee Kenyon , of Manchester, New Hampshire, was sentenced today to 21 months incarceration for identity fraud, United States Attorney Bill Powell announced.
Kenyon, age 30, pled guilty to one count of “Identity Fraud” in April 2018. Kenyon admitted to possessing 13 fraudulent driver’s licenses. The crime occurred in May 2017 in Ohio County, West Virginia.
Assistant U.S. Attorney David L. Perri prosecuted the case on behalf of the government. The Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.