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20 June 2018
Healogics Agrees to Pay up to $22.51 Million to Settle False Claims Act Liability for Improper Billing of Hyperbaric Oxygen TherapyRead the Press Release
Orlando, FL – The Justice Department announced today that Healogics, Inc. has agreed to pay up to $22.51 million to settle allegations that it violated the False Claims Act by knowingly causing wound care centers to bill Medicare for medically unnecessary and unreasonable hyperbaric oxygen (“HBO”) therapy. Healogics, a Florida-based company, manages nearly 700 hospital-based wound care centers across the country.
“Medicare beneficiaries are entitled to care based on their clinical needs and not the financial goals of healthcare providers,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions knowingly cause false claims for medically unnecessary services to be submitted.”
Medicare covers HBO therapy, a modality in which the entire body is exposed to oxygen under increased atmospheric pressure, as an adjunctive therapy to treat certain chronic wounds. The settlement announced today resolves allegations that from 2010 through 2015, Healogics knowingly submitted or caused the submission of false claims to Medicare for medically unnecessary or unreasonable HBO therapy.
Under the settlement, Healogics has agreed to pay $17.5 million, plus an additional $5.01 million if certain financial contingencies occur within the next five years, for a total potential payment of up to $22.51 million.
“Civil healthcare fraud enforcement has always been a core part of the mission of our office,” said United States Attorney Maria Chapa Lopez for the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”
In addition to resolving its False Claims Act liability, Healogics has entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General which includes, among other things, a claims review and a systems review – both to be conducted by an Independent Review Organization.
“When greed is the primary factor in performing medically unnecessary health care procedures on Medicare beneficiaries, both patient well-being and taxpayer funds are compromised,” said Special Agent in Charge Shimon R. Richmond of HHS OIG. “We will continue to thoroughly investigate health care companies that engage in such fraudulent schemes.”
The allegations resolved by this settlement arose from a lawsuit filed by James Wilcox, a former Director for Research and Quality for Medical Affairs at Healogics, and a separate lawsuit filed by Dr. Benjamin Van Raalte, Dr. Michael Cascio, and John Murtaugh, two doctors and a former program director who worked at Healogics-affiliated wound care centers. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery. The settlement provides for a whistleblower share of up to $4,276,900.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Middle District of Florida, and the Department of Health and Human Services Office of Inspector General. The case was handled by Assistant United States Attorneys Randy Harwell and Jeremy Bloor, and by Department of Justice Civil Division Trial Attorney Chartey Quarcoo.
The cases are captioned United States ex rel. Van Raalte, et al. v. Healogics, Inc., 14-cv-283 (M.D. Fla.) and United States ex rel. Wilcox. v. Healogics, Inc., et al., 15-cv-1510 (M.D. Fla.).
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Gretna man sentenced to more than 10 years for controlled substance, firearms offenses in LafayetteRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Gretna man was sentenced Monday to 121 months in prison for possessing with the intent to distribute more than 500 grams of methamphetamine after Lafayette police officers recovered multiple controlled substances and a weapon from his former residence.
Don Edmond Washington, 29, of Gretna, Louisiana, was sentenced by U.S. District Judge Dee D. Drell on one count of possession with intent to distribute a controlled substance and possession of a firearm and ammunition by a previously convicted felon. He was also sentenced to five years of supervised release. According to the March 15, 2018 guilty plea, law enforcement agents searched Washington’s former home in Lafayette on May 17, 2017 and found methamphetamine, heroin, buprenorphine, Oxycodone, Alprazolam, one HK USP compact .45 caliber pistol with one magazine, six .45 caliber rounds and $440.
The DEA, ATF, Lafayette Metro Narcotics Task Force and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
Greenville Woman Sentenced to Three Years' Imprisonment in Mail Theft ConspiracyRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Casey A. Raines, age 38, of Greenville, was sentenced to three years’ imprisonment for her involvement in a mail theft conspiracy, a violation of Title 18, United States Code, Section 371. United States District Judge Bruce Howe Hendricks, of Charleston, imposed the sentenced, ordered that Raines pay $7,581.32 in restitution, and sentenced her to three years of supervised release once she has completed the sentence in the Bureau of Prisons.
Evidence presented at the change of plea hearing established that Raines and others stole mail in and around Greenville County in an effort to obtain bank account numbers, routing numbers, and identification information. Once in possession of this material they would create counterfeit checks and negotiate them to obtain money for methamphetamine.
On June 10, 2016, a search warrant was executed in connection with this investigation at the Greenville home of co-conspirator Cary L. Wright, age 38, who has already been sentenced to 51 months in the Bureau of Prisons for his participation in the offense. Items recovered from the residence included, but was not limited to, numerous pieces of mail belonging to others, checks stolen from the mail, financial transaction cards, blank check stock, counterfeit checks, and a computer used for check counterfeiting.
Records recovered showed that Raines opened multiple bank accounts which were used by the conspiracy to deposit stolen and counterfeit checks. Raines and the other would then withdraw the money and split the proceeds among themselves.
The case was investigated by agents with the United States Postal Inspection Service, the Greenville County Sheriff’s Office, and the Greenville City Police Department. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Gary Man Sentenced to 135 Months in PrisonRead the Press Release
HAMMOND – Deshalone Davis, 21 years old, of Gary, Indiana, was sentenced by U.S. District Court Judge Joseph S. Van Bokkelen on his plea of guilty to Hobbs Act Robbery and brandishing a firearm during and in relation to a crime of violence, announced U.S. Attorney Thomas L. Kirsch II.
Davis was sentenced to 135 months in prison, followed by 3 years of supervised release. He was also ordered to pay $17,011.05 in restitution.
“Committing a brazen act of violence, in the middle of a crowded store during the early evening hours when many people are around will never be tolerated in this District. The sentence today shows the seriousness of this type of offense. We will continue to focus on crimes like the one above and other violent crimes to make sure justice is served to criminals like Mr. Davis,” said U.S. Attorney Kirsch.
According to documents in this case, on August 1, 2017, Davis and three others robbed a wireless store in Munster, Indiana. They entered the store during the afternoon rush hour, at approximately 5:45 pm. While holding employees and customers at gunpoint, they forced employees to empty cabinets of phones and demanded all of the cash from the register. The gunmen men fled the store in a getaway vehicle driven by Vondell Henry, Jr. Mr. Henry pled guilty in this case as is awaiting sentencing. His hearing is set for September 5, 2018.
This case is the result of the investigative efforts of the FBI with the assistance of Hammond, Munster and Gary Police Departments. This case was handled by Assistant U.S. Attorney Jennifer Chang.
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Former Oregon State University Student Charged for Threatening Campus ShootingRead the Press Release
EUGENE. Ore. – Christopher Adam Strahan, 22, a resident of Corvallis, Oregon, was indicted today for threatening a campus shooting at Oregon State University (OSU).
The indictment alleges Strahan threatened to shoot classmates at OSU in a series of tweets on February 27, 2018. He is charged with a single count of making threatening communications in violation of 18 U.S.C. § 875.
Strahan was previously detained as a flight risk and danger to the community when he made his initial appearance in federal court on a criminal complaint on March 27, 2018. Strahan will be arraigned on the indictment on June 27, 2018 before U.S. Magistrate Judge Jolie A. Russo.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who witnesses imminent threats of violence in any form made via internet or another means should call 9-1-1 immediately. Non-emergency tips can be submitted by contacting the FBI’s Portland Field Office at (503) 224-4181 or visiting the SafeOregon website at www.safeoregon.com.
Former Kinloch Police Captain Pleads Guilty to Stealing Federal Disability BenefitsRead the Press Release
St. Louis, MO – Everett James, 60 of St. Louis, Missouri, pleaded guilty to making a false statement to the Social Security Administration and theft of government funds. James appeared this morning in before Richard Webber and sentencing is set for September 18, 2018.
According to court documents, James applied for Social Security Administration disability benefits January 2014 claiming that his medical condition rendered him unable to work as a corrections officer. However, he failed to report that he was working as a private security guard at the time of his application. After being approved for benefits, James worked as a private security guard and as a part-time police officer.
The Social Security Administration learned that while James received the federal disability benefits, he was employed in various capacities that included serving as: Kinloch, Missouri Police Captain; Wellston, Missouri Police Sergeant; a private security guard; and, a Hillsdale, Missouri patrol officer. When the City of Hillsdale hired James in March 2017, he informed his employer that the amount of hours he could work and his hourly wage needed to be adjusted to preserve his receipt of federal disability benefits. He turned down the city’s offer of a higher salary and more hours to offset the loss of benefits, but volunteered to work without a salary if he was needed. As a result, the Hillsdale Police Department paid James less per hour than officers who performed similar duties.
Had the Social Security Administration been aware of James’ ability to work, it would not have approved him to receive disability benefits. His concealment of his abilities caused the federal government to pay him more than $68,000.00 in disability benefits to which he was ineligible.
“This office will prosecute individuals who violate federal law regardless of their position,” said United States Attorney Jeff Jensen.
Making a false statement carries a penalty of not more than five years in prison and/or a fine of $250,000 or both and theft of government funds carries a penalty of not more than 10 years in prison and/or a fine of $25,000 or both.
The case was investigated by the Social Security Administration. Assistant U.S. Attorney Tracy Berry is handling the case for the government.
Former Greater Eastern Credit Union CEO Pleads GuiltyRead the Press Release
GREENEVILLE, Tenn. – On June 20, 2018, Sherry Ann Allen, 49, of Johnson City, Tennessee, pleaded guilty to an information charging her with embezzling $1,195,596.00 from Greater Eastern Credit Union and tax evasion. Sentencing is set for 9:00 a.m., September 26, 2018, in U.S. District Court in Greeneville.
Allen faces a maximum term of 30 years in prison and will have to pay restitution to Greater Eastern Credit Union and the Internal Revenue Service.
This plea was the result of an investigation by the FBI, Internal Revenue Service - Criminal Investigation and the Johnson City Police Department. Assistant U.S. Attorney Robert Reeves represented the United States in court proceedings.
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Former Employee of Allegheny County Drug Laboratory Charged with Stealing more than $78,000 in Drug EvidenceRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been charged in federal court with stealing federal drug evidence from the Allegheny County Office of the Medical Examiner (ACOME), United States Attorney Scott W. Brady announced today.
Matthew Ieraci, 29, of Pittsburgh, Pennsylvania, was charged by criminal Information with one count of theft concerning a program receiving federal benefits.
According to the Information, on multiple occasions between on or about February 8, 2017, and on or about February 27, 2017, Ieraci stole a total of approximately 52.45 grams of powder alprazolam, a Schedule IV controlled substance, from ACOME, where he was employed as a laboratory scientist. The information further alleges that Ieraci stole the evidence from a larger quantity of alprazolam that the United States Postal Inspection Service had submitted to ACOME for chemical analysis in connection with an ongoing multi-jurisdiction, multi-agency federal drug-trafficking investigation. According to the charging document, Ieraci, the scientist assigned to analyze the evidence on behalf of ACOME, had received training in proper evidence-handling techniques and was aware of the consequences of evidence tampering, including the possibility that such evidence would not be admissible at trial. The street value of the alprazolam Ieraci is alleged to have stolen was at least $78,675.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Eric G. Olshan and Rachael L. Dizard are prosecuting this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation of Ieraci.
A criminal Information is an accusation.
A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Former Costco Employee Pleads Guilty to Embezzling Nearly $290,000 by Making False Entries in Customer AccountsRead the Press Release
A 20-year Costco employee pleaded guilty today in U.S. District Court in Tacoma to wire fraud in connection with her five-year scheme to steal nearly $290,000 from her employer, announced U.S. Attorney Annette L. Hayes. ROBIN G. CLINE, 54, of Puyallup, Washington, was employed as an Accounts Receivable Clerk at Costco’s Fife, Washington facility from 1996 until she resigned in 2016. CLINE was indicted in January 2018, following an investigation that revealed that between 2011 and 2016, she had manipulated entries in business customer accounts to steal from both Costco and its customers. U.S. District Judge Benjamin H. Settle scheduled sentencing for September 17, 2018.
According to records filed in the case, as a Clerk in Accounts Receivables CLINE had authority to process payments, refunds and other credits for Costco business customers. Beginning in 2011, the investigation revealed that CLINE made false entries into customer accounts such as credits, refunds or charges. CLINE then used these false entries to funnel money from Costco and Costco business customers into her bank accounts and a bank account associated with her son. CLINE used false entries to steal money in multiple ways. She made false entries indicating a customer had returned an item or disputed a purchase resulting in a credit balance on the customer account. CLINE then funneled the credit balance to her bank account, not back to the business customer. Another way CLINE embezzled was to double bill customers for merchandise, and then ‘correct’ the double billing by refunding money to the customer – however, CLINE arranged for the refund to be funneled into her bank accounts or her son’s bank account.
In all, CLINE posted more than 290 false entries involving more than 100 customer accounts. CLINE has agreed to pay restitution of $289,975.
Prosecutors will recommend a two year prison term for CLINE. The ultimate sentence will be determined by Judge Settle based on a number of sentencing factors set forth in federal law.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Stephen P. Hobbs.
Former Controller Pleads Guilty to Wire FraudRead the Press Release
St. Louis, MO – Jennifer L. Saake pled guilty to wire fraud related to her scheme to defraud the St. Louis-based company she worked for as a controller.
According to court documents, between April 2010 and November 2017, Saake embezzled more than $1.4 million from her employer. As part of her scheme, Saake fraudulently initiated more than 200 automated transfers of corporate funds into her personal bank accounts. Saake concealed her scheme by marking the transactions as “confidential” in the banking software records, by creating false journal entries, and by making false payable and bank reconciliation adjustments in the accounting records. Saake used the fraud proceeds for personal gain, including to purchase equity interests in investments offered by her employer, to purchase a condo in Branson, Missouri, and to pay for living expenses.
Saake, 52, of St. Louis County, pled guilty to one felony count of wire fraud before U.S. District Judge Catherine D. Perry. Sentencing has been set for September 21, 2018.
She now faces a penalty range of up to 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Secret Service. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Former Cameron company office manager pleads guilty to stealing more than $91,000Read the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a former office manager of a Cameron company pleaded guilty last week to stealing more than $91,000 from her employer.
Belinda Miltenberger, 47, of Cameron, Louisiana, pleaded guilty June 13, 2018 before U.S. Magistrate Judge Kathleen Kay to one count of wire fraud. According to the guilty plea’s factual basis, Miltenberger was the office manager for a seafood processing and wholesale company located in Cameron. Her supervisors were in Seattle, Washington. Starting in January 2016 until about February 2017, Miltenberger stole cash from seafood sales. Instead of depositing certain cash sales into the company’s bank account, she kept the money for personal use. She then falsified business records to cover her abuse. When the company became concerned about account balances, they asked Miltenberger to prepare an end-of-year financial statement. In response, she created fraudulent financial reports and sent them to her supervisors to continue to conceal her scheme. She embezzled a total of $91,846.25 during the course of the scheme.
Miltenberger faces up to 20 years in prison, five years of supervised release and a $250,000 fine. The court set sentencing for October 1, 2018.
The FBI conducted the investigation. Supervisory Assistant U.S. Attorney Richard A. Willis is prosecuting the case.
Former Beaumont Tax Preparer Sentenced for Income Tax FraudRead the Press Release
BEAUMONT, Texas – A 36-year-old Mt. Vernon, Texas man has been sentenced to prison for federal tax violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Charles Maull, II, pleaded guilty on Feb. 21, 2018 to six counts of willfully aiding in the preparation and filing of a false income tax return and was sentenced to 30 months in federal prison today by U.S. District Judge Thad Heartfield. Maull was also ordered to pay restitution of $674,730.68 to the Internal Revenue Service.
According to information presented in court, from 2010 to 2017, while operating a tax return preparation business in Beaumont, Maull knowingly falsified business income, overstates withholding taxes, fraudulently claimed education credits and fraudulently claimed dependents that taxpayers were not entitled to claim.
“The hearing today sends a clear message to unscrupulous return preparers who break the law and abuse the tax system,” said Special Agent in Charge Tamera Cantu of the IRS-Criminal Investigation’s Dallas Field Office. “Intentionally falsifying documents filed with the IRS is a crime and IRS-Criminal Investigation is committed to pursuing those return preparers who enrich themselves while cheating their clients and the U.S. Treasury.”
Maull was ordered to report to the Federal Correctional Institution in Texarkana on July 24, 2018 to begin serving his sentence.
This case was investigated by Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Florida Man Charged with Defrauding Local InvestorRead the Press Release
PEORIA, Ill. – A federal grand jury today indicted Timothy Herman, 57, of Lake Mary, Fla., of defrauding a Peoria area victim of approximately $600,000.
The indictment alleges that Herman falsely represented to the victim that he had investment opportunities that would earn greater returns than could be earned from banks. Beginning in or about 2013, Herman represented that he had been in the garbage business for several years and had been very successful. Herman did not disclose that, in fact, in May 2013, he had notified his home mortgage holder that he had not received a paycheck since May 2012 and had depleted his savings.
The indictment alleges that Herman advised the victim that he would invest funds in a “Rewards Program,” which one of his companies was developing with Republic Services, a waste management company in Arizona. Herman represented that he was going to retire in two years and expected a $17 million payout at that time.
After Herman represented the profitability and safety of the funds, the victim loaned $200,000 to Herman’s company, Delta Direct. Herman allegedly transferred the funds amongst his various business accounts before transferring the funds to his personal account. As part of the scheme, Herman used the victim’s funds to make monthly payments to the victim as provided in the promissory notes. After receiving the monthly payments, the victim loaned more money to Herman over a period of time.
Instead of investing the funds as represented, the indictment alleges that from 2013 to December 2017, Herman used the victim’s funds to make payments to the victim, to make mortgage payments, to pay tax liens, to make marital settlement payments and to otherwise use the victim’s money for his personal use and benefit. Herman continued his deception and to conceal his fraudulent conduct, made false statements to others, including the victim and federal law enforcement agents.
The charges are the result of investigation by the FBI and the U.S. Postal Inspection Service. Supervisory Assistant U.S. Attorney Darilynn J. Knauss is prosecuting the case.
The U.S. Clerk of the Court will schedule a date for Herman to appear for arraignment in federal court in Peoria.
If convicted, the statutory maximum penalty for each count of mail fraud (four counts) and wire fraud (nine counts) is 20 years in prison, and a fine of up to $250,000; for making a false statement, the maximum penalty is five years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Five Sentenced in Heroin Distribution ConspiracyRead the Press Release
The remaining five defendants in a multi-state heroin trafficking conspiracy were sentenced to federal prison yesterday, including three from middle Tennessee and two from Chicago, Illinois, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. Eight persons were indicted on charges of conspiring to distribute heroin and all pleaded guilty.
Those sentenced yesterday were: Steven Allen, 52, of Chicago, Illinois and David Fletcher, 49, of Nashville, Tennessee were each sentenced to 180 months in prison; Travis Jones, 49, of Chicago, was sentenced to 108 months in prison; Maurice Jenkins, 52, of Nashville, was sentenced to 35 months in prison; and Garrette Butler, 64, of Nashville, was sentenced to 6 months in a half-way house.
Previously sentenced in November 2017 were: Charlie Diggs, 46, of Nashville, was sentenced to 72 months in prison; Amanda Morris, 34, of Nashville, was sentenced to 49 months in prison; and Jill Bradley, 54, of Joelton, Tennessee, was sentenced to 3 days in custody.
According to court documents, in late 2014, Fletcher, Diggs, and Jones conspired to acquire multiple kilograms of heroin from Allen and others in Chicago, Illinois and then transport the heroin to middle Tennessee for distribution. Members of the conspiracy transported the heroin to Nashville, Tennessee where it was diluted, packaged for resale and stored at the homes of Butler and Diggs in Nashville. Members of the conspiracy also sold the heroin and recruited others to sell it as well. Law enforcement officers ultimately seized over $38,000 in cash, business properties and several cars from members of the conspiracy.
This case was investigated by the Drug Enforcement Administration; the Tennessee Bureau of Investigation; the Metropolitan Nashville Police Department; and the Cheatham County Sherriff’s Office. The case was prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.
Fitchburg Woman and Saugus Man Sentenced for Roles in Counterfeit Steroid ConspiracyRead the Press Release
BOSTON – A Fitchburg woman and a Saugus man were sentenced today in federal court in Boston for their roles in a steroid trafficking conspiracy.
Elizabeth Green, 30, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years of probation. In December 2017, Green pleaded guilty to one count of conspiracy to distribute controlled substances. Brian Petzke, 49, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two years in prison and two years of supervised release. In February 2018, Petzke pleaded guilty to one count of conspiracy to distribute controlled substances. Petzke and six others, including Green’s sister, were charged in April 2017 for their roles in the conspiracy. Green was later charged by Information.
From approximately May 2015 until April 12, 2017, the conspirators manufactured steroid products made from raw materials that they purchased overseas and marketed as “Onyx” steroids using “Onyx” labels that were also ordered from overseas suppliers. Onyx, now owned by Amgen Inc., is a legitimate pharmaceutical company that does not manufacture steroids.
The defendants sold the steroids to customers across the United States using email and social media platforms, collected payment through money remitters, such as Western Union and MoneyGram, and used false identifications and multiple remitter locations to pick up the proceeds. Some of the defendants laundered proceeds from the steroid sales through Wicked Tan LLC, a tanning business in Beverly, which they owned and operated specifically to launder the proceeds of the steroid operation.
Green’s role in the conspiracy was to collect customer payments from money remitters using false identifications and provide those proceeds to another member of the organization. Green retrieved more than $220,000 in customer payments for steroid purchases.
Petzke’s principal roles in the conspiracy were receiving packages containing raw steroid powder; shipping steroids to customers throughout the United States at the direction of co-defendants Tyler Baumann and Phillip Goodwin; and picking up steroid proceeds from money remitters at the direction of Baumann and Goodwin.
Baumann and Goodwin each pleaded guilty and were sentenced in March 2018 to 10 years and 130 months in prison, respectively.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Lelling’s Cybercrime Unit are prosecuting the cases.
Federal Jury Convicts Illegal Alien of Sexual Exploitation of a Minor and Possession of Child PornographyRead the Press Release
United States Attorney Brandon J. Fremin announced today the conviction of an illegal alien who coerced and enticed a child victim to engage in sexually explicit conduct and send him images of such conduct over the internet. The defendant, VICTOR ZELAYA-FUNEZ, a Honduran national residing in Zachary, Louisiana, was indicted by a federal grand jury on July 12, 2017 and charged with sexual exploitation of a minor, in violation of Title 18, United States Code, Section 2251(a) and (3), and possession of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(5)(B).
ZELAYA-FUNEZ, now 38 years old, proceeded to trial on June 18, 2018, before Chief U.S. District Judge Brian A. Jackson. After a three-day trial, the jury unanimously convicted ZELAYA-FUNEZ of both counts. As the evidence at trial demonstrated, ZELAYA-FUNEZ possessed sexually explicit photos and attempted to coerce the victim into taking additional sexually explicit photographs of herself and creating sexually explicit videos of herself and sending them directly to ZELAYA-FUNEZ. In private messages, he sent to the victim, ZELAYA-FUNEZ threatened to tell the victim’s parents about images of her if she did not comply with his demands; in other private messages, the defendant told the victim he cared for her and promised to take her to the movies.
As a result of his conviction for sexual exploitation of a minor, ZELAYA-FUNEZ now faces a mandatory minimum sentence of 15 years in federal prison. The defendant also faces a significant term of imprisonment for the possession of child pornography count, significant fines, restitution, and supervised release, and deportation following his release from federal prison.
ZELAYA-FUNEZ also faces a separate federal indictment charging him with illegal re-entry into the United States by a removed alien. Both indictments were returned in the Middle District of Louisiana.
United States Attorney Fremin stated, “The aggressive prosecution of illegal aliens engaged in the sexual exploitation of children is a top priority of the U.S. Department of Justice generally and this office in particular. I commend the victim for her incredible courage and strength throughout these proceedings, and I thank the jury for their considered and thoughtful decision. I also greatly appreciate the outstanding efforts of the prosecutors and agents who worked tirelessly to bring this defendant to justice.”
This investigation was conducted by the U.S. Department of Homeland Security, Homeland Security Investigations and Enforcement Removal Operations, and the East Baton Rouge Parish Sheriff’s Office, with assistance from the East Baton Rouge Parish District Attorney’s Office. The matter is being prosecuted by Assistant United States Attorney Ryan Rezaei and Assistant United States Attorney Rene I. Salomon, who serves as the office’s Senior Litigation Counsel.
Federal Grand Jury Indicts West Virginia Supreme Court of Appeals JusticeRead the Press Release
Supreme Court Justice Charged with Obstruction of Justice and other federal Crimes
CHARLESTON, W.Va. -- United States Attorney Mike Stuart announced today that West Virginia Supreme Court of Appeals Justice Allen H. Loughry II, 47, of Charleston, West Virginia, was charged by a federal grand jury in a 22-count Indictment that was unsealed today. Loughry is a Justice on the West Virginia Supreme Court of Appeals, who was elected in November 2012 and sworn in on January 1, 2013. The 22-count Indictment charges Loughrywith numerous fraud, false statements, and witness tampering offenses.
“A federal grand jury has charged a Justice on the state’s highest court with numerous and serious federal crimes,” said United States Attorney Mike Stuart. “This is a solemn day for all West Virginians. On this day—West Virginia Day—the people of our great state deserve better. They have worked too hard and too long to tolerate misconduct that strikes at the heart of the public’s trust by their elected officials. I intend to do all that I can to ensure that our people have the honest government they deserve.”
Loughry is accused of using a government vehicle and submitting mileage claims for reimbursement; using a government vehicle and credit card on personal trips; and unlawfully converting to his own use a historically significant piece of furniture – a Cass Gilbert desk. Justice Loughry was also indicted for attempting to corruptly obstruct and influence testimonial evidence of a Supreme Court employee in an imminent grand jury investigation.
"Public corruption is a top investigative priority for the FBI," said Assistant Special Agent in Charge Nick Boshears. "It erodes public confidence and undermines the Rule of Law. We want the people we serve to know the FBI will hold those accountable who betray the public's trust."
This morning, at approximately 7:30 a.m., Justice Loughry was arrested at his home by the FBI and brought to the Robert C. Byrd Courthouse in Charleston, West Virginia for processing and to schedule arraignment. The arrest of Justice Loughry was without incident and it is not expected he will be detained pending trial in this matter.
“For the past several weeks, public officials across West Virginia have been quick to condemn Justice Loughry, perhaps with the hope that the crisis in public confidence with the Supreme Court could be expediently resolved by lodging all culpability on just one person – Justice Loughry,” said United States Attorney Mike Stuart. “That may or may not, however, be the case. Our work continues on many fronts, including additional areas of corruption. I urge public officials and the public to respect this process and allow the process to play out.”
“I want to praise the hard and thorough work of several law enforcement partners, agencies and individuals,” said United States Attorney Mike Stuart. “The amazing work of the FBI, the West Virginia Legislative Commission on Special Investigations, the Internal Revenue Service—Criminal Investigation Division, and Assistant United States Attorneys Philip H. Wright, L. Anna Forbes, and Eric Bacaj. Late nights, long weekends, and hours and hours of investigative work – the FBI, WV-CSI, and my prosecutors are to be strongly commended.”
The 22-count Indictment charges Loughry with sixteen counts of mail fraud (Counts 2, 3, 4-17), which carry a penalty of up to 20 years for each count; two counts of wire fraud (Counts 1 and 18), which carry a penalty of up to 20 years for each count; three counts of making false statements to a federal agent (Counts 19-21), which carry a penalty of up to 5 years for each count; and one count of witness tampering (Count 22), which carries a penalty of up to 20 years. If convicted on all counts in the Indictment, Loughry faces a possible sentence of up to 395 years in prison, a fine of $5.5 million, and a term of supervised release of up to 3 years.
A copy of the indictment can be found
here .Please note: An Indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Enforcement Operation Nets Multiple Federal Drug & Violent Crime DefendantsRead the Press Release
MEDIA ADVISORY
WHEN: Thursday, June 21, 2018 at 2:00 PM
WHERE: Nash County Commissioners Room
120 W. Washington Street
Nashville, NC 27856
Re: Enforcement Operation Nets Multiple Federal Drug & Violent Crime Defendants
Take Back North Carolina Initiative Results in 17 Arrests by the Tar River Regional Drug Task Force, Greenville Regional Drug Task Force & Other Partners
RALEIGH – The United States Attorney’s Office announces a press conference to discuss the results of a warrant enforcement operation centered on cocaine and heroin distribution and violent crime in Nash, Edgecombe, Wilson, and Pitt Counties. These Organized Crime Drug Enforcement Task Force (OCDETF) and violent crime enforcement operations are part of the recently announced Take Back North Carolina Strategy to combat violent and drug crime in the Eastern District of North Carolina. This initiative will bring the full weight and resources of the federal court system in the fight against crime in those counties. The United States Attorney’s Office is working in partnership with District Attorneys’ Offices and federal, state, and local law enforcement.
In addition to United States Attorney Robert J. Higdon, Jr., we anticipate members of federal, state, and local law enforcement agencies involved with this operation to be present at this event.
Credentialed members of the media are invited to attend. For additional information please e-mail Don Connelly at [email protected]. Please RSVP your intentions to attend the event.
Eastside Hollygrove Resident Pleads Guilty to Drug and Firearm ViolationsRead the Press Release
U.S. Attorney Duane A. Evans announced that DWAYNE LABRANCH, a/k/a “Mondo,” a/k/a “Black,” age 35, of New Orleans, pled guilty on June 18 to one count of conspiring to distribute and to possess with intent to distribute heroin and fentanyl; one count of conspiring to possess firearms in furtherance of drug trafficking; and one count of discharging a firearm in a school zone.
On LABRANCH’s drug conspiracy count, LABRANCH is facing a mandatory minimum sentence of 10 years’ imprisonment, a maximum sentence of life, a possible fine of up to $8,000,000, and at least eight years of supervised release upon his release from prison. On the firearm conspiracy count, LABRANCH is facing a maximum sentence of 20 years’ imprisonment, a possible fine of up to $250,000, and not more than three years of supervised release. On the discharging a firearm in a school zone count, LABRANCH is facing a maximum sentence of 5 years’ imprisonment, a possible fine of up to $100,000, and not more than one year of supervised release.
U.S. District Judge Sarah S. Vance will sentence LABRANCH on October 3, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Evans praised the work of the FBI New Orleans Gang Task Force (NOGFT), which led this investigation and was assisted by the Drug Enforcement Administration, New Orleans Police Department, St. Tammany Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office. Assistant United States Attorneys Brandon S. Long, David Haller, and Edward Rivera are in charge of the prosecution.
East Chicago Man Sentenced to 70 Months in PrisonRead the Press Release
HAMMOND- Jose “Zay” Santiago , 40, of Hammond, Indiana, was sentenced before District Court Judge Joseph Van Bokkelen on his plea of guilty to conspiracy to distribute cocaine and crack cocaine announced U.S. Attorney Thomas L. Kirsch II.
Santiago was sentenced to 70 months imprisonment and 3 years of supervised release upon completion of his prison term. According to documents in this case, in the fall of 2016, Santiago along with co-conspirators were involved in a drug trafficking organization in East
Chicago. Santiago was an integral part of the conspiracy and assisted Deandrea “Shorty Black” Davis in procuring the kilograms of cocaine that kept a 24/7 drug operation going in the heart of East Chicago.
This case was investigated by the Drug Enforcement Administration Lake County HIDTA Group and the East Chicago Police Department and was prosecuted by Assistant United States Attorney Thomas McGrath.
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Dunkirk Man Pleads Guilty to Selling CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Michael Pacheco, aka Michael Dominguez, 27, of Dunkirk, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and distribution of, 500 grams or more cocaine. The charge carries a mandatory minimum sentence of 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between July 2016 and May 2, 2017, the defendant conspired with co-defendant Fred Santiago to distribute kilogram quantities of cocaine in and around the Western District of New York. Pacheco obtained cocaine from Santiago for sale and distribution to others.
During the time of the conspiracy, the defendant made at least two undercover drug sales to law enforcement officers on April 19, 2017, and April 26, 2017. On May 2, 2017, Pacheco was arrested and found with cocaine on his person, which was intended for sale.
Today’s plea is the culmination of an investigation by the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Evans Police Department, under the direction of Chief Douglas Czora; the Dunkirk Police Department, under the direction of Chief David Ortolano; and the Chautauqua County Drug Task Force, under the direction of Sheriff Joseph Gerace.Sentencing is scheduled for September 20, 2018, at 3:30 p.m. before Judge Geraci.
Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Herminio Polanco-Huma, 26, a Dominican national formerly residing in Lawrence, pleaded guilty to one count of illegal reentry of a deported alien. U.S. District Court Judge Nathaniel Gorton scheduled sentencing for Sept. 20, 2018.
In February 2017, federal law enforcement encountered Polanco-Huma in Florida and determined that he was illegally present in the United States. Polanco-Huma was placed into removal proceedings, and on Feb. 21, 2017, he was deported to the Dominican Republic.
In November 2017, Polanco-Huma was encountered awaiting trial at the Essex County House of Corrections having been arrested for distribution of cocaine. Polanco-Huma’s prints were obtained and found to be a positive match to prints contained in his Alien File. In May 2018, Polanco-Huma was convicted in Essex Superior Court of distribution of cocaine and sentenced to three years and one day in prison.
Polanco-Huma faces a sentence of no greater than two years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. 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 Rebecca J. Adducci, Interim Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Detroit Man Sentenced to 30 Years in Prison for Distribution of Fentanyl Laced Heroin That Resulted in DeathRead the Press Release
A Detroit man was sentenced yesterday to 30 years in prison for the January 2017 sale of fentanyl laced heroin that resulted in the death of a 36 year old Westland man, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Timothy Plancon, Drug Enforcement Administration, Detroit Division and Chief Jeff Jedrusik of the Westland Police Department.
Sentenced was Alxleotold Gordon, 46. Gordon pleaded guilty on September 18, 2017 before U.S. District Judge Robert H. Cleland. Co-defendant Lori Ann Pangborn also pleaded guilty and was sentenced to 108 months in prison last December.
According to court records, the victim in this case was supplied heroin by Lori Ann Pangborn, Gordon’s co-defendant, while the victim was in a recovery house attempting to overcome his heroin addiction. Gordon, who has numerous felony drug convictions, was sentenced following his guilty pleas to Distribution of a Controlled Substance Resulting in Death, Possession of Controlled Substances (Heroin) With the Intent to Distribute, Possession of Firearms by a Previously Convicted Felon and Possession of Firearms in Furtherance of a Drug Trafficking Crime.
“This conviction and sentence is particularly important given Mr. Gordon’s numerous previous felony conviction for narcotics distribution offenses,” stated U.S. Attorney Schneider. “Persons addicted to opiates face nearly insurmountable challenges in beating their addiction. Those who make it available to users guarantee failure in that fight.”
“This sentence is the culmination of numerous hours of dedicated work by Westland Police Officers and DEA Agents” said Special Agent Plancon. “DEA will continue to aggressively target and prosecute drug trafficking crimes involving heroin as part of the effort to address the ongoing opiate crisis that is threatening the safety of Detroit’s citizens.”
An important component to the federal prosecution was swift and successful investigation and undercover work by officers of the Westland Policed Department.
Chief Jedrusik of the Westland Police stated, “Westland Detectives and Officers from the Special Investigations Unit conducted a thorough and professional investigation, quickly determined the defendants’ identities and orchestrated a seamless undercover operation and search warrant resulting in Gordon and Pangborn’s arrest. Their hard work and dedication is a credit to the Westland Police Department.”
Westland Police Department and the Detroit office of the DEA investigated the case. Assistant U.S. Attorneys Erin Shaw and John O’Brien of the Eastern District of Michigan prosecuted the case.
Detroit Man Pleads Guilty to Unemployment Insurance Fraud, Illegal Gun PossessionRead the Press Release
A Detroit man pleaded guilty today to conspiring to engage in mail fraud and being a felon in possession of a firearm, U.S. Attorney Matthew Schneider announced.
Schneider was joined in the announcement by James Vanderberg, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
According to court records, Charles H. Alexander, 54, of Detroit, participated in a multi-year scheme to fraudulently obtain unemployment insurance benefits. Alexander acknowledged that as part of the scheme, he obtained personal identifying information of third parties and caused unemployment benefits to be issued in the names of those third parties—even though those individuals had no legitimate entitlement to such benefits. Alexander also acknowledged that he impersonated others in order to withdraw fraudulently-obtained unemployment insurance benefits.
Alexander, who has prior convictions for illegal weapons activity, drug activity, and aggravated domestic violence, also admitted that he illegally possessed a loaded firearm.
“Charles Alexander defrauded the Michigan Unemployment Insurance Agency by conspiring with others to falsely obtain and use debit cards containing over $330,000 in unemployment benefits issued in the names of claimants who were not entitled to such benefits. We will continue to work with our law enforcement partners to safeguard the unemployment insurance system from those who exploit these benefit programs,” said James Vanderberg, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
As part of his plea agreement, Alexander has agreed to be held accountable for $330,561 in restitution.
Alexander entered his guilty plea before U.S. District Judge Bernard A. Friedman in Detroit. Sentencing has been set for October 5, 2018.
The case is being investigated by the Department of Labor, Office of Inspector General and the State of Michigan Unemployment Insurance Agency, and is being prosecuted by Assistant United States Attorney Andrew J. Yahkind
Colorado Business Owners Indicted for $7 Million Biodiesel Tax Credit Fraud SchemeRead the Press Release
A federal grand jury for the District of Colorado has returned an indictment, which was unsealed today, charging two Colorado business owners with conspiring to defraud the United States and to commit money laundering, money laundering and filing false claims, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Matthew Taylor and Martin Fields owned businesses in Colorado and New Jersey and allegedly conspired with the owner of a Colorado-based home heating oil business, Shintan, Inc., to file more than $7 million in false claims for refundable fuel tax credits with the Internal Revenue Service (IRS). A refundable fuel tax credit called the “Biodiesel Mixture Credit” was available to blenders of biodiesel mixture who used the mixture as a fuel or sold it for use as fuel.
The indictment charges that Taylor and Fields filed multiple false claims for the credit with the IRS and then laundered the proceeds of the scheme through bank accounts they controlled. They allegedly spent the fraudulently obtained funds on a variety of expenses, including $890,000 for a down payment on a house, $16,000 at a clothing store, more than $12,000 at a TV store, more than $24,000 towards luxury vacation rentals and paid more than $11,000 to a landscape company.
If convicted, the defendants face a maximum sentence of 5 years in prison on the conspiracy to defraud the government count, 5 years in prison on each false claim count, and 10 years in prison on the money laundering conspiracy count and each money laundering count. They also face a period of supervised release, restitution and monetary penalties. An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation and Environmental Protection Agency Criminal Investigation Division, who investigated the case, and Tax Division Trial Attorneys Leslie A. Goemaat and Arthur J. Ewenczyk, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Capital Region Anti-Gang Project Reaches More than 1,500 Fifth-GradersRead the Press Release
ALBANY, NEW YORK – United States Attorney Grant C. Jaquith concluded the 2018 LEADership Project today at a news conference at the Mont Pleasant Middle School in Schenectady. Joining him were 14 fifth-grade students who completed the project this year, and many leaders and representatives of the participating federal, state, and local law enforcement agencies.
The LEADership Project, an anti-gang training for fifth-grade students, reached classrooms this year in the Albany, Schenectady, Troy and Lansingburgh School Districts. The project began with just the Albany School District in 2011 and has grown since then. Volunteer instructors spend four sessions in each classroom, and this year taught more than 1,500 students.
United States Attorney Grant C. Jaquith stated: “The LEADership Project is about investing in our children, and thus in the future of our community. The acronym is for Legal Education and Decision-making and the Project involves working with 5th graders to help them stay out of gangs and away from crime, focus on what they can become, and make positive decisions to get there. We want these students to excel, and to view law enforcement as a friend and supporter in their quest for success. We have been able to reach so many students thanks to our partnership with federal, state, and local law enforcement agencies whose officers have generously donated their time. This opportunity to encourage students to soar is very rewarding, and we hope this Project leads to long-lasting benefits for them and our community.”
Schenectady Schools Superintendent Laurence T. Spring stated: “We are proud to be part of the LEADership Project and appreciate the hard work of all of the agencies and the U.S. Attorney in order to help our students recognize and learn how to handle difficult situations and make good decisions. The ability for our kids to interact and relate with law enforcement officers is important toward building trust and sends such a powerful message. Our kids are engaged and are listening. They are becoming more aware of how the many decisions and choices that they make today can shape their futures.”
Albany School Superintendent Kaweeda G. Adams stated: “The LEADership Project is an excellent example of the type of community partnership that is so important to helping our students learn to make good decisions and build strong relationships. Our students are building visions of themselves as adults, and this program is supporting them in taking positive first steps down those pathways to successful futures.”
Troy Schools Superintendent John Carmello stated: “For the past four years, fifth-grade students in the Troy City School District have had the opportunity to participate in the U.S. Attorney’s LEADership Project. We are extremely grateful to the U.S. Attorney’s Office and all of our partners for this fantastic program. Through this project, our students have been able to build lasting positive relationships with various members of the criminal justice system, learn critical lessons in making good decisions, and pave a pathway to success for themselves, in school and in life. The LEADership Project is an integral part of the Troy City School District’s mission to educate students who become upstanding citizens in our community.”
To meet the challenge of getting volunteer law enforcement instructors for the 76 fifth-grade classrooms in the four school districts, United States Attorney Jaquith reached out to, and received a terrific response from, the following law enforcement agencies:
Federal Agencies
U.S. Attorney’s Office
U.S. Marshals Service
Bureau of Alcohol, Tobacco, Firearms, and Explosives
Transportation Security Administration
U.S. Probation and Pretrial Services
U.S. Dept. of Health & Human Services, Office of the Inspector General
Social Security Administration, Office of the Inspector General
U.S. Postal Service, Office of the Inspector General
U.S. Postal Inspection Service
U.S. Customs & Border Protection
State Agencies
New York State Police
New York State Attorney General’s Office
Local Agencies
Albany Police Department
Schenectady Police Department
University at Albany Police Department
Schenectady County District Attorney’s Office
Rensselaer County District Attorney’s Office
Albany County Sheriff’s Office
Rensselaer County Sheriff’s Office
Schenectady County Probation Department
Rensselaer County Probation Department
Through role-playing skits centered on two fifth-grade characters who are encouraged by an older gang member to make some bad decisions, classroom discussions revolve around making good life decisions, focusing on the future, acknowledging positive personal traits, and becoming the best that students can be. The sessions introduce the students to the concepts of responsibility and accountability through learning about Victim Impact Panels and Community Accountability Boards.
In past student questionnaires from the project, 84% of fifth graders stated it was very important to them to have help to stay away from gangs. These sessions help students learn how to do that. While 98% said they were not in a gang, 73% indicated they had friends who were in gangs. When asked who can help them stay away from gangs, students notably listed their parents, teachers, police officers, and their LEADership instructors.
California Man Admits Role in Cross-Country Conspiracy to Distribute over Five Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A Riverside, California, man today pleaded guilty to his role in a conspiracy to transport more than five kilograms of cocaine from California to New Jersey, U.S. Attorney Craig Carpenito announced.
Edwin Garcia Cambero, 26, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with conspiracy to possess with intent to distribute more than five kilograms of cocaine.
Garcia Cambero was originally charged by complaint on Dec. 13, 2017, with Luis Michel Donascimento, 36, of Perris, California, and Humberto Ramos Cervantes, 33, of Los Angeles.
According to documents filed in this case and statements made in court:
On Nov. 29, 2017, Donascimento allegedly flew from California to Atlantic City, New Jersey, and met with a government informant and two undercover federal agents. During the meeting, Donascimento agreed to sell the agents 20 kilograms of cocaine, as well as 10 AR-15 semiautomatic rifles.
On Dec. 12, 2017, Donascimento allegedly met with the agents at a hotel in California and delivered them 10 AR-15 rifles as promised. Garcia Cambero also attempted to deliver approximately five kilograms of cocaine to the agents, which he had received earlier that day at his residence from Ramos Cervantes.
The conspiracy charge to which Garcia Cambero pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing is scheduled for Sept. 20, 2018.
The charges and allegations against Donascimento and Ramos Cervantes are merely accusations, and they are considered innocent unless and until proven guilty. All three defendants have been in custody since their arrest in California on Dec. 13, 2017.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and the FBI Riverside, California, Resident Agency, under the direction of Assistant Director in Charge Paul D. Delacourt in Los Angeles, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force (OCDETF)/Narcotics Unit.
Defense counsel: Henry Klingeman Esq., Newark, New Jersey
Buffalo Man Sentenced in Towing Scandal Involving Buffalo Police OfficersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Mahoney, 34, who was convicted of conspiring to make payments and gratuities to City of Buffalo police officers, was sentenced to two years’ probation by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorneys Russell T. Ippolito, Jr., and Maura K. O’Donnell, who handled the prosecution, stated that James Mazzariello, Jr. owned and operated Jim Mazz Auto, Inc. and National Towing, Inc. The companies were involved in all aspects of the automobile towing and repair business, including collision repair work, mechanical repair work, towing and storage work, and the sale of used automobiles. Adam Mazzariello, the son of James Mazzariello, Jr., supervised the towing services aspect of the businesses. Christopher Mahoney served in a managerial capacity for each of the businesses.
Mahoney admitted that between January 2009 and May 2012, Jim Mazz Auto tow truck operators, at the direction of James Mazzariello, Jr. and Adam Mazzariello, made payments to certain City of Buffalo police officers for their assistance in enabling Jim Mazz tow truck operators to tow motor vehicles damaged in accidents in the City of Buffalo. The tow truck operators made these payments from their own personal funds and subsequently sought reimbursement from James Mazzariello, Jr., Adam Mazzariello and Christopher Mahoney. James Mazzariello, Jr. directed and authorized Christopher Mahoney to make reimbursement payments to the tow truck operators. Mahoney made reimbursement payments to tow truck operators on a regular basis and often times used cash from the Jim Mazz Auto cash drawer to make such payments.
While the plea agreement does not specify the exact number of payments made by the tow truck operators to Buffalo Police Officers, the government, through its investigation and prior to the time defendant Mahoney expressed a desire to plead guilty, substantiated and examined, in detail, 19 different payments made by tow truck operators. Approximately $500 in payments were made to Buffalo police officers by tow truck operators for access to the tows of the 19 accidents examined. The gross revenue Jim Mazz Auto derived from making such payments totaled $43,022.74. The gross revenue consisted of payments made to Jim Mazz Auto for towing, as well as for mechanical and collision repair work.James Mazzariello, Jr. and Adam Mazzariello were previously convicted and sentenced to serve 12 months and six months respectively in federal prison.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Internal Revenue Service Criminal Investigation Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office; the New York State Department of Motor Vehicles’ Division of Field Investigation, under the direction of Owen McShane, Director of Investigations; the New York State Department of Taxation and Finance Criminal Investigations Division, under the direction of Deputy Commissioner John Harford; the New York State Department of Financial Services Criminal Investigations Unit, under the direction of Director Frank Orlando; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Buffalo Man and Woman Arrested for Attempting to Retrieve Cocaine Mailed from Puerto RicoRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Brendaliz Escalante, 28, and Jerry Louis Rolon-Alvarez, 39, both of Buffalo, NY, were arrested and charged by criminal complaint with attempt to possess with intent to distribute cocaine. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the complaint, the U.S. Postal Inspection Service intercepted a package shipped from Puerto Rico to an address in Buffalo. A search warrant was executed on the package and revealed, hidden inside the parcel, more than three kilograms of suspected cocaine.
U.S. Postal Inspection Service removed the cocaine from the package and replaced it with sham. On June 18, 2018, law enforcement officers delivered the package to the residence, where both Escalante and Rolon-Alvarez arrived to retrieve the package. Following their retrieval of the package, both defendants were arrested.
The defendants made an initial appearances before U.S. Magistrate Judge Michael J. Roemer. Rolon-Alvarez detained and Escalante released with conditions.
The criminal complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the United States Postal Service Inspection Service, Boston Division, under the direction of Acting Inspector-in-Charge Delany E. De Leon-Colon.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Brooklyn Man Pleads Guilty to Selling CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Gilbert Guzman, 48, of Brooklyn, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute, and distribution of, cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between May 2017 and October 18, 2017, the defendant conspired with co-defendants Stevie Alejandro, Aaron Hill, Cleophus Dentmond, and Catherine Ramos, and others, to distribute cocaine in the Lovejoy District.
On August 16, 2017, Guzman sold cocaine to an undercover police officer. Stevie Alejandro, who operated the Barberians Barber Shop at 1132 East Lovejoy Street, which is located directly across from Buffalo Public School #43, the Lovejoy Discovery School, provided the defendant with the cocaine for this transaction.
Stevie Alejandro, Aaron Hill, and Cleophus Dentmond were previously convicted and are awaiting sentencing. Charges are pending against Catherine Ramos. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Cheektowaga Police Department, under the direction of Chief David Zak; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
Sentencing is scheduled for October 18, 2018, at 12:30 p.m. before Judge Arcara.
Boston Man Convicted by Federal Jury of Heroin TraffickingRead the Press Release
BOSTON – A Boston man was convicted yesterday in federal court in Boston of his role in a heroin conspiracy operating in Norwood.
Luis Guzman-Ortiz, 25, was convicted by a federal jury of one count of conspiring to distribute heroin. Guzman-Ortiz has been released pending his sentencing hearing, which has not been set.
In early 2015, federal agents conducted a wiretap investigation of Eddyberto Mejia-Ramos, a regional heroin trafficker operating in Taunton. In May and June, Soto-Peguero was identified as Mejia-Ramos’ primary source of supply. On July 6, 2015, calls were intercepted during which Mejia-Ramos asked Soto-Peguero to send him something “heavy,” and Soto-Peguero replied that his girlfriend, Mercedes Cabral, was on her way. Federal agents then conducted surveillance outside Soto-Peguero’s Norwood apartment and observed Cabral exit the apartment and drive towards Taunton. Law enforcement officers stopped Cabral and found 10 blocks of heroin (918 grams) protruding from her purse.
After seizing the heroin, law enforcement attempted to secure Soto-Peguero’s apartment in anticipation of obtaining a federal search warrant; they knocked on the door and announced the presence of police, but no one answered. As officers began a forced entry through the front door, there was a disturbance. According to evidence provided at the April 2018 trial of Soto-Peguero, Soto-Peguero fired a gunshot through the front door. Fortunately, no one was hurt.
This evidence was not presented at Guzman-Ortiz’s trial after the Court found it was irrelevant to Guzman-Ortiz’s case and potentially prejudicial.
Law enforcement eventually gained entry and arrested Soto-Peguero and Guzman-Ortiz. The next day, officers executed a search warrant at the home and seized two kilograms of heroin, two hydraulic drug presses, and other evidence that showed the apartment was being used to prepare and package heroin. A firearm was also seized, and forensic testing revealed that Soto-Peguero had fired the weapon.
Soto-Peguero was convicted by a federal jury in April 2018 of drug offenses involving over a kilo of heroin. He is scheduled to be sentenced on Aug. 2, 2018. Cabral pleaded guilty and was sentenced in May 2017 to time served (22 months), and Mejia-Ramos pleaded guilty and was sentenced in August 2016 to 90 months in prison.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by the Massachusetts State Police, the Massachusetts State Police Criminal Laboratory, the Norwood and Taunton Police Departments; and the Bristol County Sheriff’s Office. Assistant U.S. Attorney Theodore Heinrich of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Bernalillo County Man Pleads Guilty to Federal Fraud, Identity Theft and Theft of Mail ChargesRead the Press Release
ALBUQUERQUE – Jesse Tucker, 36, of Tijeras, N.M., pled guilty today in federal court in Albuquerque, N.M., to fraud, identity theft and theft of mail charges, announced U.S. Attorney John C. Anderson and Inspector in Charge Melisa Llosa of the Phoenix Division of the U.S. Postal Inspection Service.
Tucker was charged in an indictment filed on Feb. 14, 2018, with eight counts of bank fraud, six counts of aggravated identity theft, and one count of theft or receipt of stolen mail. The bank fraud counts alleged that between Nov. 2016 and May 2017, Tucker fraudulently obtained almost $70,000 through a scheme to defraud that involved the use of stolen personal identifiers, checks, and other financial instruments obtained from stolen mail. The aggravated identity theft counts alleged that Tucker used the identities of others without lawful authority between Nov. 2016 and May 2017, and the theft or receipt of stolen mail count alleged that in June 2017, Tucker unlawfully possessed stolen mail, including checks and financial instruments, taken from a U.S. Postal depository in June 2017. According to the indictment, Tucker committed these crimes in Bernalillo and Valencia Counties, N.M.
During today’s change of plea hearing, Tucker pled guilty to the eight bank fraud charges, two of the aggravated identity theft charges, and the theft or receipt of stolen mail charge. In entering the guilty plea, Tucker admitted that between Nov. 2016 and May 2017, he used the personal identifiers of nine individuals, which he obtained from stolen mail, to create and obtain counterfeit identification cards and drivers’ licenses that but bore his photograph. Tucker then used the fraudulent identification cards and licenses to falsify checks, complete credit applications, and apply for loans from financial institutions. Tucker also admitted using the personal identifiers of others in his efforts fraudulently to obtain loans while knowing that they belonged to real people. Tucker also acknowledged that on June 6, 2017, law enforcement found a large volume of stolen mail belonging to other individuals in his residence.
At sentencing, Tucker faces a maximum penalty of 30 years of imprisonment on the bank fraud charges and a maximum penalty of five years of imprisonment on the stolen mail charge. He also faces a mandatory minimum penalty of two years of imprisonment on the aggravated identity theft charges, which must be served consecutive to any other sentence imposed on the other fraud charges. A sentencing hearing has yet to be scheduled.
The U.S. Postal Inspection Service investigated this case and it is being prosecuted by Assistant U.S. Attorney Holland S. Kastrin.
Ansonia Man Sentenced to 30 Months in Federal Prison for Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JACOB FREEMAN, 22, of Ansonia, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 30 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine. Judge Meyer ordered FREEMAN to serve the first three months of his supervised release in home confinement.
According to court documents and statements made in court, FREEMAN, Jason Walker and Marquice Rumley were members of a drug trafficking organization that trafficked large quantities of crack cocaine throughout the Naugatuck Valley. The investigation revealed that members of the organization shared the same cellphone to service drug customers in shifts over a 24-hour period. Members of the drug trafficking organization also shared vehicles and serviced customers together. Between May and September 2017, investigators made multiple controlled purchases of crack from FREEMAN and other members of the drug trafficking organization.
FREEMAN has been detained since his arrest on November 15, 2017. On February 27, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”).
Walker and Rumley pleaded guilty to the same charge. On June 19, 2018, Walker was sentenced to 36 months of imprisonment. Rumley awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force and the Ansonia and Derby Police Departments. This case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Anchorage Man Indicted on Child Pornography ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Russell Cherry, 51, of Anchorage, has been indicted on charges of distribution and possession of child pornography. Cherry was arraigned this afternoon before U.S. Magistrate Judge James P. Hutton.
The indictment alleges that, between July 29 and July 31, 2017, Cherry knowingly distributed, by any means and facility of interstate and foreign commerce, visual depictions of minors engaging in sexually explicit conduct. It is further alleged that, on Aug. 29, 2017, Cherry knowingly possessed images and videos depicting child sexual exploitation found on his desktop PC.
If the public has any further information or concerns about the activities of Cherry, please contact the FBI at (907) 276-4441.
If convicted, Cherry faces a statutory minimum of five years in prison and guideline sentence of the statutory maximum of 20 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Adam Alexander.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Amsterdam Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Kevin Safford, age 33, of Amsterdam, New York, pled guilty today to possessing child pornography and to accessing a child pornography web site available only through an anonymous Internet network.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his plea, Safford admitted that in 2015, he accessed Playpen, an online forum through which registered users advertised, viewed, and distributed child pornography. Images and videos shared through the site were highly categorized according to victim age and gender, and type of sexual activity depicted.
Before the FBI seized the Playpen web site and shut it down, it was available only through an anonymous Internet network, which allowed users to access websites including Playpen without revealing their actual internet protocol address, geographic location, or other identifying information. Safford admitted that he logged into Playpen in order to access its child pornography content. He also admitted to possessing child pornography on an external hard drive.
Safford faces up to 10 years in prison when he is sentenced by United States District Judge Mae A. D’Agostino on October 23, 2018. He also faces a term of post-imprisonment supervised release of at least 5 years and up to life, a fine of up to $250,000, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Alien Indicted on Misuse of a Social Security Account Number, False Claim of Citizenship with Intent to Engage Unlawfully in Employment in the United States, and Aggravated Identity TheftRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging DIEGO ISIDRO CHAJ-RAMOS, age 38, of Guatemala, with Misuse of a Social Security Account Number, False Claim of United States Citizenship with Intent to Engage Unlawfully in Employment in the United States, and Aggravated Identity Theft.
According to an affidavit filed in support of a criminal complaint, Homeland Security agents obtained copies of several I-9 Forms revealing CHAJ-RAMOS falsely represented himself to be a United States citizen and provided multiple employers the name, date of birth, and Social Security number of a United States citizen in order to qualify for employment in the Eastern District of North Carolina. Additionally, court records reveal that CHAJ-RAMOS illegally entered the United States at an unknown date and location, and was charged and/or convicted multiple times in North Carolina under the identity of a United States citizen.
If convicted of Misuse of a Social Security Account Number, False Claim of United States Citizenship with Intent to Engage Unlawfully in Employment in the United States, and Aggravated Identity Theft, CHAJ-RAMOS, found in Wake County, would face maximum penalties of 48 years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by Homeland Security Investigations.
Alexander Fernandez Sentenced to 20 Years in Prison for August 2000 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ALEXANDER FERNANDEZ, a/k/a “Det,” a/k/a “D,” a/k/a “Fat D,” a/k/a “Gordo,” was sentenced yesterday to 20 years in prison for murdering Edwin Honoret, 28, in Manhattan in August 2000. FERNANDEZ pled guilty on March 2, 2018, before U.S. District Judge Jesse M. Furman, who imposed the sentence.
U.S. Attorney Geoffrey S. Berman said: “Almost 18 years ago, Alexander Fernandez callously murdered Edwin Honoret over a drug dispute. Thanks to the remarkable efforts of the New York City Police Department, Fernandez has finally been held accountable for his terrible crime. We will continue our partnership with the NYPD to make our neighborhoods safer.”
According to the Indictment, other filings in federal court, and statements made in court proceedings:
FERNANDEZ was a member of a drug trafficking organization that transported large quantities of narcotics from New York City to West Virginia and other states. FERNANDEZ believed that he was underpaid for his role in the organization. On August 13, 2000, FERNANDEZ lured one of his partners, Edwin Honoret, to a secluded location under the George Washington Bridge in the middle of the night and shot Honoret five times, killing him. FERNANDEZ then stole thousands of dollars in drug proceeds that belonged to Honoret.
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In addition to the prison sentence, FERNANDEZ was sentenced to three years of supervised release.
Mr. Berman praised the investigative work of the Cold Case Homicide Squad of the New York City Police Department. Mr. Berman also thanked the Special Agents of the United States Attorney’s Office for the Southern District of New York.
This case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Anden Chow, Thomas McKay, and Laurie A. Korenbaum are in charge of the prosecution.
Alabama Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
Aziz Ihab Sayyed, 23, of Huntsville, Alabama, was sentenced today to 15 years in prison followed by lifetime supervised release for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jay E. Town for the Northern District of Alabama, and Special Agent in Charge Johnnie Sharp Jr. of the FBI’s Birmingham field office, made the announcement after sentencing by U.S. District Judge Abdul K. Kallon.
“We will not tolerate threats to our national security from terrorist groups like ISIS, which continues to radicalize and encourage terrorists through the internet,” said Assistant Attorney General Demers. “The defendant, a citizen of this country, plotted to carry out attacks on his fellow Americans in our country, but was thwarted by the close cooperation of our partners in law enforcement. This successful outcome should send a clear message to any other would-be terrorists that the National Security Division will find them and bring them to justice.”
“Aziz Sayyed was inspired by ISIS to kill or harm Americans and he has earned every bit of his prison term,” said U.S. Attorney Town. “This case, and this investigation, serves as the gold standard for what is possible when federal, state and local law enforcement agencies work together. The FBI did an outstanding job ensuring this investigation was successful by cultivating those layers of law enforcement necessary in cases like this.”
“The FBI’s Joint Terrorism Task Force is dedicated to identifying and bringing to justice those individuals who attempt to provide material support to foreign terrorist organizations, promote violent extremism, and threaten our national security,” said Special Agent in Charge Sharp. “Today’s sentence is a culmination of the tireless efforts of our JTTF, and the invaluable partnership we have with the Huntsville Police Department.”
Sayyed pleaded guilty in March to the terrorism charge. According to Sayyed’s plea agreement with the government, he attempted to provide services and personnel, namely himself, to ISIS. He acknowledged that he bought bomb-building ingredients in 2017, that he stated his aspirations to conduct ISIS-inspired attacks on police stations and Redstone Arsenal in Alabama, and that he attempted to form a cell to conduct violent acts within the United States.
Between January and June of 2017 in Madison County, Sayyed, a U.S. citizen, obtained and viewed ISIS propaganda videos depicting ISIS forces committing bombings, executions by gunshot and beheading, and other violent acts. Sayyed shared the videos and expressed his support for ISIS and for ISIS terrorist attacks around the world, according to his plea agreement.
Sayyed researched and learned how to make triacetone triperoxide (TATP), a highly volatile and extremely dangerous explosive material. He then purchased the necessary ingredients for the explosive, and professed his aspiration to use TATP in an explosive belt or a car bomb.
On June 13, 2017, Sayyed met with an individual he understood to be an ISIS member. In fact, the person was an undercover employee of the FBI. Sayyed and the undercover employee discussed the danger of TATP, ISIS’s preference for the use of certain explosives, and Sayyed’s desire to assist ISIS, according to the plea agreement. In that meeting, Sayyed offered to personally carry out attacks on behalf of ISIS.
The FBI investigated the case in conjunction with the Huntsville Police Department, Madison County District Attorney’s Office, Madison County Sheriff's Office, U.S. Army 902 MI Group, Redstone Arsenal’s Garrison Command, University of Alabama at Huntsville Police Department, Alabama Law Enforcement Agency, U.S. Immigration and Customs Enforcement, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Henry Cornelius and Davis Barlow of the Northern District of Alabama prosecuted the case with the assistance from the National Security Division’s Counterterrorism Section.Alabama Computer Store Owner Charged in Fraud Scheme to Acquire, Sell Government Computers Intended for Schools, Nonprofit OrganizationsRead the Press Release
PEORIA, Ill. – An Athens, Alabama computer store owner has been charged with exploiting a government computer surplus program for his personal benefit. A federal grand jury today returned its indictment of Steven Mays, 50, of Athens, Ala.
The indictment alleges that from 2007 to late 2017, Mays engaged in a scheme to defraud “Computers for Learning,” a program administered by the General Services Administration. The CFL program facilitated the transfer of computers and related equipment owned by the federal government but excess to its needs, directly to schools and some educational nonprofit organizations at no cost.
Over the decade-long scheme, the indictment alleges Mays fraudulently obtained computer equipment at an original cost to the U.S. government of more than $22 million, which he sold at his Athens, Ala., computer company and on eBay.
The indictment alleges Mays created multiple CFL user identifications on behalf of Dwight Baptist Academy, a church school in Dwight, Ill. Mays allegedly represented to the school that the equipment he obtained through the program was “junk,” and that he would refurbish the equipment to make it useable by students at the school. Unbeknownst to the school, Mays acquired much more computer equipment in its name than was known to the school, and used that equipment to enrich himself.
To carry out the fraud scheme, Mays allegedly made false representations to GSA to request excess computer equipment. Mays enlisted others to pick up the equipment from the departments and agencies, and often had it transported to his computer store. Contrary to the conditions under which Mays acquired the computer equipment, he allegedly sold it at Mays Computer Company and on eBay. Some of the equipment was shipped to recyclers to obtain payment from the recyclers; other computer equipment was disposed of in dumpsters.
The investigation was conducted by the Offices of Inspectors General for GSA, the Department of Justice, the Environmental Protection Agency, NASA, the Department of Homeland Security and the Department of Transportation, and the U.S. Postal Inspection Service. The case is being prosecuted by Supervisory Assistant U.S. Attorney Darilynn J. Knauss.
Mays will be issued a summons to appear in federal court in Peoria, Ill., for arraignment on a date to be determined by the U.S. Clerk of the Court.
If convicted, for the offenses of mail fraud (four counts) and wire fraud (one count), the statutory penalty is up to 20 years in prison. For the offenses of theft of government property (one count), and interstate transportation of stolen property, the statutory penalty is up to 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
28 Members and Associates of “GBK” Neighborhood Street Gang Charged in Drug Trafficking ConspiraciesRead the Press Release
PITTSBURGH- After a lengthy Title III wiretap investigation into drug trafficking and violence in Pittsburgh’s West End neighborhoods and other communities in the Greater Pittsburgh area, 28 people, all residents of Western Pennsylvania, were indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws. A federal grand jury has issued two separate, but related, indictments, United States Attorney Scott W. Brady and FBI-Pittsburgh Special Agent in Charge Bob Jones announced today.
U.S. Attorney Brady stated, "Reducing violent crime and making our communities safe for law-abiding citizens is a top priority of the U.S. Attorney’s Office. Working with our federal, state and local partners and using every tool at our disposal, we will prosecute gangs like the Greenway Boy Killas, which terrorize our neighborhoods and put innocent people in danger, to the fullest extent of the law."
"The FBI works closely with our law enforcement partners to make sure those bringing violence to our streets are held accountable," said Special Agent in Charge Bob Jones. "We want to make this clear to other gangs operating in our communities. We are coming for you, and the violence won’t be tolerated."
THE INDICTMENTS
The first indictment, unsealed today, containing four counts, named:
• Jewell Hall, 36, of Wilkinsburg, PA;
• Willie Harris, 39, of Pittsburgh, PA;
• Marvin Younger, 37, of Pittsburgh, PA, currently incarcerated;
• Joelle Hollis, 30, of Pittsburgh, PA;
• Allen Green, 39, of Pittsburgh, PA;
• Mardeja Chapple, 24, of Pittsburgh, PA;
• Brett Rodgers, 32, of Pittsburgh, PA;
• Marshinneah Manning, 26, of Pittsburgh, PA;
• Bryan Smith, 24, of Pittsburgh, PA;
• Balon Kennedy, 24, of Pittsburgh, PA;
• Tyree Davis, 34, of Pittsburgh, PA, currently incarcerated;
• Cecil Howard, 47, of Pittsburgh, PA;
• Brianne Dean, 30, of Bridgeville, PA;
• Antoine Dean, Jr., 28, of Washington, PA;
• Antoine Dean, Sr., 53, of Heidelberg, PA; and
• Mary Cerezo, 57, of Lawrence, PA.
According to the indictment, from in and around November 2017, and continuing thereafter to in and around June 2018, in the Western District of Pennsylvania and elsewhere, the defendants conspired to possess with intent to distribute and distribute 280 grams or more of crack cocaine. Also according to the indictment, during that same time frame, Jewel Hall, Willie Harris, Marvin Younger, Joelle Hollis, Allen Green, Brianne Dean, and Mary Cerezo conspired to possess with intent to distribute and distribute 500 grams or more of powder cocaine. The indictment also charges Jewel Hall and Marvin Younger with one count each of possession with intent to distribute cocaine, on December 29, 2017, and May 21, 2018, respectively.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The second indictment, also unsealed today, containing four counts, named:
• Monta Banks, 27, of McKees Rocks, PA, currently incarcerated
• Lawrence Morrison, 35, of Pittsburgh, PA;
• Tamra Moore, 34, of Pittsburgh, PA;
• Jaimon Woods, 28, of Pittsburgh, PA, currently incarcerated;
• Robert Moore, 36, of Pittsburgh, PA;
• Raymond Chrzanowski, 50, of Zelienople, PA;
• Mark Givens, 28, of Pittsburgh, PA;
• Eric Kaminski, 46, of Pittsburgh, PA;
• Charles Jones, 25, of Bellefonte, PA;
• Delrico Clyburn, 26, of Braddock, PA; Rashem Littleberry, 28, of Pittsburgh, PA; and
• Kellie Gossett, 36, of Canonsburg, PA.
According to the indictment, from in and around November 2017, and continuing thereafter to in and around June 2018, Monta Banks, Tamra Moore, Jaimon Woods, Robert Moore, Raymond Chrzanowski, and Eric Kaminski conspired to possess with intent to distribute and distribute 28 grams or more of crack cocaine. Also according to the indictment, during the same time frame, the same defendants, along with Charles Jones, Mark Givens, Delrico Clyburn, Rashem Littleberry, and Kellie Gossett conspired to possess with intent to distribute and distribute a quantity of heroin. Also according to the indictment, during the same time frame, Monta Banks, Lawrence Morrison, Tamra Moore, and Raymond Chrzanowski conspired to possess with intent to distribute and distribute a quantity of powder cocaine. The indictment also charges Jaimon Woods with being a felon in possession of firearms and ammunition on or about December 7, 2017.
The law provides for a maximum total sentence on the drug charges of not less than 5 years and up to 40 years in prison, a fine of $2,000,000, or both. The law provides for a maximum sentence on the firearm charge of up to 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Rachael Dizard and Tonya Sulia Goodman are prosecuting these cases on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation of this case, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department. Other assisting agencies include the Moon Township Police Department, Avalon Police Department, Munhall Police Department, Altoona Police Department, Johnstown Police Department, Shaler Township Police Department, Canonsburg Police Department, Cecil Township Police Department, Allegheny County Adult Probation, ICE/Homeland Security Investigations, Pennsylvania State Parole, and the Allegheny County Port Authority Police Department.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
19 June 2018
“Thief-In-Law” Razhden Shulaya Convicted of Racketeering in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that RAZHDEN SHULAYA, a vor v zakone or “thief-in-law,” and AVTANDIL KHURTSIDZE, a boxing champion and SHULAYA’s enforcer, were found guilty of racketeering and related charges in connection with a sprawling and violent criminal enterprise operating in New York, New Jersey, Pennsylvania, Nevada, and abroad.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As a unanimous jury found, Razhden Shulaya and his chief enforcer, Avtandil Khurtsidze, engaged in an array of criminal schemes that included violence, extortion, theft, trafficking in stolen goods, and fraud. Shulaya, a Russian ‘vor v zakone’ or ‘thief-in-law,’ is now a convicted thief under U.S. law. Both defendants now await sentencing for their crimes.”
As established by the evidence at trial:
The Shulaya Enterprise was an organized criminal group operating under the direction and protection of RAZHDEN SHULAYA, a/k/a “Brother,” a/k/a “Roma,” a “vor v zakone” or “vor,” which are Russian phrases translated roughly as “Thief-in-Law” or “Thief,” and which refer to an order of elite criminals from the former Soviet Union who receive tribute from other criminals, offer protection, and use their recognized status as vor to adjudicate disputes among lower-level criminals. As a vor, SHULAYA had substantial influence in the criminal underworld and offered assistance to and protection of the members and associates of the Shulaya Enterprise. Those members and associates, and SHULAYA himself, engaged in widespread criminal activities, including acts of violence, extortion, the operation of illegal gambling businesses, fraud on various casinos, identity theft, credit card frauds, trafficking in large quantities of stolen goods, money laundering through a fraudulently established vodka import-export company, payment of bribes to local law enforcement officers, and the operation of a Brooklyn-based brothel.
The Shulaya Enterprise operated through groups of individuals, often with overlapping members or associates, dedicated to particular criminal tasks. While many of these crews were based in New York City, the Shulaya Enterprise had operations in various locations throughout the United States (including in New Jersey, Pennsylvania, Florida, and Nevada) and abroad. Most members and associates of the Shulaya Enterprise were born in the former Soviet Union and many maintained substantial ties to Georgia, Ukraine, and the Russian Federation, including regular travel to those countries, communication with associates in those countries, and the transfer of criminal proceeds to individuals in those countries.
AVTANDIL KHURTSIDZE, formerly a middleweight boxing champion, acted as SHULAYA’s chief enforcer and, as such, engaged in multiple acts of extortion and violence. KHURTSIDZE was captured on video twice assaulting others in service of the Shulaya Enterprise, participated in recorded acts of extortion of gambling debts, and planned additional acts of violence with SHULAYA targeting associates of the Shulaya Enterprise whom KHURTSIDZE and SHULAYA perceived as having disrespected SHULAYA’s status as a vor.
SHULAYA and KHURTSIDZE jointly participated in a scheme to defraud casinos by targeting particular models of electronic slot machines using a complicated algorithm designed to predict the behavior of those machines. SHULAYA obtained the technology used to commit that fraud through violence, including through the 2014 kidnapping of a software engineer in Las Vegas. SHULAYA and KHURTSIDZE then refined that technology by training lower-level members of the Shulaya Enterprise to execute this casino scam using smartphones and software developed by the Enterprise.
SHULAYA was found guilty of one count of racketeering conspiracy, which carries a potential maximum penalty of 20 years in prison, one count of conspiring to traffic in stolen goods such as luxury watches, which carries a potential maximum penalty of five years in prison, one count of conspiracy to traffic in contraband tobacco, which carries a potential maximum penalty of five years in prison, one count of identification document fraud, which carries a potential maximum penalty of 15 years in prison, and one count of wire fraud conspiracy, which carries a potential maximum penalty of 20 years in prison. KHURTSIDZE was found guilty of one count of racketeering conspiracy and one count of wire fraud conspiracy, each of which carries a potential maximum penalty of 20 years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of SHULAYA and KHURTSIDZE will be determined by the judge.
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Mr. Berman praised the outstanding work of the Federal Bureau of Investigation and its Eurasian Organized Crime Squad, as well as the U.S. Customs and Border Protection, and the New York City Police Department for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Andrew C. Adams, Andrew Thomas, and Andrew Chan are in charge of the case.
York Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Fernandino Rodriguez-Colon, age 39, of York, Pennsylvania, was indicted on June 13, 2018, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the six count indictment alleges that Rodriguez-Colon distributed and possessed with intent to distribute cocaine base, commonly known as crack cocaine, heroin and marijuana on separate occasions in January and February 2018 in York, Pennsylvania. The indictment also alleges Rodriguez-Colon, a prohibited person, possessed a stolen Remington .45 caliber pistol in furtherance of his drug trafficking activities. The indictment also gives notice of the Government’s intent to forfeit all assets connected with the drug trafficking crimes.
This case was investigated by the York County Drug Task Force with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney James T. Clancy is prosecuting 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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each of the drug trafficking offenses is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for possession of a stolen firearm and possession of a firearm by a previously convicted felon is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for possession of a firearm in furtherance of drug trafficking is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Washington, DC Man Charged with Aiding Others File False W-2 FormsRead the Press Release
PITTSBURGH, PA - A resident of Washington, DC, has been indicted by a federal grand jury in Pittsburgh on a charge of aiding in the filing of false tax returns, United States Attorney Scott W. Brady, announced today.
The 13-count indictment, returned on March 27, 2018, named Jaason J. Weatherly, as the sole defendant.
According to the indictment, Weatherly, filed false tax returns in 2012 and 2013 for other persons, which contained false W-2 forms, income and withholding information.
The law provides for a total sentence of 39 years in prison, a fine of $3,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Washington Man Pleads Guilty for Traveling to Idaho to Have Sex with a MinorRead the Press Release
COEUR D’ALENE – Harley Lee Howell, III, 35, of Colville, Washington, pleaded guilty yesterday to travel with intent to engage in illicit sexual contact with a minor, U.S. Attorney Bart M. Davis announced. Howell was indicted by a federal grand jury in Coeur d’Alene on September 14, 2017.
According to court records, on August 25, 2017, Howell initiated a chat with an undercover federal Homeland Security Investigations agent posing as a fifteen-year old minor. During the chat, Howell stated that he wanted to have sex with the minor. Howell then drove from Washington to Idaho and was arrested outside a Coeur d’Alene hotel room. Officers seized lubricant and condoms from Howell’s person.
This case was investigated by the Department of Homeland Security Immigration and Customs Enforcement/Homeland Security Investigations office with the assistance of the Federal Bureau of Investigation, Kootenai County Prosecutor’s Office, United States Marshals Service, Coeur d’Alene Police Department, and the Washington Southeast Regional Internet Crimes Against Children Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Vacaville Man Sentenced to Four Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Maurice Darnell Jones, Jr., 22, of Vacaville, was sentenced today by U.S. District Judge John A. Mendez to four years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on August 27, 2017, the Vacaville Police Department received a call about an auto burglary in progress. The caller described a male suspect fleeing in a silver sedan. Moments later, police identified a car matching the description. When an officer tried to stop the car, the driver fled for several blocks, and then parked his car and began running from police. Police recovered various items in and around the car that showed ties to Jones, including paperwork in the trunk with Jones’s name on it, and a cellphone next to the car that was determined to be Jones’s phone. In addition, police located a .40-caliber handgun in the area where Jones had fled. Ammunition from the gun matched ammunition found with Jones’s belongings in an apartment unit nearby. Jones cannot lawfully possess firearms because he previously has been convicted of two felony offenses.
This case was the product of an investigation by the Vacaville Police Department and the Federal Bureau of Investigation’s Solano County Violent Crimes Task Force, with assistance from the Solano County District Attorney’s Office.
This case was brought as a 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 of Justice’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.
Upshur County man indicted on drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Marlin E. Beckner, of Buckhannon, West Virginia, was indicted today by a federal grand jury on methamphetamine distribution charge, United States Attorney Bill Powell announced.
Beckner, age 44, is charged with one count of “Possession with Intent to Distribute Methamphetamine.” Beckner is accused of possessing crystal methamphetamine, also known as ice, in September 2017 in Upshur County.
Beckner faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives; the Mountain Region Drug & Violent Crime Task Force; the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative; the West Virginia State Police; Upshur County Sheriff’s Office; Lewis County Sheriff’s Office; the Buckhannon Police Department; and the Weston Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Files Intent to Seek Death Penalty against Palmer Man Charged with Federal Murder, Drug Trafficking, and Firearms CrimesRead the Press Release
Anchorage, Alaska – The United States Attorney’s Office for the District of Alaska today filed its notice of intent to seek the death penalty against John Pearl Smith II, 32, of Palmer, for the murders of Wasilla residents Ben Gross and Crystal Denardi on June 5, 2016.
The filing, a copy of which is attached, follows the decision and directive by Attorney General Jeff Sessions to seek the death penalty against Smith.
The notice of intent alleges that if Smith is convicted, his use of a firearm in furtherance of a crime of violence resulting in murder, and the use of a firearm in furtherance of a drug trafficking crime resulting in murder, in addition to numerous aggravating factors, justifies a sentence of death.
The indictment alleges that in September 2015, May 11, 2016, and June 5, 2016, Smith attempted to rob people he believed were involved in trafficking drugs. On each occasion, the indictment alleges that he brandished firearms during the robbery. On the last occasion, it alleges he shot and killed Ben Gross and Crystal Denardi during the robbery, as well as shot a third individual, identified in the indictment as “R.B.”
The Alaska State Troopers (AST), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA) conducted the investigation leading to the charges in this case. This case is being prosecuted by Criminal Chief Frank Russo and Assistant U.S. Attorney William Taylor.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Attorney’s Office Participates in Sioux Falls PRIDE FestivalRead the Press Release
SIOUX FALLS, SD – The U.S. Attorney’s Office for the District of South Dakota participated in this year’s Sioux Falls PRIDE Festival on Saturday, June 16, 2018, as part of its ongoing effort to increase awareness of the various civil rights protections available to South Dakotans under federal statute.
The U.S. Department of Justice enforces a number of laws that prohibit various forms of discrimination in areas covering employment, education, housing, police practices, and other Department-funded programs. Although these laws do not explicitly refer to sexual orientation or gender identity, they prohibit sex discrimination, which protects all people from gender-based discrimination.
If you believe you have been discriminated against, or that your civil rights have been violated, please contact the Civil Rights Section of the U.S. Attorney’s Office by calling (605) 330-4400, or by sending an email to [email protected].
The U.S. Department of Justice also enforces the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act of 2009, which makes it a federal crime to willfully cause bodily injury, or attempt to do so using a dangerous weapon, because of the victim’s actual or perceived sexual orientation, gender identity, or disability. To report evidence of a hate crime, please contact your local Federal Bureau of Investigation field office, which can be found at http://www.fbi.gov/contact-us/field/field-offices.
Two Men Sentenced for Heroin and Cocaine Trafficking ConspiracyRead the Press Release
NORFOLK, Va. – Two Portsmouth men were sentenced yesterday to a combined 26 years in prison for their involvement in a massive heroin and crack cocaine conspiracy in Hampton Roads.
According to court documents, Antonio Brown, aka “Tony Legal,” 42, was a lieutenant in the drug trafficking organization, and Roman Hurdle, aka “Rome,” 38, was Brown’s driver and crack manufacturer, or “cook.” The men were part of a massive heroin and crack cocaine drug-trafficking conspiracy which included at least 10 participants. The men are responsible for distributing roughly three kilograms of heroin, four kilograms of crack, and over 20 kilograms of powder cocaine.
Brown was sentenced to 17 1/2 years in prison. Hurdle was sentenced to 9 years in prison.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney William B. Jackson prosecuted 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. 2:18-cr-40.
Two Indictments Brought Against Bakersfield Women for Possession of Stolen Mail and Identity TheftRead the Press Release
FRESNO, Calif. — Two Bakersfield women were arrested today for federal offenses related to possession of stolen U.S. mail and aggravated identity theft, U.S. Attorney McGregor W. Scott announced. A federal grand jury in Fresno returned the indictments on June 7, 2018.
According to the first indictment, Kammi Sargent, 48, was charged with bank fraud, possession of stolen U.S. mail and aggravated identity theft. Court documents indicate that Sargent obtained stolen identity documents, including driver’s licenses of women who had similar appearances to her. With the stolen identification documents, Sargent opened bank accounts under the victims’ names. She obtained checks stolen from the mail and washed off the name of the payee, substituting the name of the stolen identity onto the check. Sargent then deposited the stolen and altered checks into the fraudulently obtained bank accounts, and used a credit or debit card tied to the accounts to withdraw funds.
According to the second indictment, Erin Peterson, 40, is charged with possession of stolen U.S. mail, unlawfully possessing 15 or more unauthorized access devices (credit or debit cards), possession with intent to distribute 50 grams and more of methamphetamine, and aggravated identity theft.
According to court documents, from July to December 2017, Peterson was using credit and debit cards stolen from the mail to make purchases at various retail establishments in Bakersfield. Purchase records, including photographic captures of Peterson conducting fraudulent purchases, were obtained from the retail stores.
On December 28, 2017, a federal search warrant at Peterson’s residence found 428 pieces of stolen mail, 31 stolen credit and debit cards, over a hundred personal and business checks, and a counterfeit arrow key used to access community mailboxes. Also located in the residence was approximately 149 grams of crystal methamphetamine, $1,400 in cash, narcotics packaging material, and a digital scale.
These cases are the product of investigations by the U.S. Postal Inspection Service and the Bakersfield Police Department with assistance from the Kern County Sheriff’s Office. Assistant US. Attorney Brian R. Delaney is prosecuting both cases.
If convicted, Sargent faces a maximum statutory penalty of 30 years in prison and a $1 million fine. If convicted, Peterson faces a maximum statutory penalty of life in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.