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Wednesday 9 May 2018
Konawa Man Sentenced to 18 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joe William Cooper, age 59, of Konawa, Oklahoma, was sentenced to 18 months imprisonment and 3 years supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charge arose from an investigation by the Pontotoc County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about May 29, 2017, within the Eastern District of Oklahoma, the defendant, Joe William Cooper, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
“The public is best served when law enforcement agencies from state, local, federal, and tribal jurisdictions work together. This investigation started with a deputy from the Pontotoc County Sheriff’s Office and then further investigation was completed by ATF agents,” United States Attorney Brian J. Kuester said. “Because of their joint efforts, members of this office were able to enforce a federal statute which prohibits felons from possessing a firearm, and as a result, the public is safer.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Kenyan Native Sentenced for Unlawful Possession of GunRead the Press Release
A Kenyan native who entered the United States in 2003 on a student visa and whose lawful visa status ended in 2004, was sentenced on May 7, 2018, to 5 years in federal prison for unlawfully possessing a gun as an unauthorized alien.
Kevin Oscar Naholi, age 41, most recently from Cedar Rapids, Iowa, received the prison term after a November 20, 2017, jury verdict finding him guilty of one count of unlawfully possessing a firearm as a prohibited person.
Evidence at trial showed that at about 6:00 p.m. on August 26, 2017, Naholi was outside his residence on 11th Avenue SW in Cedar Rapids when a neighbor and her two young sons were returning home on foot from an evening dinner. Naholi was armed with a long rifle. The neighbor observed Naholi with the rifle from a short distance away and was startled. The neighbor yelled at Naholi to put the gun down and warned Naholi he could get in trouble for having the gun. Naholi responded by pointing the rifle in the direction of the neighbor and her children, causing them to flee in fear to a nearby house. From there the neighbor called the police. Naholi retreated into his home and refused to come out despite prolonged efforts by the police to negotiate his peaceful surrender. Police eventually deployed tear gas into the house, but to no avail. At about 4:45 a.m. after also deploying a robot into the house, a Cedar Rapids Police SWAT team entered and took Naholi into custody. The rifle was found at the foot of a bed in the house. Police also found a machete in another room along with Naholi’s cell phone and other property.
At the sentencing hearing on Monday, the government presented evidence of Naholi’s violent criminal history, including multiple incidents of domestic abuse of a prior spouse who later divorced him. The evidence also showed Naholi married a second woman nearly 40 years his senior in 2015 while he was incarcerated and immigration removal proceedings were pending against him. Naholi later sought to be granted lawful permanent residence based upon his second marriage, but that request was denied by immigration authorities. Naholi’s second wife served him with divorce papers on August 26, 2017, the day he was found to have unlawfully possessed a firearm.
Naholi was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Naholi was sentenced to serve 60 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
At sentencing, Judge Reade found Naholi posed a serious risk to the public and noted Naholi had numerous prior criminal convictions that made him likely to recidivate.
Naholi will be subject to removal from the United States to Kenya upon completion of service of his sentence.
The case was prosecuted by Assistant United States Attorney Richard L. Murphy and investigated by Immigration and Customs Enforcement, with the assistance of the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-00070.
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Jury Convicts Third Man in Synthetic Cannabinoid ConspiracyRead the Press Release
VICTORIA, Texas - A federal jury has returned a guilty verdict related to a large-scale synthetic narcotic manufacturing operation, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for just under two hours before reaching its verdict, convicting Mohamed Ebrahim Salim Moton, 49, a citizen of India lawfully residing in Houston, of two counts of possession with intent to distribute a synthetic cannabinoid.
Two others charged in the indictment had previously pleaded guilty. Ataru Rahman Malik, 39, of Houston, and Thomas Edward Peplinski, 73, of Robstown, each pleaded guilty April 3, 2018, to one count of conspiracy to possess with intent to distribute a synthetic cannabinoid before Senior U.S. District Judge John Rainey. Malik and Peplinski are both set the sentencing for July 3, 2018. Moton’s sentencing is set for Aug. 7, 2018.
During the trial, the jury heard the testimony of several law enforcement officers who stated that in September 2016, the Houston Police Department received a tip concerning the discovery of a package of synthetic cannabinoids at a storage facility in the 10000 block of the Southwest Freeway. During the follow-up investigation, officers conducted surveillance at the location and were able to identify Moton dropping off large trash bags full of synthetic cannabinoids at several local storage units. The officers then observed Malik arriving at the storage units and removing the trash bags of synthetic cannabinoids at a later time.
One of the officers testified that on Feb. 10, 2017, they observed Moton leave his residence and retrieve two large trash bags of synthetic cannabinoids from one of the storage units and deliver them to Malik’s vehicle which was parked at an apartment complex in the 11000 block of Bissonnet in southwest Houston. Malik was then observed moving the trash bags into another vehicle that Peplinski was driving. After leaving the location, authorities conducted a traffic stop on Peplinski’s vehicle as he drove southbound on US-59 in Fort Bend County. During the traffic stop, the officers seized 899 packets of synthetic cannabinoids weighing approximately 30 pounds.
The officers testified that based on the investigation, they obtained felony arrest warrants for Moton and Malik through the Harris County District Attorney’s Office. On April 18, 2017, the Houston Police Department (HPD Narcotics Division executed arrest warrants for Malik and Moton related to the February incident. At the time of the arrests, the officers searched a residence in a southwest neighborhood and discovered approximately 580 pounds of synthetic cannabinoids and equipment used to manufacture and package the illegal substance. Officers also searched several area storage units and recovered additional packages ready to be sold. At the time of the arrests, it was the largest seizure of a synthetic cannabinoids manufacturing operation HPD discovered to date. In addition, officers seized approximately $108,000 in U.S. currency related to the criminal activity.
The evidence showed that laboratory analysis confirmed the presence of the synthetic cannabinoid FUB-AMB. In addition, the jury heard the testimony of two expert witnesses from the Drug Enforcement Administration (DEA), Chemical and Drug Evaluation Section related to the chemical structure and the pharmacological effects of FUB-AMB, which is controlled under the Controlled Substance Analog Act. The testimony also included how the DEA handles newly emerging synthetic narcotics, the adverse effects of those substance and imminent hazard they present to the public safety.
Synthetic cannabinoids are chemical compounds that mimic THC, the psychoactive ingredient in marijuana. These chemical compounds are applied to carrier mediums such as plant material and ingested using rolling papers, pipes, vaporizers or otherwise taken orally. Synthetic cannabinoids are usually sold in small, foil or plastic bags containing dried leaves (resembling potpourri) and is marketed as incense that can be smoked. It is commonly sold and known on the street as: “synthetic marijuana,” “fake weed,” “legal” and by its popular brand names such as: Kush, Spice, K2, Klimaxx and many other names.
In custody since his arrest, Moton was transferred to federal custody after the indictment and will remain in custody pending his sentencing. Malik and Peplinski were released on bond after their arrests and were allowed to remain on bond pending their sentencing.
All three men face a maximum punishment of up to 20 years of imprisonment and a possible $1 million maximum fine.
The Houston Police Department conducted the investigation with the assistance of the Drug Enforcement Adminisration and Immigration and Customs Enforcement's Homeland Security Investigations.
Assistant U.S. Attorney Lance Watt is prosecuting the case.
Jefferson County Men Charged with Federal Violations Related to Armed Robberies in Port Arthur/BeaumontRead the Press Release
BEAUMONT, Texas – Four Port Arthur, Texas men have been indicted by a federal grand jury and charged with federal violations related to a crime spree in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Darrion Tyrell Kimble, 19; Tavori Terrell Jackson, 19; Damien Earl Kimble, 35; and Kamren Terezz Lewis, 18, were named in the 11-count indictment returned by a federal grand jury on May 2, 2018, charging them with Hobbs Act conspiracy and federal firearms violations. The defendants made initial appearances before U.S. Magistrate Judge Zack Hawthorn today in Beaumont.
According to the indictment, from July 26, 2017, through Mar. 6, 2018, the defendants are alleged to have conspired together to commit five armed robberies of businesses in Port Arthur and Beaumont, which unlawfully obstructed, delayed and affected commerce, in violation of 18 U.S.C. § 1951.
Under federal statutes, if convicted, the defendants face up to 20 years in federal prison.
This case is being investigated by the Beaumont Police Department, the Port Arthur Police Department, and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John B. Ross.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Jamaican Man Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Christopher Kevin Solomon, also known as Kevin Murphy, age 41, and a citizen of Jamaica, pled guilty today to illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Solomon was removed from the United States to Jamaica on April 26, 2003. In pleading guilty, he admitted that on January 17, 2018, he was arrested by a Border Patrol Agent at a hotel in Hogansburg, New York. Solomon admitted that he returned to the United States without permission following the 2003 removal.
Solomon faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Lawrence E. Kahn on August 29, 2018. 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 Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Jackson Man Pleads Guilty to Multi-State Fraud Scheme Involving over One Hundred Million Dollars and Hundreds of VictimsRead the Press Release
Jackson, Miss. – Arthur Lamar Adams, 58, of Jackson, pled guilty today before U.S. District Judge Carlton Reeves to one count of wire fraud for his role in a large, multi-state Ponzi scheme involving more than one hundred million dollars and hundreds of victims spanning a number of years, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
Restitution is mandatory under federal law, and Adams has agreed to forfeiture of all funds and assets related to the Ponzi scheme.
"Those who prey upon and swindle people out of their hard-earned money, in some cases their life savings and retirements, will be firmly prosecuted by this office and face justice in our courts. This criminal conduct will not be tolerated in our state, and if others were involved, we will continue to dig until all those responsible have been brought to justice," said U.S. Attorney Hurst. "Victims may contact the U.S. Attorney’s Office, and you can rest assured that we will do everything within our power to ensure victims are assisted, protected and afforded their rights."
Over a period of at least 7 years, Adams executed this sophisticated Ponzi scheme using Madison Timber Properties, LLC, a company wholly owned by Adams. From as early as 2011 through April, 2018, Adams’s scheme defrauded investors by soliciting millions of dollars of funds under false pretenses, failing to use the investors’ funds as promised, and converting investors’ funds to Adams’s own benefit without the knowledge of the investors. Instead of investing his clients’ money, Adams used the invested funds for his own personal benefit and for purposes other than those represented to investors, which also included making payments due and owing to other investors, thus perpetuating the Ponzi scheme. During the fraudulent scheme, Adams fraudulently obtained well in excess of one hundred million dollars from more than 250 investors located in at least 14 different states.
As part of his fraudulent scheme, Adams falsely represented to investors that Madison Timber Properties was in the business of buying timber rights from landowners and then selling the timber rights to lumber mills at a higher price. The object of the scheme was to cause individuals to invest in loans that purportedly were for the purpose of financing contracts for the purchase of timber rights to be sold to lumber mills at a higher price. However, neither Adams nor Madison Timber Properties had such timber rights or contracts with lumber mills, except in only a few instances.
Adams entered into fraudulent investment contracts with investors, most often in the form of promissory notes on behalf of Madison Timber Properties. The loans typically
guaranteed investors an interest rate of 12-13%, with the interest to be repaid to investors over the course of 12-13 months. The monthly payments due on these promissory notes were typically due on either the first or the fifteenth of the month.
Adams created false documents causing investors to believe that their investments were secured by sufficient collateral from which they could recover all or part of their investment in the event that Madison Timber Properties defaulted on the loans. Specifically, Adams created false timber deeds purporting to be contracts conveying timber rights from landowners to Madison Timber Properties. Adams forged the signatures of landowners and also created false timber deeds purporting to convey timber rights from Madison Timber Properties to the investors.
Adams will be sentenced by Judge Reeves on August 21, 2018, at 9:30 a.m., and faces a maximum penalty of 20 years in federal prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Dave Fulcher.
Iowa and Washington Marijuana Dealers Sentenced to Federal PrisonRead the Press Release
A Cedar Rapids man and a man from Washington State who sold more than 100 pounds of marijuana were each sentenced on May 8, 2018, to multiple years in federal prison.
Buddy Xeko, age 36, from Cedar Rapids, Iowa, received the prison term after a December 7, 2017, guilty plea to one count of conspiracy to distribute marijuana and cocaine and two counts of money laundering. At the guilty plea, Xeko admitted he agreed to distribute more than 110 pounds of marijuana and quantities of cocaine in the Cedar Rapids area between 2011 and 2016. Xeko also admitted he conspired to commit money laundering and used money he acquired from selling drugs to purchase an SUV that cost more than $50,000.
Xeko was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Xeko was sentenced to 71 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Gregory Sills, age 45, from Concrete, Washington, received the prison term after a November 30, 2017, guilty plea to one count of conspiracy to distribute marijuana. At the guilty plea, Sills admitted he agreed to distribute more than 110 pounds of marijuana and quantities of cocaine in the Cedar Rapids area between 2011 and 2016. Sills got the marijuana he was selling from Xeko.
Sills was also sentenced in Cedar Rapids by United States District Court Judge Reade. Sills was sentenced to 57 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Both Xeko and Sills are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick Reinert and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-00063.
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Illegal Alien Sentenced to 14 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss. – Hector Serrano-Cruz, age 41, an illegal alien from Mexico living in Gulfport, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 168 months in federal prison, followed by five years of supervised release, for distributing methamphetamine in Harrison County, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze of the Federal Bureau of Investigation.
Serrano-Cruz pled guilty on February 5, 2018, to one count of possession with intent to distribute methamphetamine. He was supplying pound quantities of methamphetamine to a local distributor and was held accountable for distributing approximately five pounds of methamphetamine "ICE."
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John Meynardie.
Hedge Fund Founder, Portfolio Manager, and Trader Charged in Manhattan Federal Court with Mismarking Securities by Hundreds of Millions of DollarsRead the Press Release
Audrey Strauss, the Attorney for the United States, acting under authority conferred by 28 U.S.C. § 515, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrests of ANILESH AHUJA, a/k/a “Neil,” the founder, chief executive officer, and chief investment officer of a New York-based investment firm that managed hedge funds focused on structured credit products (“the Firm”), AMIN MAJIDI, a former partner and portfolio manager at the Firm, and JEREMY SHOR, a former trader at the Firm.
Ms. Strauss said: “Investors rely on a hedge fund’s performance numbers when deciding whom to trust with their capital. To compete with other peer funds, Neil Ahuja, founder of an investment firm, allegedly manipulated the firm’s performance numbers, using fraudulently inflated values for the firm’s securities holdings and lying to investors about how the firm would mark its positions. By allegedly cooking the books, Ahuja and his co-defendants made the fund appear more attractive to would-be investors and dissuaded current investors from withdrawing their investments. We will continue to work with our law enforcement and regulatory partners to ensure that investors are provided accurate information when making important investment decisions.”
FBI Assistant Director William F. Sweeney Jr. said: “The defendants’ alleged practice of intentionally misleading investors and mismarking securities held in the funds they managed allowed them to charge higher fees and hold captive money that would have likely been withdrawn had their clients been aware of the hedge fund’s actual value. Their initial success was based on self-imposed target returns, supported by reverse engineering tactics, but in the end, they missed their mark.”
AHUJA, MAJIDI, and SHOR are charged with participating in a scheme, from in or about 2014 through in or about 2016, to commit securities fraud and wire fraud relating to the mismarking of certain securities held in hedge funds that the Firm managed, thus fraudulently inflating the net asset value (“NAV”) of those funds as reported to investors and potential investors. At its peak, the mismarking across all funds managed by the Firm exceeded $200 million. In addition, Ms. Strauss announced today the unsealing of charges against ASHISH DOLE, a former chief risk officer and trader at the Firm, and FRANK DINUCCI, JR., a former salesman at a broker-dealer. Both DOLE and DINUCCI have pled guilty and are cooperating with the Government.
AHUJA was arrested in New York, New York, this morning. MAJIDI was arrested at his home in Armonk, New York, this morning. SHOR self-surrendered to the authorities in New York, New York, this morning.
AHUJA, MAJIDI, and SHOR will be presented and arraigned later today before United States District Judge Katherine Polk Failla. DOLE’s case is assigned to United States District Judge John G. Koeltl. DINUCCI’s case is assigned to United States District Judge Alvin K. Hellerstein.
In a separate action, the Securities and Exchange Commission (“SEC”) filed civil charges against AHUJA, MAJIDI, and SHOR.
According to the allegations in the charging documents unsealed today in Manhattan federal court, including the Indictment,[1] and statements made in court proceedings:
The Firm
As alleged in the Indictment, in or about 2008, ANILESH AHUJA, a/k/a “Neil,” co-founded the Firm, where he was the chief executive officer and chief investment officer. The Firm managed hedge funds focused primarily on structured credit products, including residential mortgage backed securities (“RMBS”). Before founding the Firm, AHUJA had been the head of the RMBS group at a prominent global investment bank.
The Firm’s flagship mortgage credit fund (the “Hedge Fund”) was launched in or about October 2009. A segregated ERISA fund held the same positions as the Mortgage Credit Fund. In 2013, the Firm launched a new fund (the “New Issue Fund”) that purchased and securitized pools of mortgages that were not issued or guaranteed by a government agency. At various relevant times between 2008 and 2016, the Firm managed billions of dollars in assets, in excess of $5 billion at the Firm’s peak.
From in or about 2008 through in or about June 2016, AMIN MAJIDI worked at the Firm, first as the chief risk officer and, beginning in or about 2014, as a partner and the portfolio manager for the Hedge Fund. From in or about early 2014 through in or about March 2016, JEREMY SHOR was employed by the Firm as a trader, where he focused on non-agency RMBS – i.e., RMBS securities that were not issued by a government agency.
The Scheme to Mismark Securities
As alleged in the Indictment, from at least in or about 2014 through at least in or about 2016, AHUJA, MAJIDI, SHOR, and others, including DOLE and DINUCCI, participated in a scheme to defraud the Firm’s investors and potential investors in the Hedge Fund and the New Issue Fund by deceptively mismarking each month the value of certain securities held in those funds, and thus fraudulently inflating the NAV of those funds as reported to investors and potential investors. At times, the NAV was overstated by more than $200 million across the funds managed by the Firm.
This benefited the Firm in at least two ways. First, the Firm was able to charge its investors higher management and performance fees. Second, the Firm was able to forestall redemptions by investors who would have requested a return of their funds had they known the Firm’s true performance and operating health.
The mismarking scheme evolved as a result of demands by AHUJA and MAJIDI that the Firm maintain its track record of success and keep pace with the performance of peer funds, regardless of market conditions or the actual performance of the funds. To achieve the goal of posting competitive returns, AHUJA and MAJIDI set an inflated “target” return for the Hedge Fund at the end of each month, which was based in part on the performance of peer funds. As part of the scheme, MAJIDI, frequently in the presence of AHUJA, directed the members of the trading desk, including SHOR, DOLE, and others, that the Firm must meet its “target” performance number for the month. The traders at the Firm were then tasked with “reverse engineering” marks to meet the “targets.”
The Firm mismarked securities using two illicit methods. In the first method, the Firm secured fraudulently inflated price quotes for particular securities from corrupt brokers. AHUJA, MAJIDI, SHOR, and others then relied on these inflated quotes to set correspondingly inflated marks for their bonds. Specifically, AHUJA and MAJIDI were aware that SHOR had access to corrupt brokers – including DINUCCI – and directed SHOR, along with DOLE and others, to use these corrupt brokers to secure the inflated quotations they needed to hit their internal “targets.” While DINUCCI initially resisted some of the inflated marks that SHOR requested that he provide, DINUCCI eventually agreed to parrot back the exact marks SHOR had requested. In exchange for sending these inflated marks, DINUCCI expected that SHOR and the Firm would use DINUCCI and his firm as a broker.
In the second method, AHUJA, MAJIDI, SHOR, and others relied on corrupt brokers to secure “spreads” that could be used to inflate the NAV of the funds to meet the internal “targets.” Specifically, SHOR, DOLE, and others – with the knowledge and approval of AHUJA and MAJIDI – secured and misused “spreads” from corrupt brokers, including DINUCCI. A spread is typically the difference between a bid and an ask for a given security. But SHOR obtained so-called “sector spreads” from DINUCCI for use in mismarking the Firm’s positions. Sector spreads are the difference between the bid and the ask for entire sectors of securities (e.g., non-agency RMBS), not the bid and ask for specific securities. Because a sector spread reflected the difference between the cheapest and most expensive securities within an entire sector, it would be at least as large as (and almost certainly significantly larger than) the spread for a given bond in that sector. Generally, the Firm’s valuation policy required the Firm to mark a position at the “mid,” i.e., between the bid and the ask. The Firm used sector spreads to fraudulently create what it called an “implied mid,” or “imputed mid,” for particular securities. Where a broker supplied the Firm with a bid, the Firm added half of the sector spread to “calculate” the implied mid of a bond. SHOR, DOLE, and MAJIDI internally referred to this use of implied or imputed mids as “the lever” – because it could be used to manipulate the NAV to meet AHUJA’s fraudulent targets.
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AHUJA, 49, of New York, New York, MAJIDI, 52, of Armonk, New York, and SHOR, 46, of New York, New York, are each charged with four counts: one count of conspiracy to commit securities fraud; one count of conspiracy to commit wire fraud; one count of securities fraud; and one count of wire fraud. Count One carries a maximum sentence of five years in prison, and Counts Two through Four each carry a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
On April 6, 2017, DINUCCI, 35, of New York, New York, pled guilty before Judge Hellerstein to four counts: one count of conspiracy to commit securities fraud and wire fraud; one count of securities fraud; one count of wire fraud; and one count of making false statements. Counts One and Four each carry a maximum sentence of five years in prison, and Counts Two and Three each carry a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
On November 13, 2017, DOLE, 34, of White Plains, New York, pled guilty before Judge Koeltl to two counts: one count of conspiracy to commit securities fraud and wire fraud; and one count of securities fraud. Count One carries a maximum sentence of five years in prison, and Count Two carries a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the respective judges.
Ms. Strauss praised the work of the FBI and thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Andrea M. Griswold and Joshua A. Naftalis are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Hampshire County man admits to sex offender registry violationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Anthony Dale Helton, of High View, West Virginia, has admitted to a sex offender registration violation, United States Attorney Bill Powell announced.
Helton, age 50, pled guilty to one count of “Failure to Register.” Helton, who had previously been convicted of a sex offense in South Carolina, admitted to traveling across state lines without updating his sex offender registration, as required by law, in November and December 2017 in Hampshire County.
Helton faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The United States Marshals Service investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Gunsmith Charged with Converting Firearm to Illegal MachinegunRead the Press Release
The owner of ‘Joe’s Guns and Stuff,’ a business in Shoreline, Washington was charged today in U.S. District Court in Seattle with two counts of illegal possession of a machinegun, announced U.S. Attorney Annette L. Hayes. DANIEL JOSEPH HUNGERFORD, 73, allegedly modified and sold two illegal firearms to an undercover ATF agent. The firearms were made to fire in rapid bursts of ammunition – as a machine gun. Possession of machine guns by private citizens is illegal under federal law. HUNGERFORD will make his initial appearance in U.S. District Court in Seattle at 2:00 today.
According to the criminal complaint, on April 10, 2018, HUNGERFORD sold an undercover agent with the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) a .300 Blackout rifle where the lower receiver had been modified to accept an M16 automatic sear. The modifications made the firearm a three round burst machinegun. When making the sale, HUNGERFORD did not complete any of the required paperwork or conduct a background check as required by federal law.
On a second visit a few days later, the undercover agent again purchased gun parts that had been modified to create a machinegun. HUNGERFORD discussed his firearms work with the agent and showed him parts where the serial numbers used to identify the gun manufacturer and registration had been removed.
Illegal possession of a machinegun is punishable by up to ten years in prison and a $250,000 fine.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the ATF and is being prosecuted by Assistant United States Attorney Bruce Miyake.
Gulfport Man Pleads Guilty to Illegally Possessing FirearmRead the Press Release
Gulfport, Miss. – Eric Jameson Graham, 27, of Gulfport, entered a guilty plea today before District Judge Louis Guirola, Jr. to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of Alcohol, Tobacco, Firearms and Explosives ("ATF").
Graham faces a maximum of 10 years in prison, a fine of $250,000, and 3 years of supervised release. Sentencing is set for July 31, 2018, at 10:30 a.m. before Judge Guirola.
The case began with the ATF getting reports of a felon selling firearms and possessing hand grenades. The report led to the search of the Gulfport home of Graham and two other individuals. Twenty-one stolen firearms and methamphetamine were seized. Graham has a prior state felony for grand larceny. The firearms were stolen from the father of Graham’s co-defendant Erin Woods. Graham admitted he was using methamphetamine.
Co-defendant Woods pled guilty in federal court before Judge Guirola on April 25, 2018, to being a user of controlled substances illegally possessing a firearm.
The case was investigated by the ATF and is being prosecuted by Assistant United States Attorney Annette Williams.
Guatemalan Man Sentenced to Prison Following Three Deportations and Document FraudRead the Press Release
A Guatemalan man who had been deported three times, illegally returned to the United States, and then used false identification documents to obtain a job was sentenced May 8, 2018, to six months in federal prison.
Sebastian Batz-Mejia, age 27, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a March 14, 2018, guilty plea to one count of unlawful use of identification documents and one count of illegal reentry into the United States.
At the guilty plea, Batz-Mejia admitted that he illegally returned to the United States after being deported in June 2011, September 2014, and again in October 2014. Batz-Mejia also admitted that on September 13, 2017, he used a social security card bearing an alias name when completing employment forms to obtain a job in Postville, Iowa. The alias name and social security account number on the card used by Batz-Mejia belonged to a United States citizen. Immigration agents became aware of Batz-Mejia’s illegal return to the United States on February 14, 2018, following Batz-Mejia’s arrest under a different alias name in Allamakee County, Iowa, for operating a motor vehicle while intoxicated (OWI).
Batz-Mejia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Batz-Mejia was sentenced to six months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Batz-Mejia is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1004.
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Gardiner Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Russell Truman, 50, of Gardiner, Maine, pled guilty today in U.S. District Court to conspiracy to distribute heroin, fentanyl and cocaine base, commonly known as “crack.”
According to court records, between June 2015 and March 2017, Truman conspired with others to acquire heroin, fentanyl and crack in Rochester, New York and transport it to Central Maine for distribution. In exchange for heroin and crack, the defendant assisted several Rochester dealers in distributing the drugs and allowed drugs to be sold from his residence.
The defendant faces up to 20 years in prison term, a $1,000,000 fine, and between three years and life on supervised release.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department, and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Freeport Man Sentenced to Two and A Half Years in Federal Prison for Gun TraffickingRead the Press Release
ROCKFORD — A Freeport, Ill. man was sentenced yesterday by U.S. District Judge Frederick J. Kapala on a gun trafficking charge. RYAN ALAN LORING, 38, was sentencing to two and a half years in federal prison, to be followed by 3 years of supervised release. Loring pleaded guilty on January 26, 2018 to transferring firearms to a convicted felon. According to the written plea agreement, on April 4, 2014, Loring purchased four firearms from a licensed dealer in Rockford. Included among those firearms were three .380 caliber pistols, which Loring then immediately transferred to an individual Loring knew was a convicted felon. Loring admitted that he purchased approximately 10 additional firearms for the same individual between March and November 2014 from licensed firearms dealers located in Rockford or Freeport. Loring admitted that he made false written statements to the licensed firearms dealers in connection with the purchases of those firearms. Loring admitted that he misrepresented on written forms that he was the actual buyer of the firearms when Loring knew that the other individual was in fact the buyer of the firearms.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives.
The government was represented by Assistant U.S. Attorney Talia Bucci.
Franklinton Man Sentenced for Illegal Possession of a FirearmRead the Press Release
U.S. Attorney Duane A. Evans announced that SIDNEY RAY COTTON, age 33, of Franklinton, was sentenced today by United States District Court Judge Jay C. Zainey. The defendant previously pled guilty to being a felon in possession of a firearm.
According to court documents, on or about March 21, 2016, in the Eastern District of Louisiana, COTTON, who had been convicted of simple robbery in the Twenty-Second Judicial Court, did knowingly possess in and affecting interstate commerce a firearm, specifically, a Norinco, Model SKS, serial number H7224.
Judge Zainey sentenced COTTON to forty-six (46) months imprisonment to be followed by a three (3) year term of supervised release. COTTON must also pay a $100 special assessment.
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 Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Gregory Kennedy is in charge of the prosecution.
Founder of $50 Million Mail Fraud Scheme Pleads GuiltyRead the Press Release
May 9, 2018
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Eric Epstein, age 57, of Pompano Beach, Florida (previously of Owings Mills, Maryland) pleaded guilty today to conspiracy to commit mail fraud and conspiracy to defraud the Internal Revenue Service. Epstein was indicted on August 24, 2017 and charged with committing mail fraud to obtain more than $50 million in money and property from various businesses through the fraudulent sale of light bulbs and cleaning supplies.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service, Criminal Division; and Inspector in Charge Robert B. Wemyss of the United States Postal Inspection Service, Washington Division.
According to the plea agreement, in or about 2003, Epstein co-founded a telemarketing business, Midway Industries, based in Maryland, that sold lightbulbs and cleaning supplies to businesses, schools, churches, non-profit organizations, and government offices. Epstein obtained money from thousands of victim businesses by convincing them to pay for light bulbs and cleaning supplies that they never ordered, and deceived the businesses about the amounts Midway would bill for products.
Epstein sold a majority financial interest in Midway in 2012 for $15 million, but he retained an ownership stake, received a regular paycheck, and continued to advise and supervise Midway employees. From 2003 through 2014, Midway employees would cold-call businesses stating that the business had an existing business relationship with Midway, make false representations, send unwanted orders, and inflate the price of products. The inflated prices were regularly 900% greater than the prices Midway paid for the supplies. At times, invoices were more than 8,000% higher than the true amount due.
Employees at Midway worked on commission, the amount of which was often determined by Epstein.
According to the plea agreement, Epstein caused victims’ checks payable to Midway corporate entities to be cashed at money remitters, while Epstein personally kept and used the money. Epstein and others at Midway used Midway credit cards for lavish personal expenditures, such as luxury furniture and vehicles.
Epstein faces a maximum sentence of 20 years in prison for mail fraud conspiracy and 5 years in prison for conspiracy to defraud the Internal Revenue Service.
A sentencing date has been set for September 5, 2018, in U.S. District Court in Baltimore, Maryland.
United States Attorney Robert K. Hur thanked the FBI, the IRS, and the USPS for their work on the investigation. Mr. Hur commended Assistant U.S. Attorneys Sean R. Delaney and Harry M. Gruber, who are prosecuting the case.
Fort Smith Woman Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Ingrid Garcia, age 40, of Fort Smith, Arkansas, was sentenced today to 120 months in federal prison followed by five years of supervised release on one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, after several months of an investigation, the Drug Enforcement Administration (DEA) and the Springdale Police Department learned that methamphetamine was being distributed in Northwest Arkansas by Garcia. In October of 2017, agents arranged and conducted a controlled purchase of methamphetamine from Garcia in the Western District of Arkansas. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 103.23 grams of actual methamphetamine.
Garcia was indicted by a federal grand jury in December 2017 and entered a guilty plea in January 2018.
This case was investigated by the Drug Enforcement Administration (DEA) and the Springdale Police Department. Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Former Superintendent of Hopi Mission School Sentenced to 2 Years in Prison for Embezzlement of School FundsRead the Press Release
PHOENIX – This week, Thane Epefanio, 45, of Avondale, Ariz., was sentenced by U.S. District Judge Steven P. Logan to two years in prison for embezzling money from the Hopi Mission School located on the Hopi Reservation in Kykotsmovi, Ariz. Epefanio had previously pleaded guilty to money laundering and wire fraud.
Epefanio served as the Superintendent and Administrator of the Hopi Mission School, a private, charitable school funded primarily with donations and through participation in government programs. Beginning in 2012, Epefanio used his position and influence to embezzle school funds and also directed staff to provide him money to create the appearance that the funds were being used to operate the school. Epefanio obtained almost $1 million to support his gambling habit and to pay for personal expenses.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Social Security Administration, Inspector General Office of Investigation. The prosecution was handled by Monica B. Edelstein and Natalie Huddleston, Assistant U.S. Attorneys.
CASE NUMBER: CR-16-08241-PCT-SPL
RELEASE NUMBER: 2018-060_Epefanio
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Sidney Resident Sentenced to 60 Months in Federal PrisonRead the Press Release
BILLINGS - The United States Attorney’s Office announced today that Tiffaney Ann Boland was sentenced to 60 months in prison, five years of supervised release, and a $100 special assessment. U.S. District Judge Susan P. Watters presided over the hearing.
Boland previously entered a guilty plea to possession with intent to distribute methamphetamine. In September 2016, law enforcement received information that one of the “Sidney Shuttle” drivers may be selling drugs while operating the shuttle. Law enforcement conducted three controlled purchases from the driver and two additional purchases from the driver’s supplier, Boland and another coconspirator. Boland is responsible for approximately 70 grams of actual methamphetamine, which converts to 560 individual dosage units of the drugs which would have reached drug users in Montana.
In a sentencing memorandum filed in federal court, federal prosecutors noted that the “distribution of methamphetamine is crippling communities” and that “Boland’s actions are serious and have a direct impact on society.” It continued by noting that buyers begin purchasing from a lower-level dealer, like the Sidney Shuttle driver, but transition to buying larger quantities from people like Boland. Prosecutors also noted “The distribution of methamphetamine will not be tolerated and others, include[ing] those in and around the Sidney area who are engaging in the sale of methamphetamine, should understand that the road for this conduct leads to federal prison.”
The Boland case was investigated by the Montana Department of Criminal Investigations, the Federal Bureau of Investigation, and other federal, state, and local agencies.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Former Pitt Professor Sentenced to Time Served after Admitting She Kidnapped Her Daughter and Took Her to CanadaRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh pleaded guilty to one count of international parental kidnapping and was sentenced in federal court to "time served," having been imprisoned for 25 months, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Marike Vuga, 48, a citizen of Austria and a former professor at the University of Pittsburgh. Judge Bissoon also ordered that Vuga be removed from the United States and returned to Austria. She remains detained pending removal by U.S. Immigration and Customs Enforcement.
According to information presented to the court, Vuga, on March 16, 2016, traveled from the United States to Canada with her child, contrary to a custody order in place since November 2010, and without the permission of the child’s father. She crossed the border in northern Maine at the New Brunswick, Canada border crossing, using false identification for her child, and then traveled to Ottawa and endeavored unsuccessfully to obtain Austrian travel documents for her child, who was born in the United States and was a U.S. citizen. From March 18, 2016 through April 8, 2016, Vuga and her child stayed at a bed & breakfast located in Ottawa, evading law enforcement authorities. The owner of the establishment became suspicious of her behavior, and learned through a search on the Internet that there was an outstanding arrest warrant for Vuga, issued in Allegheny County, Pennsylvania, and immediately contacted the Ottawa Police Service. Officers confirmed her identity through surveillance and affected her arrest on April 8, 2016. Vuga was thereafter extradited to the United States.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement/Homeland Security Investigations, and the Allegheny County Police Department for the investigation leading to the successful prosecution of Vuga.
Former Navy Chief Sentenced to Prison for Child PornographyRead the Press Release
NORFOLK, Va. – A former Navy sailor was sentenced today to five years in prison for possession of child pornography.
According to court documents, Michael A. Eiker, 40, of Virginia Beach, is a former Chief Petty Officer in the U.S. Navy. Eiker came to the attention of the Naval Criminal Investigative Service when he submitted his government-assigned computer for software upgrades. His command noticed child pornography on the computer, which ultimately led to a search warrant for Eiker’s home where additional media containing similar material was found. In total, Eiker maintained a collection of over 1,000 images of child sexual abuse. Also found in Eiker’s home was a journal he recorded documenting his involvement in child pornography dating back nearly 10 years.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Special Assistant U.S. Attorney David Layne prosecuted the case.
This case is 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 and click on the tab “resources” for more information about Internet safety education.
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. 2:17-cr-72.
Former Law Firm Clerk Resentenced to 37 Months in Prison for Role in $2 Million Insider Trading SchemeRead the Press Release
TRENTON, N.J. - The former managing clerk for an international law firm was resentenced today to 37 months in prison for stealing sensitive, confidential information from the law firm for use in a five-year insider trader scheme that yielded net profits of more than $2 million, U.S. Attorney Craig Carpenito announced.
Steven Metro, 44, formerly of Katonah, New York, was sentenced today to 37 months in prison. U.S. District Judge Michael A. Shipp imposed the sentence in Trenton federal court.
In November 2015, Metro pleaded guilty to the first two counts of an indictment charging him with securities fraud and conspiracy to commit securities and tender offer fraud, and was sentenced to 46 months in prison in September 2016. Metro appealed his sentence to the U.S. Court of Appeals for the Third Circuit, which vacated Metro’s sentence in February 2018 and remanded the case to the District Court for resentencing after further factual findings pertaining to the total loss amount attributable to Metro.
According to documents filed in this case and statements made in court:
From 2009 to 2013, Metro stole material nonpublic information from Simpson Thacher & Bartlett LLP related to corporate transactions, such as mergers and acquisitions or tender offers, in which the firm represented a party or financial advisor to the transaction. As the firm’s managing clerk, Metro did not personally work on most of these transactions. Instead, Metro stole the inside information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”
After obtaining the inside information, Metro would meet his friend, Frank Tamayo, 44, of Brooklyn, New York, at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan. During these meetings, Metro provided Tamayo material information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and commit the rest of the inside information to memory.
Afterwards, Tamayo would meet Vladimir Eydelman, 46, formerly of Colts Neck, New Jersey, usually at a location near Eydelman’s workplace, such as at the large clock in New York City’s Grand Central Terminal. Tamayo would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo would place the paper or napkin into his mouth and chew it until it was destroyed.
After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s “source,” Eydelman then purchased securities for himself, family members, friends, and clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose.
Throughout the course of the approximately five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate his law firm source – i.e., Metro – for providing them the inside information.
By exploiting the information that Metro stole from the firm, Metro, Tamayo and Eydelman personally, or on behalf of close affiliates, such as family members, netted more than $2 million in illicit profits over five years.
In addition to the prison term, Judge Shipp sentenced Metro to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Regional Director Marc P. Berger and Senior Associate Regional Director Sanjay Wadhwa, for its assistance
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu, Chief of the Asset Recovery and Money Laundering Unit, Senior Litigation Counsel R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, and Senior Litigation Counsel Barbara A. Ward of the Asset Recovery and Money Laundering Unit.
Defense counsel: Lawrence S. Lustberg Esq., and Anne M. Collar Esq., Newark
Five Real Estate Investors Sentenced for Rigging Bids at Northern California Public Foreclosure AuctionsRead the Press Release
Five real estate investors were sentenced yesterday for their role in a conspiracy to rig bids, in violation of the antitrust laws, at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Joseph Giraudo, Kevin Cullinane, Raymond Grinsell, Daniel Rosenbledt, and Mohammed Rezaian were charged with and convicted of bid rigging at real estate foreclosure auctions in San Mateo County, California. Giraudo, Grinsell, Rosenbledt, and Rezaian were also convicted of bid rigging in San Francisco County.
Giraudo was sentenced to serve 15 months in prison followed by three years of supervised release, and he was ordered to pay a criminal fine of $2 million. Cullinane was sentenced to serve eight months in prison followed by three years of supervised release, and he was ordered to pay a criminal fine of $500,000. Grinsell was sentenced to three years of probation on the condition that he reside at a halfway house or residential re-entry center for 10 months. Grinsell was also ordered to pay a criminal fine of $1,433,045 and $156,146.79 in restitution. Rosenbledt was sentenced to serve six months in prison followed by three years of supervised release, and he was ordered to pay a criminal fine of $1,236,355 and $127,808 in restitution. Rezaian was sentenced to four years of probation on the condition that he reside at a halfway house or residential re-entry center for five months. Rezaian was also ordered to pay a criminal fine of $1,236,355 and $110,155.70 in restitution. The issue of restitution as it relates to Giraudo and Cullinane will be decided at a later date.
“As the sentences imposed yesterday show, bid rigging does not pay,” said Assistant Attorney General Makan Delrahim for the Justice Department’s Antitrust Division. “In addition to facing prison time, defendants can expect to pay substantial criminal fines and restitution for their ill-gotten gains.”
Between 2008 and January 2011, the defendants and other bidders at the auctions conspired not to bid against one another for selected properties, instead designating a winning bidder for the property at the auction and negotiated payoffs among themselves in return for not competing with one another.
When properties are sold at public auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds paid to the homeowner.
The sentence is a result of the Division’s investigation into bid rigging at public real estate foreclosure auctions in California’s San Francisco, San Mateo, Alameda, and Contra Costa counties.
These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should call the FBI tip line at 415-553-7400 or visit https://www.justice.gov/atr/report-violations.
Five Members of New York Area Drug Trafficking Organization Charged with Diverting and Selling Tens of Thousands of Oxycodone PillsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and George P. Beach II, the Superintendent of the New York State Police, announced an Indictment charging RICKY RIOS, JEANETTE SANTIAGO, ADRIEL VASQUEZ, CINDY GARCIA, and ULTIMO MONTILLA with a conspiracy to distribute oxycodone pills. The case has been assigned to United States District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants created a network spanning New York City to Connecticut for the distribution of tens of thousands of highly addictive and dangerous pills, helping to fuel the opioid epidemic plaguing our nation. We are committed, along with our law enforcement partners, to stopping the diversion of prescription opioids.”
DEA Special Agent in Charge James J. Hunt said: “This organization monopolized on opioid addiction by pushing tens of thousands of oxycodone pills throughout the Northeast, allegedly. Every day, more than 100 Americans die from opioid overdoses; both law enforcement and our community members are focused on bringing to justice drug trafficking organizations that exploit addiction for profit.”
NYPD Commissioner James P. O’Neill said: “I commend all the dedicated members of the federal task force who investigated and took down the individuals responsible for diverting and selling these pills on the streets of New York. Cases like this perfectly highlight the value of the NYPD’s law enforcement partnerships at every level of government.”
Superintendent George P. Beach II said: “Oxycodone is a highly addictive medication, and the operators of this trafficking ring profited by illegally diverting tens of thousands of doses for sale on the streets, knowing it would be abused. I thank our federal and local partners for their efforts to put a stop to this illegal trafficking operation.”
As alleged in the underlying Complaints and the Indictment charging the defendants in Manhattan federal court[1]:
The defendants were members of a drug trafficking organization (the “DTO”) that operated in the Bronx, among other places. The defendants and other members and associates of the DTO obtained oxycodone pills from individuals with prescriptions, stored and packaged those pills in an apartment in the Bronx, and then resold them. Between November 2016 and February 2018, the defendants and other members and associates of the DTO were responsible for diverting and selling tens of thousands of oxycodone pills.
* * *
A chart with the names, ages, residences, and maximum penalties for the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
The Indictment was the result of a long-term investigation by the DEA’s Drug Enforcement Task Force, which comprises agents and officers of the DEA, the New York City Police Department, and the New York State Police. This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Michael K. Krouse is in charge of the prosecution.
The charges contained in the Complaints and the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
DEFENDANT
AGE
RESIDENCE
MAXIMUM PENALTY
RICKY RIOS
49
Seymour, CT
20 years in prison
JEANETTE SANTIAGO
37
Bronx, NY
20 years in prison
ADRIEL VASQUEZ
37
Yonkers, NY
20 years in prison
CINDY GARCIA
40
Yonkers, NY
20 years in prison
ULTIMO MONTILLA
40
Bronx, NY
20 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Complaints the Indictment and the description of those materials set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Federal Search Warrant ExecutedRead the Press Release
On May 9, 2018, Special Agents and Deportation Officers with the United States Department of Homeland Security Investigations executed a search warrant in Mount Pleasant, Iowa, with the assistance of local law enforcement. This was an official law enforcement action and there is no threat to the public.
No other information or comments will be released unless and until documents have been filed with the court as part of the public record.
Federal Jury Finds the Enforcer of a Drug Trafficking Organization Guilty on Heroin Trafficking and Murder ChargesRead the Press Release
St. Louis, MO – After a ten-day trial and 62 witnesses, a federal jury returned three guilty verdicts – conspiracy to distribute controlled substances and two counts of possession of a firearm (with death resulting) in furtherance of a drug trafficking crime.
According to the evidence presented at trial, defendant Donald Stewart a/k/a “OG,” was an enforcer for the Donald White drug trafficking organization. Over several years, White’s drug trafficking organization engaged in acts of violence with a rival drug trafficking organization. Defendant Stewart was recruited as a shooter for the White drug trafficking organization and engaged in several acts of violence for the organization. Additionally, defendant Stewart was a street level heroin dealer for the organization. Defendant Stewart’s residence in the 5200 block of Northland was used as a heroin distribution hub, used to store weapons, and used to plan out various acts of violence including murder committed by Stewart and other members of the organization.
“This office will continue to prosecute murder cases aggressively when they involve heroin interdiction or any other federal crime,” said U.S. Attorney Jeff Jensen.
According to the evidence, on March 26, 2010 Michael McGill was lured to the 5200 block of Maffitt where he was gunned down by members of the White organization as part of the ongoing drug war. On July 23, 2010, Darrion Williams, Jr. was lured to an alley behind the 5200 block of Maffitt for a purported drug deal where he was gunned down by Stewart and other members.
On April 25, 2013, defendant Terrance Wilson, a/k/a “Mutt,” entered pleas to drug conspiracy and firearms charges. According to the plea agreement defendant Wilson also served as an enforcer for the White drug trafficking organization and participated in both the McGill and Williams murders.
Stewart now faces a maximum penalty of life. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The conviction of Donald Stewart and Terrance Wilson along with previous convictions of Donald White and members of his organization has dismantled the drug organization and ended their reign of violence.
The case was investigated by the St. Louis Metropolitan Police Department’s Intelligence and Homicide Divisions, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Federal Bureau of Investigation.
“These agents and prosecutors were tenacious. They worked in close coordination and simply never gave up until justice was served,” said U.S. Attorney Jensen.
Federal Jury Finds Minneapolis Man Guilty for His Role in Multi-Million Dollar Insurance Fraud ConspiracyRead the Press Release
United States Attorney Gregory G. Brooker today announced the conviction of YAHYE MOHAMED HERROW, 46, for his role in a multi-million dollar insurance fraud scheme. HERROW was initially indicted on December 20, 2016, and following a three-day trial before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota, the jury convicted HERROW on counts of conspiracy and mail fraud.
“Minnesota’s no-fault car insurance system is designed to get patients the treatment they need, get their bills paid timely, and avoid the need for court battles over who caused the accident. Schulz, HERROW, and the others involved in this scheme treated the no-fault system like a piggy bank. They treated patients like commodities. They prescribed treatment plans to make money for the chiropractors, the runners, the patients, and personal injury attorneys, with little regard for whether the patient truly needed or benefitted from treatment.” said Assistant U.S. Attorney John Kokkinen.
“This very complex case uncovered a large-scale insurance fraud scheme orchestrated by corrupt chiropractors and their accomplices, which resulted in millions of dollars in losses for insurers and their customers,” said Minnesota Commerce Commissioner Jessica Looman. “The many convictions and guilty pleas in this case are a testament to a strong, effective partnership that involved the Minnesota Commerce Fraud Bureau, federal authorities and local law enforcement to stop fraud in Minnesota.”
“This conviction today in this sprawling multi-million dollar fraud scheme sends a strong message to those who join other criminals in defrauding automobile insurance companies,” said Special Agent in Charge of the FBI Minneapolis Division Jill Sanborn. “The FBI will vigorously investigate crimes like this, because these scams victimize law abiding Minnesotans who often face higher insurance premiums to make up for money wasted on fraudulent payments. The FBI is grateful for the strong law enforcement partnerships, such as the Minnesota Commerce Fraud Bureau, which helped bring about the verdict we see today.”
As proven at trial, from at least 2011 through February 2016, HERROW, along with multiple coconspirators, including Angela April Schulz, a chiropractor, participated in a scheme to defraud automobile insurance companies by paying kickbacks to entice patients who had been in car accidents to attend chiropractic treatments. HERROW’S role was as a “runner,” someone who solicited individuals who had been in car accidents to attend treatments at Schulz’s clinics, Meyer Injury Center and Morrow Accident Rehabilitation Center.
As proven at trial, Schulz paid illegal kickbacks to HERROW and other runners in exchange for referring patients to her clinics. Schulz generally paid between $500 and $2,500 per patient. Much of that payment was given to the patients to entice them to attend treatments that they did not need or would not have sought absent the payment. Schulz did not pay the runners or patients until the patients attended a predetermined number of appointments, thus ensuring that Schulz could recoup the cost of the kickbacks. Schulz, HERROW, and other coconspirators incentivized patients to attend treatment sessions without regard for whether the patients needed or benefitted from the treatments. As part of the scheme, the patients who were paid were often referred to personal injury attorneys in order to seek settlements from the insurance companies for “pain and suffering” and were then regularly coached that they could get even more money in the form of a settlement if they continued to attend treatment sessions.
As proven at trial, Schulz, HERROW, and other coconspirators hid the fact that runners and patients were being paid by lying to the insurance companies about the use of runners, making the payments in cash, and reminding all involved to keep the payments a secret. Ultimately, Schulz’s clinics billed the automobile insurance companies for services provided to hundreds of patients who had been paid to attend treatments. Over a five year period, Schulz paid more than $1 million to runners and patients, while receiving more than $5 million from the automobile insurance companies.
This case was a part of a larger investigation that ultimately resulted in charges against 26 individuals across seven separate metro-area chiropractic practices. Including this latest conviction, 24 of those individuals have either pleaded guilty or been found guilty following a trial.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the Federal Bureau of Investigation. Additional assistance was provided by the Minneapolis Police Department, Saint Paul Police Department, Minnesota State Patrol, and Homeland Security Investigations.
Assistant U.S. Attorneys John Kokkinen, David M. Maria, and Amber M. Brennan are prosecuting this case.
Defendant Information:
YAHYE MOHAMED HERROW, 46
Minneapolis, Minn.
Convicted:
- Conspiracy to commit mail fraud, 1 count
- Mail fraud, 4 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Inmate at Fort Dix Admits Possessing Hundreds of Images and Videos of Child Sexual Abuse While in PrisonRead the Press Release
CAMDEN, N.J. – A Virginia Beach, Virginia, man today admitted possessing images and videos of child sexual abuse while imprisoned at Federal Correctional Institution Fort Dix for a previous offense involving the transportation of child pornography, U.S. Attorney Craig Carpenito announced.
Christopher D. Roffler, 30, pleaded guilty before Senior U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
Roffler admitted that he possessed a micro SD Card containing 305 videos and 16 images of child pornography, including depictions of sexual abuse of pre-pubescent children and sadistic and masochistic conduct. In connection with his plea, Roffler also admitted that he used a cellular telephone inside the prison to obtain and possess child pornography and that he transferred a micro SD card containing child pornography to another inmate.
Roffler and seven other inmates were arrested in April 2017 and February 2018 following an FBI investigation involving multiple covert recordings and several cooperating inmates. The investigation revealed that Roffler and other inmates utilized contraband cellphones, micro SD cards, and access to the internet to obtain, view, and distribute child pornography within the prison. A co-defendant organized and helped facilitate this criminal activity by maintaining cloud accounts that were used as repositories for child pornography.At sentencing, Roffler faces a mandatory minimum term of 10 years in prison and a lifetime of supervised release. Sentencing is scheduled for Sept. 12, 2018.
Four other inmates – Anthony C. Jeffries, 32, of Orange, Virginia, Jordan T. Allen, 31, of Plain City, Ohio, Brian J. McKay, 47, of Brookhaven, Pennsylvania, and Jacob S. Good, 26, of Fredericksburg, Virginia – have also pleaded guilty to possession of child pornography and await sentencing.
A fifth inmate, Erik M. Smith, 36, of Iron Mountain, Michigan pleaded guilty to the same charge and was sentenced on May 7, 2018 to an additional 151 months in prison.Charges remain pending against William H. Noble, 52, of Lowell, Massachusetts, and Charles Wesley Bush, 38, of Knoxville, Tennessee, both of whom were serving sentences for prior child pornography offenses while committing the alleged crimes in this case. The pending charges and allegations against them are merely accusations, and these defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officials of the Bureau of Prisons at Federal Correctional Institution Fort Dix for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.
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Defense counsel: Tamika McKoy Esq., Camden
Executive Office for Immigration Review Releases Court Statistics, Announces Transparency InitiativeRead the Press Release
The Executive Office for Immigration Review (EOIR) today released immigration court statistics through the first two quarters of Fiscal Year 2018 (FY18). Today’s release of certain immigration court statistics is the first step in an effort to increase transparency into the immigration court system by releasing immigration court data on a recurring basis.
“Releasing immigration court data to the American public introduces accountability to a system that has been neglected for years,” said EOIR Director James McHenry. “We are proud to announce today’s initial release of data and the commitment to a recurring release of EOIR’s full database, as we continue to make common-sense reforms that creates an immigration court system that serves the national interest.”
Highlights from today’s released data include the following:
- EOIR is beginning to reverse a downward trajectory of completions despite historic levels of new cases, less cases closed due to administrative closure, and an increase in recalendared cases. Last year, EOIR completed more cases than any year since FY12, and is on pace to complete approximately 184,000 cases by the end of FY18.
- The projected decrease of Inactive Pending Cases, which are not currently on the active docket following an immigration judge’s order of administrative closure. Inactive Pending Cases grew by nearly 75,000 cases from the end of FY15 to the end of FY17, but are expected to decline by 2 percent by the end of FY18. This would mark the first decrease in Inactive Pending Cases in at least ten fiscal years.
- The number of removal orders in absentia for cases in which an asylum application has been filed is projected to increase by approximately 40 percent by the end of FY18. The overall number of in absentia removal orders is projected to increase by 10% by the end of FY18 and by nearly 40 percent over FY16.
- Median Completion Time for Detained Cases is expected to decrease 7.5 percent, which would mark the second year of decline in a row following nine years of increases.
- Defensive asylum applications, including cases where an alien passed a credible fear screening, increased by almost 100,000 between FY12 and FY17; however, the number of defensive asylum applications granted increased by only about 4,000 over the same time period. The nationwide grant rate for all asylum applications is approximately 22 percent.
- UAC cases have increased by almost 1,300 percent since FY12, though EOIR is adjudicating Pending UAC Cases at a faster rate than previous years. Pending UAC Cases are projected to increase by approximately 14 percent. At the end of FY14, EOIR had 177 percent more pending cases than the prior fiscal year. In the next two fiscal years combined (i.e., FY15 and FY16), EOIR added 32,852 Pending UAC Cases, which totals nearly 43 percent of the current Pending UAC Case total. Almost two-thirds of UAC cases have been pending for at least one year, and 11 percent have been pending for over three years.
EOIR will release this and other data on a recurring basis, and the data will contain appropriate redactions for privacy concerns. The full upload of the data is expected within the next two weeks. EOIR staff frequently enter and update information into the case database, so the statistics provided are subject to change.
Immigration court statistics through Q2 FY18 can be found here.
Drug Dealer Charged with Causing December 2016 Overdose Death in the BronxRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest and unsealing of a Complaint charging THAYSHIKA TORRES with distributing the heroin and fentanyl that resulted in a non-fatal overdose and a subsequent fatal overdose of Elizabeth Stephens in December 2016. The Complaint also alleges that TORRES distributed heroin between September 2016 and December 2016. TORRES was arrested this morning by the NYPD, and will be presented later today before U.S. Magistrate James L. Cott in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Thayshika Torres sold the heroin that resulted in the non-fatal overdose of Elizabeth Stephens on December 2, 2016. Then, just three weeks later, Torres allegedly sold Stephens a dose of fentanyl that ended her life. Working with the NYPD, we will continue to target anyone who sells these dangerous drugs in New York City, from large-scale international drug traffickers to street-corner dealers.”
NYPD Commissioner James P. O’Neill said: “The NYPD, in close collaboration with all of our law enforcement partners, are relentless in pursuing anyone who illegally sells narcotics and preys on people’s vulnerabilities. It is imperative that we save as many lives as possible while combatting this opioid crisis that knows no boundaries – which touches every aspect of our society, regardless of race, occupation, or economic status.”
According to the allegations in the Complaint[1]:
On December 2, 2016, Elizabeth Stephens, a 39-year-old resident of the Bronx, suffered a non-lethal overdose from heroin inside the apartment building in which TORRES was living. Emergency Medical Services personnel revived Stephens and brought her to the emergency room. Just hours after Stephens’s December 2 overdose, she sent a text message to TORRES asking TORRES to “let people know that stuff is strong.”
On December 23, 2016, Stephens suffered a fatal overdose in the same apartment building. That morning, Stephens placed three phone calls to TORRES between approximately 10:56 a.m. and 11:57 a.m. These were the last outgoing calls placed from Stephens’s phone. Less than an hour after the last call, at approximately 12:49 p.m., a resident of TORRES’s apartment building found Stephens lying outside the elevator in a hallway three floors above TORRES’s apartment. Shortly thereafter, Stephens was pronounced dead at a local hospital. An autopsy revealed that Stephens died from a lethal dose of opioids.
TORRES also sold heroin to undercover officers and confidential informants both before and after Stephens’s overdoses, including on September 2, 2016, October 18, 2017, October 24, 2017, February 22, 2018, and February 27, 2018. Laboratory testing confirmed that the heroin TORRES sold on October 18 and 24, 2017, also contained fentanyl.
* * *
TORRES, 37, of the Bronx, is charged with two counts of distribution and possession with intent to distribute heroin. TORRES faces a maximum sentence of life in prison and a mandatory minimum sentence of 20 years in prison on each count based upon her distribution of the heroin that led to Elizabeth Stephens’s non-fatal overdose on December 2, 2016, and her distribution of the fentanyl that led to Stephens’s fatal overdose on December 23, 2016.
The statutory maximum and minimum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD in this case.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Stephanie Lake is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
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.
Eddy Espinal-Diaz, 33, a Dominican national formerly residing in Lawrence, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Aug. 2, 2018.
Law enforcement in Middleton encountered Espinal-Diaz on Nov. 9, 2017, and determined him to be illegally present in the United States. Espinal-Diaz was previously deported on Aug. 18, 2015.
Espinal-Diaz faces a sentence of no greater than 20 years in prison, up to 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 Thomas P. Brophy, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Sentenced to Prison for Attacking Woman on the StreetRead the Press Release
WASHINGTON – Elias Hailu, 37, of Washington, D.C., was sentenced today to 18 months in prison for sexually abusing a stranger on the street in broad daylight last fall in the 14th Street corridor of Northwest Washington, announced U.S. Attorney Jessie K. Liu.
Hailu pled guilty in March 2018, in the Superior Court of the District of Columbia, to attempted third-degree sexual abuse. He was sentenced by the Honorable Judith Bartnoff. Following his prison term, he must register for 10 years as a sex offender. He also will be placed on three years of supervised release.
According to the government’s evidence, Hailu encountered the victim on the afternoon of Nov. 15, 2017, as she was walking on U Street toward 13th Street NW. He began to follow the victim, who was a stranger to him, for several blocks while she proceeded to work. All the while, Hailu made sexually explicit proposals to the victim and ignored her repeated requests that he leave her alone. Hailu sexually abused the victim by forcefully grabbing the victim’s breast with his hand. The victim made an immediate report to law enforcement.
Surveillance footage that captured a portion of Hailu’s conduct showed Hailu’s distinctive clothing, some of which he had been wearing the day before in the same area. Based on the description provided by the victim and the surveillance footage, the Metropolitan Police Department (MPD) was able to identify Hailu as the perpetrator. He was arrested on Nov. 17, 2017, wearing some of the same clothing he had worn during the sexual assault.
In announcing the sentence, U.S. Attorney Liu praised the work of officers from the Metropolitan Police Department’s Sexual Assault Unit. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Tracy Owusu, Paralegal Specialist Donhue Troy Griffith, and Criminal Investigator John Marsh. Finally, U.S. Attorney Liu commended Assistant U.S. Attorneys J. Matt Williams and Marisa West, who investigated and prosecuted this case.
District Man Sentenced to 20 Years in Prison for Slaying of Man in Northeast WashingtonRead the Press Release
WASHINGTON – Montez Warren, 36, of Washington, D.C., was sentenced today to 20 years in prison after earlier pleading guilty to a charge of second-degree murder while armed for killing a man in Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Warren pled guilty in February 2018, in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for an agreed-upon prison sentence of 15 to 22 years. The Honorable Milton C. Lee accepted the plea and sentenced the defendant accordingly. Following his prison term, Warren will be placed on five years of supervised release.
According to a proffer of facts submitted at the plea hearing, on the evening of Aug. 20, 2016, numerous people attended a cookout and fish fry in the 1200 block of 18th Place NE, including Warren and the victim, Dante Miller. In the early morning hours of Aug. 21, 2016, the party wore down, and an argument erupted between Mr. Miller and a woman who was with Warren. Warren tried to break up the fight, but the confrontation soon resumed. As the fighting continued to escalate, Warren fired several shots at Mr. Miller. He kept firing his weapon even as Mr. Miller tried to run away. Then, as Mr. Miller fell to the ground, Warren stood over top of him and fired several additional shots. He then rode off in a car. Mr. Miller, 24, died at the scene.
An autopsy identified eight gunshot wounds, including one to the chest and one to the abdomen.
An investigation by the Metropolitan Police Department (MPD) led to Warren’s arrest on Oct. 12, 2016. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences, the Capital Area Regional Fugitive Task Force, the FBI’s Cellular Analysis Survey Team, and the U.S. Park Police. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Paralegal Specialist Sharon Newman and Paralegal Specialist Lornce Applewhite. Finally, she commended the work of Assistant U.S. Attorneys David Misler and Glenn Kirschner, who investigated and prosecuted the case.
Department of Justice Files Complaints Against Florida and California Companies to Stop Use of Experimental Stem Cell Drugs on PatientsRead the Press Release
The United States filed civil complaints in Florida and California to enjoin two companies that purport to offer stem cell treatments, the Justice Department announced today.
The first complaint, filed May 9, 2018, in the Southern District of Florida, is against US Stem Cell Clinic LLC, of Sunrise, Florida, US Stem Cell, Inc., and company officers Kristin Comella and Theodore Gradel. A separate complaint was filed the same day in the Central District of California against California Stem Cell Treatment Center Inc., of Rancho Mirage and Beverly Hills, California, Cell Surgical Network Corporation, and company owners Elliot Lander, M.D. and Mark Berman, M.D.
Both complaints allege that the respective defendants manufacture “stromal vascular fraction” (SVF) products from patient adipose (fat) tissue, which the companies then market as stem cell-based treatments for a host of serious conditions and diseases, including cancer, pulmonary disease, arthritis, stroke, ALS, and multiple sclerosis, in the case of the California defendants; and Parkinson’s disease, spinal cord injuries, stroke, pulmonary disease, and traumatic brain injury, in the case of the Florida defendants. According to the complaints, both sets of defendants manufacture their products for these conditions without FDA approval and without proof of safety and efficacy. The Justice Department filed the complaints at the request of the U.S. Food and Drug Administration (FDA).
“Marketing unproven and potentially unsafe treatments puts consumers at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure manufacturers of experimental therapies conduct their research within the safe and legal bounds for drug innovation.”
According to the complaints, the defendants and their affiliates have used their products on thousands of patients without first obtaining necessary FDA approvals. The complaints allege that that in some cases, adverse events that harmed patients occurred after treatment with the SVF products. In addition, the complaints allege that the defendants’ misbranded products fail to include adequate directions for use, such as dosages, warnings, and side effects. According to the complaints, recent FDA inspections showed that the defendants’ products are not manufactured, processed, packed, or held in conformance with current good manufacturing practice (CGMP), and they are adulterated as a matter of law.
“The Food, Drug, and Cosmetic Act is designed to protect the public health,” said U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida. “This civil lawsuit reflects the ongoing efforts of the U.S. Attorney’s Offices to safeguard the public from potential harm caused by adulterated and misbranded drugs. Those individuals and corporations that fail to conform with FDA standards are subject to civil enforcement actions.”
The Florida matter is being handled by Trial Attorney Roger J. Gural of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney James A. Weinkle of the U.S. Attorney’s Office for the Southern District of Florida and Associate Chief Counsel for Enforcement Michael Helbing of the U.S. Department of Health and Human Services’ Office of General Counsel.
The California matter is being handled by Trial Attorney Natalie N. Sanders of the Civil Division’s Consumer Protection Branch, with the assistance of the U.S. Attorney’s Office for the Central District of California and Associate Chief Counsel for Enforcement Michael Shane of the U.S. Department of Health and Human Services’ Office of General Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
Department of Justice Files Complaints Against Florida and California Companies to Stop Use of Experimental Stem Cell Drugs on PatientsRead the Press Release
The United States filed civil complaints in Florida and California to enjoin two companies that purport to offer stem cell treatments, the Justice Department announced today.
The first complaint, filed May 9, 2018, in the Southern District of Florida, is against US Stem Cell Clinic LLC, of Sunrise, Florida, US Stem Cell, Inc., and company officers Kristin Comella and Theodore Gradel. A separate complaint was filed the same day in the Central District of California against California Stem Cell Treatment Center Inc., of Rancho Mirage and Beverly Hills, California, Cell Surgical Network Corporation, and company owners Elliot Lander, M.D. and Mark Berman, M.D.
Both complaints allege that the respective defendants manufacture “stromal vascular fraction” (SVF) products from patient adipose (fat) tissue, which the companies then market as stem cell-based treatments for a host of serious conditions and diseases, including cancer, pulmonary disease, arthritis, stroke, ALS, and multiple sclerosis, in the case of the California defendants; and Parkinson’s disease, spinal cord injuries, stroke, pulmonary disease, and traumatic brain injury, in the case of the Florida defendants. According to the complaints, both sets of defendants manufacture their products for these conditions without FDA approval and without proof of safety and efficacy. The Justice Department filed the complaints at the request of the U.S. Food and Drug Administration (FDA).
“Marketing unproven and potentially unsafe treatments puts consumers at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure manufacturers of experimental therapies conduct their research within the safe and legal bounds for drug innovation.”
According to the complaints, the defendants and their affiliates have used their products on thousands of patients without first obtaining necessary FDA approvals. The complaints allege that that in some cases, adverse events that harmed patients occurred after treatment with the SVF products. In addition, the complaints allege that the defendants’ misbranded products fail to include adequate directions for use, such as dosages, warnings, and side effects. According to the complaints, recent FDA inspections showed that the defendants’ products are not manufactured, processed, packed, or held in conformance with current good manufacturing practice (CGMP), and they are adulterated as a matter of law.
“The Food, Drug, and Cosmetic Act is designed to protect the public health,” said U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida. “This civil lawsuit reflects the ongoing efforts of the U.S. Attorney’s Offices to safeguard the public from potential harm caused by adulterated and misbranded drugs. Those individuals and corporations that fail to conform with FDA standards are subject to civil enforcement actions.”
The Florida matter is being handled by Trial Attorney Roger J. Gural of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney James A. Weinkle of the U.S. Attorney’s Office for the Southern District of Florida and Associate Chief Counsel for Enforcement Michael Helbing of the U.S. Department of Health and Human Services’ Office of General Counsel.
The California matter is being handled by Trial Attorney Natalie N. Sanders of the Civil Division’s Consumer Protection Branch, with the assistance of the U.S. Attorney’s Office for the Central District of California and Associate Chief Counsel for Enforcement Michael Shane of the U.S. Department of Health and Human Services’ Office of General Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
Davenport Woman Sentenced to Prison for Firearm OffenseRead the Press Release
DAVENPORT, Iowa – On May 8, 2018, United States District Court Chief Judge John A. Jarvey sentenced Breanna Nicole Thompson, age 23, of Davenport, to 37 months in prison for a felon in possession of a firearm charge, announced United States Attorney Marc Krickbaum. Thompson was ordered to serve three years of supervised release following her prison term and to pay $100 to the Crime Victims’ Fund. Thompson agreed to forfeit the firearm.
On September 25, 2017, Thompson was in a vehicle with five other individuals in the 700 block of West 63rd in Davenport when she shot multiple rounds from a .380 caliber firearm toward an apartment. Shortly after, Thompson fired additional shots in the area of 6300 block of Appomattox Road. Following the shots fired, police began to pursue the vehicle. As Thompson and the others fled from police, Thompson fired multiple rounds from the sunroof. As officers stopped the vehicle several of the occupants ran, including Thompson. A Ruger LCP .380 caliber semi-automatic firearm was located in the car.
This matter was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Department of Justice Files Complaints Against Florida and California Companies to Stop Use of Experimental Stem Cell Drugs on PatientsRead the Press Release
WASHINGTON – The United States filed civil complaints in Florida and California to enjoin two companies that purport to offer stem cell treatments, the Justice Department announced today.
The first complaint, filed May 9, 2018, in the Southern District of Florida, is against US Stem Cell Clinic LLC, of Sunrise, Florida, US Stem Cell, Inc., and company officers Kristin Comella and Theodore Gradel. A separate complaint was filed the same day in the Central District of California against California Stem Cell Treatment Center Inc., of Rancho Mirage and Beverly Hills, California, Cell Surgical Network Corporation, and company owners Elliot Lander, M.D. and Mark Berman, M.D.
Both complaints allege that the respective defendants manufacture “stromal vascular fraction” (SVF) products from patient adipose (fat) tissue, which the companies then market as stem cell-based treatments for a host of serious conditions and diseases, including cancer, pulmonary disease, arthritis, stroke, ALS, and multiple sclerosis, in the case of the California defendants; and Parkinson’s disease, spinal cord injuries, stroke, pulmonary disease, and traumatic brain injury, in the case of the Florida defendants. According to the complaints, both sets of defendants manufacture their products for these conditions without FDA approval and without proof of safety and efficacy. The Justice Department filed the complaints at the request of the U.S. Food and Drug Administration (FDA).
“Marketing unproven and potentially unsafe treatments puts consumers at risk,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure manufacturers of experimental therapies conduct their research within the safe and legal bounds for drug innovation.”
According to the complaints, the defendants and their affiliates have used their products on thousands of patients without first obtaining necessary FDA approvals. The complaints allege that that in some cases, adverse events that harmed patients occurred after treatment with the SVF products. In addition, the complaints allege that the defendants’ misbranded products fail to include adequate directions for use, such as dosages, warnings, and side effects. According to the complaints, recent FDA inspections showed that the defendants’ products are not manufactured, processed, packed, or held in conformance with current good manufacturing practice (CGMP), and they are adulterated as a matter of law.
The Florida matter is being handled by Trial Attorney Roger J. Gural of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney James A. Weinkle of the U.S. Attorney’s Office for the Southern District of Florida and Associate Chief Counsel for Enforcement Michael Helbing of the U.S. Department of Health and Human Services’ Office of General Counsel.
The California matter is being handled by Trial Attorney Natalie N. Sanders of the Civil Division’s Consumer Protection Branch, with the assistance of the U.S. Attorney’s Office for the Central District of California and Associate Chief Counsel for Enforcement Michael Shane of the U.S. Department of Health and Human Services’ Office of General Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca
Corrections Officer Arrested for Scheme to Smuggle Opioids into MCI-NorfolkRead the Press Release
BOSTON – A corrections officer at a Massachusetts Correctional Institute facility in Norfolk (MCI-Norfolk) was arrested today and charged in connection with a conspiracy to smuggle Suboxone strips into the facility for an inmate.
William Holts, 51, of Pawtucket, R.I., was arrested and charged in a criminal complaint with one count of conspiracy to possess a controlled substance with intent to distribute. Holts, an employee of the Massachusetts Department of Correction, was detained following an initial appearance before U.S. District Court Magistrate Judge Jennifer C. Boal. A detention and probable cause hearing is scheduled for Friday, May 11, 2018.
As alleged in court documents, beginning around April 30, 2018, Holts advised an inmate, for whom he had smuggled other contraband, that he was willing to smuggle drugs into MCI-Norfolk in exchange for cash. In a series of recorded calls, Holts arranged to meet with a source outside the correctional facility to get the cash and obtain drugs to be smuggled in. Holts agreed to bring in over 100 Suboxone strips in exchange for $2,000 in cash.
According to the complaint, Suboxone is a Class III controlled substance intended to treat heroin addiction, but some abuse the drug to get high. It is coveted as contraband in prisons across the nation and particularly in New England. Suboxone strips, which dissolve under the tongue, may be tucked behind envelope seams and stamps.
The charge of conspiracy to possess a controlled substance with intent to distribute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $500,000. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Thomas A. Turco III of the Massachusetts Department of Correction made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Charleston Felon Sentenced to Federal Prison for Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston felon who possessed a firearm in April 2017 was sentenced today to 71 months -- almost six years -- in federal prison, announced United States Attorney Mike Stuart. Brandon Cantrell, 32, previously pled guilty to being a felon in possession of a firearm. United States Attorney Stuart commended the investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
“As part of our efforts to reduce gun crimes committed on Charleston’s West Side, we are aggressively prosecuting convicted felons and other prohibited persons that possess firearms,” said United States Attorney Mike Stuart.
Cantrell admitted that on April 20, 2017, he possessed a Hi-Point, model C-9, 9mm pistol at a residence on Charleston’s West Side. Cantrell is prohibited from possessing any firearms under federal law because of a 2008 felony conviction in the Circuit Court of Kanawha County for breaking and entering.
Assistant United States Attorney Matt Davis was in charge of the prosecution. United States District Judge John T. Copenhaver, Jr. handed down the sentence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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###Centerton Man Sentenced to over 5 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Thomas Matthew Swank, age 36, of Centerton, Arkansas, was sentenced today to 63 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, after several months of an investigation, the Drug Enforcement Administration (DEA) and the Benton County Sheriff’s Department learned that methamphetamine was being distributed in Northwest Arkansas by Swank. In September of 2017, agents arranged and conducted a controlled purchase of methamphetamine from Swank in the Western District of Arkansas. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 7.8 grams of actual methamphetamine.
Swank was indicted by a federal grand jury in December 2017 and entered a guilty plea in January 2018.
This case was investigated by the Drug Enforcement Administration (DEA) and the Benton County Sheriff’s department. Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Buffalo Woman Pleads for Her Role in A Fraudulent Debt Collection SchemeRead 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 Judi Sylvia, 33, of Buffalo, NY, pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that between May 2015 and October 2015, the defendant, her brother Shawn Sylvia, and others conspired to obtain money fraudulently from Elavon, a merchant processing company. As part of the conspiracy, Judi and Shawn Sylvia established Pasquale and Associates, LLC.
In May 2015, Judi Sylvia signed a business certificate which stated that she was “conducting or transacting business” under the name of Pasquale and Associates, LLC and she opened a bank account at First Niagara Bank in the name of Pasquale and Associates, LLC for the receipt of wired funds from Elavon. In addition, Shawn Sylvia opened a merchant account with Elavon, to process credit card payments for money collected through Pasquale and Associates, LLC. When creating the merchant account, Shawn Sylvia made false representations to Elavon claiming that Pasquale and Associates, LLC was engaged in legal services and failed to disclose that the company was actually a debt collection agency engaging in unlawful and unfair practices to collect on debt not owed. If Elavon had known that Pasquale and Associates, LLC was engaging in debt collection, Elavon would not have agreed to collect payments on behalf of the business because of the high likelihood of chargebacks to Elavon and the risk that Elavon would be unable to recoup chargebacks and would lose money.
The defendant and others used strong-arm tactics including threats of arrest, jail, and lawsuits to convince victims to make payments toward what they were told were outstanding debts. Elavon then processed the fraudulent transactions on the individuals’ credit cards and sent the funds to Pasquale and Associates LLC’s First Niagara Bank account at which time Judi Sylvia immediately withdrew the funds. When Elavon learned that the credit card transactions were fraudulent, Elavon was required to refund the charges. Because the money had already been withdrawn from Pasquale and Associates LLC’s First Niagara Bank account, attempts to recover the chargebacks were unsuccessful.
Judi and Shawn Sylvia and others obtained fraudulently a total of $56,615 from Elavon and five other victims.
Shawn Sylvia was previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for August 17, 2018, at 12:30 before Judge Arcara.
Bronx Man Pleads Guilty to Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Eriel Rivera, 45, of Bronx, NY, pleaded guilty to possession with intent to distribute 100 grams or more of heroin before U.S. District Court Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years and a $2,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on July 8 and July 22, 2017, the defendant sold a quantity of cocaine to a confidential source working with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Rivera was arrested on September 29, 2017, in a coffee shop in Niagara Falls, NY. At the time, the defendant was in possession of $1,885 in cash and a quantity of suspected heroin.
The plea is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict.
Sentencing is scheduled for August 24, 2018, before Judge Vilardo.
Boulder Woman Pleads Guilty to Distribution of Heroin Resulting in DeathRead the Press Release
Denver – Kirsten Lippold, 48, of Boulder, Colorado, pled guilty today to distribution of heroin resulting in death. The proceedings were held before U.S. District Judge Raymond P. Moore. Lippold’s guilty plea followed a one-count indictment, which was returned by a Federal Grand Jury in July of 2017. That indictment alleged that Lippold distributed heroin, a Schedule I controlled substance, the use of which resulted in an overdose death on August 17, 2015.
Following her guilty plea, Kirsten Lippold was remanded into the custody of the U.S. Marshals Service. Her sentencing hearing will take place on August 2, 20118.
The investigation in this case was conducted by the Boulder County Drug Task Force, the Boulder Police Department, and the Fort Collins Resident Agency of the Federal Bureau of Investigation. The prosecution is being handled by Assistant U.S. Attorney Bradley W. Giles.
CASE NUMBER: 17-cr-00241-RM
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For more information on the U.S. Attorney’s Office, District of Colorado, visit http://www.usdoj.gov/usao/co/
Atlanta investment advisor sentenced for stealing nearly $3 million from clientsRead the Press Release
ATLANTA - Paul James Marshall has been sentenced to federal prison after stealing nearly $3 million from more than a dozen, mostly elderly, investment clients.
“This defendant stole the life savings of retirees and seniors to fund his lavish lifestyle instead of investing his client’s money as promised,” said U.S. Attorney Byung J. “BJay” Pak. “Marshall’s fraud is unfortunately all too common and another reminder that citizens should use caution when investing their money.”
“Marshall’s sentencing will be little solace to the dozen victims who lost their life savings due to his greed and callous concern for their well-being,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “That’s why the FBI will continue to aggressively root out and prosecute anyone who undermines investor confidence by lining their own pockets at the expense of innocent victims.”
According to U.S. Attorney Pak, the charges and other information presented in court: In February 2011, Marshall formed an investment advisory firm, Bridge Securities LLC, in Atlanta. Marshall falsely promised clients that their funds would be invested in specific securities in JP Morgan accounts. Instead of placing his clients’ funds in their desired investments, Marshall deposited all funds into JP Morgan Chase checking accounts under his control. Marshall then plundered his clients’ savings to support his own lifestyle, including expenses for luxury trips, private school tuition, country club fees, and payments to his ex-wife. When clients sought information about their savings, Marshall either mailed fake account statements showing investment accounts, lied to them, or ignored their inquiries. In total, Marshall stole approximately $2.9 million from more than a dozen victims.
Paul James Marshall, 53, of Atlanta, Georgia, was sentenced by U.S District Judge Leigh Martin May to six years, nine months in prison to be followed by two years of supervised release, and ordered to pay restitution in the amount of $2,892,982.52. Marshall was convicted of wire fraud on November 16, 2017, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Nathan P. Kitchens prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Arizona Man Sentenced to Prison for Injuring Children While Driving DrunkRead the Press Release
PHOENIX– Yesterday, Daniel Sherman Lejero, 30, was sentenced by U.S. District Judge John J. Tuchi to 33 months in prison followed by three years of supervised release. Lejero had previously pleaded guilty to two accounts of assault resulting in serious bodily injury.
On March 26, 2015, an intoxicated Lejero crashed a speeding vehicle that contained two minor children. The children, who are both members of the Gila River Indian Community, were ejected from the vehicle and suffered serious injuries. At the time of the car accident, Lejero had two prior DUI convictions and was driving on a suspended license. Lejero is an enrolled member of the Fort McDowell Yavapai Nation and the accident took place within the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00711-PHX-JJT
RELEASE NUMBER: 2018-059_Lejero
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Alleged Bank Robber Detained in Federal CustodyRead the Press Release
PROVIDENCE, RI – A man who allegedly stole a car in New Bedford, Mass., and used it a couple of hours later as a getaway vehicle after allegedly robbing a bank in Tiverton, R.I., was ordered detained in federal custody on Tuesday following his initial appearance in U.S. District Court on a federal criminal complaint charging him with bank robbery.
According to court records, it is alleged that on April 2, 2018, Cody Toolis, 27, stole a vehicle from the home of a New Bedford woman who had the left vehicle running outside her home.
Later that morning, at approximately 9:15 AM, it is alleged that Toolis entered a branch office of Bank Newport in Tiverton and handed a note to a teller that read, “Do not move, I have a gun, need $500 in 20’s, I am desperate.” The teller, who told police that the robber was rushing her, reported that she gave the robber $460, after which time he fled the bank. The robber, who took the note with him, did not show a gun. A witness told police she saw the robber leave the bank parking lot in a vehicle that police determined fit the description of the vehicle stolen in New Bedford.
As part of the investigation, Tiverton Police posted a still-photograph taken from bank surveillance video of the robber. Various tips from the public and other police departments identified the person in the photograph by name as Cody Toolis. Toolis was also identified as being wanted by the Dartmouth Police Department in connection with the alleged felony purse snatching from a 76-year-old woman a few days earlier.
According to court documents, sometime after the bank robbery, it is alleged that Toolis contacted a former girlfriend and ask that she help him turn himself in to police. During an interview with an FBI agent, the former girlfriend told the agent that on March 3, 2018, Toolis allegedly entered her residence without permission and removed an XBox belonging to a roommate, and that Toolis tried to pawn it at a New Bedford pawn shop. New Bedford Police provided law enforcement investigating the bank robbery a photo of Toolis from a Massachusetts driver’s license shown when he attempted to pawn the XBox.
On April 9, 2018, Toolis walked into the Bristol, R.I., Police Department and turned himself in to police. Toolis was arrested on a bank robbery charge and ordered detained at the Adult Correctional Institutions. On that same date, Fall River Police recovered the New Bedford woman’s stolen vehicle.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toolis’ arrest and detention are announced by United States Attorney Stephen G. Dambruch, Tiverton Police Chief Patrick W. Jones, and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
United States Attorney Stephen G. Dambruch acknowledges and thanks the Fall River and New Bedford, Mass., Police Departments, the Bristol Police Department and the Rhode Island Department of Attorney General for their assistance in the investigation and preparation of this case for prosecution in U.S. District Court.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
Bank robbery is punishable by statutory penalties of up to 20 years imprisonment, 3 years supervised release and a fine of $250,000.
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44 Tons of Prescription Drugs Collected in New England During 15th Annual Prescription Drug Take-Back DayRead the Press Release
(BOSTON) – The final tally is in from the 15th National Prescription Drug Take-Back Day on April 28th, 2018. The Drug Enforcement Administration’s New England Field Division (NEFD) and its partners, over the course of four hours, collected 88,182.07 pounds or 44 tons of expired, unused, and unwanted prescription drugs at 580 collection sites throughout New England. This is in comparison to the first National Prescription Drug Take-Back Day on September 2010, when the NEFD collected 25,810 pounds of unwanted drugs. It is estimated that 10% of the drugs collected are opioid pain killers which would represent approximately 8,818 pounds of opioids that are out of medicine cabinets and potentially off our streets.
In Rhode Island, more than 3,340 lbs. were collected from over 140 drop boxes located across the state.
“Another amazing effort by New Englanders to continue to make their homes safer for our youth,” said DEA Acting Special Agent in Charge Albert Angelucci. “Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. DEA thanks the citizens of New England and our dedicated Law Enforcement partners for their efforts in making this initiative a success.”
“Rhode Islanders deposited a significant amount of unwanted, unused and expired prescription drugs into more than 140 drop-boxes across the state,” noted United States Attorney Stephen G. Dambruch. “Proper disposal is a simple yet significant step in preventing prescription medications from being abused. I thank all our law enforcement partners for their commitment to this very important initiative.”
The following is a breakdown of collected weights for the six New England States:
CT 8,251.6 lbs.
MA 27,126.1 lbs.
ME 28,560 lbs.
NH 14,895 lbs.
RI 3,341.5 lbs.
VT 6,007.87 lbs.
TOTAL 88,182.07 lbs.
Tuesday 8 May 2018
Woman Pleads Guilty to Supplying Heroin That Caused OverdoseRead the Press Release
WICHITA, KAN. – A Kansas City woman pleaded guilty today to selling heroin that caused a user’s near-fatal overdose, U.S. Attorney Stephen McAllister said.
Loretta Gilliard, 34, Kansas City, Mo., pleaded guilty to one count of conspiracy to distribute heroin. The investigation began when a user from Overland Park, Kan., bought heroin from Gilliard and then overdosed and lost consciousness. Emergency medical technicians responded and saved the user’s life by administering an opioid reversing agent called Narcan. Investigators learned that Gilliard had sold heroin to the user more than 100 times, usually two to four times a week. Investigators made controlled buys from Gilliard.
Sentencing will be set for a later date. Both parties have agreed to recommend 84 months in federal prison. McAllister commended the Drug Enforcement Administration and Assistant U.S. Attorney Sheri Catania for their work on the case.
White River Man Indicted for Counterfeit Obligation ChargesRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, man has been indicted by a federal grand jury for Passing Counterfeit Obligations of the United States and Possession of Counterfeit Obligations of the United States.
Gabriel Angelo May, age 38, was indicted on April 17, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 7, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 15, 2018, May on two separate occasions knowingly passed forged and counterfeit obligations. The Indictment further alleges that on March 16, 2018, May knowingly had in his possession falsely made, forged, and counterfeit obligations.
The charges are merely accusations and May is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Secret Service, the South Dakota Division of Criminal Investigation, the Sully County Sheriff’s Office, and the Hughes County Sheriff’s Office. Supervisory Assistant U.S. Attorney Tim Maher is prosecuting the case.
May was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for July 10, 2018.