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12 June 2018
Putnam County Man Pleads Guilty to Federal Drug and Firearm ChargesRead the Press Release
CHARLESTON, W.Va. – A Putnam County man was sentenced to federal prison on drug and firearm charges, announced United States Attorney Mike Stuart. Malcolm Hodges, 25, previously entered guilty pleas to illegally possessing a firearm, and possessing and intending to distribute methamphetamine. Hodges was sentenced to a total of 78 months in prison – 18 months on the firearms charge, and 60 months on the methamphetamine charge. U.S. Attorney Stuart commended the cooperative investigative efforts of several agencies, including the Dunbar Police Department, the West Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
“Unfortunately, Hodges’ previous state conviction didn’t deter him from criminal activity,” said United States Attorney Mike Stuart. “Hopefully, after spending over 6 more years in federal prison, he will make better choices.”
Hodges, a convicted felon, admitted that on September 1, 2016, he fled a DUI checkpoint in Teays Valley, and that he had a .45 caliber revolver in his possession at the time. Hodges is prohibited from possessing any firearms under federal law because of a 2013 felony conviction for wanton endangerment with a firearm in the Circuit Court of Kanawha County.
Hodges also admitted that on April 23, 2017, he threw 72 grams of methamphetamine out of the passenger-side window of his car after a Dunbar Police Department officer attempted to pull him over for a traffic violation. The methamphetamine was quickly recovered, along with a large amount of cash from Hodges’ vehicle and person.
Assistant United States Attorney Matt Davis was in charge of the prosecution. United States District Judge Robert C. Chambers 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.
Follow us on Twitter: SDWVNews and USAttyStuart
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Providence Man Sentenced on Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, RI – John Nunez, 47, of Providence, was sentenced today to 40 months in federal prison for trafficking cocaine and crack cocaine and for being a felon in possession of a firearm, announced United States Attorney Stephen G. Dambruch and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Nunez to serve 3 years supervised release upon completion of his term of incarceration. Nunez pleaded guilty on April 4, 2018, to one count of possession of cocaine with intent to distribute, possession of cocaine base with intent to distribute, and felon in possession of a firearm.
The U.S. Sentencing Guideline imprisonment range in this matter is 51 to 63 months. The government recommended a term of incarceration of 40 months.
According to information presented to the Court, in late summer 2015, detectives assigned to the Providence Police Department Narcotics Unit developed information that Nunez was trafficking drugs from his residence. As part of their investigation, detectives arranged for the purchase of cocaine from the defendant.
Detectives developed information that on September 4, 2015, Nunez would be leaving his residence with a large amount of cocaine. As Nunez left his residence, detectives approached Nunez who, upon seeing the detectives, tossed a package inside his vehicle and stated, “It’s not mine and I don’t live here.” Detectives retrieved the bag, and from inside a glass case in the bag detectives discovered two bags of heroin, two bags of cocaine powder and eleven bags of crack cocaine.
Detectives executed a court-authorized search of Nunez’s residence. From inside the residence detectives seized 533.5 grams of cocaine, 71.5 grams of crack cocaine, .4 grams of heroin, a 9mm semi-automatic firearm, and items used in the packaging and distribution of illegal narcotics.
According to court records, Nunez was previously convicted on drug trafficking charges in state and federal courts in New York. He was also convicted for escape from a New York prison.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly, with the assistance of Assistant U.S. Attorney Gerard B. Sullivan.
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Pair Guilty of Creating Child Pornography of ToddlerRead the Press Release
CINCINNATI – The second of two defendants in a child pornography production case has been found guilty.
U.S. District Judge Susan J. Dlott found Jason Fletcher, 41, of Franklin, Ohio, guilty of conspiracy to produce and production of child pornography at the conclusion of a bench trial yesterday afternoon.
He and Ciera Richter, 25, of Cincinnati, were indicted by a federal grand jury in December 2017. Richter previously pleaded guilty to one count of conspiracy to produce child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), announced the convictions.
According to court documents, Fletcher was previously convicted by the state of Ohio of importuning a minor, among other crimes. Under the terms of his probation, he was not to possess pornography of any kind.
In May 2017, during a visit with his probation officer, the officer noticed Fletcher had two mobile devices and, after having Fletcher provide access to the devices, started to review the phones’ contents. The probation officer found pornography of a minor female on one of the phones and Fletcher was subsequently arrested.
Search of the phone revealed, among a collection of child pornography, child pornography videos made with the phone. Some of the videos on the phone involve Fletcher, Richter and a two-year-old.
According to evidence at Fletcher’s bench trial and Richter’s plea, in February 2017, on an evening when Richter was babysitting the toddler, Fletcher used his cell phone to record videos of himself molesting the victim, while Richter held and moved the two year old. Fletcher brought “medicine” with him, which Richter gave to the child. Fletcher was a registered sex offender at the time he made the videos.
Conspiracy to produce child pornography and production of child pornography are crimes that generally carry a potential sentence of 15 to 30 years in prison. Fletcher faces a potential range of 35 years to life in prison, because he has at least two prior state convictions for sex crimes involving children.
U.S. Attorney Glassman commended the investigation of this case by HSI and the Warren County Sheriff’s Department, as well as Assistant United States Attorneys Megan Gaffney and Christy Muncy, who are prosecuting the case.
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Page Man Sentenced to 12 Years in Federal Prison for Aggravated Sexual AbuseRead the Press Release
PHOENIX – Yesterday, Frank Junior Young, 23, of Page, Ariz., and a member of the Navajo Nation, was sentenced by Senior U.S. District Judge Stephen M. McNamee to 144 months in prison, followed by a term of 15 years of supervised release. Young had previously pleaded guilty to aggravated sexual abuse.
On Feb. 19, 2016, Young sexually abused the victim by using force and threats. The victim is also a member of the Navajo Nation and the assault occurred on the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08033-PCT-SMM
RELEASE NUMBER: 2018-080_Young
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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.
Owner of Payday Lending Enterprise Sentenced to 10 Years in Prison for Orchestrating $220 Million Fraudulent Lending SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that RICHARD MOSELEY SR. was sentenced today to 120 months in prison, after having been found guilty in November 2017 of racketeering, fraud, and identity-theft offenses for operating an illegal payday lending enterprise in which MOSELEY charged illegally high interest rates and issued payday loans to victims who did not authorize them. MOSELEY was convicted after a three-week jury trial before U.S. District Judge Edgardo Ramos, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Richard Moseley’s illegal payday lending operation exploited more than half a million of the most financially vulnerable people in the U.S. Charging usurious interest and exorbitant fees, and even signing people up for loans they didn’t authorize, Moseley put financially struggling people even further in debt. Today Moseley has been rightly sentenced to prison for his predatory ways.”
According to the Indictment, other filings in Manhattan federal court, and the evidence presented at trial:
From approximately 2004 to 2014, MOSELEY owned and operated a group of payday lending businesses (the “Hydra Lenders”) that issued and serviced small, short-term, unsecured loans, known as “payday loans,” through the Internet to customers across the United States.
For nearly a decade, MOSELEY systematically exploited more than 620,000 financially struggling working people throughout the United States, many of whom struggled to pay for basic living expenses. MOSELEY, through the Hydra Lenders, targeted and extended loans to these individuals at illegally high interest rates of more than 700 percent, using deceptive and misleading communications and contracts and in violation of the usury laws of numerous states that were designed to protect residents from such abusive conduct.
In furtherance of the scheme, the Hydra Lenders’ loan agreements materially understated the amount the payday loan would cost and the total amount of payments that would be taken from borrowers’ bank accounts. MOSELEY structured the repayment schedule of the loans such that, on the borrower’s payday, the Hydra Lenders automatically withdrew the entire interest payment due on the loan, but left the principal balance untouched so that, on the borrower’s next payday, the Hydra Lenders could again automatically withdraw an amount equaling the entire interest payment due (and already paid) on the loan. Under MOSELEY’s control and oversight, the Hydra Lenders proceeded automatically to withdraw such “finance charges” payday after payday, applying none of the money toward repayment of the loan principal. Under the terms of the loan agreement, the Hydra Lenders withdrew finance charges from their customers’ accounts unless and until consumers took affirmative action to stop the automatic renewal of the loan.
Through the Hydra Lenders, MOSELEY also extended numerous payday loans to victims across the country who did not even want the loans or authorize the issuance of the loans, but instead had merely submitted their personal and bank account information in order to inquire about the possibility of obtaining a payday loan. MOSELEY then automatically withdrew the Hydra Lenders’ usurious “financing fees” directly from the financially struggling victims’ bank accounts on a bi-weekly basis. Although hundreds of victims, over a period of years, lodged complaints that they had never approved or even been aware of the issuance of the loans, the Hydra Lenders, at MOSELEY’s direction, continued to issue loans to consumers without confirming that the consumers in fact wanted the loans that they received or had reviewed and approved the loan terms.
Customers across the country, numerous state regulators, and consumer protection groups complained about the Hydra Lenders’ deceptive and misleading practices in issuing usurious and fraudulent loans. Beginning in approximately 2006, in an attempt to avoid civil and criminal liability for his conduct, and to enable the Hydra Lenders to extend usurious loans contrary to state laws, MOSELEY made it appear that the Hydra Lenders were located overseas. Specifically, MOSELEY nominally incorporated the Hydra Lenders first in Nevis in the Caribbean, and later in New Zealand, and claimed that the Hydra Lenders could not be sued or subject to state enforcement actions because they were beyond the jurisdiction of every state in the United States. In truth, the entirety of MOSELEY’s lending business, including all bank accounts from which loans were originated, all communications with consumers, and all employees, were located at MOSELEY’s corporate office in Kansas City, Missouri. The Hydra Lenders’ purported “offshore” operation consisted of little more than a service that forwarded mail from addresses in Nevis or New Zealand to the Kansas City, Missouri, office.
In furtherance of the scheme, MOSELEY falsely told his attorneys that the Hydra Lenders maintained physical offices and employees in Nevis and New Zealand and that the decision whether to extend loans to particular consumers was made by employees of the Hydra Lenders in Nevis and New Zealand. As MOSELEY well knew, at no time did the Hydra Lenders have any employees involved in the lending business in Nevis or New Zealand, and at all times the decision whether to underwrite loans was made by employees under MOSELEY’s direction in Kansas City, Missouri. To defeat state complaints and inquiries, MOSELEY directed his attorneys at outside law firms to submit correspondence to state Attorneys General that stated – falsely, unbeknownst to MOSELEY’s attorneys – that the Hydra Lenders originated loans “exclusively” from their offices overseas and had no physical presence anywhere in the United States.
From approximately November 2006 through approximately August 2014, the Hydra Lenders generated more than $220 million in revenue. MOSELEY made millions of dollars from the scheme, which he spent on, among other things, a vacation home in Mexico, luxury automobiles, and country club membership dues.
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In addition to the 10-year prison term, MOSELEY, 73, of Kansas City, Missouri, was sentenced to three years of supervised release and ordered to forfeit $49 million.
Mr. Berman praised the work of the Federal Bureau of Investigation and the Office Inspector General for the Board of Governors of the Federal Reserve System. Mr. Berman also thanked the Consumer Financial Protection Bureau, which brought a separate civil action against MOSELEY, for referring the matter and for its assistance.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Edward A. Imperatore and David Abramowicz are in charge of the prosecution.
Nine Corvallis-Area Residents Charged with Perpetrating Credit Card Fraud Funding Marijuana BusinessRead the Press Release
EUGENE, Ore. – Nine defendants residing in and around Corvallis, Oregon face conspiracy charges related to a credit card “bust-out” fraud scheme and an interstate marijuana distribution operation funded by the fraud.
A credit card “bust-out” is a fraud scheme that begins with perpetrators obtaining credit cards and accumulating large balances. Payments are then made from co-conspirator bank accounts, reducing the credit card balances and allowing for additional purchases. After numerous purchases and payments are made, a co-conspirator would report the payments as unauthorized to their banks. Banks then seek and obtain reimbursement from the credit card companies and deposit those funds back into the co-conspirator’s bank accounts. No further payments are made on the credit cards, resulting in losses to those institutions that often exceed a card’s spending limit.
As alleged in the complaint, conspirators opened numerous credit cards, defrauding financial institutions of over $1 million. Proceeds from the fraud were allegedly used to establish and operate illegal marijuana grows and fund a state-licensed marijuana retail business, the Corvallis Cannabis Club located in Corvallis. Some of the marijuana grown in Corvallis is alleged to have been transported and sold outside of Oregon.
Three defendants were arrested today and will make their first appearance before U.S. Magistrate Judge Jolie A. Russo in Eugene on Wednesday, June 13, 2018.
A criminal charge is only an accusation of a crime; defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, Drug Enforcement Administration, and U.S. Postal Inspection Service with the assistance of Oregon State Police and the Corvallis and Philomath Police Departments. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Nigerian National Charged with Possessing Private Personal InformationRead the Press Release
BOSTON - A Nigerian national was charged in federal court in Boston in connection with unlawfully possessing the identifications of two victims.
Richard Emem Jackson, aka Auwire, 23, of Lagos, Nigeria, was charged in an indictment filed on May 17, and unsealed yesterday, with two counts of unlawful possession of a means of identification. Jackson has not yet been arrested and remains at-large.
According to the indictment, on two occasions in 2017, Jackson is alleged to have possessed the identifications of two victims with the intent to commit wire fraud conspiracy as part of a larger fraud scheme.
Jackson faces a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. 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 and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cybercrimes Unit, is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Jersey, Florida residents arrested in Lake Charles sentenced for possessing 4 pounds of methamphetamine packaged as Mexican candyRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that two defendants, one from New Jersey and one from Florida, who were arrested during a Lake Charles traffic stop were sentenced Monday for possession of 4 pounds of methamphetamine packaged as Mexican candy.
Javier Munoz, 51, of Vineland, New Jersey, was sentenced to 165 months in prison and five years of supervised release on one count of possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine. Beljavier Rodriguez, 26, of Bradenton, Florida, was sentenced to 48 months in prison and three years of supervised release on one count of interstate travel in aid of racketeering. United States District Judge Jay C. Zainey presided over the hearing. According to a joint factual stipulation in the record of the guilty plea, the defendants were traveling eastbound on Interstate 10 on September 9, 2016. A Lake Charles Police officer stopped the vehicle for speeding. The officer found a secret compartment underneath the car that contained two bags that appeared to be professionally printed bags of Mexican candy. Within the bags were 21 individually wrapped bags containing methamphetamine that weighed a total of about 4 pounds.
Homeland Security Investigations and the Lake Charles Police Department as part of the Combined Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
More Than 2,300 Suspected Online Child Sex Offenders Arrested During Operation “Broken Heart” Including One in the Eastern District of North CarolinaRead the Press Release
RALEIGH — The Department of Justice today announced the arrest of more than 2,300 suspected online child sex offenders during a three-month, nationwide, operation conducted by Internet Crimes Against Children (ICAC) task forces. The task forces identified 195 offenders who either produced child pornography or committed child sexual abuse, and 383 children who suffered recent, ongoing, or historical sexual abuse or production of child pornography.
The 61 ICAC task forces, located in all 50 states and comprised of more than 4,500 federal, state, local and tribal law enforcement agencies, led the coordinated operation known as “Broken Heart” during the months of March, April, and May 2018. During the course of the operation, the task forces investigated more than 25,200 complaints of technology-facilitated crimes against children and delivered more than 3,700 presentations on Internet safety to over 390,000 youth and adults.
"No child should ever have to endure sexual abuse," Attorney General Jeff Sessions said. "And yet, in recent years, certain forms of modern technology have facilitated the spread of child pornography and created greater incentives for its production. We at the Department of Justice are determined to strike back against these repugnant crimes. It is shocking and very sad that in this one operation, we have arrested more than 2,300 alleged child predators and investigated some 25,200 sexual abuse complaints. Any would-be criminal should be warned: this Department will remain relentless in hunting down those who victimize our children."
The operation targeted suspects who: (1) produce, distribute, receive and possess child pornography; (2) engage in online enticement of children for sexual purposes; (3) engage in the sex trafficking of children; and (4) travel across state lines or to foreign countries and sexually abuse children.
As part of Operation “Broken Heart”, United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that on May 16, 2018, a federal grand jury sitting in Raleigh, indicted ANDRE THORPE on seven counts involving child exploitation, including four counts of production of child pornography, two counts of transporting a minor interstate with intent to engage in criminal sexual activity, and one count of possession of child pornography. The alleged conduct involves years-long sexual abuse of a minor victim, and investigators have identified other alleged minor victims of THORPE as well. If convicted of all counts, THORPE faces not less than 15 years and up to life in prison. This case was investigated by the Office of Homeland Security Investigation in Raleigh. All defendants are innocent until proven guilty beyond a reasonable doubt.
The ICAC Program is funded through the Department’s Office of Juvenile Justice and Delinquency Prevention (OJJDP). In 1998, OJJDP launched the ICAC Task Force Program to help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communication systems or computer technology to exploit children. To date, ICAC Task Forces have reviewed more than 775,000 complaints of child exploitation, which resulted in the arrest of more than 83,000 individuals. In addition, since the ICAC program's inception, more than 629,400 law enforcement officers, prosecutors and other professionals have been trained on techniques to investigate and prosecute ICAC-related cases.
For more information, visit the ICAC Task Force webpage at: https://www.icactaskforce.org/.
More Than 2,300 Suspected Online Child Sex Offenders Arrested During Operation “Broken Heart”Read the Press Release
The Department of Justice today announced the arrest of more than 2,300 suspected online child sex offenders during a three-month, nationwide, operation conducted by Internet Crimes Against Children (ICAC) task forces. The task forces identified 195 offenders who either produced child pornography or committed child sexual abuse, and 383 children who suffered recent, ongoing, or historical sexual abuse or production of child pornography.
The 61 ICAC task forces, located in all 50 states and comprised of more than 4,500 federal, state, local and tribal law enforcement agencies, led the coordinated operation known as “Broken Heart” during the months of March, April, and May 2018. During the course of the operation, the task forces investigated more than 25,200 complaints of technology-facilitated crimes against children and delivered more than 3,700 presentations on Internet safety to over 390,000 youth and adults.
"No child should ever have to endure sexual abuse," Attorney General Jeff Sessions said. "And yet, in recent years, certain forms of modern technology have facilitated the spread of child pornography and created greater incentives for its production. We at the Department of Justice are determined to strike back against these repugnant crimes. It is shocking and very sad that in this one operation, we have arrested more than 2,300 alleged child predators and investigated some 25,200 sexual abuse complaints. Any would-be criminal should be warned: this Department will remain relentless in hunting down those who victimize our children."
The operation targeted suspects who: (1) produce, distribute, receive and possess child pornography; (2) engage in online enticement of children for sexual purposes; (3) engage in the sex trafficking of children; and (4) travel across state lines or to foreign countries and sexually abuse children.
The ICAC Program is funded through the Department’s Office of Juvenile Justice and Delinquency Prevention (OJJDP). In 1998, OJJDP launched the ICAC Task Force Program to help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communication systems or computer technology to exploit children. To date, ICAC Task Forces have reviewed more than 775,000 complaints of child exploitation, which resulted in the arrest of more than 83,000 individuals. In addition, since the ICAC program's inception, more than 629,400 law enforcement officers, prosecutors and other professionals have been trained on techniques to investigate and prosecute ICAC-related cases.
For more information, visit the ICAC Task Force webpage at: https://www.icactaskforce.org/. For state-level Operation Broken Heart results, please contact the appropriate state ICAC task force commander. Contact information for task force commanders are available online at: https://www.icactaskforce.org/Pages/ContactsTaskForce.aspx.
Monroeville Drug Dealer Admits Selling Heroin that Caused a Woman’s Overdose DeathRead the Press Release
PITTSBURGH, PA - On June 11, 2018, a resident of Monroeville, Pennsylvania, pleaded guilty in federal court in Pittsburgh to a charge of distribution and possession with intent to distribute a quantity of heroin, United States Attorney Scott W. Brady announced today.
Warren Worthy, 21, pleaded guilty yesterday to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on March 3, 2016, Worthy sold a bundle of heroin (10 stamp bags) to a female who used the heroin that day and overdosed. The female was taken to the hospital, where she died a few days later. An autopsy confirmed that the cause of death was heroin toxicity. The Allegheny County Police Department thereafter conducted a lengthy investigation, which confirmed that Worthy had distributed the lethal heroin to the female victim. Worthy acknowledged responsibility for selling the heroin that resulted in the woman’s death.
Judge Fischer scheduled sentencing for Wednesday, November 21, 2018, at 9 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Worthy remain detained.
Assistant United States Attorneys Troy Rivetti and Caitlin Loughran are prosecuting this case on behalf of the government.
The Allegheny County Police Department conducted the investigation that led to the prosecution of Warren Worthy.
Middletown Man Charged with Stealing More Than $900K from Employer, Family MemberRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that STEPHEN T. GIONFRIDDO, 67, of Middletown, was arrested today on a criminal complaint charging him with wire fraud stemming from an alleged scheme in which he embezzled approximately $490,000 from his former employer, and then embezzled approximately $457,000 from a family member to pay back his former employer.
GIONFRIDDO appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $200,000 bond.
According to the criminal complaint, GIONFRIDDO was convicted of federal wire fraud and mail fraud offenses in 2006 for embezzling more than $633,000 from clients while acting as their attorney.
The complaint alleges that, from approximately December 2013 through September 2017, while GIONFRIDDO was working as a paralegal at a law firm in greater Hartford, he made bogus requisitions for approximately $377,895.67 in checks purportedly to pay client expenses. GIONFRIDDO converted these funds for his personal use. GIONFRIDDO also forged the signature of one of the firm’s partners in order to fraudulently convert a certificate of deposit (CD) of approximately $112,748.21 to a check, which funds he also converted for his personal use. In total, GIONFRIDDO stole $490,648.88 from the law firm.
The complaint further alleges that principals at the law firm confronted GIONFRIDDO about the theft of funds in late September 2017, and GIONFRIDDO promised to repay the firm. GIONFRIDDO then stole from a family member by taking approximately $45,000 from a checking account and approximately $217,000 from an online trading account. He also caused a hardship withdrawal of $195,000 to be made against his family member’s defined contribution plan by impersonating his family member on recorded telephone calls with the plan’s provider and submitting bogus paperwork.
If convicted of wire fraud, GIONFRIDDO faces a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Mexican Citizen Sentenced to 235 Months in Federal PrisonRead the Press Release
DALLAS — Javier Contreras Vargas, aka “Cuñado,” a citizen of Mexico and in the United States illegally, was sentenced Monday, June 11, 2018, before U.S. District Judge David C. Godbey for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Vargas was sentenced to 235 months in federal prison following his guilty plea in August 2017, to one count of conspiracy to possess with intent to distribute and to distribute a schedule II controlled substance. He was in the United States illegally at the time of the offense and will be deported after serving his sentence. Vargas has been in custody since his arrest in August 2016.
Vargas was charged along with twenty-one others with various offenses related to a methamphetamine distribution conspiracy. Of the twenty-one charged, two are awaiting trial.
According to documents filed in the case, between January 1, 2015, and July 7, 2015, Vargas and his coconspirators conspired to distribute methamphetamine and used coded language to purchase multiple kilograms of the illegal substance so that he could distribute the drug to other people.
On July 7, 2015, law enforcement conducted a traffic stop and Vargas was found to be in possession of 2 kilograms of methamphetamine. Officers subsequently searched his residence and found approximately 17 kilograms of methamphetamine. Law enforcement also seized a firearm, and several thousand dollars in United States currency. As part of the plea agreement, Vargas agreed to forfeit the items seized, including the firearm and $25,137.00.
The Federal Bureau of Investigation investigated, with assistance from the Dallas Police Department and the Internal Revenue Service Criminal Investigations Division. Assistant U.S. Attorney George Leal prosecuted.
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Medical Assistant Charged with Stealing Patient Information and Defrauding Michigan Unemployment Insurance AgencyRead the Press Release
A medical assistant was indicted on charges of defrauding the Michigan Unemployment Insurance Agency (UIA) and stealing patients’ Personal Identifying Information (PII) from a doctor’s office in Pontiac, Michigan, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Douglas J. Zloto, Special Agent in Charge of the U.S. Secret Service, Detroit Field Office.
Indicted was Aline Harris, 34, of Detroit, Michigan. The indictment charges wire fraud, wrongful disclosure of health information, and identity theft in relation to unemployment benefits fraud and unauthorized disclosure of patients’ PII.
According to the indictment, Harris, who worked for a doctor’s office in Pontiac, Michigan was fraudulently printing out patients’ profiles which contained PII and giving the information to others who used them to commit other federal crimes. She also lied to the Michigan UIA and collected over $33,000 in unemployment benefits she was not entitled to.
Harris was arrested today and appeared in court the Eastern District of Michigan for arraignment on the indictment. She was released on a personal bond.
The case was investigated by the Southeast Michigan Financial Crimes Task Force led by the United States Secret Service. West Bloomfield, Warren, and Royal Oak Police Departments, Michigan Attorney General’s Office, and the IRS.
The case is being prosecuted by Assistant U.S. Attorney Abed Hammoud with the United States Attorney’s Office for the Eastern District of Michigan in Detroit.
An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Manhattan U.S. Attorney Announces Charges Against Individual for Engaging in A Fraudulent Ticket Scam and Laundering Proceeds of the FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal Complaint charging WILLIAM McFARLAND with wire fraud and money laundering, in connection with conducting a sham ticket scheme in which he purported to sell fraudulent tickets to exclusive fashion, music, and sporting events through NYC VIP Access, a company controlled by McFARLAND, and also caused the fraud proceeds to be sent to others’ financial accounts in an effort to conceal his ownership and control of the funds. McFARLAND is expected to be presented before U.S. Magistrate Gabriel W. Gorenstein today.
Manhattan U.S. Attorney Geoffrey Berman said: “William McFarland, already awaiting sentencing for a prior fraud scheme, allegedly continued to conduct criminal business as usual, selling nonexistent tickets to fashion, music, and sporting events. As alleged, McFarland’s purported exclusive event ticket company, NYC VIP Access, in fact had no access to events for which he sold bogus tickets. Now McFarland faces criminal charges on top of those to which he already pled guilty.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “In March of 2018, William McFarland pled guilty to defrauding investors and vendors of the Fyre Festival, but it is apparent that he did not stop there. McFarland allegedly went on to sell fraudulent tickets to many grand events, totaling almost $100,000. Today’s charges depict our intolerance for such fraudulent activity, and we will continue to diligently investigate acts such as this.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
On March 6, 2018, McFARLAND pled guilty before United States District Judge Naomi Reice Buchwald to one count of wire fraud in connection with a scheme to defraud over 80 investors in Fyre Media and Fyre Festival LLC of over $24 million in losses, and one count of wire fraud with a scheme to defraud a ticket vendor for the Fyre Festival of $2 million in losses. United States v. William McFarland, 17 Cr. 600 (NRB). McFARLAND has been on pretrial release since July 1, 2017, and is currently awaiting sentencing in that case.
From at least in or about late 2017, up to and including at least in or about March 2018, McFARLAND owned NYC VIP Access, a company based in New York, New York, that purported to be in the business of obtaining and selling for profit tickets to various exclusive events including fashion galas, music festivals, and sporting events. NYC VIP Access purported to sell tickets to the following events, among others: the 2018 Met Gala, Burning Man 2018, Coachella 2018, the 2018 Grammy Awards, Super Bowl LII, and a Cleveland Cavaliers game and team dinner with Lebron James. McFARLAND, while on pretrial release, perpetrated a scheme to defraud attendees of the Fyre Festival and others by soliciting them to purchase tickets from NYC VIP Access to exclusive events when, in fact, no such tickets existed.
McFARLAND took steps to make NYC VIP Access appear as it if were controlled and operated by other individuals. In soliciting ticket sales, McFARLAND used an email account in the name of a then-employee (“Employee-1”) in order to hide his affiliation with NYC VIP Access. McFARLAND provided prospective customers with contracts that falsely represented that NYC VIP Access had tickets to exclusive events in fashion, music, and sports. In order to distance himself from the operation, McFARLAND directed that Employee-1 sign the contracts between NYC VIP Access and the customers. After McFARLAND induced customers to wire money for tickets, McFARLAND either did not provide tickets at all, or did not provide tickets as advertised. McFARLAND charged at least approximately $100,000 in fraudulent tickets to at least approximately 15 customer-victims. McFARLAND instructed and caused ticket sale proceeds to be sent to a bank account belonging to Employee-1, to which McFARLAND had access and control, or a mobile payment service account belonging to another employee (“Employee-2”), for the purpose of concealing his ownership and control of the funds.
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McFARLAND, 26, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the FBI’s New York Field Office.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United State Attorney Kristy J. Greenberg 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 phase 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.
MS-13 Member Sentenced to 30 Years in Prison for Racketeering Related ChargesRead the Press Release
Today, a Maryland gang member was sentenced to 360 months in prison followed by five years of supervised release for his participation in the racketeering enterprise known as La Mara Salvatrucha, or MS-13, including his participation in two conspiracies to commit murder.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur of the District of Maryland, Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County, Maryland, Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief Edward Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy made the announcement.
Selvin Raymundo Salazar aka “Inquieto,” 26, was sentenced by U.S. District Judge Peter J. Messitte of the District of Maryland. Salazar had previously pleaded guilty to conspiracy to participate in a racketeering enterprise, specifically, MS-13.
According to the statement of facts filed with his plea agreement, MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick, Maryland. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to the statement of facts filed with his plea agreement, from at least 2012 through at least 2014, Salazar was a member and associate of the Normandie Locos Salvatrucha (“NLS,” or “Normandie”) clique of MS-13. Salazar admitted that on Feb. 28, 2013, and again on July 30, 2014, for the purpose of maintaining and increasing his position in MS-13, he, together with other members and associates of MS-13, conspired to murder victims that he and his co-conspirators had identified as chavalas.
Specifically, the defendant admitted that on Feb. 28, 2013, in the Lewisdale community of Prince George’s County, Maryland, he and members and associates of the Sailors Locos Salvatrucha Westside (“SLSW,” or “Sailors”) clique of MS-13 traveled in a vehicle, searching for chavalas. Salazar was armed with a .380 caliber handgun that belonged to the Normandie clique. After observing an individual that he and his co-conspirators believed to be a chavala (“Victim-1”), Salazar and a co-conspirator exited the car and approached Victim-1, who was standing with a companion. Salazar’s co-conspirator took the handgun from Salazar and shot Victim-1, as Victim-1’s companion ran away. Salazar and his co-conspirator ran back to the vehicle and he and the occupants of the vehicle fled. Salazar then returned the .380 caliber firearm to the Normandie clique.
Salazar further admitted that on July 30, 2014, in Hyattsville, Maryland, he and at least two other members or associates of the Normandie clique of MS-13 approached three victims, named in the third superseding indictment as “Victim-5,” “Victim-6,” and “Victim-7.” Two of Salazar’s co-defendants pulled out firearms and shot Victim-5 and Victim-6. Victim-5 was struck seven times, with wounds to his upper torso, right arm, and face. Victim-6 sustained a gunshot wound to his right side. Prior to the shooting, Salazar and his co-conspirators had been informed by an associate of MS-13 that the victims were chavalas.
Five of the shell casings recovered from the scene of the July 30, 2014 shooting were examined and determined to have been fired from the same firearm that fired casings recovered at other crime scenes, including the Feb. 28, 2013 murder, a murder that took place in Hyattsville, Maryland on Nov. 11, 2012, and a shooting that took place in Laurel, Maryland on March 28, 2014.
HSI Baltimore, the Prince George’s County Police Department, the Frederick Police Department, the Hyattsville City Police Department, the Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office investigated the case. Trial Attorney Francesca Liquori of the Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland are prosecuting the case.
Leader of Newark Bloods Street Gang – The South Side Cartel – Sentenced to 45 Years in Prison for Five Murders, Racketeering, Other Violent Crimes in Furtherance of the Gang EnterpriseRead the Press Release
NEWARK, N.J. – The leader of one of Newark’s most violent street gangs was sentenced today to 540 months in prison for his admitted role in five murders, an armed carjacking, an armed robbery of a drug dealer, two counts of assault with a deadly weapon, and drug conspiracy as part of a racketeering conspiracy involving the South Side Cartel, U.S. Attorney Craig Carpenito announced.
Farad Roland, 33, previously pleaded guilty before U.S. District Judge Esther Salas to violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) as part of a 27-count second superseding indictment. Judge Salas imposed the sentence today in Newark federal court.
“This sentence effectively ends Farad Roland’s reign as the leader of the South Side Cartel.” U.S. Attorney Carpenito said. “Working with our partners in the FBI, the Newark Department of Public Safety, and the Essex County Prosecutor’s Office, we have removed a dangerous and violent predator from the streets of Newark, making the city safer for everyone. Stopping violent crime is a top priority of this office, and this sentence should be a warning to those who traffic in illegal drugs and commit acts of violence in support of their criminal enterprises that the office will take action to ensure that they will no longer walk free to terrorize their community.”
“Farad Roland chose to kill for the South Side Cartel of the Newark Bloods and now he can serve time for the gang,” Newark FBI Special Agent in Charge Gregory W. Ehrie said. “This conduct will not be tolerated and today’s sentence should send a message that the FBI, together with our law enforcement partners, will pursue and prosecute members of violent street gangs who seek to inflict violence and fear in our communities. The FBI and our partners will aggressively pursue gangs wherever they surface and are steadfast to making Newark and the surrounding communities, a safe place for our citizens.”
According to documents filed in this case and statements made in court:
The South Side Cartel was a sub-set of the Bloods street gang that operated primarily on Hawthorne Avenue in Newark. Originally a neighborhood-based gang whose main activities were selling drugs and committing violent acts to aid the drug-trafficking business, many of the gang’s members were officially brought into the Bloods gang in 2002 and 2003. The gang often operated out of apartments located at 496-500 Hawthorne Avenue, which were dubbed “the Twin Towers.” Local law enforcement made repeated narcotics and gun arrests at this location. Many of the South Side Cartel members had tattoos showing the Twin Towers and the logo “SSC,” which represented the gang’s initials.
Between 2003 and 2010, the South Side Cartel was generally known among law enforcement and the FBI as the most violent street gang in Newark, committing numerous murders, shootings, robberies and other violent acts in furtherance of the enterprise. At its peak, the South Side Cartel had about 20 members or associates, many of whom have since been killed in gang-related murders or who are serving prison sentences for gang-related crimes. Roland’s two co-defendants, Malik Lowery and Mark Williams, previously pleaded guilty in federal court. Lowery was sentenced in August 2016 to more than 26 years in federal prison. Williams is scheduled to be sentenced Sept. 13, 2018.
Roland’s admission of guilt includes acknowledgement of his participation in a host of racketeering acts to further the South Side Cartel’s goals, including:
• The Feb. 20, 2005, murder of a Newark resident who was shot during a robbery attempt that Roland ordered one of his gang associates to carry out; • The Feb. 23, 2005, murder of the 19-year-old gang associate who committed the Feb. 20, 2005 robbery-murder, to prevent him from cooperating with law enforcement and implicating Roland; • The Oct. 20, 2007, murder of a fellow South Side Cartel member who had fallen into disfavor with the gang; • The retaliation murders of two people on March 27, 2008, outside the Oasis Bar located on Lyons Avenue in Newark.
Roland also admitted committing an armed carjacking; an assault with a dangerous weapon in the 2008 shooting of a fellow gang member with whom Roland had a dispute; an assault with a dangerous weapon in the 2009 shooting of a rival gang member; the armed robbery of a drug dealer in East Orange, New Jersey; and conspiracy to distribute more than a kilogram of heroin and 280 grams of crack cocaine.
In addition to the prison term, Judge Salas sentenced Roland to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie; the Newark Police Division, under the direction of Department of Public Safety Director Anthony F. Ambrose; and Acting Essex County Prosecutor Robert D. Laurino, with the investigation leading to today’s sentencing.The government is represented by Senior Litigation Counsel Robert Frazer of the Violent Crimes Unit, Assistant U.S. Attorney Courtney Howard of the Economic Crimes Unit and Assistant U.S. Attorney Desiree Grace Latzer of the Violent Crimes Unit.
Defense counsel: Farad Roland: Richard Jasper Esq. and Michael Bachrach Esq., New York; and Stephen Turano Esq., Newark
Law Enforcement Partnership Targets Armed Robbers of Miami Beach TouristsRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Daniel J. Oates, Chief, City of Miami Beach Police Department, announce the conviction and sentencing of five individuals who participated in armed robberies of Miami Beach tourists.
In February of 2017, Roy William Reed, 24, from Memphis, Tennessee held up two tourists at gunpoint on Ocean Drive, in Miami Beach, while Ashley Brooks, 25, also from Memphis, acted as a lookout (Case No. 17-CR-20930). During the course of the robbery, Reed took, among other items, the victims’ wallets, cash and cellular telephones. Shortly after the robbery, Brooks attempted to use one of the victims’ credit cards at a gas station.
On March 13, 2018, Reed pled guilty to conspiracy to commit Hobbs Act robbery, two counts of Hobbs Act robbery, and brandishing a firearm in furtherance of a crime of violence. On the same day, Brooks pled guilty to brandishing a firearm in furtherance of a crime of violence. On May 15, 2018, U.S. District Judge Donald M. Middlebrooks sentenced Reed and Brooks to 124 months and 84 months, respectively. A restitution hearing has been scheduled for Reed and Brooks on July 17, 2018, at 11:00 a.m., before Judge Middlebrooks.
Similarly, in October of 2017, Rahshard Jovan Stepherson, 45, and Vidyapati El, both of Riviera Beach, and Kemon Dominique Thompson, 25, of Opa Locka, held two foreign tourists at gunpoint in a stairwell on Miami Beach (Case No. 17-CR-20895). Stepherson shoved a firearm into the victims’ necks and stomachs and forced them to comply with his demands. The three defendants ultimately took the tourists’ wallets, watches, and cell phones, before fleeing the crime scene.
On April 10, 2018, a federal jury convicted Stepherson of conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and brandishing a firearm in furtherance of a crime of violence. Stepherson was sentenced today by Judge Middlebrooks to 360 months in prison and was ordered to pay $6,600 in restitution to the victims.
Defendants Thompson and El pled guilty, on March 20, 2018, to brandishing a firearm in connection with this robbery. On May 15, 2018, Judge Middlebrooks sentenced El to 86 months in prison and was ordered to pay $8,620 in restitution to the victims. Thompson was sentenced today by Judge Middlebrooks to 96 months in prison and was ordered to pay $8,300 in restitution to the victims.
All five defendants were also ordered to serve 5 years of supervised release, following their release from prison.
These armed robbery cases are 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.
Mr. Greenberg commended the investigative efforts of the FBI and the City of Miami Beach Police Department in this matter. Mr. Greenberg thanked the Shelby County Sheriff’s Office in Memphis for their assistance. These cases are being prosecuted by Assistant United States Attorneys Daniel Marcet, Jessica Obenauf, and David Turken.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Las Vegas Man Sentenced to Two Years in Prison for Using Gas Pump Skimming Devices to Steal Credit and Debit Card InformationRead the Press Release
LAS VEGAS, Nev. – A Las Vegas resident who used gas pump skimming devices to steal customers’ personal credit and debit card information was sentenced today to 24 months in federal prison, announced U.S. Attorney Dayle Elieson of the District of Nevada.
Virab Torosyan, 55, was sentenced by U.S. District Judge Andrew P. Gordon. In addition to the prison term, he was ordered to pay $41,475.22 in restitution. He previously pleaded guilty to one count of aggravated identity theft.
According to court documents, Torosyan possessed 1,673 stolen credit and debit card account numbers. He admitted that, from February 2014 to July 2014, he and his co-conspirators placed card skimming devices at gas pumps in order to steal victims’ personal credit and debit card data. Torosyan would re-encode the stolen credit and debit card information to any plastic card with a magnetic strip. Then, he used the counterfeit cards to purchase fuel in North Las Vegas and elsewhere for pick-up trucks that had custom-made 400 gallon fuel tanks hidden under the truck’s hardtop bed cover. Torosyan would resell the fuel at a discounted price to gas stations and other drivers.
The case was investigated by the Las Vegas Metropolitan Police Department and U.S. Secret Service. Assistant U.S. Attorneys Nicholas Dickinson, Kilby Macfadden, and Kimberly Frayn prosecuted the case.
If you are a victim of identity theft, you may make a report to the Federal Trade Commission (FTC) by calling 1-877-438-4338 or online at www.identitytheft.gov. For identity theft prevention tips and free resources visit www.ftc.gov/idtheft.
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Kissimmee Man Sentenced to Five Years in Prison for Manufacturing over 200 “Ghost Guns” Without A LicenseRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell yesterday sentenced Hector Luis Santiago-Jorge (48, Kissimmee) to the maximum penalty of five years in federal prison for manufacturing and dealing in firearms without a federal license. The court also ordered that Santiago-Jorge forfeit 10 AR-15 type firearms and 168 rounds of ammunition that were seized from his residence by federal law enforcement officers.
Santiago-Jorge had pleaded guilty on March 5, 2018.
According to court documents, between November 2016 and October 2017, Santiago-Jorge manufactured more than 200 firearms, most of which were AR-15 type weapons. He then sold many of these firearms to purchasers in Puerto Rico. The firearms manufactured by Santiago-Jorge, none of which had a serial number, are commonly known as “ghost guns” because they are difficult for law enforcement to trace.
“This criminal thought he could circumvent the laws in place that make our communities safer from weapons trafficking,” said HSI Tampa Special Agent in Charge James C. Spero. “But thanks to the hard work of HSI and our partners, this sentencing should put criminals on notice that we will fully investigate anyone threatening the safety of our citizens.”
“It is ATF’s primary responsibility to aggressively interdict unlicensed manufacturers and the firearms they illegally peddle,” said ATF Special Agent in Charge Daryl McCrary. “As subject matter experts, we will continue to work with our law enforcement partners to keep illegal firearms out of our communities.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Justice Department Seeks to Shut Down Louisiana Tax Return PreparerRead the Press Release
A tax return preparer in Avondale, Louisiana prepares fraudulent tax returns for her customers and files false tax returns using taxpayers’ identifying information without their knowledge or authorization, according to a civil lawsuit filed by the Justice Department today. The suit, filed in federal court in New Orleans, asks the court to permanently bar Adrienne Robinson Thomas (doing business as AT Tax Services) from preparing federal tax returns for others.
The complaint alleges that Thomas unlawfully understates her customers’ income tax liabilities and overstates these customers’ refunds. According to the complaint, Thomas unlawfully prepares federal tax returns that lower her customers’ federal tax liabilities by claiming bogus earned income tax credits, bogus child tax credits, false education credits, and fabricated household employee income and withholdings. The government alleges Thomas also files wholly fabricated tax returns using the identifying information of taxpayers who did not hire her to prepare their federal income tax returns.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury convicts Rocky River business executive of embezzlement, tax crimesRead the Press Release
A jury convicted Rocky River business executive C. David Snyder on six charges related to embezzling $126,000 from an employee retirement fund and collecting nearly $860,000 from his employees but not paying the money to the IRS.
Snyder, 61, is scheduled to be sentenced Oct. 9. He was convicted on one count of embezzling from an employee pension fund and five counts of failure to pay over taxes. He was acquitted on two tax charges.
Snyder served as chairman, president and chief executive officer of Attevo, Inc., a technology consulting company headquartered in Cleveland. He also served as chairman and primary shareholder at Ruralogic, Inc., headquartered in Bryan, Ohio.
Attevo employees prepared financial records and schedules, quarterly and annual returns and reports for Attevo, at Snyder’s direction. Snyder ranked Attevo’s payables in order of importance, according to court documents.
Snyder, on behalf of Attevo, and the IRS in 2011 agreed to a monthly payment plan of $48,350 per month to repay the company’s outstanding payroll tax liabilities. Attevo made 10 payments totaling $483,500 then made no further payments, according to court documents.
Snyder withheld payroll tax from employees but failed to pay it to the IRS. Snyder failed to pay over approximately $328,355 of employee’s portion of payroll taxes in 2010 and approximately $530,778 in 2012, according to court documents.
Snyder created a 401(k) and profit-sharing plan for Attevo employees in 2009. Ruralogic was added to the plan in 2010. The plan was funded through employee payroll deferrals. Between 2010 and 2012, Snyder failed to pay into the plan approximately $126,000 in contributions and loan repayments withheld from Attevo and Ruralogic employee wages, according to court documents.
During the time of his criminal conduct, instead of paying Attevo’s employment taxes, Snyder paid $20,000 per month for the rental of a personal residence in Lakewood and his vacation home in Chautauqua, New York, leases on four vehicles and other personal expenses, according to trial testimony and court documents.
He also used Attevo’s American Express to pay personal expenses, including women’s clothing at Ann Taylor, Nieman-Marcus and other stores, beauty supplies at Oro Gold in Las Vegas, travel to resorts in Florida and for pool/spa renovations, according to trial testimony and court documents.
Snyder earned income from Attevo totaling approximately $1.6 million between 2009 and 2012, according to the court documents and trial testimony.
U.S. Attorney Justin E. Herdman said: “A jury found this defendant embezzled money from his employees. He also took taxes out of their paychecks, but instead of paying the taxes of the IRS, he used the stolen money to pay for his vacation home, pool renovation and otherwise fund his own lavish lifestyle.”
“Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service,” said IRS Special Agent in Charge Ryan Korner. “The failure to pay over withheld taxes results in the loss of tax revenue to the United States government and the loss of future Social Security or Medicare benefits for employees.”
“Charles Snyder embezzled retirement savings from his employees’ 401(k) accounts, and used the money for his personal benefit. We will continue to work with our law enforcement and other partners to protect retirement assets covered by the Employee Retirement Income Security Act," said James Vanderberg, Special Agent-in-Charge, Chicago Region, U. S. Department of Labor Office of Inspector General.
This case was investigated by the Internal Revenue Service – Criminal Investigations and the U.S. Department of Labor – Office of Inspector General. It is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Megan R. Miller.
Iowa City Man Sentenced to Prison for Firearm OffenseRead the Press Release
DAVENPORT, IA – On Tuesday, June 12, 2018, United States District Court Judge Stephanie M. Rose sentenced Alexander Ruben Alvarado, age 21, of Iowa City, to 36 months in prison for unlawful user of a controlled substance in possession of a firearm, announced United States Attorney Marc Krickbaum. Alvarado was ordered to serve three years of supervised release following his prison term and pay $100 to the Crime Victims’ Fund.
On February 7, 2018, Alvarado pleaded guilty to the charge, which arose from an investigation conducted by the Iowa City Police Department. Alvarado admitted between July 4, 2017, and July 11, 2017, he was responsible for shooting at random vehicles and apartment complexes in the Iowa City area. The shooting was done from Alvarado’s second story apartment complex. Damage occurred to several vehicles in the area, as well as two residences. On July 11, 2017, law enforcement executed a search warrant at Alvarado’s residence. There, three firearms, one of which was stolen, over 30 rounds of ammunition, over 20 grams of marijuana, and dozens of miscellaneous pills, including OxyContin and Xanax were located.
This matter was investigated by the Iowa City Police Department, the Johnson County Drug Task Force and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Illegal Alien Sentenced to Time Served, Deportation for Illegally Re-entering U.S.Read the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico has been sentenced in federal court in Johnstown to five months in prison, with credit for time served, and then ordered deported by Immigration and Customs Enforcement to Mexico, on his conviction of re-entry of an illegal alien, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Yovani Escalante-Escalante, 32, of Blair County, Pa.
According to information presented to the court, on Oct. 12, 2017, Escalante-Escalante, an alien who had been deported from the United States on May 13, 2009 was found in Blair County, Pa. He had unlawfully reentered this Country without receiving permission to do so from the Secretary of the Department of Homeland Security.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Department of Homeland Security/Immigration and Customs Enforcement for the investigation that led to the successful prosecution of Escalante-Escalante.
Huntington Woman Sentenced for Federal Pill ConvictionRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman was sentenced yesterday to six months in federal prison, followed by three years of federal supervised release with the first six months to be served on home confinement, for her role in a pain pill conspiracy interrupted by police, announced United States Attorney Mike Stuart. Lorie A. Mayhon, 43, previously pled guilty to conspiracy to distribute oxycodone in federal court in Huntington. U.S. Attorney Stuart commended the investigative efforts of the Drug Enforcement Administration (DEA) and the West Virginia State Police.
“Great work by DEA and the West Virginia State Police to intercept these pills before they were distributed throughout Huntington,” said United States Attorney Mike Stuart. “We’re working hard every day to lock up drug dealers that have caused so much havoc in that city.”
Mayhon admitted that on September 15, 2017, she assisted in arranging the sale of oxycodone pills to a confidential informant working with the DEA. The drug deal was scheduled to take place at a residence on Collis Avenue in Huntington, where the informant met with Mayhon and codefendants Joseph Melbar and Curtis Holcomb to complete the transaction. After discussing the terms of the deal – 500 oxycodone pills in exchange for $20,000 cash, Mayhon and Holcomb left Melbar’s residence to pick up another codefendant to acquire the pills. After the codefendants picked up the pills, a trooper with the West Virginia State Police conducted a traffic stop on their vehicle on Artisan Avenue in Huntington. During the stop, the trooper seized 454 thirty mg oxycodone pills that Holcomb had concealed in his sock.
Holcomb was sentenced to 57 months in federal prison and Melbar was sentenced to 24 months in federal prison for their respective roles in the conspiracy.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
This case was being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Follow us on Twitter: SDWVNews and USAttyStuart
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Heroin Dealer Convicted in Manhattan Federal Court for Overdose Death of 25-Year-Old ManRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FRANKIE BEQIRAJ was found guilty yesterday of conspiracy to distribute heroin resulting in the death of Robert Vivolo, a 25-year-old man from City Island, New York. BEQIRAJ was also convicted of conspiracy to distribute cocaine, oxycodone, and alprazolam. A unanimous jury convicted BEQIRAJ after a five-day trial before United States District Judge Richard M. Berman.
U.S. Attorney Geoffrey S. Berman said: “As proven at trial, Frankie Beqiraj peddled poison to the community of City Island and its vicinity, causing one of his many victims to die from a tragic overdose. The verdict should send a message to those who flood our community’s streets with lethal drugs. We will continue to work with our law enforcement partners to prosecute and convict criminals seeking to profit from the current public health crisis afflicting our city.”
According to court documents and the evidence at trial:
From at least in or about July 2016 up to and including in or about January 2017, BEQIRAJ was the principal drug supplier of the small Bronx community of City Island. BEQIRAJ employed workers, who were themselves heroin addicts supplied by BEQIRAJ, to deliver narcotics to his customers using prepaid phones supplied by BEQIRAJ. These workers were paid their salaries in money and heroin. Through his organization, BEQIRAJ distributed heroin, cocaine, oxycodone, and alprazolam.
On October 21, 2016, BEQIRAJ sold heroin to Robert Vivolo, a recovering heroin addict, on City Island, New York. BEQIRAJ’s heroin caused Vivolo to die from an overdose that night.
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FRANKIE BEQIRAJ, 28, of the Bronx, New York, faces a maximum sentence of life in prison, and a mandatory minimum term of 20 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. BEQIRAJ is scheduled to be sentenced on September 27, 2018 before Judge Berman.
U.S. Attorney Geoffrey S. Berman praised the outstanding work of the New York City Police Department’s Bronx Narcotics Heroin Overdose Team, the New Rochelle Police Department, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys David W. Denton Jr., and Elizabeth A. Hanft are in charge of the prosecution.
Hampshire County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Grover Allen White, of Romney, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
White, age 39, pled guilty to one count of “Possession of a Stolen Firearm.” White admitted to possessing a stolen .380 caliber pistol. The crime occurred in Hampshire County in June 2016.
White 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 K. Omps-Botteicher is prosecuting the case on behalf of the government. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
U.S. Magistrate Robert W. Trumble presided.Geneva Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Trebor Conolly, 36, of Geneva NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to receipt of child pornography. The charge carries a maximum penalty of 20 years imprisonment, lifetime supervised release, sex offender registration, and a $250,000 fine.
Assistant U.S. Attorney, Kyle P. Rossi, who is handling the case, stated that between September 6, 2017, and September 26, 2017, the defendant received nine videos and four images of child pornography via a peer-to-peer file sharing program. Conolly saved the child pornography on a personal computer. The videos and images depicted minors under 12 years old engaged in sexually explicit conduct with adults. Some of the videos and images depicted the sexual abuse of infants and toddlers. Conolly then distributed the videos over the internet by connecting to the peer-to-peer file sharing program..
The plea is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.Sentencing is scheduled for October 2, 2018, at 9:00 a.m. before Judge Siragusa.
Fruitland Park Man Arrested for Mailing Anthrax Hoax LetterRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces the arrest and charging by a criminal complaint of Jerry Nelson Stinchcomb (50, Fruitland Park) with sending an anthrax hoax letter to the Lake County Sheriff’s Office, and for mailing a threatening communication. If convicted, he faces a maximum penalty of 15 years in federal prison. Stinchcomb made his initial appearance in federal court today. A detention hearing has been scheduled for June 15, 2018.
According to the complaint, between December 1, 2017 and May 31, 2018, a series of envelopes containing a white powdery substance and threatening letters were mailed to various entities in Lake, Volusia, Sumter and Orange Counties. Those mailings caused local HAZMAT teams, the Florida Department of Health, local law enforcement and other agencies to respond. In each case, the correspondence contained black letters that had been generated by a label-maker. From March through April 2018, employees of the Fruitland Park Post Office intercepted letters with same labeling type.
Through further investigation, Stinchcomb was eventually identified as the person responsible for mailing an anthrax hoax letter on May, 30, 2018, using a Fruitland Park postal collection box. The letter contained a white powdery substance and a note reading, “anthrax.” The letter was addressed to the Lake County Sheriff’s Office and was collected by a letter carrier on May 31, 2018.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
The case is being investigated by the FBI (Daytona Resident Agency) and the U.S. Postal Inspection Service, with assistance from other enforcement agencies. It will be prosecuted by Assistant U.S. Attorney Dale Campion.
Fort Polk soldier pleads guilty to illegally manufacturing, using a chemical weaponRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a Fort Polk soldier pleaded guilty Monday to manufacturing and detonating a chemical weapon in the Kisatchie National Forest adjacent to the Fort Polk Army installation.
Ryan Keith Taylor, 24, of New Llano, Louisiana, pleaded guilty before U.S. District Judge Jay C. Zainey to producing, possessing and using a chemical weapon in violation of federal law. According to the guilty plea, Taylor manufactured and detonated a chemical weapon on April 12, 2017 in the Kisatchie National Forest that resulted in the release of highly toxic chlorine gas into the atmosphere.
Taylor faces up to life in prison, five years of supervised release and a $250,000 fine. The court set sentencing for September 12, 2018.
The FBI, U.S. Army Criminal Investigations Command, Fort Polk Military Police and the Directorate of Emergency Services, Louisiana State Police, and the Vernon Parish Sheriff’s Office investigated the case. U.S. Attorney David C. Joseph, Assistant U.S. Attorney Daniel J. McCoy and Special Assistant U.S. Attorney Dennis E. Robinson are prosecuting the case.
Former Tuskegee Police Lieutenant Convicted of Civil Rights Offense for Assaulting ArresteeRead the Press Release
Montgomery, Alabama –Former Tuskegee Police Department Lieutenant Alex Huntley, 54, was convicted Friday for beating a handcuffed and compliant arrestee, announced U.S. Attorney Louis V. Franklin, Sr., of the Middle District of Alabama, FBI Special Agent in Charge James Jewell, and Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division.
Evidence presented at trial established that, on Dec. 24, 2014, Huntley arrested a man who scuffled with police near the Tuskegee town square and directed a fellow police officer to transport him back to the Tuskegee Police Department for booking. Once there, Huntley sprayed pepper spray in the arrestee’s face, even though the arrestee was handcuffed and following police instructions. Huntley then took the arrestee inside the police station, where Huntley knocked the still-handcuffed arrestee to the ground, stomped on him, and repeatedly kicked and punched him. In between blows, Huntley stood over the arrestee and yelled threats at him as the arrestee screamed in pain. A police officer recruit who witnessed the beating was so horrified that he secretly audio-recorded the assault on his cell phone.
Former Tuskegee Lieutenant Darian Locure, 45, was also charged with a civil rights offense and obstruction of justice. He was acquitted on all charges.
Following this conviction, Huntley is facing up to 10 years in prison, substantial fines, and 3 years of supervised release after his sentenced is served. There is no parole in the federal system.
“The majority of our police officers are dedicated to protecting and serving the public with strength, courage, and valor. Unfortunately, Mr. Huntley was not so dedicated,” said U.S. Attorney Franklin. “Police officers walk a tough, yet honorable line every day. This office is committed to prosecuting any law enforcement officer who abandons their oath to protect and serve and, instead, chooses to engage in criminal conduct that they are sworn to oppose.”
“Lady Justice wears a blindfold for a reason, and a violation of someone's civil rights by a sworn law enforcement officer cannot be tolerated,” stated FBI Special Agent in Charge James Jewell.
“Illegal conduct by officers who abuse their power and violate the civil rights of those in their custody will not be tolerated,” said Acting Assistant Attorney General John Gore. “The Department will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”
This case was investigated by the Federal Bureau of Investigation. The Alabama State Bureau of Investigation also assisted in the investigation. It is being prosecuted by Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division and Assistant United States Attorney Denise O. Simpson of the United States Attorney’s Office for the Middle District of Alabama.
Former Tuskegee Police Lieutenant Convicted of Civil Rights Offense for Assaulting ArresteeRead the Press Release
Former Tuskegee Police Department Lieutenant Alex Huntley, 54, was convicted late Friday for beating a handcuffed and compliant arrestee, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Louis V. Franklin, Sr., of the Middle District of Alabama, and FBI Special Agent in charge James Jewell.
Evidence presented at trial established that, on Dec. 24, 2014, Huntley arrested a man who scuffled with police near the Tuskegee town square and directed a fellow police officer to transport him back to the Tuskegee Police Department for booking. Once there, Huntley sprayed pepper spray in the arrestee’s face, even though the arrestee was handcuffed and following police instructions. Huntley then took the arrestee inside the police station, where Huntley knocked the still-handcuffed arrestee to the ground, stomped on him, and repeatedly kicked and punched him. In between blows, Huntley stood over the arrestee and yelled threats at him as the arrestee screamed in pain. A police officer recruit who witnessed the beating was so horrified that he surreptitiously audio-recorded the assault on his cell phone.
Former Tuskegee Lieutenant Darian Locure, 45, was also charged with a civil rights offense and obstruction of justice. He was acquitted on all charges.
“Illegal conduct by officers who abuse their power and violate the civil rights of those in their custody will not be tolerated,” said Acting Assistant Attorney General John Gore. “The Department will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”
“The majority of our police officers are dedicated to protecting and serving the public with strength, courage, and valor. Unfortunately, Mr. Huntley was not so dedicated,” said U.S. Attorney Franklin. “Police officers walk a tough, yet honorable line every day. This office is committed to prosecuting any law enforcement officer who abandons their oath to protect and serve and, instead, chooses to engage in criminal conduct that they are sworn so oppose.”
“Lady Justice wears a blindfold for a reason, and a violation of someone's civil rights by a sworn law enforcement officer cannot be tolerated,” stated FBI Special Agent in charge James Jewell.
Following this conviction, Huntley is facing up to 10 years in prison, substantial fines, and three years of supervised release after his sentenced is served.
This case was investigated by the Federal Bureau of Investigation. The Alabama State Bureau of Investigation also assisted in the investigation. It is being prosecuted by Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division and Assistant United States Attorney Denise O. Simpson of the United States Attorney’s Office for the Middle District of Alabama.
Former Treasurer for City of Zeigler, IL sentenced to Four Years in Prison for Embezzlement and FraudRead the Press Release
On the morning of June 12, 2018, at the United States District Court in Benton, Illinois, Ryan A. Thorpe, 44, the former Treasurer for the City of Zeigler, was sentenced to four years in federal prison for his conviction for wire fraud and embezzlement from a local government, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. The charges against Thorpe relate to events that occurred while Thorpe worked as the Treasurer for the City of Zeigler in Franklin County, Illinois.
When he pled guilty on March 1, 2018, Thorpe admitted that that from March 4, 2013, through August 3, 2017, he embezzled $321,399.22 by writing checks payable to himself and drawn on the City of Zeigler’s general account. Thorpe also admitted that he concealed his thefts from the City of Zeigler by altering the copies of the checks that were sent to the city each month by the city’s bank. Thorpe accomplished this by "whiting out" his name in the payee section of those checks, writing in the names of vendors and suppliers that the city did business with, photocopying the altered checks, placing the photocopies in the bank records kept by the city, and then shredding the copies of the checks with the "white out." Thorpe also acknowledged that he further concealed his thefts by submitting false monthly Treasurer’s Reports to the Zeigler City Council.
In announcing the four year prison sentence this morning, United States District Judge Staci M. Yandle said she found it troubling that Thorpe began embezzling from the City of Zeigler only a few months after becoming the Treasurer. Judge Yandle also noted the devastating impact Thorpe’s embezzlements have had on the City of Zeigler and its residents, telling Thorpe: "The seriousness of your crime cannot be overstated." Noting that Thorpe used funds stolen from the city to purchase several expensive items for himself and his family members, Judge Yandle determined that Thorpe’s crimes were motivated by "absolute and unadulterated greed." She further observed that public corruption of the sort committed by Thorpe destroys public confidence in Government and the democratic process.
"We feel that the sentence imposed by the court today appropriately addresses the seriousness of Thorpe’s criminal conduct," commented U.S. Attorney Boyce. "Officials who steal from the citizens they are elected and appointed to represent commit a gross abuse of public trust. It’s our hope that lengthy prison sentences like the one imposed today will serve to deter other public officials from defrauding their constituents."
As part of the sentence, the court ordered Thorpe to pay full restitution of $321,399.22 to the City of Zeigler and its insurance carrier. In accordance with the terms of his plea agreement, Thorpe also turned over to the City of Zeigler numerous items that he purchased with the embezzled funds. Those items include: a side-by-side Utility Task Vehicle; two motorcycles; a utility trailer; a lady’s diamond ring; numerous firearms; a gun safe; and a four-propeller drone. The total value of this property is estimated at $35,872.74. Thorpe was given a credit toward restitution paid in this amount.
Thorpe also agreed to forfeit a significant number of assets to the United States, including a second side-by-side Utility Task Vehicle; a portable building; a lot and trailer located across the street from Thorpe’s house in Zeigler; five additional vacant lots located in Zeigler; two IRAs valued at a total of approximately $9,000; and a camper. After these properties are forfeited and sold, the U.S. Attorney’s Office will request that the funds from these sales be released and applied to the restitution amount that Thorpe owes to the City of Zeigler.
The investigation was conducted by agents from the Springfield Division, Marion, Illinois Resident Agency, of the Federal Bureau of Investigation ("FBI"). The Franklin County Sheriff’s Department assisted in the investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Former President of Hartford Nonprofit Arrested for Stealing from HUD ProgramsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN F. HARVIN, 53, of New Haven, was arrested today on a criminal complaint charging him with wire fraud and theft from programs receiving federal funds.
After his arrest, HARVIN appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $50,000 bond.
According to the complaint, the Housing Opportunities for Persons with AIDS (“HOPWA”) Program is a federal program dedicated to the housing needs of people living with HIV/AIDS. Under the HOPWA Program, the U.S. Department of Housing and Urban Development (“HUD”) makes grants to local communities, states and nonprofit organizations for projects that benefit low-income persons living with HIV/AIDS and their families. HUD is also responsible for administering the Section 8 housing program, which provides federally subsidized housing to low income tenants.
As alleged in the complaint, HARVIN is a reverend and, from approximately August 2015 to September 2016, he served as President of Zezzo House, a non-profit organization in Hartford that provides housing for individuals and families with health challenges, including HIV/AIDS. HUD provides HOPWA funds to the City of Hartford, which in turn provides the HOPWA funds to organizations in the Hartford area, including Zezzo House. Zezzo House also receives Section 8 funding.
The complaint alleges that, from approximately January 2016 to September 2016, HARVIN diverted thousands of dollars in federal funds to his personal use. During this time, Zezzo House received $70,722 in HOPWA funds, some of which HARVIN withdrew in cash for himself or spent on personal expenditures. HARVIN also diverted funds from rent checks from Section 8 tenants to his personal use.
The charge of wire fraud carries a maximum term of imprisonment of 20 years, and the charge of theft from programs receiving federal funds carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S Department of Housing and Urban Development, Office of Inspector General, and the Hartford Police Department. This case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Former Federal Agent Charged with Lying in Connection with Immigration Fraud InvestigationRead the Press Release
Assistant U.S. Attorneys Meghan Heesch (619) 546-9442 and Andrew Young (619) 546-7981
NEWS RELEASE SUMMARY – June 12, 2018
SAN DIEGO – Johnny Martin, a former supervisor in the Department of Homeland Security, was arraigned in federal court today on an indictment charging him with lying to the Federal Bureau of Investigation about his improper transmission of sensitive law enforcement information. The charges against Martin stem from an investigation into a massive immigration fraud scheme involving over 150 victims and millions of dollars in losses.
According to the indictment, FBI agents approached Martin in June 2017 and asked about his dealings with an individual who had shared information with Martin and from 2010 to 2012. In fact, Martin was well acquainted with this individual. While still employed by Homeland Security Investigations (HSI) in 2015 and 2016, Martin had improperly searched a confidential law enforcement database on more than a dozen occasions for names provided by this individual. Martin then created new documents containing the confidential information, and used his personal email account to send the documents he created to the individual.
During the June 2017 interview, agents showed Martin an example of the sensitive information that he had personally extracted from a confidential law enforcement database, and had emailed directly to the individual. This document contained the personally identifiable information, immigration history, and criminal history of someone whom the individual had victimized in his immigration fraud scheme, and agents were attempting to determine how the individual had obtained this document. According to the indictment, Martin falsely claimed to agents that he had no idea how the document had been transmitted to the individual, and falsely denied sending the document or any other law enforcement sensitive information to the individual.
Martin’s case is related to a separate immigration fraud case pending against Hardev Panesar, Rafael Hastie, and Gurdev Singh (Case No. 17CR1371-GPC). According to the indictment in that case, Panesar and Hastie posed as Department of Homeland Security agents and defrauded their victims by claiming that they could obtain immigration status and stop deportation proceedings in exchange for exorbitant fees. According to statements and filings made in court in that case, Panesar and Hastie were able to convince victims they were bona fide federal agents by, in part, presenting them with confidential information obtained from law enforcement databases.
Martin, who is no longer employed by HSI, was released on bond and is scheduled to appear before U.S. District Judge Gonzalo P. Curiel on July 27, 2018.
DEFENDANT Case Number: 18CR2835-GPC
Johnny MARTIN Age: 59 Chula Vista, California
SUMMARY OF CHARGE
Count 1: 18 U.S.C. § 1001, Making a False Statement to a Federal Agent
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, 3 years’ supervised release.
AGENCIES
Federal Bureau of Investigation
Customs and Border Protection - Office of Field Operations
Customs and Border Protection - Office of Professional Responsibility
*The charges and allegations contained in an Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former Chemours Employee Pleads Guilty to Theft of Trade Secrets Conspiracy in Bid to Lure Chinese Investors into Sodium Cyanide MarketRead the Press Release
WILMINGTON, Del. – United States Attorney David C. Weiss announced today that Jerry Jindong Xu, a citizen of Canada, pled guilty on June 8 to one count of conspiracy to steal trade secrets before the Honorable Leonard P. Stark of the U.S. District Court of Delaware.
According to court documents, the conspiracy involved the theft of trade secrets related to sodium cyanide, a chemical most often used to mine gold, silver, and other precious metals. The Chemours Company (Chemours) is the world’s largest producer of sodium cyanide. Chemours, formed in July of 2015 after the DuPont Corporation separated its performance chemicals business, is based in Wilmington and performs the research and development for sodium cyanide products at its nearby Experimental Station.
From 2011 to June 2016, the defendant was employed in Chemours’ Ontario, Canada office, where he marketed various sodium cyanide-based products developed in the United States to the Canadian mining market. The defendant previously worked for seven years in China for the DuPont Corporation, where he cultivated extensive ties to the Chinese cyanide and mining industry. The defendant was arrested in New York in August 2017 and arraigned in Wilmington on September 28, 2017. At the time of his arrest, the Royal Canadian Mounted Police executed a search warrant on behalf of the United States pursuant to our government’s Mutual Legal Assistance Treaty with Canada.
The defendant admitted that during his final year of employment with Chemours, he systematically acquired – through surreptitious action, false statements to colleagues, and sometimes through his legitimate employment duties – dozens of confidential files, many of which included trade secret information about Chemours’ sodium cyanide business. During this same time, the defendant secretly established a side company, called Xtrachemical, whose purpose was to solicit Chinese-based investors to build a sodium cyanide plant in Canada – in direct competition with Chemours.
To accomplish this illicit goal, the defendant (1) misled his colleagues and fabricated assignments in order to accumulate vast amounts of pricing and other information, including obtaining passwords for spreadsheets; (2) used various personal email accounts to transfer confidential and trade secret information to himself and others; (3) used an encrypted Chinese-based messaging service to communicate with his co-conspirators; (4) asked for and received a tour of Chemours’ primary sodium cyanide manufacturing plant, during which he secretly took pictures of plant system diagrams and sent them to himself; (5) explained to one Chinese investor that he wanted to do this illicit project “for himself and not to slave away at this only to benefit someone else”; (6) accessed Chemours documents during a 2016 trip to China, and asked his co-conspirator how much their plant project would be worth, “Would you say in the millions?”; and (7) received a communication from a Chinese investor who indicated that it is common practice in China to steal the technology from others, design the layout, and get the plan stamped by a design institute.
The defendant is currently being detained until sentencing. The maximum punishment for conspiracy to commit theft of trade secrets, is ten years imprisonment and up to three years of supervised release. No date for the sentencing hearing has been scheduled.
“U.S. companies, like Chemours, invest millions of dollars to develop proprietary products and technologies. The theft of these trade secrets so that investors from other countries, like China, can gain an unfair advantage is unacceptable. We will use every tool at our disposal to identify and prosecute those responsible for these crimes. I want to thank the FBI and the Royal Canadian Mounted Police for their extraordinary work in this investigation,” said U.S. Attorney Weiss.
FBI Special Agent-in-Charge Johnson said, "The theft of trade secrets negatively impacts individual companies and our economy and for this reason, the FBI will continue to aggressively investigate these activities."
The case is being prosecuted by Assistant U.S. Attorneys Jamie M. McCall and Alexander Mackler. Trial Attorney Alex Kalim, from the Criminal Division’s Office of International Affairs, provided significant support in this matter.
Former Brooklyn Assemblywoman Pleads Guilty to Multiple Fraud Schemes and Witness TamperingRead the Press Release
Earlier today, in federal court in Brooklyn, former New York State Assemblywoman Pamela Harris pleaded guilty to two counts of wire fraud, one count of making false statements to the Federal Emergency Management Administration (FEMA), and one count of witness tampering. The proceeding was held before United States Magistrate Judge Robert M. Levy. Harris was arrested on January 9, 2018 and resigned from her position in the New York State Assembly on April 2, 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), announced the guilty plea.
“Elected by the people of her district to serve with honesty and integrity, Pamela Harris defrauded government programs out of tens of thousands of dollars, using the money for her personal benefit,” stated United States Attorney Donoghue. “Harris stole grant money allocated for underprivileged children and young adults and lied to obtain funds set aside for those displaced by Hurricane Sandy, committing these crimes both before and after she was elected to serve in the New York State Assembly. She then compounded her criminal conduct by pressuring witnesses to lie to the FBI. The defendant’s guilty plea today clearly demonstrates that elected officials are not above the law and will be held responsible for their crimes.” U.S. Attorney Donoghue thanked the FBI and DOI for their partnership and work on the case.
“Amid the widespread destruction caused by Hurricane Sandy, former New York State Assemblywoman Pamela Harris sought to devise a destructive scheme of her own,” stated FBI Assistant Director-in-Charge Sweeney. “As FEMA dedicated themselves to aid those affected by the storm, Harris saw this as the perfect opportunity to defraud this agency of tens of thousands of dollars. By defrauding an agency solely dedicated to the assistance of those in need, Harris showed no remorse for the many victims of this storm. Instead, she falsely victimized herself for mere personal gain. In an attempt to obstruct justice, Harris caused greater destruction by coercing individuals to lie to federal agents on her behalf. Despite her unjust acts against the community, Harris’s plea shows that justice will prevail in the end.”
“This former state assemblywoman, now convicted criminal, defrauded city and federal programs out of tens of thousands of dollars, including pocketing funds designated for victims of Hurricane Sandy’s wrath, many of whom were from her district and hit hard during the storm,” stated DOI Commissioner Peters. “She continued her corrupt schemes even as she sat in the state capitol, stealing public funds while she feigned to be in the service of her constituents. Elected officials who deceive the public, break the law and steal taxpayer funds will be brought to justice. DOI thanks the United States Attorney’s Office for the Eastern District of New York and the FBI for their partnership in working together to expose and prosecute these crimes.”
Between 2012 and 2014, Harris defrauded FEMA out of nearly $25,000 by falsely claiming that she had been forced out of her storm-damaged residence and into a temporary residence in Staten Island after Hurricane Sandy. To support her claim for Hurricane Sandy funds, she submitted to FEMA fake lease agreements that she had purportedly entered into with the landlord of the Staten Island residence, as well as bogus rent payment receipts. In reality, Harris continued to live at her Coney Island residence and pocketed the FEMA payments.
Between August 2014 and July 2015, Harris, who was at the time the Executive Director of a not-for-profit organization located in Brooklyn, defrauded the New York City Council of $22,800 in discretionary funding by falsely claiming that the not-for-profit would use the funds to rent a studio space. As part of her scheme, Harris submitted to the New York City Department of Youth and Community Development, the government entity responsible for administering and disbursing the City Council’s discretionary funds, a forged lease agreement. After the not-for-profit received the funding, Harris diverted the funds to her personal checking account and used the money to pay for personal expenses.
The following year, between approximately July 2015 and January 2017, when Harris was a sitting member of the New York State Assembly, she defrauded the NYC Council by claiming that funds for the not-for-profit would be spent on rental space. After the funds were disbursed to the not-for-profit, Harris diverted an additional $22,800 for her personal use.
During her guilty plea, Harris admitted that she pressured witnesses to lie to FBI agents conducting the Grand Jury investigation into her fraudulent schemes.
When sentenced, Harris faces a maximum sentence of 30 years’ imprisonment on the charge relating to making false statements to FEMA and a maximum sentence of 20 years’ imprisonment on each of the wire fraud and witness tampering counts.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Erik Paulsen and Robert Polemeni are in charge of the prosecution.
The Defendant:
PAMELA HARRIS
Age: 57
Brooklyn New YorkE.D.N.Y. Docket No. 18-CR-11 (JBW)
Florida Man Sentenced for ATM Skimmer FraudRead the Press Release
Gulfport, Miss. –Rodrigo D. Ferrareze, age 38, of Delray Beach, Florida, was sentenced today by United States District Judge Sul Ozerden to serve 10 months in federal prison, followed by 3 years of supervised release, and to pay $6,450.00 in restitution to a victim, for fraud in connection with access devices, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Custom Enforcement’s Homeland Security Investigations in New Orleans.
On December 7, 2017, Ferrareze and co-defendants Claudio Fontes Ferreira and Taise Braganca Moscon were stopped in a Lincoln Navigator with Florida tags after being at a Keesler Federal Credit Union Automated Teller Machine ("ATM") on Automall Parkway in D’Iberville, Mississippi. The ATM was found to have a skimmer on it and had been altered with the top flap privacy shield being cut off so a camera placed above could observe the ATM key pad where customers enter their account PIN numbers. A search of the Lincoln Navigator resulted in the finding of access device equipment, to include but not limited to, glue, black electrical and double-sided tape and box cutters, credit cards in alias names, a card with sand paper attached to the card, and other credit cards, gift cards, and a micro SD card.
Ferrareze, Ferreira, and Moscon pled guilty on February 20, 2018. Moscon was sentenced by Judge Ozerden on June 6, 2018, to serve 13 months in federal prison, followed by 3 years of supervised release, and to pay $6,450.00 in restitution to a victim. Ferreira is scheduled to be sentenced on September 7, 2018.
This case was investigated by Homeland Security Investigations and the D’Iberville Police Department. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Fired Menominee Tribal Police Officer Sentenced to 15 years in Prison for Attempted Sexual Exploitation of a Child on Menominee Indian ReservationRead the Press Release
United States Attorney Matthew D. Krueger announced that Basil L. O’Kimosh, Jr. (age: 40) of Keshena man was sentenced on June 11, 2018 to 180 months in prison and 8 years of supervised release after a conviction for Attempted Sexual Exploitation of a Child on the Menominee Indian Reservation. The sentence was the result of a guilty plea in March 2018 before Chief United States District Judge William C. Griesbach.
The investigation revealed that O’Kimosh, who at the time was a patrol officer for the Menominee Tribal Police Department, engaged in sexually explicit chat with a person he believed to be a 15-year old. Unbeknownst to O’Kimosh, he was actually chatting with an undercover detective with the Menominee Tribal Police Department. O’Kimosh requested sexually explicit images from the undercover detective, before sending a sexually explicit image of himself to the detective. O’Kimosh and the detective agreed to meet at a location in Keshena for purposes of engaging in sex acts. Therefore, O’Kimosh was arrested.
In sentencing O’Kimosh, Chief Judge Griesbach noted the serious nature of the offense, which he described as “an attack on someone’s innocence.” The court also noted that the many positives in O’Kimosh’s background actually made the offense worse, stating “there was no reason to engage in this behavior.”
The case was investigated by the Menominee Tribal Police Department, with assistance from the Wisconsin Department of Justice – Division of Criminal Investigation, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
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Findlay Market Vendor Charged with Food Stamp FraudRead the Press Release
DAYTON – A federal grand jury has charged the owner and manager of Busch’s Country Corner, Inc. with fraud charges related to the Supplemental Nutrition Assistance Program (SNAP) in a 42-count indictment returned here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture Office of Inspector General Investigations, Midwest Region, Yvonne DiCristoforo, Special Agent in Charge, U.S. Service and Michelle Thourot, Agent-in-Charge, Ohio Investigative Unit, announced the charges.
According to the indictment, from April 2010 until May 2018, Busch’s Country Corner co-owner Michael D. Busch and his brother, Randall S. Busch, illegally exchanged cash for SNAP benefits.
The indictment alleges the defendants caused more than 195,000 individual SNAP Electronic Benefit Transfer (EBT) transactions to be completed by Busch’s Country Corner, totaling more than $5.4 million. It is alleged that approximately 64 percent, or $3.4 million, of those SNAP transactions were fraudulent. Busch’s Country Corner operates as a vendor in the downtown Cincinnati Findlay Market complex.
The defendants allegedly used electronic point of sale devices in order to process EBT transactions for cash. For example, one transaction included a beginning EBT balance of $1,300 and an ending balance of $11.
The indictment includes one count of conspiracy to commit money laundering, one count of conspiracy to commit SNAP fraud, 20 counts of SNAP fraud and 20 counts of wire fraud.
U.S. Attorney Glassman commended the investigation of this case by the USDA OIG, U.S. Secret Service and Ohio Investigative Unit, and Assistant United States Attorney Dwight Keller, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Final gang member sentenced for violent extortion of Gwinnett County business ownersRead the Press Release
ATLANTA – Jong Sung (“John”) Kim has been sentenced to federal prison after being convicted by a jury on two counts of interfering with commerce by extortion. Kim served as a lieutenant for Eugene Chung, the former leader of a gang that specialized in the violent collection of debts from business owners in the Korean community in Gwinnett County. As a result of Kim’s conviction, immigration proceedings will commence against him to determine whether he will be removed from the country. Eugene Chung, Athith (“Andy”) Vorasith, Thomas Jungwon (“Tommy”) Lee, and Ye El (“David”) Choi were previously sentenced for their crimes.
“These gang members were professionals at extortion, maiming, injuring, and threatening to kill anyone who did not bend to their demands,” said U.S. Attorney Byung J. “BJay” Pak. “Legitimate business owners were paralyzed with fear at the thought of this gang visiting them. The community is much safer now that Kim and his fellow gang members are off the street.”
“The Korean community in Gwinnett County is safer now that these gang members are off the streets,” said J.C. Hacker, Acting Special Agent in Charge of FBI Atlanta. “It would not have been the case had brave community members not been willing to take a stand and work with federal agents and prosecutors in order to put a stop to the violence and terror they had sown in the community.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Members of Kim’s gang conspired with each other and others to extort money and property from legitimate business people, using threats, force, violence, and firearms in furtherance of their criminal enterprise. In about July 2009, Chung and his crew visited the Gah Bin Korean bar and restaurant in Gwinnett County, Georgia, and demanded a monthly share of the restaurant’s profits from the bar’s owner (referred to as “Victim # 1” in the indictments) in exchange for “protection.” Chung promised that, unless Victim #1 made the demanded payments, Chung and his crew would assault Victim #1, harass his customers and employees, and otherwise damage the restaurant. To reinforce their threats, Chung told Victim #1 that his crew routinely carried firearms and terrorized other Korean businesses in the community.
Over the next four months, Chung and his criminal associates strong-armed Victim #1 into making monthly protection payments, ranging from $400 to $800. On December 16, 2009, after Victim #1 missed making a monthly payment, Chung, Vorasith, and Kim showed up at Gah Bin, assaulted Victim #1 in one of the restaurant’s karaoke rooms, and demanded payment. Chung threatened to kill Victim #1 if he did not pay. Chung pulled out a semi-automatic pistol, pointed it at Victim #1, and threatened to pull the trigger. Vorasith punched Victim #1 in the face, breaking his nose and knocking him unconscious.
Shortly after the December 16th assault, the FBI opened an investigation, and Victim #1 resumed making protection payments under FBI surveillance, including two payments that were made to Kim for Chung. These payments were the basis of Kim’s counts of conviction.
On September 17, 2013, a federal grand jury in Atlanta returned a 13-count indictment charging Chung, Vorasith, Kim, Choi, and Lee with extortion, drug trafficking, and firearms offenses. After extensive pretrial litigation, each of the five defendants was convicted and sentenced as follows:
●Jong Sung (“John”) Kim, 53, of Suwanee, Georgia, was sentenced on June 12, 2018, to one year, six months in prison, to be followed by three years of supervised release, and 160 hours of community service. He was convicted by a jury on March 2, 2017, on two counts of interfering with commerce by extortion. Kim was acquitted on two other extortion counts, including a conspiracy count.
●Eugene Thomas Chung, 44, of Duluth, Georgia, was sentenced on May 19, 2017, to 10 years, six months in prison, to be followed by three years of supervised release. Chung was also ordered to pay restitution of $8,500 to Victim # 1. Chung pleaded guilty on February 4, 2016, via plea agreement, to two counts of interfering with commerce by extortion.
●Athith (“Andy”) Vorasith, 37, of Auburn, Georgia, was sentenced on July 11, 2016 to seven years, three months in prison, to be followed by three years of supervised release. Vorasith was also ordered to pay restitution of $8,500 to Victim # 1. He pleaded guilty on February 4, 2016, via plea agreement, to two counts of interfering with commerce by extortion.
●Thomas Jungwon (“Tommy”) Lee, 37, of Duluth, Georgia, was sentenced on May 16, 2017, to one year, 10 months in prison, followed by three years of supervised release. He pleaded guilty on February 16, 2017, via plea agreement, to one count of interfering with commerce by extortion.
●Ye El (“David”) Choi, 34, of Norcross, Georgia, was sentenced on June 16, 2017, to one year, three months in prison, to be followed by three years of supervised release. He pleaded guilty on February 13, 2015, via plea agreement, to one count of conspiracy to interfere with commerce by extortion.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney John S. Ghose, former Assistant U.S. Attorney Ryan Scott Ferber, and former Emory Law School Extern Joshua E. Orlan 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.
Final Defendant Sentenced for Armed Takeover of Malheur National Wildlife RefugeRead the Press Release
PORTLAND, Ore. – Blaine Cooper aka Stanley Blaine Hicks, 38, of Humboldt, Arizona, was sentenced today to time served in prison for his role in the 41-day armed occupation of the Malheur National Wildlife Refuge beginning in January 2016.
Cooper is the eighteenth and final defendant sentenced for crimes associated with the occupation. Eleven defendants pleaded guilty to felony conspiracy to impede officers of the U.S. Four other defendants were convicted of felonies by a federal jury in a trial ending in March 2017. Three additional defendants pleaded guilty to misdemeanor trespassing. Seven defendants, including occupation leaders Ammon and Ryan Bundy, were acquitted of all charges in a trial ending in November 2016.
“I firmly believe that our communities and state are stronger because of our shared experience responding to and litigating the armed occupation of the Malheur National Wildlife Refuge,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I want to sincerely thank the countless federal, state, local, and tribal law enforcement officials that played a role in bringing these eighteen defendants to justice. Our message is clear,” continued Williams, “taking up arms because you don’t like how things are done will never be accepted as a lawful way to protest here in Oregon or elsewhere.”
“The U.S. Constitution granted Americans both rights and responsibilities. With state, local and tribal partners, the FBI responded to this armed takeover by defending the rule of law and protecting the people of Harney County. We stand with Oregonians committed to finding peaceful solutions and will always work to protect our communities from violent conflict,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
Beginning on January 2, 2016, Ammon Bundy, Ryan Bundy, and several dozen followers, seized the Malheur National Wildlife Refuge near Burns, Oregon in Harney County. For forty-one days, the armed occupiers prevented federal officials from performing their official duties at the refuge by force, threats, and intimidation. The Bundys and several other occupiers, were arrested on January 26, 2016 on U.S. Highway 395 near Burns en route to a community meeting in John Day, Oregon. The occupation officially ended on February 11, 2016 when the last four occupiers turned themselves in to federal authorities.
Summary of sentences imposed:
Dylan Anderson, 37, of Provo, Utah, was sentenced to one year of probation and $1,000 restitution after pleading guilty to one count of misdemeanor trespassing.
Sandra Anderson, 50, of Riggins, Idaho, was sentenced to one year of probation and $1,000 restitution after pleading guilty to one count of misdemeanor trespassing.
Sean Anderson, 50, of Riggins, Idaho, was sentenced to one year of probation and $1,000 restitution after pleading guilty to one count of misdemeanor trespassing.
Jason Blomgren, 44, of North Carolina, was sentenced to two years’ probation and $3,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Brian Cavalier, 47, of Bunkerville, Nevada, was sentenced to time served in prison, two years’ supervised release, and $7,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Blaine Cooper, 38, of Humboldt, Arizona was sentenced to time served in prison and $7,000 restitution after pleading guilty to one count of conspiracy to impede officers of the U.S.
Travis Cox, 23, of Bend, Oregon, was sentenced to two years’ probation and $3,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Duane Ehmer, 47, of Irrigon, Oregon, was sentenced to one year and one day in prison, three years’ supervised release, and $10,000 restitution after being found guilty on one count of depredation of government property and one count each of misdemeanor trespassing and tampering with vehicles and equipment.
Eric Flores, 24, of Tulalip, Washington, was sentenced to two years’ probation with home detention after pleading guilty to one count of conspiracy to impede officers of the U.S.
Wesley Kjar, 34, of Manti, Utah, was sentenced to 250 hours of community service, two years’ probation, and $3,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Corey Lequieu, 47, of Fallon, Utah, was sentenced to 30 months in prison and three years’ supervised release after pleading guilty to one count of conspiracy to impede officers of the U.S.
Joseph O’Shaughnessy, 46, of Cottonwood, Arizona, was sentenced to time served in prison, two years’ supervised release, and $7,000 restitution after pleading guilty to one count of conspiracy to impede officers of the U.S.
Jason Patrick, 46, of Bonaire, Georgia, was sentenced to 21 months in prison, three years’ supervised release, and $10,000 restitution after being found guilty on one count of conspiracy to impede officers of the U.S. and one count each of misdemeanor trespassing, tampering with vehicles and equipment, and destruction and removal of property.
Ryan Payne, 34, of Anaconda, Montana, was sentenced to 37 months in prison, three years’ supervised release, and $10,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
John Ritzheimer, 34, of Peoria, Arizona, was sentenced to one year and one day in prison, one year in a residential reentry center, three years’ supervised release, and $10,000 restitution after pleading guilty to one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility.
Jake Ryan, 29, of Plains, Montana, was sentenced to 12 months in prison, three years’ supervised release, and $10,000 restitution after being found guilty on one count of depredation of government property and one count each of misdemeanor trespassing and tampering with vehicles and equipment.
Geoffrey Stanek, 28, of Lafayette, Oregon, was sentenced to two years’ probation after pleading guilty to one count of conspiracy to impede officers of the U.S.
Darryl Thorn, 33, of Monument, Oregon, was sentenced to 18 months in prison and $5,000 restitution after being found guilty of one count each of conspiracy to impede officers of the U.S. and possession of a firearm in a federal facility and one count each of misdemeanor trespassing, tampering with vehicles and equipment, and destruction and removal of property.
The case was investigated by the FBI and prosecuted by Geoffrey Barrow, Ethan Knight, and Craig Gabriel, Assistant U.S. Attorneys for the District of Oregon.
Federal Jury Finds Armed Career Criminal Guilty on Firearm ChargeRead the Press Release
Jacksonville, Florida – A federal jury has found Jemone Lawrence Walker (32, Jacksonville) guilty of being a felon in possession of a firearm. He faces a mandatory minimum penalty of 15 years, and up to life, in federal prison. Walker’s sentencing hearing is scheduled for September 20, 2018.
Walker was indicted on March 7, 2018.
According to testimony presented at trial, Walker was found to be in possession of a loaded revolver when the Jacksonville Sheriff’s Office responded to an armed domestic call at a Jacksonville home. As a previously convicted felon, Walker is prohibited from possessing a firearm under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorneys Ashley Washington and Jay Taylor.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Federal Judge Sentences Philadelphia Heroin Dealer to 8 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Philadelphia, Pa., has been sentenced in federal court in Johnstown to 96 months in prison and three years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kareem Jamal Jones, 28, of Philadelphia, Pa.
According to information presented to the court, from Aug. 25, 2016, through Sept. 14, 2016, Jones conspired with a co-defendant to distribute and possess with the intent to distribute less than 100 grams of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Jones.
Fairfield Man Sentenced to Prison for Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Brandon Anderson-Lacy, 30, of Fairfield, was sentenced today by U.S. District Judge John A. Mendez to three years and five months in prison for a tax refund fraud conspiracy, U.S. Attorney McGregor W. Scott announced.
“Today’s sentencing shows the seriousness of identity theft with the filing of false tax returns to the IRS,” said Cindy S. Chen, Acting Special Agent in Charge, IRS Criminal Investigation. “IRS-CI continues to investigate these types of tax crimes and purse the criminals who steal other people’s identity and file false tax returns to enrich themselves and undermine the U.S. tax system. We will continue to work with our law enforcement partners in combating these tax crimes.”
According to court documents, from February 2011 through March 2012, Anderson-Lacy and others participated in a conspiracy to submit false tax returns to the IRS by obtaining personal identifying information of others, and then submitting returns seeking refunds to which the people listed on the returns were not entitled. The false tax returns included fake Forms W-2 listing false employers, false income amounts, and false federal income tax withholdings, all of which was used to help generate a claimed refund. Many of the tax returns also included false information related to dependents and education expenses that were used to further increase the refunds requested. Anderson-Lacy and his co-conspirators requested that the refunds issue in a variety of ways, including by prepaid debit cards, direct deposit into bank accounts, and by treasury check. More than $319,000 in refunds were claimed in connection with the conspiracy.
This case was the product of an investigation by IRS Criminal Investigation with assistance from the Vacaville Police Department. Assistant U.S. Attorneys Christopher S. Hales and Miriam R. Hinman are prosecuting the case.
FBI Agent Sentenced for Falsifying Information When Applying for a PassportRead the Press Release
FBI Agent Sentenced for Falsifying Information When Applying for a Passport
El PASO, Texas — Rhonda Lynn Chesser Lindstrom, 41, formerly of El Paso, Texas was sentenced Thursday, June 7, 2018, by Senior U.S. District Judge David Briones to four years probation and a $1,000 fine, on each count of the indictment, said terms to run concurrent, and to home confinement for a period of six months, following a four-day trial in March 2018, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Chesser Lindstrom was found guilty on three counts of false statement in application for a passport. In sentencing, the Court found Chesser Lindstrom had willfully obstructed justice.
Because Chesser Lindstrom worked as a Special Agent in the El Paso FBI office, and presented cases to the Western District of Texas U.S. Attorney’s office, the Western District of Texas Assistant U.S. Attorneys were recused, and Northern District of Texas Assistant U.S. Attorney Paulina Jacobo was appointed as a Special Attorney to the Attorney General.
According to evidence presented at trial, on June 10, 2014, Chesser Lindstrom personally appeared at the United States Department of State, El Paso Passport Agency (EPPA), and submitted an Application for a U.S. Passport. As required by the application, Chesser Lindstrom provided as proof of citizenship a State of Louisiana Birth Certificate issued on August 22, 2011. The date of birth on the birth certificate was August 26, 1977. As proof of identity, Chesser Lindstrom provided a State of Maryland Driver’s License with a date of birth of August 26, 1977.
A Passport Specialist conducted a thorough and detailed review of Chesser Lindstrom’s Passport Application, and noticed that the birth certificate appeared to have been altered. Specifically, the birth certificate showed clear signs of handwritten alterations in three places, the birth number, birth date, and the file date. The birth certificate had erasures and numbers rewritten in the three places. Since it was obvious that the birth certificate was altered, the case was referred to the Fraud Prevention Manager (FPM).
On June 12, 2014, the Passport Application was further reviewed by the Fraud Prevention Office to verify all information submitted by Chesser Lindstrom. The results of the review indicated that Lindstrom’s correct date of birth was August 26, 1976; no record was found of a Rhonda Chesser born on August 26, 1977, as indicated on the birth certificate she provided to the EPPA.
The EPPA asked for additional information and Chesser Lindstrom provided additional false documents after enticing her older sister to participate in creating those documents.
The Department of Justice Office of Inspector General investigated the case, assisted by the U.S. Department of State, Diplomatic Security Service, Criminal Fraud Investigations, and the United States Department of State, El Paso Passport Agency Program Fraud Office investigated. Assistant U.S. Attorneys Paulina Jacobo and Chris Wolfe prosecuted.
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El Dorado Man Sentenced to 15 Years in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Charles “Marty” Permenter, age 56, of El Dorado, Arkansas was sentenced yesterday to 180 months in federal prison followed by three years of supervised release, on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, in February 2016, during an investigation into the methamphetamine distribution in Union County, Arkansas, the FBI and the FBI Task Force identified Permenter as a source of supply of methamphetamine. During the investigation, investigators were able to purchase methamphetamine from Permenter on multiple occasions, utilizing a confidential informant. Additionally, information provided by cooperating sources and independent law enforcement investigation showed that Permenter knowingly conspired with co-conspirators and others to distribute more than 1.5 kilograms of methamphetamine in Union County, Arkansas, and other locations within the Western District of Arkansas.
Permenter was indicted by a federal grand jury in August 2016 and pled guilty in March 2017.
This case was investigated by The FBI and the FBI Task Force. Assistant United States Attorneys Ben Wulff and Graham Jones prosecuted the case for the United States.
Día Mundial De Concienciación Sobre El Abuso A Personas De Edad AvanzadaRead the Press Release
SAN JUAN, PR – Luego del azote de los huracanes Irma y María en Puerto Rico, Fiscalía Federal y el Departamento de Justicia de Puerto Rico, junto con varias agencias federales y estatales y la empresa privada crearon el Elderly Task Force para poder proveer ayuda a la población de edad avanzada en hogares de ancianos. En esos momentos de gran necesidad se les proveyó agua, comida, pañales para adultos, toallas, artículos de higiene personal y de primeros auxilios, bebidas nutritivas, entre otras necesidades a 16,330 personas en 839 hogares. Esta semana se celebra el Día Mundial de Concienciación sobre el Abuso a los Ancianos y volvemos a unirnos para trabajar por esta comunidad.
La Asamblea General de las Naciones Unidas, en su resolución 66/127, designó el 15 de junio como: Día Mundial de Concienciación sobre el Abuso a los Ancianos. Tanto la Fiscalía Federal como el Departamento de Justicia aunamos esfuerzos para hacernos parte la iniciativa del Departamento de Justicia Federal: Justicia para los Ancianos. A esos efectos, tendremos mesas informativas y ofreceremos charlas educativas sobre temas como: explotación financiera, delitos cibernéticos, maltrato institucional, negligencia, entre otros, dirigidos a los adultos mayores, familiares y cuidadores. La actividad se llevará a cabo en Plaza Las Américas el 15 de junio, desde las 9:00am hasta las 2:00pm frente a la tienda Macy’s en el segundo piso.
Le agradecemos a las siguientes agencias federales y estatales que participarán de la actividad: Departamento de Salud Federal-Oficina del Inspector General, Servicio de Inmigración y Control de Aduanas-Oficina de Investigaciones de Seguridad Nacional (ICE-HSI, por sus siglas en inglés), FBI, Oficina del Procurador de Personas de Edad Avanzada, Departamento de Salud, y Empresas Fonalleda.
“Es nuestro deber proteger a esta comunidad,” dijo Rosa Emilia Rodríguez Vélez, Fiscal Federal para el Distrito de Puerto Rico. “Se lo debemos a quienes nos han dado tanto para garantizar su protección y dignidad en esta etapa de sus vidas. La Iniciativa del Departamento de Justicia Federal se ha comprometido a optimizar los esfuerzos estatales y locales para combatir el abuso, el abandono y la explotación financiera de los ancianos, por medio de capacitación, recursos e información”.
“El bienestar de las personas de la tercera edad es una de las prioridades del Gobernador Ricardo Rosselló Nevares y del Departamento de Justicia. La población continúa envejeciendo y, según la Organización de las Naciones Unidas, para el 2050, se espera que 2,000 millones de personas tengan 60 años. Esto es el doble de la cantidad actual. Merecen tener calidad de vida, con un trato sensible y justo. Repudiamos los malos tratos hacia nuestras personas de edad avanzada, y la negligencia hacia ellos, robarles o maltratarlos, tanto física como emocionalmente, son delitos que procesaremos con todo el rigor de la ley”, expresó Vázquez Garced.
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Davenport Man Sentenced to Prison for Conspiracy to Distribute MarijuanaRead the Press Release
DAVENPORT, Iowa - On June 11, 2018, Shawn Michael Manning, age 45, of Davenport, was sentenced by United States District Court Judge Stephanie M. Rose to 63 months in prison for conspiracy to manufacture marijuana announced United States Attorney Marc Krickbaum. Manning was ordered to serve four years of supervised release following his prison sentence and to pay $100 to the Crime Victims’ Fund.
On February 6, 2018, Manning pleaded guilty to the offense and admitted beginning on or about November 1, 2016, and continuing through December 26, 2016, he and other individuals reached an agreement to manufacture marijuana in a warehouse located in the 900 block of South Rolff Street in Davenport. The charge was the result of an investigation which began when Davenport Police received a tip that Manning and others were operating a marijuana grow operation at that warehouse location. On December 29, 2016, law enforcement executed a search warrant and discovered a portion of the warehouse had been walled off. Officers discovered in excess of 500 marijuana plants, marijuana derivative products and materials to assist in the manufacture and packaging for sale of the marijuana.
This matter was investigated by the Davenport Police Department and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Dark Web Vendor Pleads Guilty to Narcotics Trafficking and Money Laundering ChargesRead the Press Release
A French national who was serving at times as an administrator and senior moderator on one of the largest dark web criminal marketplaces pleaded guilty today to conspiracy to possess with the intent to distribute controlled substances and conspiracy to launder money.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA) Miami Field Office made the announcement.
Gal Vallerius, aka “Oxymonster,” 36, pleaded guilty before U.S. District Court Judge Robert N. Scola Jr. in the Southern District of Florida. According to the court record, including the agreed upon factual proffer, beginning in or around November 2013 a criminal online marketplace known as Dream Market began operating on the Tor “dark web” network. Dream Market was designed to promote and facilitate the anonymous sale of illegal items. In time, the Dream Market website became one of the largest dark web criminal marketplaces. All of the items and services on Dream Market were offered for sale in exchange for Bitcoin and other peer-to-peer crypto-currencies.
According to the agreed upon factual proffer, Vallerius first participated in the conspiracy by becoming a vendor on Dream Market. As a vendor, he sold Oxycodone and Ritalin under the moniker “Oxymonster.” Shortly thereafter, Dream Market employed the defendant who acted at times as an administrator and senior moderator. In these positions, he played a role supporting the daily illicit transactions between buyers and vendors on Dream Market, such as the trafficking in narcotics, and the laundering of illicit proceeds using virtual currencies, Dream Market’s tumblers and the dark web. Vallerius is scheduled to be sentenced by Judge Scola on Sept. 25 at 8:30 a.m.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies that, cooperatively, target the region’s drug trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy which sponsors a variety of initiatives focused on combatting the nation’s illicit drug trafficking threats.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state, and local law enforcement.
Mr. Greenberg commended the investigative efforts of the DEA Miami Field Office and Paris Country Office, FBI Miami, IRS Criminal Investigation Miami Field Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami and Atlanta Field Offices, U.S. Customs and Border Protection’s Field Operations Atlanta, U.S. Postal Inspection Service Miami Field Office, the Department of Justice’s Office of International Affairs, Europol, Special Operations Division (SOD), Finnish National Police, Finnish International Judicial Administration of the Ministry of Justice, Dutch National Police, French Ministry of Justice and the Direction Interregionale de la Police Judiciaire as well as the U.S. Attorney’s Office for the Northern District of Georgia. The case is being prosecuted by Assistant U.S. Attorneys Juan A. Gonzalez and Frank R. Maderal of the Southern District of Florida and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.