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Tuesday 1 May 2018
Two Oregon Men Plead Guilty to Firearms OffensesRead the Press Release
PORTLAND, Ore. – In separate criminal cases, two Oregon men pleaded guilty today in federal court to possessing a firearm in furtherance of a crime of violence or drug trafficking crime in violation of 18 U.S.C. § 924(c).
Jess L. Brockner, 32, pleaded guilty to one count each of possessing a firearm in furtherance of a crime of violence and bank robbery. Christopher J. Fleet, 23, of Portland, pleaded guilty to one count each of possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute heroin.
U.S. v. Brockner
According to court records, on August 30, 2017, three men burglarized a barn in Yamhill County, Oregon, stealing the victim’s vehicle and filling a rented moving truck with the victim’s belongings. Two of the suspects fled in the moving truck and a third in the victim’s vehicle. After Yamhill County Sheriff deputies arrested and interviewed the two suspects who fled in the moving truck, they identified Brockner as the third suspect. During a search of the moving truck, deputies located a backpack containing approximately $4,000, drug paraphernalia, and Brockner’s driver’s license.
Later the same morning, Brockner robbed a U.S. Bank branch in Beaverton, Oregon wearing a welding mask and holding a firearm. While executing the robbery, Brockner made numerous threats of physical violence and pointed a handgun at the victim teller. A witness observed Brockner walk through a parking lot adjacent to the bank and enter a vehicle matching the description of the vehicle stolen earlier that morning from the barn in Yamhill County.
Approximately two hours later, an FBI Task Force Officer with the Portland Police Bureau (PPB) observed a vehicle matching the description of the stolen vehicle on the 3900 block of SE Powell Boulevard in Portland. After confirming Brockner’s identity, multiple marked PPB patrol units responded to assist the Task Force Officer. A high risk traffic stop was attempted and led to a vehicle pursuit. The pursuit ended in a crash and an officer involved shooting at NE 55th Avenue between East Burnside Street and NE Couch Street in Portland. Brockner was arrested and transported to Legacy Emanuel Hospital to receive medical attention.
Brockner faces a maximum sentence of life in prison and is subject to a seven-year mandatory minimum, a $250,000 fine, and up to five years’ supervised release. He will be sentenced on Tuesday, August 14, 2018 before U.S. District Court Judge Michael W. Mosman.
This case is being prosecuted by Benjamin Tolkoff and John Brassell, Assistant U.S. Attorneys for the District of Oregon.
U.S. v. Fleet
On August 23, 2017, deputies from the Multnomah County Sheriff’s Office Special Investigation Unit were conducting surveillance at a known drug and gang house in Portland. They observed a vehicle parked in front of the house they believed was connected with Fleet, a drug dealer with an outstanding arrest warrant. Upon leaving the house and attempting to drive away, deputies blocked Fleet using unmarked vehicles and approached him wearing marked law enforcement raid vests. After initially refusing to comply with the deputy’s commands to raise his hands and failing to find an escape route, Fleet surrendered.
During the arrest, deputies found a Kel Tec 9mm firearm and distribution quantities of heroin and methamphetamine on Fleet’s person. They also found a locked backpack in Fleet’s vehicle. The backpack was later found to contain .40 caliber Sig Sauer pistol, drug records, and a digital scale.
Fleet faces a maximum sentence of life in prison and is subject to a five-year mandatory minimum, a $1,000,000 fine, and up to five years’ supervised release. He will be sentenced on Wednesday, September 5, 2018 before U.S. District Court Judge Anna J. Brown.
This case is being prosecuted by Leah K. Bolstad, Assistant U.S. Attorney for the District of Oregon.
Both 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.
Two Men Plead Guilty to Multimillion-Dollar Telemarketing Scheme Targeting Small Business OwnersRead the Press Release
LAS VEGAS, Nev. – Two Las Vegas men involved in a $14 million telemarketing fraud scheme targeting small business owners pleaded guilty in federal court today, announced U.S. Attorney Dayle Elieson for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Special Agent in Charge Tara Sullivan for the IRS Criminal Investigation.
Mark L. Bausch, aka Mark Eting, 43, and Alan W. Rodrigues, 59, both of Las Vegas, each pleaded guilty to one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of money laundering. United States District Judge Kent J. Dawson accepted their guilty pleas. Sentencing is set for August 14, 2018.
According to their individual plea agreements, from March 2009 to about October 2010, Bausch, Rodrigues, and their co-conspirators organized and operated four telemarketing companies: Small Business Funding Co., Inc., Company Funds, Inc., Foundation Research, Inc., and Silver State Holding Company. They charged a fee for their services and offered to help small business owners obtain grants from public and private entities.
In furtherance of the fraud scheme, they made false statements to victims to make it appear that they were likely to or guaranteed to receive a grant. They hired salespersons to market the services and to provide false information to the customers. In order to convince the customers that their service was legitimate, the defendants instructed their employees to conduct research about funding entities and send letters to customers and funders, knowing that many of the customers would not qualify for the grants. The defendants also solicited customers by conducting seminars throughout the United States. Throughout the entire scheme, the telemarketing companies received numerous complaints, and the defendants made false statements to them to prevent or delay them from contacting law enforcement. Bausch and Rodrigues used the proceeds from the scheme to enrich themselves and others and to pay the expenses necessary to continue operating the scheme.
The maximum statutory penalty is 20 years in prison and a $250,000 fine for each count of conspiracy to commit wire fraud and wire fraud, and the maximum penalty is 20 years in prison and a $500,000 fine for money laundering. As part of the plea agreement, each defendant has agreed to pay $13,966,329.30 in restitution to victims and to pay between $631,142 and $1,050,955 in a criminal forfeiture money judgment.
In December 2014, Bausch, Rodrigues, and co-defendants were indicted for their roles in the telemarketing fraud scheme. Several co-defendants have already pleaded guilty and have been sentenced for their role in the scheme, including Craig Rudolph was sentenced to 77 months in prison; Jonas Bowen was sentenced to 63 months in prison; Lee Panelli was sentenced to 41 months in prison; and David Bergstrom was sentenced to 51 months in prison.
The case was investigated by the FBI and IRS Criminal Investigation. Assistant U.S. Attorneys Daniel R. Schiess and Jared L. Grimmer prosecuted the case.
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Two Men Charged with Armed Robbery Spree Spanning Multiple Counties in Northern and Central New JerseyRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men have been charged with robbing six convenience stores at gunpoint in November and December 2017, U.S. Attorney Craig Carpenito announced.
Tione Davis, 35, of East Orange, New Jersey, and Meshach Whagar, 29, of Newark, are charged by complaint with one count of conspiring to commit Hobbs Act robberies, six substantive counts of Hobbs Act robbery, and one count of using a firearm during a crime of violence. Whagar appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained. Davis is expected to make his initial appearance tomorrow.
Both defendants were previously arrested in December 2017 and have been held in state custody on related charges since that time.
According to the documents filed in this case and statements made in court:
The FBI is investigating a string of approximately 20 armed robberies of convenience stores and gas stations that took place throughout New Jersey between November and December 2017. Davis and Whagar are charged with robbing six convenience stores during that time, including locations in Middlesex, Morris, Bergen, Union, Hudson, and Passaic Counties. During those robberies, Davis, while wearing dark clothing and hiding his face with masks or scarves, allegedly brandished a handgun and demanded money from store clerks. After stealing cash from the stores, Davis fled with Whagar, who acted as the getaway driver.
Before being apprehended, the defendants led law enforcement on a high-speed vehicle pursuit in Morris County. Among the items found in their vehicle were two handguns matching the description of those Davis used during the robberies.The Hobbs Act charges each carry a maximum potential penalty of 20 years in prison. The brandishing a firearm charge carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a potential $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked the Morris, Union, Middlesex, Hudson, Passaic, Bergen, and Essex County Prosecutor’s Offices, as well as the Morris Plains, Springfield, Middlesex, Lodi, Roselle Park, Rahway, Parsippany, Rockaway, Mahwah, Elmwood Park, Bayonne, West Orange, East Brunswick, South River, Edison, Hoboken, Union, Clark, Kearny, Clifton, and Maplewood police departments for their work on this case.
The government is represented by Assistant U.S. Attorneys Heather Suchorsky and Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense counsel:
Davis: Nabil Kassem Esq., Clifton, New Jersey
Whagar: Linda Foster Esq., Newark, New JerseyTwo Men Arrested for Possession of Fentanyl with Intent to DistributeRead the Press Release
TRENTON, N.J. – Two men who were arrested with approximately one kilogram of fentanyl made their initial appearances today in Trenton federal court, U.S. Attorney Craig Carpenito announced.
Arturo Galindo Gil, 36, and Gonzalo Ayona Avila, 41, are charged by complaint with one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl. Both men appeared before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and were detained without bail.
According to documents filed in this case and statements made in court:
During a law enforcement investigation of a drug trafficking organization operating in and around Ocean County, New Jersey, law enforcement officers learned that an individual, later identified as defendant Gil, was known to distribute large quantities of controlled substances, including fentanyl. On April 30, 2018, law enforcement officers learned that Gil was allegedly scheduled to be in Ocean County that day and in possession of a large quantity of fentanyl for distribution. Law enforcement officers identified Gil and another individual, later identified as Avila, driving around Little Egg Harbor Township, New Jersey. Law enforcement initiated surveillance of the vehicle and officers with the Little Egg Harbor Township Police Department eventually initiated a traffic stop of the vehicle. They requested consent to search the vehicle and Gil provided signed consent. Law enforcement officers discovered approximately one kilogram of a tightly packaged substance believed to be fentanyl in the back seat of the vehicle. Law enforcement field-tested a sample of the substance and it tested positive for fentanyl.
The fentanyl distribution conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10 million fine.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI), Cherry Hill office under the direction of Resident Agent in Charge Richard Reinhold, with the investigation leading to the arrests. He also thanked the Little Egg Harbor Township Police Department, under the direction of Chief Richard J. Buzby Jr.; and the Atlantic City Task Force (including the N.J. State Police, the Atlantic County Prosecutor’s Office, and the Atlantic City Police Department) for their assistance.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis, Attorney-in-Charge of the U.S. Attorney’s Office Trenton Branch.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Illegal Aliens indicted on reentry chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two Mexican nationals were indicted by a federal grand jury today on reentry of a removed alien charge, United States Attorney Bill Powell announced.
Filberto Reyes-Vazquez, age 49, was indicted on one count of “Reentry of a Removed Alien.” Reyes-Vazquez is accused of reentering the United States illegally after being removed in May 2016. Reyes-Vazquez was found in Harrison County in April 2018.
Juan Mendez-Patishtan, age 34, was indicted on one count of “Reentry of a Removed Alien.” Mendez-Patishtan is accused of reentering the United States illegally after being removed in six separate times from 2010 to 2016. Mendez-Patishtan was found in Harrison County in April 2018.
Each man faces up to two 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 Traci M. Cook is prosecuting the cases on behalf of the government. The Department of Homeland Security, Immigration and Customs Enforcement investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Plead Guilty to Their Roles in Series of Rochester Armed RobberiesRead 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 Jonathan Middlebrooks, 22, Nasir Perez, 20, and Deborah Siegel-Edelman, 21, all of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to aiding and abetting Hobbs Act Robbery. Middlebrooks and Perez pleaded guilty to five counts, Siegel-Edelman to four counts. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine. Defendants Middlebrooks and Perez also pleaded guilty to aiding and abetting the possession of a firearm that was discharged during a crime of violence, which is punishable by a mandatory minimum penalty of 10 years in prison and a maximum of life in prison.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that Middlebrooks, Perez and Siegel-Edelman took part in a series of gunpoint robberies at stores in the City of Rochester between September 3, 2017, and September 23, 2017:
• On September 3, 2017, during a gunpoint robbery of the Hudson Save More on Hudson Avenue, along with co-conspirators Damien Rutledge and Dylan Miller, Perez acted as a lookout at the front door and Middlebrooks removed approximately $1,420 from the store’s cash registers;
• On September 14, 2017, during a gunpoint robbery of the 18 Hour Store on North Goodman Street, Middlebrooks and Perez, along with co-defendants Miller and Rutledge, removed approximately $500 from the store’s cash register, while defendant Siegel-Edelman served as the getaway driver;
• On September 18, 2017, during a gunpoint robbery of the Four Star Market on Lake Avenue, Middlebrooks and Perez, along with co-defendants Miller and Rutledge, removed approximately $2,650 from the store’s cash register, while defendant Siegel-Edelman served as the getaway driver;
• On September 23, 2017, during a gunpoint robbery of the Bronx Market on Brown Street, Middlebrooks and Perez, along with co-defendants Miller and Rutledge, removed approximately $900 from the store’s cash register, while defendant Siegel-Edelman served as the getaway driver;
• Also on September 23, 2017, Siegel-Edelman drove Middlebrooks and Perez, along with co-defendants Miller and Rutledge, to the Greyhound Express Mini Mart on Carter Street. Middlebrooks, Perez, Miller, and Rutledge entered the store, a gun was pointed at the store owner, and after a struggle between the store owner and one the robbers, a store employee removed the robber’s gun from the robber’s hand. The store employee then pointed the gun at Middlebrooks, who put his hands up, but also moved forward towards the store employee. After Middlebrooks took several steps towards the employee, the employee fired the gun, and the discharged round hit Middlebrooks in the stomach. Middlebrooks, Perez, Miller and Rutledge got back into Siegel-Edelman’s car, and she drove them away from the scene of the attempted robbery.
Charges remain pending against defendants Dylan Miller and Damien Rutledge. The fact that a defendant has been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.Today’s pleas are the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons, and the Rochester Area Major Crimes Task Force and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Middlebrooks, Perez, and Siegel-Edelman are all scheduled to be sentenced on August 8, 2018, before Judge Wolford.
Three More Individuals with the Ute Mountain Ute Tribe Plead Guilty to Embezzlement and Money LaunderingRead the Press Release
DENVER - As part of an ongoing investigation, three more individuals pled guilty on April 30, 2018, to various charges involving funds embezzled from the Ute Mountain Ute Tribe, announced U.S. Attorney Bob Troyer, FBI Denver Field Office Special Agent in Charge Calvin A. Shivers, and IRS-Criminal Investigation Denver Field Office Special Agent in Charge Steven Osborne.
According to information contained in court documents, from at least 2011 through October 2015, Ute Mountain Ute (UMU) tribal members were entitled to receive utility benefits from the tribe to pay their utility expenses in annual amounts from $1,200 to $1,500. Bills or other documentation were required to be submitted along with the application to the tribe's Financial Services Department for processing and payment to the tribal members. Additionally during the same time period, UMU tribal members had family plan accounts established when the tribal members were children and from which the members could start spending the funds once they reached 18 years of age. The funds in the family plan accounts, with accrued interest, usually reached approximately $10,000 by the time a member reached 18 years old. These funds could be used to purchase things such as vehicles, home furnishings, and computers. As with the utility benefits, the tribal member was required to provide invoices or other documentation to UMU's Financial Services Department in order to request payment from the family plan account.
Beginning in at least 2011, certain employees of the tribe's Financial Services Department caused fraudulent tribal checks to be generated in the names of people selected by the employees. The people receiving the checks cashed the checks and usually shared the cash with the Financial Services Department employee who provided the check. Initially, these fraudulent checks were falsely attributed to the utility benefits or family plan accounts of tribal members who did not request or receive the fraudulent checks. Later, the fraudulent checks were generated without being attributed to any tribal member. Several of the people who received the fraudulent checks were not tribal members and were not entitled to any tribal benefits.
In other instances, the Financial Service Department employees caused embezzled tribal funds to be sent via Western Union to selected recipients who would in turn provide a portion of the money back to the employee who sent the wire. In some instances, embezzled tribal funds were wired to inmates with the Federal Bureau of Prisons who were not UMU tribal members and not entitled to any UMU tribal funds.
The three individuals who pled guilty before Magistrate Judge David L. West are:- Gloria Lee, aka Gloria Rouillard, aka Gloria Lopez - one count of embezzlement, conversion or misapplication of property from Indian tribal government receiving federal funds and one count of money laundering with restitution of $1,139,996;
- Colindra House - one count of receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution that will be determined in an amount of up to $52,401; and
- Freana Bancroft - one count of receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $109,820.
Embezzlement, conversion or misapplication of property from an Indian tribal government receiving federal funds carries a penalty of not more than 10 years imprisonment, three years of supervised release and a fine of up to $250,000. Money laundering carries a penalty of not more than 20 years imprisonment, three years of supervised release and a fine of up to $500,000. Receipt of funds belonging to an Indian tribal organization that has been converted or willfully misapplied carries a penalty of not more than five years of imprisonment, three years of supervised release, and a fine of not more than $250,000.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Pegeen D. Rhyne.####
Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNewsTax Preparer Indicted in Tax Refund SchemeRead the Press Release
MACON – Demetria Jones, aka “Picky”, 52, of Monroe, Georgia, was charged in an indictment with various tax offenses related to the filing of false income tax returns, aiding and assisting in the preparation of false income tax returns, theft of public money, and aggravated identity theft, announced U.S. Attorney Charles E. Peeler of the Middle District of Georgia and Thomas J. Holloman, III, Special Agent in Charge of the IRS Criminal Investigation – Atlanta Field Office.
The nine-count indictment, returned by a federal grand jury in Macon, charges Demetria Jones with two counts of filing false income tax returns; three counts of aiding and assisting in the preparation of false income tax returns; two counts of theft of public money and two counts of aggravated identity theft.
The indictment alleges that during the period under investigation, Demetria Jones owned and operated Jones & Jones Associates, LLC, a tax preparation business out of her home in Monroe, Georgia. The business name was later changed to Jones Accounting Firm, LLC. According to the indictment, Demetria Jones knowingly made and presented false income tax returns in the names of her purported entities for tax years 2008 through 2013 by filing false corporate income tax returns (Forms 1120), false amended corporate income tax returns (Form 1120X), false returns for real estate investment trust (Forms 1120-REIT), and claiming fraudulent refundable credits on Forms 2439 (Notice to Shareholder of Undistributed Long-Term Capital Gains) on the returns. With this alleged scheme, Demetria Jones claimed a total of $1,243,245 in false refundable credits resulting in refunds disbursed by the IRS totaling $598,399.88 and diverted all of the refunds into several bank accounts that she controlled.
In addition, the indictment further alleges that Demetria Jones also caused the filing of, or aided and assisted in the preparation/filing of, false 2011 through 2015 individual income tax returns (Forms 1040 and 1040X) by adding false Schedule Cs and/or W-2s with false wages along with false withholding amounts to clients’ income tax returns, primarily family members, without their knowledge. Demetria Jones allegedly used the identity of a deceased client to file a fraudulent individual income tax return without the knowledge of the deceased’s widow; she also allegedly used the identities of other clients without their knowledge. With this alleged scheme, Demetria Jones reported false wages totaling $2,542,410 along with false withholdings totaling $947,834 resulting in refunds disbursed by the IRS totaling $333,856.87, majority of which were diverted into several bank accounts controlled by Demetria Jones.
“This indictment signals enhancement of prosecutions alleging theft of taxpayer monies and identities in an effort to bilk the U.S. Treasury,” said Thomas J. Holloman, III, Special Agent in Charge, IRS-Criminal Investigation. “IRS-CI and its partnership with the U.S. Attorney’s Office stands committed to addressing unscrupulous return preparers who attempt to exploit their fiduciary responsibility when it comes to taxpayers and the Service.”
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, the counts for filing of false income tax returns as well as aiding and assisting in the preparation of false income tax returns each carry a maximum statutory sentence of 3 years in prison and a $100,000 fine; the counts for theft of public money each carry a maximum statutory sentence of 10 years in prison and a $250,000 fine; and the counts for aggravated identity theft each carry a mandatory sentence of 2 years in prison.
The investigation is being conducted by IRS-Criminal Investigation. Assistant U.S. Attorney Graham A. Thorpe is in charge of prosecution.
Second Ohio Man Pleads Guilty in Scheme to Pass Counterfeit $100 Bills at Western PA StoresRead the Press Release
PITTSBURGH – An Ohio resident pleaded guilty in federal court to a charge of conspiracy, United States Attorney Scott W. Brady announced today.
Joshua Kinney, 29, of Columbus, Ohio, pleaded guilty to one count before Chief United States District Court Joy Flowers Conti.
In connection with the guilty plea, the court was advised that it was a part of the conspiracy that Kinney and his co-conspirators obtained counterfeit Federal Reserve notes in the denomination of $100 dollars in Ohio and transported the counterfeit Federal Reserve notes into the Western District of Pennsylvania. It was further a part of the conspiracy that on numerous occasions Kinney and his co-conspirators passed, and attempted to pass, counterfeit $100 bills at various retail store locations in the Western District of Pennsylvania and received legitimate currency as change.
Chief Judge Conti scheduled sentencing for August 31, 2018 at 2:30 p.m. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Secret Service, the Scott Township Police Department, the North Fayette Police Department, and the Bethel Park Police Department conducted the investigation leading to the conviction in this case.
Rockville Man Sentenced to 10 Years in Prison for Distribution of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On April 30, 2018, United States District Judge Roger W. Titus sentenced Kevin Miller, age 59, of Rockville, Maryland today to ten years in prison, followed by a lifetime of supervised release, for distribution of child pornography. Judge Titus ordered that, upon his release from prison, Miller must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Sheriff Reggie Mason of the Worcester County Sheriff’s Department.
According to his plea agreement, on December 2, 2016, Individual A was arrested in Washington state and charged with child pornography offenses. During a preliminary forensic examination of Individual A’s electronic devices and media, law enforcement agents discovered three images on a USB drive that geo-located to Maryland. Two of the images geo-located to the residence of Miller in Rockville, Maryland.
One of the images depicted Victim 1 nude with her genital area exposed. Victim 1 had just turned ten years old when the picture was taken on April 9, 2016 .
On December 22, 2016, Victim 1 was interviewed by a trained child forensic interviewer. During the interview, Victim l disclosed that the two nude images of her described above were taken in the basement of Miller’s residence.
On the evening of December 22, 2016, HSI agents executed a search warrant at Miller’s residence and seized electronic devices, including a laptop. A forensic analysis revealed approximately 36 images of child pornography and child erotica that were still viewable. The forensic examiner also found remnants of additional files with names indicative of child pornography on both laptops, as well as remnants of a bit torrent peer-to-peer file sharing program on the laptop.
On February 24, 2017, Individual A was interviewed by law enforcement. During that interview, Individual A disclosed that Individual A and Miller met online. Individual A stated that Miller sent the two nude images of Victim 1 described above, as well as a third image of Victim 1 and Victim 2 clothed, to Individual A.
As part of a separate investigation, a Worcester County sheriff’s deputy downloaded multiple images and videos of child pornography that Miller made available for sharing through a bit torrent peer-to-peer file sharing program on at least seventeen separate occasions between October and December 2016. Overall, the Worcester County sheriff’s department downloaded at least 67 videos and 31 images of children engaged in sexually explicit conduct that Miller made available for sharing through a bit torrent peer-to-peer file sharing program.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
United States Attorney Robert K. Hur praised HSI Baltimore, HSI Blaine, Washington, and the Worcester County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Kristi O’Malley and Special Assistant U.S. Attorney Sarah Edwards, who prosecuted the case.
Rip Crew Member Sentenced to Federal PrisonRead the Press Release
McALLEN, Texas – The first defendant involved in a rip crew responsible for multiple home invasions and carjackings to steal narcotics in Hidalgo County has been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. Jorge Antonio Calvo-Ayala, 25, of Pharr pleaded guilty last year to conspiring to possess with the intent to distribute more than five kilograms of cocaine.
Today, U.S. District Judge Micaela Alvarez ordered Calvo-Ayala to serve 95 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, the court considered Calvo-Ayala’s role in a April 2017 home invasion in San Juan, in which members of the rip crew conducted a home invasion armed with firearms to steal more than seven kilograms of cocaine. Judge Alvarez stated that the members’ violent conduct will likely traumatize and haunt the eight-year-old child that was present during the home invasion.
Additional members of the rip crew are also responsible for a June 2015 carjacking in Mission, a February 2016 home invasion in Hidalgo, a July 2016 carjacking of an 18- wheeler in Edinburg, a November 2016 shoot-out involving an attempted carjacking in McAllen, a January 2017 carjacking in Palmview, a March 2017 carjacking in McAllen, an April 2017 home invasion in Mission, an April 2017 carjacking in Pharr, an April 2017 home invasion in San Juan, a June 2017 home invasion in McAllen, and a July 2017 home invasion in Mission. The members of the rip crew conducted each of the home invasions or carjackings in hopes of stealing controlled substances, primarily cocaine, from other individuals.
Those who have also pleaded guilty in the conspiracy and are pending sentencing include Danny Cano, 30, Antonio Javier Gomez aka “Little T,” 28, Marlyn Gonzalez, 39, and Arturo Vargas aka “Petu” or Cholo,” 35, all of Mission; Mexican nationals Miguel Marin Cerda aka “Tigre,” 30, Jose Garcia-De La Torre aka “Coco,” 22, Carlos Guadalupe Aquino-Pacheco aka “Tomy,” 20, Alfredo Avalos-Sanchez aka “Chore,” 26, Gustavo Angel DeLeon-Covarrubias aka “Tripa,” 19, and Jose Arturo Reyes-Sanche aka “Gordo,” 19; along with Juan Antonio Flores aka “Paisa,” 27, of Weslaco.
The FBI Safe Streets Task Force and Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol, Immigrations and Customs Enforcement’s Homeland Security Investigations, Hidalgo County Sheriff’s Office, Texas Department of Public Safety Regional Crime Lab and police departments in McAllen, Pharr, San Juan, Mission and Palmview. Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade prosecuted the case.
Retired Highway Patrol Trooper Convicted of Lying to FBI about GamblingRead the Press Release
WICHITA, KAN. – A retired highway patrol trooper was convicted today on a charge of lying to the FBI during an investigation into illegal gambling in Wichita, U.S. Attorney Stephan McAllister said.
Michael Frederiksen, 53, Derby, Kan., was convicted in a jury trial on one count of making false statements to FBI investigators. During trial, prosecutors presented evidence that in 2014, while Frederiksen was still a Kansas Highway Patrol Trooper, he was filmed taking part in an illegal cash poker game. On Feb. 23, 2017, he was interviewed by FBI agents investigating illegal gambling businesses in Wichita.
The FBI had a video of Frederiksen playing in an illegal cash poker game held Feb. 12, 2014, at 922 1/2 E. Douglas in the Old Town district of Wichita. The site was equipped with poker tables, a cabinet for valuables and poker chips, video surveillance equipment, liquor and snacks. Staff included dealers, someone serving food and a waitress serving drinks and giving massages to the players.
An undercover investigator was at the game posing as a gambler. At one point, the undercover officer tried to use his phone to take photos. The men running the game took him aside and told him he was making other players nervous. They allowed the undercover officer to continue playing, but moved the game to other locations after that night.
During an FBI interview, Frederiksen made false statements, downplaying his involvement in illegal poker and his relationship with the operator of the poker game.
Sentencing is set for July 30. He faces up to five years in federal prison and a fine up to $250,000. McAllister commended the FBI, the Wichita Police Department, the Internal Revenue Service and Assistant U.S. Attorneys Aaron Smith and Mona Furst for their work on the case.
Resident of Nashua Sentenced to Six Months in Prison for Obstructing U.S. Department of Labor Investigation and Civil LawsuitRead the Press Release
CONCORD - Kevin Corriveau, 43, of Nashua, New Hampshire, and the owner of Kevin Corriveau Painting, Inc., was sentenced to serve six months in prison and pay a $25,000 fine for obstruction of justice in connection with an investigation and litigation by the U.S. Department of Labor, United States Attorney Scott W. Murray announced.
According to court documents, from 2007 through April 2011, Corriveau directed the company’s painters and carpenters to report only non-overtime work on payroll records and employee timecards to avoid detection by government investigators of his intentional and ongoing failure to pay the overtime premium required by the federal Fair Labor Standards Act (FLSA).
Corriveau pled guilty to obstruction of justice on December 15, 2017. He admitted that he concealed the extent to which employees of the company worked overtime hours, in part, by causing an employee of the company to provide false information to the Department of Labor during investigations by the Department’s Wage and Hour Division in 2009 and 2011. In 2009 and 2011, Corriveau himself also provided false information to investigators about the extent of his employees’ overtime work. This included, in 2011, when Corriveau falsely told investigators that his employees did not work overtime on a construction project in Needham, Massachusetts, and provided false documents to investigators to support his assertion.
In 2013, in connection with a civil suit filed against him by the Department of Labor for alleged violations of the FLSA’s overtime wage requirements, Corriveau knowingly created and provided fraudulent invoices and an altered change order to Department’s attorneys that falsely stated that his employees did not work overtime on the Needham project.
After serving his prison sentence, Corriveau will be on supervised release for two years.
“Those who make false statements or create false documents undermine the integrity of our legal system,” said U.S. Attorney Murray. “The defendant’s actions here were unacceptable. Employers should be on notice that they face potential criminal penalties if they do not comply with their legal obligations under the FLSA.”
"The Labor Department’s agencies stand ready to refer to the U.S. Attorney’s offices cases in which employers lie to investigators and fabricate records as part of a scheme to cover up their violations,” said Michael Felsen, Regional Solicitor of Labor in Boston. “We greatly appreciate the New Hampshire U.S. Attorney’s Office’s efforts to bring to justice such an individual in this matter.”
“This prosecution, conviction, and sentence send a message to all employers that knowingly providing false information or falsified documents to the Department of Labor can put their individual liberty at risk,” stated Northern New England District Director Daniel Cronin.
“Kevin Corriveau solicited his employees to make false statements to investigators during a Wage & Hour Division investigation which uncovered over $200,000 in unpaid wages. The Office of Inspector General will continue to investigate those who obstruct the Department’s efforts to ensure the integrity of its programs,” said Peter Nozka, Acting Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General.
This is believed to be the first federal criminal prosecution arising from a Labor Department wage and hour investigation in New Hampshire. The U.S. Department of Labor’s Office of the Inspector General investigated the criminal case with assistance from the Department’s Employee Benefits Security Administration. It was prosecuted by Assistant U.S. Attorney Robert M. Kinsella and Special Assistant U.S. Attorney Scott Miller, who is a Senior Trial Attorney at the Labor Department’s Office of the Solicitor in Boston, Massachusetts.
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Randolph County man sentenced for unlawful possession of a firearmRead the Press Release
ELKINS, WEST VIRGINIA – Eric Joseph Wilson, Jr., of Coalton, West Virginia, was sentenced today to 15 months incarceration for illegally possessing a firearm, United States Attorney Bill Powell announced.
Wilson, age 31, admitted to illegally possessing a .32 caliber revolver in May 2016. He pled guilty to “Unlawful Possession of Firearm by Drug Addict” in January 2017.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Poplar Bluff and Illinois Men Found GuiltyRead the Press Release
The United States Attorney's Office announced that Demarlon Richardson, of Poplar Bluff, Missouri, and Germonde Brunner, Arlandus Howard, Norlando Jackson and Antywan Seawood, of East St. Louis, Illinois, were found guilty of the burglary of a federally licensed firearms dealer known as Instapawn, which is located near Poplar Bluff, Missouri. That burglary occurred on February 28, 2017, when the five men stole over 60 firearms. Howard was found guilty by a jury and the other four men entered guilty pleas. The maximum term of imprisonment for this crime is ten years.
Brunner, Howard, Jackson and Seawood were also found guilty of committing Carjacking and Possession of a Firearm in Furtherance of a Crime of Violence for a carjacking crime that occurred in Clayton, Missouri, on February 27, 2017. The men used the stolen car during the commission of the firearms theft. The maximum term of imprisonment for the crime of Carjacking is fifteen years. The maximum term of imprisonment for Possession of a Firearm in Furtherance of a Crime of Violence is life, with a minimum sentence of seven years imprisonment. The case is before United States District Judge Stephen N. Limbaugh, Jr.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Butler County Sheriff’s Office; the Poplar Bluff Police Department; the Clayton, Missouri Police Department and the St. Louis Metropolitan Police Department. Assistant United States Attorney Keith D. Sorrell is handling the prosecution for the Government.
Pittsburgh Felon Sentenced to Prison for Violating his Supervised Release ConditionsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 18 months in prison on his conviction of violating supervised release conditions, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Kenneth K. Gaines.
According to information presented to the court, Gaines had previously been sentenced to 46 months’ imprisonment by Judge Schwab and began his supervised release on January 25, 2018. Gaines was arrested by Pittsburgh Police on April 4, 2018, and those charges are pending against him. He admitted to the following supervised release violations: he frequented a place where controlled substances were illegal, sold, used and distributed; he failed to acquire a lawful occupation; he associated without permission with persons convicted of felonies; he possessed a controlled substance, namely marijuana and ecstasy, as demonstrated by positive urine tests; and he failed to participate in a mental health assessment or treatment program.
Prior to imposing sentence, Judge Schwab stated that it is imperative for Mr. Gaines to cooperate with authorities and to take full responsibility for his own actions.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Probation Office for the successful prosecution of Kenneth K. Gaines.
Pittsburgh Felon Admits Illegally Possessing a FirearmRead the Press Release
PITTSBURGH –A local felon pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Julian Patton, age 26, of Pittsburgh, Pennsylvania, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on February 2, 2017, Patton, convicted felon, was in possession of a firearm. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm.
Judge Hornak scheduled sentencing for August 27, 2018, at 10:30 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Patton.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Pinon Man Sentenced to Six Years’ Prison for Assaulting Navajo Nation Police OfficerRead the Press Release
PHOENIX – Yesterday, Lambert Ten Hosteen, 30, of Pinon, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 6 years’ imprisonment. Hosteen had previously pleaded guilty to assault on a federal officer with a dangerous weapon.
On May 17, 2017, officers of the Navajo Nation Police Department were contacted with reports that Hosteen was firing a shotgun and fighting with another person in the area of Pinon, Ariz. When officers arrived, Hosteen pointed the loaded weapon at them and threatened several times to shoot them. In response, one officer fired at Hosteen, striking him in the hand. After Hosteen was taken into custody, officers discovered that the shotgun was a homemade destructive device, which is illegal to possess under the National Firearms Act. Hosteen and the officers are all members of the Navajo Nation, and the offense occurred on the Navajo Nation Indian Reservation.
The investigation was conducted by agents of both the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The prosecution was handled by Assistant U.S. Attorney William G. Voit, District of Arizona, Phoenix.
CASE NUMBER: CR 17-08195-GMS
RELEASE NUMBER: 2018-053_ Hosteen
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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.
Pennsylvania Painting Company Owner Admits Filing a False Tax ReturnRead the Press Release
PITTSBURGH – A Pennsylvania businessman pleaded guilty in federal court to a charge of filing a false tax return, United States Attorney Scott W. Brady announced today.
Daniel Spatara waived indictment and pleaded guilty to one count before United States District Court Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Spatara filed a false 1040 income tax return for 2012. In his 2012 return, the defendant falsely stated that he had business income of $57,612, on line 12, whereas, as he then and there knew, he had substantial additional business income. In addition to the 2012 false tax return charged in the Information, the defendant also filed false tax returns for 2010 and 2011.
Daniel Spatara owned a painting business located in Grove City, Pennsylvania. He reported his business activities on Schedule C attached to his individual tax returns for years 2010, 2011 and 2012. During these years, the defendant under reported $144,350.00 of business receipts. Daniel Spatara’s failure to report these receipts resulted in a tax loss of $40,681 for 2010, 2011 and 2012.
Judge Fischer scheduled sentencing for September 11, 2018 at 11 a.m. The law provides for a maximum total sentence of 3 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Internal Revenue Service, Criminal Investigation, conducted the investigation leading to the conviction in this case.
Owner of Welding School Sentenced for $1.4 Million GI Bill FraudRead the Press Release
NEWPORT NEWS, Va. – The owner of a sham welding school in Newport News was sentenced today to 40 months in prison for his role in a conspiracy to defraud the Department of Veterans Affairs (VA) of $1.4 million and filing false tax returns.
According to court documents, Dr. Wilbert J. McNair, Jr., 54, of Chesapeake, was an owner of the Hampton Roads Skills Center (HRSC), located in Newport News. The HRSC purported to be a welding training facility that was approved by the VA to provide education and training to military veterans, including veterans who received tuition assistance under the Post-9/11 GI Bill and other VA educational assistance programs. The HRSC also contracted with two other federally-funded agencies to provide welding training to students receiving tuition assistance from those entities. McNair represented that HRSC provided full-time schooling to nearly 100 veteran students beginning in March 2013. Most veterans enrolled in HRSC received few, if any, hours of instruction, and the majority of students did not take a final exam or attend lecture or practical, hands-on coursework. Indeed, most students were not even physically present at HRSC during the hours their courses were purportedly held, and some students never once entered the building during any point during the period of their enrollment. Nonetheless, McNair reported to the VA that the veteran students were enrolled in and attending the school, such that HRSC received tuition payments for each veteran from the VA. Based on McNair’s provision of false information to the VA, HRSC received over $1.4 million in VA tuition payments between March 2013 and June 2017.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, Office of Inspector General; Kim Lampkins, U.S. Department of Veterans Affairs, Office of Inspector General, Special Agent in Charge, Mid Atlantic Field Office; and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys V. Kathleen Dougherty and Kaitlin C. Gratton are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-107.
Orange County Electronics Distributor Charged with Selling Counterfeit Integrated Circuits with Military and Commercial UsesRead the Press Release
LOS ANGELES – The owner of PRB Logics Corporation, an Orange County-based seller of electronic components, was arrested this morning on federal charges alleging he sold counterfeit integrated circuits, some of which could have been used in military applications.
Rogelio Vasquez is charged in a 30-count indictment that alleges he acquired old, used and/or discarded integrated circuits from Chinese suppliers that had been repainted and remarked with counterfeit logos. The devices were further remarked with altered date codes, lot codes or countries of origin to deceive customers and end users into thinking the integrated circuits were new, according to the indictment. Vasquez then sold the counterfeit electronics as new parts made by manufacturers such as Xilinx, Analog Devices and Intel.
Vasquez, who is also known as “James Harrison,” 43, a resident of Orange, was arrested without incident at his residence this morning by federal authorities. Vasquez is expected to be arraigned on the indictment this afternoon in United States District Court in Santa Ana.
The indictment charges Vasquez with nine counts of wire fraud, 20 counts of trafficking in counterfeit goods, and one count of trafficking in counterfeit military goods. The charge related to counterfeit military goods alleges that Vasquez sold eight integrated circuits that appeared to be manufactured by Xilinx, knowing that such goods were counterfeit military goods, “the use, malfunction, and failure of which were likely to cause serious bodily injury and death, the disclosure of classified information, impairment of combat operations, and other significant harm to a combat operation, a member of the Armed Forces, and to national security.”
The wire fraud charges allege that Vasquez instructed his Chinese suppliers to remark ICs and also instructed a testing laboratory in China to provide two versions of its report – one of which accurately showed integrated circuit test results and the second of which was a “sanitized version” that did not contain results of “any visual inspection and permanency or other marking tests, which would have revealed that the ICs were used, remarked and/or in poor condition.”
A federal grand jury returned the indictment on April 27. Federal prosecutors on April 23 filed an asset forfeiture complaint against $97,362 in cash seized from Vasquez’s residence in 2016. The asset forfeiture complaint outlines the investigation into counterfeit integrated circuits and notes, “The sale of counterfeit [integrated circuits] into the stream of commerce is a significant problem for the U.S. military, due to the increased risk of equipment failure from using salvaged, sub-standard, or wrong components.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charges of wire fraud and trafficking in counterfeit military goods each carry a statutory maximum sentence of 20 years in federal prison. Each count of trafficking of counterfeit goods carries a maximum possible penalty of 10 years in prison.
The investigation into Vasquez and PRB Logics is being conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Defense Criminal Investigative Service; and the National Reconnaissance Office, Office of Inspector General.
The criminal case is being prosecuted by Assistant United States Attorney Lisa E. Feldman of the Cyber & Intellectual Property Crimes Section. The complaint seeking the forfeiture of the seized funds was filed by Assistant United States Attorney Steven R. Welk, Chief of the Asset Forfeiture Section.
Ohio Man Evaded Income TaxesRead the Press Release
PITTSBURGH, PA – An Ohio resident pleaded guilty in federal court to a charge of tax evasion, United States Attorney Scott W. Brady announced today.
Douglas A. Hagy pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, according to information presented to the Court, Hagy received approximately $982,000 in income between 2012 and 2016, which he failed to disclose on federal income tax returns.
Judge Fischer scheduled sentencing for September 11, 2018. The law provides for a total sentence of 5 years in prison, a fine of $250,000, 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.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations conducted the investigation that led to the prosecution of Douglas A. Hagy.
Nurses Sentenced to Prison for Stealing Opioids from Colorado HospitalsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that two Colorado nurses who stole opioids from hospitals were sentenced to prison by the Honorable R. Brooke Jackson of the United States District Court for the District of Colorado.
Lisa Marie Jones, 43, of Castle Rock, was sentenced to fourteen months imprisonment to be followed by three years of supervised release on April 19, 2018. According to Court documents, Jones was a nurse at the Veterans Affairs Medical Center in Denver, and a free-standing UCHealth emergency room in 2016, when she stole hydromorphone, morphine, and fentanyl from the facilities for personal use. Jones primarily stole the “waste” medication left after administering the controlled substances to patients. She tampered with two vials of fentanyl at the emergency facility, removing all of the drug, replacing it with saline, and “re-sealing” the vials with skin glue. Jones placed the tampered vials back into the automated medication management machine for potential use on future patients. The tampered vials were discovered before they could be used on any patients. Jones previously pleaded guilty to one count of theft of a controlled substance by deception and one count of tampering with a consumer product. The Court sentenced Jones to fourteen months of imprisonment and three years of supervised release on each count, to run concurrently.
Marlene Gilmore, 28, of Wellington, was sentenced to four months imprisonment to be followed by one year of supervised release on April 26, 2018. According to Court documents, Gilmore was a nurse at North Colorado Medical Center in 2016 when she stole fentanyl, morphine, and hydromorphone from the locked automated medication management system. Gilmore pleaded guilty to one count of theft of a controlled substance by deception. Evidence showed that she used drugs while on the job.
“These nurses put their patients at risk so they could get high. For that they will go to prison,” said U.S. Attorney Bob Troyer. “Patients place enormous trust in their health care providers. Caregivers who betray that trust will pay with their own freedom.”
“Patients deserve to have confidence that they are receiving the proper treatment from those entrusted with providing their medical care,” said Spence E. Morrison, Special Agent in Charge, FDA Office of Criminal Investigations, Kansas City Field Office. “We will continue to pursue and bring to justice any healthcare professionals who put their patients’ health at risk by tampering with their pain medications.”
Gregg Hirstein, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, Central Field Office added, “The VA OIG remains dedicated to protecting our nation's heroes in the patient care environment. The seriousness of tampering with medications and drug use by healthcare providers is evident. We will continue to hold such offenders accountable.”
The cases were investigated by the Food and Drug Administration. The Department of Veterans Affairs, Office of the Inspector General also investigated the Jones case. AUSA Anna Edgar represented the United States. The cases are captioned, United States v. Jones, Case No. 17-cr-00352-RBJ, and United States v. Gilmore, Case No. 17-cr-00401-RBJ.
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Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNewsNew Jersey Man Sentenced to Eight Years in Prison for Conspiracy to Provide Material Support to ISISRead the Press Release
Samuel Rahamin Topaz, 24, of Fort Lee, New Jersey, was sentenced today to eight years in prison, to be followed by a lifetime of supervised release, for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
The announcement was made by Assistant Attorney General for the National Security John C. Demers, U.S. Attorney Craig Carpenito for the District of New Jersey and Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark, New Jersey Division. Saadeh previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring with others to provide services and personnel to ISIS. Judge Wigenton imposed the sentence today in federal court.
According to documents filed in this and related cases, and statements made in court:
Topaz admitted that prior to his arrest by the FBI Joint Terrorism Task Force on June 17, 2015, he planned to travel overseas to join ISIS and saved money for that purpose. Topaz discussed plans to join ISIS with Nader Saadeh, Alaa Saadeh and Munther Omar Saleh, and he admitted that at various times each of them indicated they wanted to join ISIS. Topaz also admitted that he and the other defendants watched ISIS-related videos, some of which depicted the execution of non-Muslims and individuals regarded as apostates from Islam.
On May 5, 2015, Nader Saadeh departed the United States with plans to travel overseas for the purpose of joining ISIS as part of the conspiracy. Topaz admitted that he and others planned to travel overseas separately, meet up with Nader Saadeh, and then travel together to join ISIS. After Nader Saadeh left the United States, Topaz met with Munther Omar Saleh and contacted Alaa Saadeh to discuss those plans.
Topaz admitted knowing that ISIS was a designated foreign terrorist organization, which he knew to be taking over territory overseas, expelling non-Muslims from their homes, and executing individuals who did not obey ISIS’ commands.
Nader and Alaa Saadeh both pleaded guilty to conspiring to provide material support to ISIS. Alaa Saadeh was sentenced to 15 years in prison on May 10, 2016. Nader Saadeh was sentenced to 10 years in prison on April 30. Saleh and Mumuni both pleaded guilty to related charges brought by the U.S. Attorney’s Office for the Eastern District of New York. Saleh was sentenced to 18 years in prison on Feb. 6. Mumuni was sentenced to 17 years in prison on April 26.
Assistant Attorney General Demers and U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, and the Newark Joint Terrorism Task Force with the investigation. The JTTF is comprised of agents and officers from the U.S. Department of Homeland Security’s Homeland Security Investigations, Bergen County Prosecutor’s Office, Passaic County Prosecutor’s Office, New Jersey State Police, Paterson Police Department, and NYPD, among other federal, state, and local law enforcement agencies.
This case is being prosecuted by Assistant U.S. Attorneys Dennis C. Carletta and Francisco J. Navarro of the District of New Jersey, with assistance from Trial Attorneys Justin Sher and Robert Sander of the National Security Division’s Counterterrorism Section.
Muskegon Man Sentenced to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Eric Matthew Will, 35, of Muskegon, Michigan was sentenced to 30 years in federal prison for producing child pornography, U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Paul L. Maloney imposed a 20-year term of supervised release that will commence once Will is released from imprisonment. Will will also be required to register as a sexual offender.
Will pled guilty on January 2, 2018. He admitted that he had created pornographic images and videos of a 14-year-old child and then sent them to others via the Internet. One of the people to whom Will sent child pornography was an undercover officer, and Will was arrested days after he did so.
In its sentencing memorandum, the U.S. Attorney’s Office argued in favor of the thirty-year sentence and pointed out that Will had sexually abused and exploited the victim for years. In addition, Will had tried to sell his collection of child pornography to the undercover officer for $1,000. "Crimes involving the sexual exploitation of children are among the most serious offenses there are," and the victim in this case "was particularly vulnerable." At sentencing, the United States emphasized the need to protect the community and punish Will, and it argued that a 30-year sentence was necessary and appropriate to achieve the goals of sentencing. Judge Maloney agreed, noting that Will’s case was the worst case he had seen in 20 years on the bench.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Department of Homeland Security, Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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Mosby Court Drug Dealer Sentenced to Five Years in PrisonRead the Press Release
RICHMOND, Va. – A previously convicted felon was sentenced today to five years in prison for his possession of a 9mm semi-automatic pistol and over a kilogram of marijuana in an apartment near the Mosby Court public housing community.
According to court documents, Timothy Carrington, 57, of Richmond, was arrested on Oct. 18, 2017, after Richmond police officers responded to Carrington’s apartment located in the 1300 block of Coalter Street based on a drug distribution complaint. After a brief discussion with the officers, Carrington admitted to possessing a small amount of marijuana on his person. Carrington was placed under arrest and the officers obtained a search warrant for his apartment. The following day, officers executed the search warrant and discovered 1.1 kilograms of marijuana, a 9mm semi-automatic pistol, $165,052 in cash, multiple vacuum sealers, digital scales, and drug packaging materials.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-153.
Mexican man admits to drug trafficking chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Rogelio Martinez-Rojas, of Mexico, has admitted to cocaine distribution, United States Attorney Bill Powell announced.
Martinez-Rojas, who had been living in Martinsburg, age 34, pled guilty to one count of “Possession with Intent to Distribute Cocaine.” Martinez-Rojas admitted to distributing cocaine in October 2017 in Berkeley County.
Martinez-Rojas faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Shawn M. Adkins and Lara K. Omps-Botteicher are prosecuting the cases on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the Potomac Highlands Drug & Violent Crimes Task Force, the Northwest Virginia Regional Drug & Gang Task Force , the West Virginia State Police, the Virginia State Police, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated. Other agencies assisting in the investigation are the Winchester City Police Department; and Frederick County, Virginia Sheriff’s Office; Pittsylvania County; Virginia Sheriff’s Office; and the Henry County, Virginia, Sheriff’s Office.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Mexican National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that RAMIRO MARTINEZ-RAMIREZ, age 42, a native of Mexico, pleaded guilty to a one-count indictment for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
At sentencing, which is set for June 15, 2018, MARTINEZ-RAMIREZ faces a maximum term of imprisonment of ten years, a fine of up to $250,000.00, and a mandatory special assessment of $100.00. Additionally, MARTINEZ-RAMIREZ is subject to a period of supervised release after imprisonment of up to three years.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement – Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Chandra Menon is in charge of the prosecution.
Mescalero Apache Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Timothy Gregg Enjady, 54, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty today in federal court in Las Cruces, N.M., to an assault charge. Enjady’s plea agreement recommends an 18-month term of imprisonment followed by a term of supervised release to be determined by the court.
The BIA arrested Enjady in Aug. 2017, on a criminal complaint charging him with assaulting a Mescalero Apache woman on June 7, 2017, on the Mescalero Apache Indian Reservation in Otero County, N.M. According to the complaint, Enjady assaulted the woman by hitting her in the face with his fist, hitting her with an object and placing his thumb in her eye.
Enjady was subsequently indicted on Jan. 17, 2018, and charged with assault with a dangerous weapon, an aluminum crutch, with intent to do bodily harm.
During today’s proceedings, Enjady pled guilty to the indictment and admitted that on June 7, 2017, he assaulted the victim by striking her in the face and head with an aluminum crutch. Enjady further admitted that the victim suffered facial contusions, head lacerations and a corneal abrasion as the result of the assault. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Mercer County, New Jersey, Man Sentenced to 21 Months in Prison for Tax EvasionRead the Press Release
NEWARK, N.J. – A Princeton Junction, New Jersey, man was sentenced today to 21 months in prison for failing to report over $1.5 million in income he fraudulently diverted to overseas shell companies, U.S. Attorney Craig Carpenito announced.
Albert Chang, 71, previously pleaded guilty before U.S. District Court Judge William H. Walls to an information charging him with one count of conspiring to evade income taxes and one substantive count of tax evasion. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Chang and Michael Q. Fu, 54, of Cranbury Township, New Jersey, co-owned and operated United Products and Instruments Inc. (UNICO) located in Dayton, New Jersey. UNICO was established by Chang and Fu in 1991 and primarily engaged in the sale and export of microscopes and centrifuges for medical purposes.As part of the conspiracy, Chang and Fu created two shell companies headquartered in China – Action Towers and Bench Top Laboratories. Chang and Fu then diverted business income to themselves by funneling money to the shell companies’ bank accounts and deducting the diverted funds from UNICO’s corporate tax return as the cost of goods sold or commission.
In addition, Chang and Fu had Shanghai Electric, a Hong Kong-based utility company, overbill UNICO by approximately five percent on legitimate invoices. Once the invoices were paid by UNICO, they directed Shanghai Electric to wire transfer the overbilled amount to their accounts in China, which they used for their personal benefit. Chang and Fu failed to report any of that income on their federal income tax returns.
In total, Change failed to report $1,559,200, resulting in a tax loss of $237,064. Fu failed to report $1,570,000, resulting in a tax loss of $321,141.
In addition to the prison term, Judge Walls sentenced Chang to three years of supervised release. Restitution will be determined at a later date.
Fu previously pleaded guilty to his role in the conspiracy and was sentenced to 37 months in prison on Jan. 24, 2017.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael; and officers of the Springfield Police Department, under the direction of Chief John Cook, with the investigation.
The government is represented by Senior Litigation Counsel Margaret Ann Mahoney of U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Robert Weir Esq., Red Bank, New Jersey
Memphis Man Sentenced to 10 Years Imprisonment for Distribution of FentanylRead the Press Release
Memphis, TN – Mark Nunnally, 51, of Memphis has been sentenced to 120 months in federal prison for distribution of fentanyl. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on May 18, 2017, members of the Shelby County Sheriff’s Office executed a search warrant at the defendant’s residence after receiving information about narcotics being sold from this location. A search revealed 519.95 grams of fentanyl, a Lorcin .380 caliber handgun, and $14,629 in cash.
A federal grand jury returned a two-count indictment against Nunnally in September of last year, charging possession with intent to distribute fentanyl and being a convicted felon in possession of a firearm. On January 10, 2018, the defendant pleaded guilty to the two-count indictment.
U.S. Attorney D. Michael Dunavant said: "Fentanyl is a deadly drug that destroys lives, and the substantial quantity of fentanyl possessed by the defendant for resale could have caused countless injuries and deaths. Under the new opioid strategy of this office and the Department of Justice, we will seek maximum sentencing penalties for any person distributing any amount of fentanyl in West Tennessee. If you are a drug dealer causing addiction, pain, and death for selfish personal gain, we will find you and hold you accountable."
On April 30, 2018, U.S. District Judge John T. Fowlkes Jr., sentenced Nunnally to ten years imprisonment. The sentence will run consecutively to a thirty-month sentence for violation of supervised release as the defendant was on federal supervised release at the time for conspiracy to possess with the intent to distribute cocaine.
This prosecution is part of an extensive investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking organizations, targeting national and regional level drug trafficking organizations, and conducting the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Shelby County Sheriff’s Office and the Drug Enforcement Administration.
Assistant U.S. Attorney Michelle Kimbril-Parks prosecuted this case on the government’s behalf.
Maximino Contreras Sentenced to Serve 210 Months in Prison for Shipping Methamphetamine from Arizona to East TennesseeRead the Press Release
KNOXVILLE, Tenn. – On April 30, 2018, Maximino Contreras, 47, of Tollison, Arizona, was sentenced by the Honorable Pamela L. Reeves, U.S. District Judge, to serve 210 months in federal prison for his role in a methamphetamine distribution conspiracy.
Contreras pleaded guilty in July 2017 to conspiracy to distribute 50 grams or more of methamphetamine. In his plea agreement on file with U.S. District Court, Contreras admitted to shipping methamphetamine from Arizona, where he resided, to east Tennessee. He also admitted that in August 2016, he was in possession of four pounds of methamphetamine and approximately $22,000 in cash that was seized from an apartment being used as a stash house in Morristown, Tennessee.
Agencies involved in this investigation included Drug Enforcement Administration- Knoxville and Phoenix Field Divisions, U.S. Postal Inspection Service- Knoxville and Phoenix Field Divisions, Tennessee Highway Patrol, Seventh Judicial District Crime Task Force, and the Morristown Police Department. Assistant U.S. Attorney Kelly A. Norris represented the United States during court proceedings.
Funding for some of the task forces involved in this investigation also came from the Appalachian High Intensity Drug Area Task Force (HIDTA) which was created in 1998, one of 32 areas in the nation that have been designated as HIDTAs. The HIDTA Program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy (ONDCP) to designate areas within the United States which exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs. The HIDTA Program provides additional federal resources to those areas to help eliminate or reduce drug trafficking and its harmful consequences.
This case was part of the Appalachia High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States. The program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy designate areas within the United States that exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs.
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Maryland Woman Who Stole More Than $300,000 from Her Employer Sentenced to 4 Years in PrisonRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Keisha Findley, age 42, of Upper Marlboro, Maryland to four years in prison, followed by three years of supervised release, for wire fraud and aggravated identity theft. Judge Grimm also ordered restitution be paid in the amount of $333,779.53.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to her plea agreement, Findley performed accounting and customer service functions for her employer, Company A. Among her job responsibilities, Findley received checks from customers and entered receipt of checks into an accounting database. Findley kept track of accounts receivable and had access to the accounts receivable database.
In May 2014, without authorization, Findley opened a bank account online in the name of Company A, describing the company as a sole proprietorship owned by the company’s chief executive officer, Victim B. A signature card was submitted to the bank with a purported signature by Victim B and the last four digits of Victim B’s social security number. An automated teller machine check card was issued by the bank with the names of Company A and Victim B on its face.
Beginning in May 2014 and continuing through December 2015, Findley intercepted checks sent by Company A’s customers. She then removed the customer checks from Company A’s offices and deposited them into the bank account she had opened. Findley used the check card both to make deposits into the account and to make withdrawals. In total, Findley deposited checks stolen from Company A totaling $333,779.53. Findley used money from the fraudulent bank account for her own purposes, including personal car and rent payments. In addition, Findley made cash withdrawals of over $170,000 from the account.
United States Attorney Robert K. Hur praised the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joseph Baldwin, who prosecuted the case.
Maryland Chiropractor Sentenced to Prison for Filing False Tax Returns and Obstructing IRSRead the Press Release
A former Salisbury, Maryland chiropractor was sentenced today to 15 months in prison for filing fraudulent income tax returns and attempting to obstruct the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur for the District of Maryland.
According to the evidence presented in court, Dr. Warren Gregory Belcher, 60, operated a chiropractic business for nearly 20 years. During that time, he received income for chiropractic services from insurance companies, patients and other third parties, including another chiropractor in Baltimore. From 2009 through 2015, Belcher filed individual income tax returns that fraudulently claimed that he had earned no business income, when, in fact, the evidence at trial established that he received total payments of more than $350,000 during that time period. Belcher filed his false 2015 tax return after being notified that he was the target of a federal grand jury investigation. He filed an additional false tax return for 2016 while under indictment and awaiting trial.
The evidence introduced at trial included dozens of letters that Belcher sent to insurance companies and other third parties in which he threatened that the companies could be subject to civil and criminal penalties for reporting to the Internal Revenue Service (IRS) payments they made to him for his services. Belcher also made threatening statements to an accountant to prevent the accountant from reporting his income to the government. Belcher himself also submitted fraudulent forms to the IRS in an effort to falsely represent that companies that had reported his income to the IRS had not actually paid him that income.
For the years 2009 and 2011, the IRS mailed Belcher notices informing him that his returns underreported his income. The IRS also assessed additional taxes and penalties against Belcher for his fraudulent returns, including a $5,000 penalty for filing a frivolous tax return. Belcher responded to these IRS notices by sending letters to the IRS asserting that the IRS was violating the law by assessing and collecting his taxes.
In addition to the term of imprisonment, U.S. District Judge Richard D. Bennett ordered Belcher to pay restitution to the IRS in the amount of $63,763.58and serve one year of supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Sean R. Delaney and Tax Division Trial Attorney Melissa S. Siskind, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Marion County man indicted on child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia man was indicted by a federal grand jury today on a child pornography charge, United States Attorney Bill Powell announced.
James Timothy Cobb, age 56, was indicted on one count of “Possession of Child Pornography.” Cobb is accused of possessing child pornography in Marion County in September 2014.
Cobb faces up to 20 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 Sarah E. Wagner is prosecuting the cases on behalf of the government. The Federal Bureau of Investigation investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Marengo County Man Receives 42 Month Sentence for Possession of Ammunition After Felony ConvictionRead the Press Release
The United States Attorney, Richard W. Moore, announces that Gerald Johnson, a 25 year old, resident of Demopolis, Alabama was sentenced to 42 months of incarceration followed by three years of supervised release for possession of ammunition after being convicted of Possession of a Controlled Substance, a felony, on July 16, 2012.
On October 25, 2017, a Demopolis Police officer attempted to conduct a traffic stop on the vehicle Johnson was driving for a traffic infraction. Johnson refused to stop and instead attempted to flee and avoid the stop. Johnson drove recklessly through the city for a few minutes then stopped the vehicle jumped out and fled into a nearby house. The officer followed Johnson into the house and apprehended him. Johnson was searched incident to arrest and ammunition was seized from his pocket. Johnson pled guilty on January 25, 2018.
The Demopolis, Alabama Police Department investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutors assigned to the case were Assistant United States Attorneys Gina S. Vann and Lawrence Bullard.
Manhattan Man Charged with Murder of 17-Year-OldRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging GARY TURNER with the April 24, 2018, murder of Samuel Ozuna, 17, outside the George Washington Carver Houses in New York, New York. TURNER was arrested this morning and was presented before U.S. Magistrate Judge Debra Freeman. TURNER will be arraigned on May 8, 2018, at 2:30 p.m., before U.S. District Judge Jesse M. Furman, to whom the case has been assigned.
U.S. Attorney Geoffrey S. Berman said: “Just a few days ago, as alleged in the indictment, Gary Turner murdered 17-year-old Samuel Ozuna. Thanks to the outstanding efforts of the NYPD, Turner is now in custody and charged with this terrible crime. We will continue our daily work with the NYPD to keep the streets safe and to vigorously investigate and prosecute those who wreak violence upon our community.”
NYPD Commissioner James P. O’Neill said: “Violence will never be tolerated in New York City. I commend all the professionals whose dogged investigative work enabled the NYPD and our law enforcement partners to swiftly identify, apprehend and bring this alleged killer to justice.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
On April 24, 2018, GARY TURNER shot and killed Samuel Ozuna in the vicinity of 60 East 104th Street in Manhattan. TURNER killed Ozuna in part to maintain and increase his position in a racketeering enterprise operating in and around the George Washington Carver Houses.
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TURNER is charged with using a firearm to commit murder in aid of racketeering, which carries a maximum sentence of death, or life in prison, and a mandatory minimum term of five years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Lauren Schorr and Jacob Warren are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to More Than 16 Years for Drug Distribution ChargeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Senior United States District Judge W. Earl Britt sentenced FRANZ DIDYER RAMOS-FERNANDEZ, 29, of Pasadena, Texas, to 195 months of imprisonment followed by 6 years of supervised release.
RAMOS-FERNANDEZ and co-defendant Fernando Enrique Cardona-Zavala were named in a five-count Indictment filed on June 27, 2017. On September 14, 2017 RAMOS-FERNANDEZ pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute a Quantity of Methamphetamine, a Quantity of Cocaine, and a Quantity of Marijuana.
The investigation revealed that RAMOS-FERNANDEZ was the head of a drug trafficking organization (DTO) selling crystal methamphetamine (hereinafter referred to as Ice), cocaine, and other drugs in the Wilmington, North Carolina, area. Cardona-Zavala was identified as one of RAMOS-FERNANDEZ’ primary dealers and he was sentenced on November 30, 2017.
According to a confidential source (CS), RAMOS-FERNANDEZ was importing and distributing significant quantities of multiple drugs throughout the Wilmington, North Carolina region. RAMOS-FERNANDEZ utilized a sophisticated network of local bars, nightclubs and apartments to store and sell his organization’s drugs. With the assistance of the CS, undercover agents (UC and UC2), and a confidential source of information (SOI), several controlled purchases and seizures of narcotics from RAMOS-FERNANDEZ and Cardona-Zavala took place involving crystal methamphetamine and cocaine.
According to the SOI, on March 17, 2017, RAMOS-FERNANDEZ hinted at the possibility of the SOI driving to Miami, Florida, and to Texas for RAMOS-FERNANDEZ, which could earn the SOI $5,000 to $10,000 per trip. The SOI further advised law enforcement of pictures RAMOS-FERNANDEZ recently posted on “Snap Chat” indicating that individuals at a local restaurant in Wilmington owed RAMOS-FERNANDEZ significant sums of money, noting that “they” sold drugs out of that location.
Between May and June 2017, RAMOS-FERNANDEZ relocated to the Houston area and made contact with the DEA in Houston. After a federal warrant was issued in North Carolina for RAMOS-FERNANDEZ’ arrest in late June 2017, DEA agents in Wilmington requested that DEA agents in Houston arrange for a meeting with RAMOS-FERNANDEZ. Following RAMOS-FERNANDEZ’ arrival at the DEA office in Houston on July 6, 2017, he was placed under arrest. On the same date, DEA agents conducted an unprotected interview of RAMOS-FERNANDEZ, during which he admitted to selling Ice to an undercover DEA agent in Wilmington. Additionally, RAMOS-FERNANDEZ provided details about an international Mexican DTO that had cells in Texas, North Carolina, and Philadelphia.
Based on the investigation, RAMOS-FERNANDEZ is accountable for the possession and distribution of multiple kilogram quantities of methamphetamine, cocaine and marijuana. RAMOS-FERNANDEZ possessed a firearm in connection with the offense. He is also deserving of a role enhancement for his position as a manager or supervisor of the criminal activity which involved five or more participants.
The Drug Enforcement Administration (DEA) along with local, Wilmington based law enforcement agencies conducted the criminal investigation of this case. Assistant United States Attorney Bradford Knott handled the prosecution of this case for the government.
Man Pleads Guilty to $1.2 Million ATM Skimming SchemeRead the Press Release
RICHMOND, Va. – An Alexandria man pleaded guilty today to bank fraud in connection with a $1.2 million ATM skimming and cloned card scheme.
According to court documents, Roberto De Miranda Martinez, 43, was apprehended in the process of installing a card reading ATM skimming device and camera on an ATM in Colonial Heights. In skimming schemes, the reader picks up data from bank customers using the ATM and then the perpetrators use the data to clone duplicate cards to obtain funds from the customer’s account. An FBI investigation has uncovered approximately $1.2 million in losses from the scheme.
De Miranda Martinez pleaded guilty to conspiracy to commit bank fraud, and bank fraud. He faces a maximum penalty of 30 years in prison when sentenced on August 1. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, Jerald W. Page, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, Colonel Jeffrey W. Faries, Chief of Colonial Heights Police, and Ron Camacho, Chief of Chambersburg (PA) Police Department, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-49.
Local Business Owner Convicted of Conspiring to Defraud the VARead the Press Release
HOUSTON – A 55-year-old Pearland resident has entered a guilty plea to conspiracy to commit wire fraud, announced U.S. Attorney Ryan K. Patrick.
Henry Guillory admitted that beginning on Nov. 21, 2012, he was engaged in a conspiracy to defraud the Department of Veteran Affairs (VA).
The VA awards contracts to qualified companies that disabled veterans own as part of the Service Disabled Veteran Owned Small Business (SDVOSB) program.
Guillory recruited a service disabled veteran to falsely claim majority ownership of a Houston-based company named MEP Sales and Service (MEP), while Guillory, the true majority owner, claimed minority ownership. This was done so as to get MEP certified as a SDVOSB thereby providing MEP the ability to be awarded contracts. Because of their fraudulent claims, MEP was wrongfully awarded 12 VA small business set-aside contracts totaling more than $1.6 million that should have been given to legitimate veteran-owned small businesses. All 12 of these set-aside contracts were for maintenance and/or construction work at the DeBakey VA Medical Center.
U.S. District Judge Alfred H. Bennett accepted the plea and set sentencing for July 12, 2018, at which time Guillory faces up to five years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
VA - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Daniel C. Rodriguez is prosecuting the case.
Lewiston-Auburn Men Indicted for Health Care FraudRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced today that a federal Grand Jury sitting in Portland handed down an indictment charging Abdirashid Ahmed, 38, of Lewiston and Garat Osman, 32, of Auburn, with health care fraud involving the MaineCare program and soliciting and receiving health care kickbacks from May 2015 through December 2017.
According to the indictment, Ahmed solicited kickbacks from a MaineCare provider in exchange for referring beneficiaries to the provider. Ahmed and Osman then allegedly brought beneficiaries to the provider and served as Somali interpreters during the visits. The indictment recites that fraudulent bills were submitted to MaineCare that overstated the health and interpreter service provided and MaineCare reimbursed the provider based upon the fraudulent billing. And, according to the charges, the provider then paid Ahmed and Osman the monies that MaineCare paid on the fraudulent interpreter claims.
If convicted, each person faces up to 10 years in prison, three years of supervised release, and a $250,000 fine. If convicted, each person may also be ordered to pay restitution to MaineCare.
The investigation is being conducted by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of the Inspector General, and the State of Maine Attorney General’s Medicaid Fraud Crime Unit.
Both defendants were arrested this morning and are expected to make initial appearances in U.S. District Court in Portland later today.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Laredo Federal Jury Convicts Florida Woman for Meth ImportationRead the Press Release
LAREDO, Texas – A 28-year-old woman has been found guilty of importing 15.62 kilograms of crystal methamphetamine, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for five hours following a two-day trial before convicting Mayra Aguirre, of Bradenton, Florida.
On Oct. 9, 2017, Aguirre attempted to enter the United States via the Lincoln-Juarez Bridge driving her recently-purchased silver 2012 Dodge Durango. Her sister and young toddler were with her. Officers became suspicious after she gave inconsistent replies to standard questions and could not provide proof of vehicle registration.
She was referred to secondary inspection, at which time officers detected a powerful chemical odor emanating from the interior of the vehicle. The odor did not dissipate and initially made some officers nauseous. An inspection revealed obvious signs of mechanical tampering with the discovery of non-factory bolts, glue and unusual welding under the carpeting. A subsequent search revealed 15.62 kilograms of methamphetamine stored within 29 plastic bags hidden inside a false “trap door” panel manually attached to the inside of vehicle.
At trial, the jury also heard that the drugs have an estimated value of up to $500,000 in Florida.
The defense attempted to convince the jury the methamphetamine was placed in her client’s vehicle when it was stolen in Mexico a month prior to her arrest. They did not believe her claims and found her guilty as charged.
Sentencing will be set a later date. At that hearing, Aguirre faces up to life in federal prison and a possible $10 million fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Michael Eaton, Christopher Dos Santos and Francisco J. Rodriguez are prosecuting the case.
Lancaster Man Pleads Guilty to Fentanyl Trafficking Conspiracy ChargeRead the Press Release
CONCORD - Tanner Rich, 26, of Lancaster, pleaded guilty in federal court to participating in a conspiracy to distribute fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, after a traffic stop by the Campton Police Department, Rich was found in possession of over 50 grams of fentanyl. Rich subsequently admitted that he had agreed with another person to buy the drugs and that he was planning to deliver the drugs to that individual.
Rich is scheduled to be sentenced on July 31, 2018.
“Fentanyl poses a substantial public safety threat to all parts of the Granite State,” said U.S. Attorney Murray. “We work together with our law enforcement partners each day to stop the distribution of this deadly drug. I commend the work of the Campton Police Department whose efforts may have saved lives by stopping the distribution of this dangerous substance.”
This matter was investigated by the Campton Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Kearney Woman Sentenced for $4.3 Million Meth, Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kearney, Mo., woman was sentenced in federal court today for her role in a $4.3 million conspiracy to distribute large quantities of methamphetamine and heroin throughout Jackson, Clay, Ray, Clinton and Buchanan counties.
Sabrena Lynn Morgan, 41, of Kearney, was sentenced by U.S. Chief District Judge Greg Kays to nine years in federal prison without parole. The court also ordered Morgan to pay the government a money judgment of $1,490,000 based upon her drug responsibility.
On June 9, 2017, Morgan pleaded guilty to participating in a conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug-trafficking crime and maintaining a premises for the purpose of storing, distributing and using methamphetamine.
In 2010, the Buchanan County Drug Strike Force and the DEA initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri and northeast Kansas. Gregory Bullock, 49, Jose Luis Ruiz-Salazar, 39, and his brother, Gabriel Ruiz-Salazar, 35, all of Kansas City, Mo., have admitted to being the primary sources that supplied co-conspirators with large amounts of methamphetamine during the conspiracy. Conspirators distributed methamphetamine throughout Jackson, Clay, Ray, Clinton and Buchanan counties in Missouri.
Morgan admitted that she was among the conspirators who received large amounts of methamphetamine from the Ruiz brothers and others. She distributed the methamphetamine to others, who in turn re-distributed it. Morgan was responsible for the distribution of more than five kilograms of methamphetamine. Law enforcement officers recovered a pink pump-action shotgun from Morgan’s residence after her arrest.
Bullock was sentenced to 15 years and five months in federal prison without parole and ordered to pay the government a money judgment of $365,000 based upon his drug responsibility. Gabriel Ruiz-Salazar was sentenced to 15 years and eight months in federal prison without parole. Jose Ruiz-Salazar awaits sentencing.
According to court documents, conspirators sold $4,359,600 worth of methamphetamine and heroin from 2010 to 2015. That estimate is based on a conservative street price of $1,200 for an ounce of 50 percent pure methamphetamine and the total conspiracy distribution of at least 100 kilograms of methamphetamine, and a conservative street price of $2,500 per ounce of heroin and an overall conspiracy distribution of approximately three pounds.
Morgan is among 21 co-defendants who have been sentenced after pleading guilty to their roles in the conspiracy to distribute methamphetamine.
Elgin Eugene Dothage, also known as “Butch,” 41, of Kearney, Mo., was sentenced to 20 years in federal prison without parole. The court ordered the federal sentence to be served consecutively to a nine-year sentence for his conviction in an unrelated state case. Ryan A. Battagler, 39, of Kearney, was sentenced to 12 years in federal prison without parole.
Jason Lee Kirtley, 45, of Excelsior Springs, Mo., was sentenced to 12 years and 11 months in federal prison without parole and ordered to forfeit to the government $28,800, which represents the proceeds of drug trafficking. Steven Lee Schreier, Jr., 33, of Excelsior Springs, was sentenced to eight years and four months in federal prison without parole. Jackie R. Love, 61, of Excelsior Springs, was sentenced to six years and three months in federal prison without parole. Anthony Ray Stevenson, 46, of Excelsior Springs, was sentenced to 22 years and six months in federal prison without parole. Paula Rae Scott, 48, of Excelsior Springs, four years and 11 months in federal prison without parole. Marion Eugene Brammer, 54, of Excelsior Springs, was sentenced to six years and three months in federal prison without parole. Rodney Earl King, 52, of Excelsior Springs, was sentenced to five years and two months in federal prison without parole. Darin Gene Berry, 52, of Excelsior Springs, was sentenced to four years and five months in federal prison without parole.
Bryan D. Carroll, 29, of Kansas City, Mo., was sentenced to six years and six months in federal prison without parole. Franklin Charles Carter, also known as “Frankie,” 29, of Grandview, Mo., was sentenced to eight years in federal prison without parole.
Jason Daniel Davis, 44, of Liberty, Mo., was sentenced to 15 years and eight months in federal prison without parole. Taylor Lee Syas, 25, of Polo, Mo., was sentenced to eight years and four months in federal prison without parole. Ronald Louis Roberts, 55, of Lathrop, Mo., was sentenced to 10 years and six months in federal prison without parole.
Brian Michael Bowers, 35, of Richmond, Mo., was sentenced to 12 years and six months in federal prison without parole. Jay Harrison Lee Carder, 31, of Cowgill, Mo., was sentenced to eight years and four months in federal prison without parole. Gary Dewayne Brown, 38, of Cowgill, was sentenced to 12 years and seven months in federal prison without parole. Brittney James Brehm, 39, of Bland, Mo., was sentenced to six years and 11 months in federal prison without parole.
Four co-defendants have pleaded guilty and await sentencing. In addition to Jose Ruiz-Salazar, co-defendants William Dean Campbell, 37, of Excelsior Springs; Joshua Keith Bowers, 34, of Polo; and Caleb Dean Hayes, 37, of Kansas City, Mo., are among 26 defendants indicted in this case who have pleaded guilty.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades, Bradley K. Kavanaugh and Matt Moeder. It was investigated by the Clay County Drug Task Force, the Missouri State Highway Patrol, the Caldwell County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force and the DEA.
Kaneohe Man Found Guilty of Federal Drug Trafficking CrimesRead the Press Release
HONOLULU – A federal jury today found Douglas Farrar, Sr., 54, of Kaneohe, guilty of four counts of federal drug trafficking crimes for his role as the leader of a local drug distribution organization. The verdict came a few hours after a four-day trial.
Kenji M. Price, U.S. Attorney for the District of Hawaii, said that according to information presented in court, between 2013 and 2014, Farrar conspired with others to purchase large quantities of methamphetamine and cocaine from sources in California and ship the drugs back to Hawaii for distribution. He hired others to work for him and help him import and sell the drugs. In one shipment in July of 2014, federal agents seized 32 pounds of methamphetamine and 4 kilograms of cocaine that Farrar had shipped into Hawaii, intending to sell it once it arrived.
Farrar was found guilty of conspiracy to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine and 500 grams or more of cocaine. He was also found guilty of two counts of distributing 50 grams or more of methamphetamine, and one count of attempting to possess with the intent to distribute 50 grams or more of methamphetamine and 500 grams or more of cocaine. Farrar will face a mandatory minimum term of imprisonment of twenty years on each count when he is sentenced on August 20, 2018, by U.S. District Judge Susan Oki Mollway.
The investigation was led by Homeland Security Investigations, with assistance from the IRS and the Honolulu Police Department. Assistant U.S. Attorneys Mark Inciong and Amalia Fenton handled the prosecution.
KC Man Sentenced to 20 Years for Meth, Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine and heroin.
Theodis Dewan Johnson, 42, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 20 years in federal prison without parole.
On Jan. 4, 2018, Johnson pleaded guilty to participating in a conspiracy to distribute more than 2.2 kilograms of methamphetamine as well as heroin from Oct. 21, 2015, until his arrest on Sept. 28, 2016. Co-defendants Erin R. Markley, 36, and Evelyn Leona Cooper, 46, both of Kansas City, Mo., also have pleaded guilty to their roles in the drug-trafficking conspiracy. Markley was sentenced to six years in federal prison without parole and Cooper is scheduled to be sentenced on May 22, 2018.
A confidential informant purchased methamphetamine from Johnson and Cooper, the leader of the conspiracy, on several occasions. When law enforcement officers executed a search warrant at their residence, they found multiple handguns, approximately 76.5 grams of methamphetamine and approximately 17 grams of heroin.
Johnson acted as a narcotics runner, money collector and as protection for Cooper’s narcotics operation. Johnson was directly responsible for the distribution of 705.64 grams of methamphetamine. Johnson was in possession of a loaded Taurus .380-caliber semi-automatic pistol at the time of his arrest.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
KC Man Indicted for Illegal Firearms After Sharing Video of Himself Pointing a Gun at Another ManRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was indicted by a federal grand jury today after he distributed a video of himself holding a gun to the head of a blindfolded man.
Sean A. Winston, 41, of Kansas City, was charged with being a felon in possession of firearms in an indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Winston was in possession of a Rossi .38-caliber revolver and a Springfield Armory .40-caliber semi-automatic handgun on April 10, 2018. The indictment replaces a criminal complaint that was filed against Winston on April 11, 2018.
According to an affidavit filed in support of the original criminal complaint, an individual contacted law enforcement on April 8, 2018, to report that Winston sent him a video, via text message, in which Winston was holding a handgun to the head of a blindfolded man. Police officers contacted family members, who said they also had received the video. The video showed an unidentified man, who was blindfolded and was sitting on a couch with his hands in the air in a surrendering posture. In the video, the affidavit says, Winston said the blindfolded man should be dead. The blindfolded man replied with “I love you, Sean. I love you, Sean.” According to the affidavit, Winston appeared to be angry and agitated in the video.
Winston’s family members said the blindfolded man appeared to be one of Winston’s associates, who was later identified and located. The man acknowledged that he was in the video, but he did not want to want to cooperate with the prosecution.
On April 10, 2018, police officers arrested Winston and searched his residence, where they found both of the firearms.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Winston has prior federal felony convictions for distributing a controlled substance and being a felon in possession of a firearm.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Matthew Moeder. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Announces First Criminal Illegal Entry Prosecutions of Suspected Caravan MembersRead the Press Release
The Department of Justice today filed criminal charges against eleven different suspected members of the so-called “caravan” in the United States District Court for the Southern District of California, announced Attorney General Jeff Sessions and U.S. Attorney for the Southern District of California Adam Braverman. All defendants are alleged to have illegally entered the country in violation of 8 U.S.C § 1325, and one defendant is also alleged to have been previously deported and was charged with 8 U.S.C § 1326 (illegal reentry).
“When respect for the rule of law diminishes, so too does our ability to protect our great nation, its borders, and its citizens,” said Attorney General Jeff Sessions. “The United States will not stand by as our immigration laws are ignored and our nation’s safety is jeopardized. U.S. Attorney Adam Braverman and his team should be commended for quickly filing illegal entry charges for individuals apprehended along the southwestern border. We will continue to work with our partners in each U.S. Attorney’s Offices to aggressively pursue prosecutions of criminal illegal entry.”
“The American Dream has beckoned immigrants from across the globe because of the promise that prosperity and success are within reach for all,” said United States Attorney for the Southern District of California Adam L. Braverman. “Those immigrants have contributed their voices and perspectives to make up our uniquely American experience. But the foundation for the American Dream, and what allows our democracy to flourish, is commitment to the rule of law. These eleven defendants face charges now because they believed themselves to be above the law. Those seeking entry into the United States must pledge fidelity to the law, not break them, or else face criminal prosecution.”
According to the complaints, defendants were apprehended by Border Patrol in the following areas known as: Goat Canyon, 35 Draw, Eucci Grove, and W-8. Goat Canyon, 35 Draw, and Eucci Grove are approximately four miles west of the San Ysidro, California Port of Entry, and W-8 is approximately two miles west of San Ysidro.
The complaints allege that the defendants knowingly and willingly entered into the United States at a time and place other than as designated by Immigration Officers, and eluded examination and inspection by Immigration Officers.
A complaint contains allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Jackson Man Charged in Multi-Million Dollar Fruad Scheme Affecting Hundreds of Victims Across Multiple StatesRead the Press Release
Jackson, Miss. – Arthur Lamar Adams, 58, of Jackson, has been charged by Criminal Information for his role in a large multi-million dollar Ponzi scheme that adversely affected hundreds of victims across multiple states over a number of years, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
Adams will appear before U.S. Magistrate Judge Linda R. Anderson today at 2 p.m. for his initial appearance and arraignment on the Criminal Information.
Adams is charged with two counts of wire fraud involving a scheme to defraud investors, and one count of bank fraud, all in connection with a Ponzi scheme using Madison Timber Properties, LLC, a company wholly owned by Adams.
"Greed is not good. Greed drove this individual to lie, cheat and steal from fellow Mississippians, and led him to prey upon others outside our state, simply to personally benefit himself. While this may be one of the largest Ponzi scheme ever committed in our state, our citizens can rest assured that these criminal actions by this defendant sadly affecting so many people will be met with swift and certain justice. I commend the FBI special agents and prosecutor in this case for their diligent work. We will continue to pursue this case and all the evidence until all crimes have been discovered, all criminals have been brought to justice, and all victims have been assisted," said U.S. Attorney Hurst.
As charged in the Criminal Information, beginning as early as 2011 and continuing through April 2018, Adams devised a scheme to defraud investors by soliciting millions of dollars of funds under false pretenses, failing to use the investors’ funds as promised, and converting investors’ funds to Adams’s own benefit without the knowledge of the investors. Instead of investing his clients’ money, Adams used the invested funds for his own personal benefit and for purposes other than those represented to investors, which also included making payments due and owing to other investors, thus perpetuating the Ponzi scheme. During the fraudulent scheme, Adams fraudulently obtained well in excess of one hundred million dollars from more than 250 investors located in at least 14 different states.
As part of his fraudulent scheme, Adams falsely represented to investors that Madison Timber Properties was in the business of buying timber rights from landowners and then selling the timber rights to lumber mills at a higher price. The object of the scheme was to cause individuals to invest in loans that purportedly were for the purpose of financing contracts for the purchase of timber rights to be sold to lumber mills at a higher price. However, neither Adams nor Madison Timber Properties had such timber rights or contracts with lumber mills, except in only a few instances.
Adams entered into fraudulent investment contracts with investors, most often in the form of promissory notes on behalf of Madison Timber Properties. The loans typically guaranteed investors an interest rate of 12-13%, with the interest to be repaid to investors over the course of 12-13 months. The monthly payments due on these promissory notes were typically due on either the first or the fifteenth of the month.
Adams created false documents causing investors to believe that their investments were secured by sufficient collateral from which they could recover all or part of their investment in the event that Madison Timber Properties defaulted on the loans. Specifically, Adams created false timber deeds purporting to be contracts conveying timber rights from landowners to Madison Timber Properties. Adams forged the signatures of landowners and also created false timber deeds purporting to convey timber rights from Madison Timber Properties to the investors. To further lull investors, Adams had many of the documents notarized to make the investments appear legitimate. Adams also required the investors to agree not to record their timber deeds unless Madison Timber Properties defaulted on the loan agreement by failing to make a payment. In many instances, Adams also provided a "timber cruise summary" purporting to state the value of the timber located on a particular parcel of land. These "timber cruise summary" documents were also false and had been created by Adams to induce investors to give money to Adams under false or fraudulent pretenses.
Investors are requested to gather and retain any documents that they have concerning their investments with Madison Timber Properties, LLC and/or Arthur Lamar Adams. Information about developments in this investigation and further instructions on how to provide information to the pertinent authorities will be provided at the earliest possible date. The FBI and the U.S. Attorney’s Office will be reaching out to identified victims shortly.
We know that investors are anxious to learn whatever they can about the status of their investments and the assets of Madison Timber Properties, LLC. Although we cannot provide further details at this time, please be assured that all those involved are working diligently to investigate this matter and to locate and preserve assets that can be used for restitution to defrauded investors.
The case is being investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
Inmate sentenced to over eight years additional prison time for drug trafficking from prisonRead the Press Release
ATLANTA - Jorge Armando Ramirez-Lira, a/k/a Negro, a/k/a Jorge Beltran-Carillo, a/k/a Edgar Nava-Baltazar, was sentenced to an additional eight years and one month in prison for importing heroin into the U.S. from Colombia and laundering the drug proceeds.
“Ramirez-Lira, who is already in prison for drug trafficking crimes, used contraband cell phones to broker deals to smuggle heroin into the U.S. from Colombia disguised as jewelry and artwork,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to the cooperation between law enforcement officials from both the U.S. and Colombia this operation has been dismantled, leaving Ramirez-Lira with an even longer prison sentence.”
“DEA is fully committed to tirelessly pursuing criminals who sell large quantities of drugs, whether they’re selling them on the streets or inside a prison,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “This criminal was already serving time for drug trafficking and had the audacity to continue trafficking while incarcerated. His criminal acts has landed him even more deserving time in prison. The spirited level of law enforcement cooperation made this investigation a success.”
“Heroin is having a devastating effect on some of our communities in the City of Atlanta and throughout metro Atlanta,” said Atlanta Police Chief Erika Shields. “We’re grateful to our federal partners for the teamwork and assistance they provide our Department in helping heal our neighborhoods by putting the peddlers of this poison behind bars.”
According to U.S. Attorney Pak, the charges and other information presented in court: Ramirez-Lira was a member of a Medellin, Colombia-based international drug trafficking and money laundering organization that conspired to import large quantities of heroin from Colombia into the U.S., including the Atlanta area, and to export cocaine from Colombia into Europe. The drug trafficking organization utilized drug sources throughout South America including in Chile, Colombia, Peru, Ecuador, and Venezuela, and then exported narcotics using commercial parcel carriers and Mexican logistics providers before distributing the narcotics in the U.S. and Europe. The organization laundered drug trafficking proceeds from the U.S. back to Colombia.
Ramirez-Lira, an inmate in the federal correctional institution in Yazoo City, Mississippi, was an operative within the organization whose role was to serve as a broker, ensuring that the organization had wholesale buyers and trafficking networks throughout the U.S. As a broker, from inside federal prison, Ramirez-Lira gained access to multiple contraband cellular telephones, which he used to facilitate the drug importation and distribution. To disguise the heroin shipments, the organization employed an architectural designer, co-defendant Luis Felipe Garcia-Jiminez, who fashioned the heroin into artwork and jewelry. DEA agents in the U.S. and in Colombia, working collaboratively with the Colombian National Police, seized multiple heroin shipments and ultimately identified members of the organization through wiretaps, surveillance, and analysis of financial and other documents.
Members of the organization who have been sentenced to date include:
•Jorge Armando Ramirez-Lira, a/k/a Negro, a/k/a Jorge Beltran-Carillo, a/k/a Edgar Nava-Baltazar was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to eight years and one month in prison, to be followed by ten years of supervised release. Ramirez pleaded guilty to conspiring to import and distribute heroin and money laundering.
•Luis Fernando Ospina, a/k/a Caneco, was previously sentenced to 15 years in prison, to be followed by five years of supervised released. Ospina pleaded guilty to conspiring to import and distribute heroin and money laundering after being arrested in Colombia in October 2013, and extradited to the U.S. in November 2014.
•Carlos Mario Duque-Gallego a/k/a Bunuelo, was previously sentenced to 10 years in prison, to be followed by five years of supervised released. Duque-Gallego pleaded guilty to conspiring to import and distribute heroin after being arrested in the Southern District of Florida in October 2013.
•Jorge Yimis Marin-Giraldo a/k/a Carnal, was previously sentenced to seven years and three months in prison, to be followed by four years of supervised released. Marin-Giraldo pleaded guilty to conspiring to distribute heroin after being arrested in the Southern District of Florida in February 2014.
•Luis Felipe Garcia-Jiminez, a/k/a Pipe, was previously sentenced to five years and 11 months in prison, to be followed by five years of supervised released. Garcia-Jiminez pleaded guilty to conspiring to import and distribute heroin after being arrested in Colombia in October 2013, and extradited to the U.S. in September 2014.
•Joel Lopez was previously sentenced to four years and three months in prison, to be followed by three years of supervised released. Lopez pleaded guilty to conspiring to import heroin and money laundering after being arrested in the Northern District of Georgia in August 2013.
This case is being investigated by the Drug Enforcement Administration in partnership with the Colombian National Police and the Atlanta Police Department.
Assistant U.S. Attorneys Ryan M. Christian and Garrett L. Bradford prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
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.