Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
11 June 2018
Sacramento Man Pleads Guilty to Producing and Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Mark Corum, 62, of Sacramento, pleaded guilty today to four counts of production of child pornography and one count of distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Corum engaged in Skype conversations with various Skype users in the Philippines in which he instructed the other parties to perform sexual acts on children while he watched on live webcam. Corum sent the persons in the Philippines payments of between $25 and $35 via money transmittal services in exchange for them performing the sexual acts he requested on children and transmitting the images to him via webcam. Transcripts of the Skype chats filed with the court reflect that, at Corum’s direction, children between the ages of infancy and 10 years old were sexually abused. The Skype chats also contain statements by Corum alluding to prior trips to the Philippines and sex acts with children there. He stated that he had visited the Philippines “many times” and had “many good memories.” He also indicated that if he visited the Philippines again, he wanted to have sex with one of the children he had directed to be abused, a six-year-old girl. In addition, on June 23, 2016, Corum used the internet to transmit images of prepubescent children engaged in sexually explicit conduct to another person.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorneys Katherine T. Lydon and Jill Thomas are prosecuting the case.
Corum is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on October 29, 2018. Corum faces a maximum statutory penalty of 20 years in prison on the distribution of child pornography count and a maximum statutory penalty of 30 years in prison on each of the four production of child pornography counts, as well as a maximum statutory fine of $250,000 on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Sacaton Gang Member Sentenced to Life Imprisonment for First Degree MurderRead the Press Release
PHOENIX – Today, George Alonzo Renteria, 30, of Sacaton, Ariz., and a member of the Gila River Indian Community, was sentenced by U.S. District Judge G. Murray Snow to life imprisonment for first degree murder, with a consecutive sentence of ten years for committing the murder with a firearm. Renteria had previously been convicted at a jury trial of first degree murder, assault with a dangerous weapon, and discharging a firearm in a crime of violence.
On Feb. 17, 2014, Renteria shot and killed a fellow member of the Gila River Indian Community. Renteria encountered the victim in Chandler, Ariz., and convinced him to get into a car Renteria was driving. Renteria then drove the victim to a deserted field on the Gila River Indian Community and shot him to death with a handgun. Renteria was in the midst of a violent crime spree, having perpetrated a vehicle theft and an armed home invasion in the hours leading up to the murder.
During the trial, the victim was described by fellow community members as a gentle, well-liked, and kind-hearted man who went out of his way to help those around him. Renteria, on the other hand, is a longtime member of a street gang with a violent criminal history. At the time he murdered the victim, Renteria was on federal supervised release for a prior robbery conviction.
The investigation was conducted by the Gila River Police Department and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys Christine D. Keller and William G. Voit, District of Arizona, Phoenix.
CASE NUMBER: CR-16-00407-GMS
RELEASE NUMBER: 2018-079_Renteria
# # #
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.
Romanian Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Ioan Rostas, a/k/a Ioan Angel, age 29, and a citizen of Romania, was sentenced today to time served (86 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Acting Chief Patrol Agent, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Rostas admitted that he was removed from the United States to Romania on September 28, 2017. On March 17, 2018, Border Patrol Agents arrested Rostas near Chateaugay, New York. Rostas was in a group of four people who had entered the United States without inspection from Canada shortly before Border Patrol Agents encountered them in the woods near Chateaugay.
Following sentencing, Rostas was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by the Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Rochester Man Pleads Guilty to Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Cavico, Jr., 50, of Rochester, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession of firearm with obliterated serial number. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Scott S. Allen, Jr. and Paul C. Parisi, who are handling the case, stated that on December 15, 2017, law enforcement officials from the LeRoy Police Department responded to a domestic dispute in LeRoy, New York. Upon arrival, officers saw Cavico on top of a female, assaulting her, with a pistol at his side. The pistol’s serial number had been obliterated.
The defendant has three prior felonies dating back to 1990 and is legally prohibited from possessing a firearm.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the LeRoy Police Department, under the direction of Chief Christopher Hayward; and the Genesee County Sheriff’s Office, under the direction of Sheriff William Sheron, Jr.
Sentencing is scheduled for September 13, 2018, at 12:30 p.m. before Judge Arcara.
Redirections Treatment Owner Charged with Unlawfully Distributing Buprenorphine and Defrauding Medicare and MedicaidRead the Press Release
PITTSBURGH, PA – The owner of Redirections Treatment Advocates, LLC, an opioid addiction treatment practice with offices in Pennsylvania and West Virginia, has been indicted on charges of unlawfully dispensing controlled substances and health care fraud, United States Attorney Scott W. Brady of the Western District of Pennsylvania and United States Attorney William J. Powell of the Northern District of West Virginia announced today. This indictment is the eleventh in a series of charges filed in western Pennsylvania and northern West Virginia since Attorney General Jeff Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud.
The 47-count indictment, returned on June 5, and unsealed Friday, names Jennifer Hess, 49, of Washington, Pennsylvania.
According to the indictment, Hess is the owner of Redirections Treatment Advocates, LLC, an opioid addiction treatment center with multiple locations in western Pennsylvania and northern West Virginia. The indictment alleges Hess aided five physicians on multiple occasions with unlawfully dispensing buprenorphine, also known as Suboxone and Subutex, a drug that should be used to treat individuals with addiction. The indictment also charges Hess with conspiracy to unlawfully distribute buprenorphine. Finally, the indictment charges Hess with health care fraud for allegedly causing fraudulent claims to be submitted to Medicare and Medicaid for payments to cover the costs of the unlawfully prescribed buprenorphine.
“Combatting the opioid epidemic in western Pennsylvania is the number one priority of this Office. We are aggressively prosecuting doctors and medical professionals who would exploit others’ addiction for their own financial gain,” said U.S. Attorney Brady. “As detailed in this indictment, RTA owner Jennifer Hess operated a network of addiction treatment clinics – which could be helping those in their hour of greatest need – as a cash business, and then committed health care fraud. This Office will continue to protect those suffering from opioid abuse disorder from this illegal and unethical conduct.”
“We look forward to continuing our partnership with our colleagues in the Western District of Pennsylvania. The Northern District of West Virginia has been seriously affected by health care providers who violate federal law. Our citizens have suffered at their hands long enough. We will continue to aggressively prosecute those who choose to violate the law,” said U.S. Attorney Bill Powell, Northern District of West Virginia.
“The health care system is a critical piece of our nation's infrastructure,” said Acting FBI Special Agent in Charge Chad Yarbrough. “Individuals alleged to have defrauded health care programs place additional burdens and costs on the health care system, which affects every American citizen. The FBI views this crime as a severe problem and today's arrest sends a clear message that we are dedicated to stopping this type of activity.”
Hess faces a maximum sentence of 10 years in prison and a fine of $250,000 for each of the 45 counts charging her with unlawfully dispensing Schedule III controlled substances, a maximum sentence of 10 years imprisonment and a fine of $1 million for the single count charging her with conspiracy to unlawfully dispense a Schedule III controlled substance, and a maximum sentence of 10 years imprisonment and a fine of $250,000 for the single count charging her with health care fraud. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Michael L. Ivory of the Western District of Pennsylvania and Assistant United States Attorney Sarah E. Wagner of the Northern District of West Virginia are prosecuting these cases on behalf of the United States.
The investigation leading to this indictment was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office - Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs - Office of Inspector General, Food and Drug Administration - Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Queensbury Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Chad Knowlton, age 24, of Queensbury, New York, pled guilty today to distributing, receiving and possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Knowlton admitted to using a custom-built desktop computer equipped with peer-to-peer file-sharing software to download and distribute child pornography. Knowlton also admitted to using a smartphone to download additional child pornography. Overall, Knowlton downloaded and retained more than 1,000 videos and images depicting child pornography.
Sentencing is scheduled for October 9, 2018 before Senior United States Judge Thomas J. McAvoy. Knowlton, who is detained pending sentencing, faces a minimum 5 years and up to 20 years in prison, a maximum $250,000 fine, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Knowlton will also be required to register as a sex offender upon his release from prison.
Knowlton is also facing state charges alleging the sexual abuse of children in Warren County. He is innocent unless and until proven guilty of those charges.
This case was investigated by the FBI and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Prolific Opioid Dealer Sentenced to 13 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Skyler Christopher Sanders (33, Bradenton) to 13 years in federal prison for conspiracy to distribute cocaine, cocaine base, heroin, methamphetamine, carfentanil, and fentanyl. He pleaded guilty on December 21, 2017.
According to court documents, Sanders and his associates sold drugs out of a house in Bradenton that operated as an open-air drug market. These drugs included cocaine, cocaine base, heroin, methamphetamine, carfentanil, and fentanyl. Sanders and his associates sold these drugs to undercover detectives on numerous occasions.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the DEA and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
Oregon Man Sentenced to More Than 12 Years in Federal Prison for Assault and Firearms ChargesRead the Press Release
PORTLAND, Ore. – Nicholas James Cantrell, 28, was sentenced today to 151 months in federal prison for unlawfully possessing a firearm and assaulting a Multnomah County Sheriff deputy while being held on a federal detainer at the Multnomah County Detention Center (MCDC).
According to court documents, Cantrell was arrested and booked into MCDC after fleeing Gresham Police and abandoning a bag containing a firearm and a digital scale. While in custody for the federal firearm charge, Cantrell assaulted a jail deputy by repeatedly punching, choking, and slamming the deputy’s head against the floor until the deputy lost consciousness.
Cantrell previously pleaded guilty to one count each of being a felon in possession of a firearm and assault on certain officers or employees on February 13, 2018.
The case was jointly investigated by the United States Marshals Service, Alcohol, Tobacco, Firearms, and Explosives (ATF), Gresham Police Department, and the Multnomah County Sheriff’s Office and prosecuted by Jane Shoemaker and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon.
New York Man Sentenced for Attempting to Provide Material Support to ISISRead the Press Release
Arafat M. Nagi, 47, of Lackawanna, New York, was sentenced to 15 years in prison, to be followed by 15 years of supervised release, for attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney James P. Kennedy, Jr. for the Western District of New York and Special Agent in Charge Gary Loeffert of the FBI’s Buffalo Office made the announcement after sentencing by U.S. District Judge Richard J. Arcara.
On Aug. 28, 2014, a community member advised the FBI that the defendant spoke about violent jihad to various people in the Lackawanna community and it was common for Nagi to get into verbal complaints over his jihadi beliefs. Further investigation determined that the defendant pledged allegiance to ISIS and the leader of the terrorist group, Abu Bakr al Bagdadi.
Investigators learned that the defendant traveled to Turkey on two occasions, in October 2012 and July 2014, with the intention of meeting with members of ISIS. Prior to traveling to Turkey, the defendant purchased a large number of military combat items, including a tactical vest, army combat shirt, body armor, Shahada Flag, combat boots, backpack, burn kit, a hunting knife, machete and night vision goggles. Once in Turkey, Nagi purchased a SIM card and activated a Turkish cell phone number. Facebook messages showed that the defendant contacted other individuals, who were prepared to help the defendant enter Syria to join ISIS, and exchanged Turkish cell phone numbers. In addition, evidence seized from the defendant’s electronic devices showed that the defendant, while in Turkey, was researching how to travel from Istanbul to cities close to the Syrian border.
During follow up interviews in December 2014 and March 2015, the community member who alerted the FBI regarding Nagi’s actions stated that the defendant still possessed radical political and religious views. According to the individual, Nagi was angry about the killing of rebels in Yemen which he blamed on the United States; pledged an oath to ISIS leaders; expressed agreement with ISIS tactics, including the killing of innocent men, women and children. The individual further reported that defendant planned to travel to Yemen and Turkey again soon.
This case was investigated by the FBI Joint Terrorism Task Force, and assistance was provided by the New York State Attorney General’s Office. The case was prosecuted by Assistant U.S. Attorneys Timothy C. Lynch and Joel L. Violanti of the Western District of New York, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
New Haven Gang Member Sentenced to 11 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIE GARVIN, also known as “Tank” and “Black,” 27, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 132 months of imprisonment, followed by five years of supervised release, for his role in a violent New Haven street gang.
According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of Jeffrey Benton and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms and used drug addicts as straw purchasers of firearms. Members then brought the firearms back to New Haven and distributed them to gang members.
GARVIN was an active member of the RSGB. He traveled frequently to Maine and sold crack cocaine and heroin in the Bangor area. He also coordinated the purchase of several firearms, which he transported to New Haven for his use and the use of other RSGB members.
The investigation also revealed that GARVIN regularly robbed other drug dealers for cash in the New Haven area. On December 22, 2011, GARVIN and an associate shot and seriously wounded an individual during an attempted robbery. On April 26, 2013, GARVIN and another individual robbed a marijuana dealer at gunpoint, stealing approximately $800, a quantity of marijuana and other items.
On June 8, 2014, GARVIN was arrested on state charges after he was found in possession of a loaded .22 caliber firearm.
In December 2014, a grand jury in Connecticut returned an indictment charging GARVIN with robbery and firearm offenses and, in February 2015, a grand jury in Maine returned an indictment charging GARVIN with narcotics and firearm offenses. On July 30, 2015, he pleaded guilty in Connecticut to possession of a firearm by a previously convicted felon, conspiracy to interfere with commerce by robbery, and discharging a firearm in furtherance of a crime of violence. GARVIN also agreed to have his Maine case transferred to Connecticut and pleaded guilty to conspiracy to distribute crack cocaine and conspiracy to violate federal firearms laws.
GARVIN has been detained since his arrest on December 23, 2014.
As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine. The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.
Benton pleaded guilty to various offenses stemming from this investigation and admitted that he participated in four gang-related murders and one attempted murder. On October 4, 2017, he was sentenced to 480 months of imprisonment.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter Markle and Jocelyn Kaoutzanis. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
New Hampshire Man Sentenced to a Year and a Day for Making a False Tax ClaimRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Robert E. DeAngelis, 38, of Portsmouth, New Hampshire was sentenced today in U.S. District Court by Judge Jon D. Levy to one year and one day in prison and three years of supervised release for making a false claim for a federal tax refund. DeAngleis also was ordered to pay $100,574 in restitution to the Internal Revenue Service (“IRS”). He pled guilty on January 16, 2018.
According to court records, DeAngelis, who was then residing in North Berwick, Maine, falsely reported his income, as well as the amount of federal income tax withheld from him, on his 2014 joint income tax return. As a result, the IRS issued a refund payment in the amount of $31,615, to which he was not entitled. The restitution order reflected improper refund payments he obtained in connection with the filing of his 2011, 2012 and 2014 tax returns.
The case was investigated by the IRS, Criminal Investigations.
- NYCHA Settlement documents
Myrtle Beach Man Pleads Guilty to Drug Trafficking Charges in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Jason Jarvis Parker, age 36, of Myrtle Beach, entered a guilty plea in federal court in Florence to possession with intent to distribute and distribution of a quantity of heroin and possession with intent to distribute a quantity of methamphetamine, a quantity of cocaine and 28 grams or more of cocaine base, all in violation of Title 21, United States Code, Section 841(a)(1). United States District Judge R. Bryan Harwell, of Florence, accepted the plea and will impose sentence after a pre-sentence report is prepared by the U.S. Probation Office.
This case was part of an investigation conducted by state and federal agents into the sale of illegal drugs in the Myrtle Beach, South Carolina area. On August 28, 2017, agents made a controlled purchase of heroin from Parker. Agents made additional controlled purchases of heroin from Parker on September 6, 2017 and September 20, 2017. After the last purchase, agents arrested Parker during a traffic stop and found him in possession of over 28 grams of cocaine base and quantity amounts of methamphetamine and cocaine.
Ms. Lydon stated the defendant faces a maximum term of imprisonment of 40 years and a fine of $5,000,000.
The case was investigated by agents of the Drug Enforcement Administration (DEA), Florence, and the Fifteenth Judicial Circuit Drug Enforcement Unity (DEU). Assistant United States Attorney Christopher D. Taylor of the Florence office handled the case.
#####
Myrtle Beach Felon Who Threatened Police on Facebook Pleads Guilty to Gun Charge in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Anthony Scott Hunt, age 37, of Myrtle Beach, S.C., pled guilty in federal court in Florence to Felon in Possession of a Firearm. United States District Judge R. Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on February 19, 2018, a complainant met with an officer at the Horry County Police Department (HCPD) regarding some disturbing Facebook posts by Anthony Scott Hunt, which were directed toward Horry County Police and Drug Enforcement Unit (DEU). In the Facebook posts, Hunt referenced DEU in Horry County and stated he was “taking these…cops to war” and that he had automatic weapons, ammunition, and body armor. He also stated he is “stalking my guns up” and that he had a “Beretta 45,” along with other specific guns, so he is “Ready for War.” HCPD located, on the Facebook account, a picture of Hunt wearing what appeared to be a “Raiders” jersey and hat, bandana mask, and beaded bracelets while holding what appeared to be a Beretta pistol.
Horry County detectives obtained a search warrant for the property where Hunt lived and located, in Hunt’s living quarters, a Beretta .45 caliber handgun, loaded with rounds of ammunition, along with the jersey, hat, bandana, and bracelets Hunt was depicted wearing in his Facebook picture. Prior to his possession of the firearm, Hunt had been convicted of a crime punishable by a term of imprisonment exceeding one year.
U.S. Attorney Lydon stated the defendant faces a maximum penalty of $250,000 and/or ten years imprisonment. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Horry County Police Department, the Horry County Sheriff’s Office, the Horry County Myrtle Beach Violent Crimes Task Force, and the South Carolina Law Enforcement Division (SLED) Bomb Team. Assistant United States Attorney Lauren Hummel of the Florence office handled the case.
#####
Mexican cartel leader Edgar Valdez-Villareal, a/k/a “La Barbie,” sentenced to federal prison for drug trafficking and money launderingRead the Press Release
ATLANTA - Edgar Valdez-Villareal, a/k/a La Barbie, who was born in the U.S. and rose to be a high-level leader of Mexico’s Beltran-Leyva Cartel, has been sentenced to 49 years and one month in federal prison on charges of cocaine trafficking and money laundering.
“Valdez-Villareal imported tons of cocaine into the U.S. while ruthlessly working his way up the ranks of one of Mexico’s most powerful cartels, leaving in his wake countless lives destroyed by drugs and violence,” said U.S. Attorney Byung J. “BJay” Pak. “He will now go to federal prison for nearly the rest of his life. The highest levels of Mexican drug cartel should know that, like La Barbie, they will be held accountable for their crimes.”
“Edgar Valdez-Villareal a/k/a “La Barbie” was once a powerful and high-ranking member of the Mexico-based Sinaloa and Arturo Beltran-Leyva Drug Cartels,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Valdez-Villareal engaged in two decades of drug trafficking crimes and reigned with immeasurable acts of violence and intimidation. His ruthless and violent drug trafficking activities posed a significant threat to the quality of life in our country and elsewhere. The lengthy sentence he received makes the U.S. a safer place. DEA wants to thank its local, state, federal, regional, national and foreign (especially the government of Mexico) law enforcement partners, and the U.S. Attorney’s Office for the Northern District of Georgia for making this extraordinary case a success.”
According to U.S. Attorney Pak, the charges and other information presented in court: As early as the year 2000, Valdez-Villareal began his drug trafficking career as a marijuana distributor in Laredo, Texas. He soon developed cocaine customers in New Orleans and Memphis, and his activities escalated into regular shipments of 150-180 kilograms of cocaine to distributors in multiple cities. Valdez-Villareal eventually entered into a relationship with Arturo Beltran-Leyva, who was then associated with the Sinaloa Cartel and Joaquin Guzman-Loera, a/k/a “El Chapo,” in Mexico. With their support, Valdez-Villareal began coordinating shipments of cocaine into Mexico from Colombia and other South American countries using speedboats and airplanes, while also paying bribes to local law enforcement officials. The cocaine was then transported across the border into the U.S. to Valdez-Villareal’s distributors. At the same time, Valdez-Villareal became a top-level enforcer for the cartel and coordinated a war against his rivals, the Gulf Cartel and Zetas in Mexico.
In 2004, Valdez-Villareal and his partners sought out a more formalized distribution organization for their cocaine customers in Memphis and Atlanta. Valdez-Villareal obtained cocaine from Colombia, exported the cocaine from Mexico to customers located in the U.S. in tractor trailer loads of up to 300 kilograms twice per week, then arranged for currency to be smuggled back across the border to the organization’s supervisors in Mexico. In Atlanta alone, the organization distributed a total of 1,500 kilograms of cocaine in just six months in 2005. DEA agents were able to build the case against Valdez-Villareal using wiretaps, seizures of over 100 kilograms of cocaine and $4 million of drug proceeds, and witness testimony.
Edgar Valdez-Villareal, a/k/a La Barbie, 44, of Laredo, Texas has been sentenced to 49 years and one month in prison to be followed by 10 years of supervised release, and ordered to forfeit the sum of $192,000,000, by U.S. District Judge William S. Duffey, Jr. Valdez-Villareal was convicted of conspiracy to import cocaine, conspiracy to distribute cocaine, and conspiracy to launder money on January 6, 2016, after he entered a guilty plea.
This case was investigated by agents with the Drug Enforcement Administration.
Former U.S. Attorney John Horn, Assistant U.S Attorney Elizabeth M. Hathaway, Chief of the Narcotics and Dangerous Drugs Section, and Assistant U.S. Attorney Garrett L. Bradford prosecuted the case. The Department of Justice’s Office of International Affairs provided assistance with this case.
This prosecution was brought as a part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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.com.
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.
McLaughlin Man Charged with Murder-First Degree and Felony Child Abuse and NeglectRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Murder-First Degree, Felony Child Abuse-Aggravated Battery of an Infant, and Felony Child Abuse and Neglect.
Kenneth William Chase, age 31, was indicted on May 22, 2018. He appeared before U.S. Magistrate Judge William D. Gerdes on June 4, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is life in federal prison, a $250,000 fine, 3 years of supervised release, an additional mandatory special assessment of $5,000, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the Indictment, Chase committed first degree murder upon a minor victim, in the perpetration and attempted perpetration of child abuse, by inflicting traumatic head injuries to the minor victim.
The charges are merely accusations and Chase is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Chase was ordered detained pending trial. A trial date has been set for August.
McLaughlin Man Charged with Assault of a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assault of a Federal Officer.
Austin Rain Folson, age 19, was indicted on May 22, 2018. He appeared before U.S. Magistrate Judge William D. Gerdes on June 4, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the Indictment, Folson committed assault when, on or about the 14th day of March, 2018, Folson forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a federal officer while the officer was engaged in the performance of his official duties. The Indictment alleges that Folson’s assault resulted in the officer sustaining an injury.
The charges are merely an accusation and Folson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Folson was ordered detained pending trial. A trial date has been set for August.
Manhattan U.S. Attorney Announces Settlement with NYCHA and NYC to Fundamentally Reform NYCHA Through the Appointment of a Federal Monitor and the Payment by NYC of $1.2 Billion of Additional Capital Money over the Next Five YearsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ben Carson, Secretary of the U.S. Department of Housing and Urban Development (“HUD”), Helen M. Albert, Principal Deputy Inspector General, performing the duties of the Inspector General, HUD Office of the Inspector General (“HUD OIG”), and Scott Pruitt, Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today the simultaneous filing of a Complaint against defendant NEW YORK CITY HOUSING AUTHORITY (“NYCHA”) and a proposed settlement agreement, in the form of a Consent Decree, with NYCHA and the City of New York (the “City”). The Complaint alleges that NYCHA for years has violated and continues to violate basic federal health and safety regulations, including regulations requiring NYCHA to protect children from lead paint and otherwise to provide decent, safe, and sanitary housing. The Complaint further alleges that NYCHA has repeatedly made false statements to HUD and the public regarding its lead paint compliance, and has intentionally deceived HUD inspectors. To fundamentally reform NYCHA and ensure that it provides housing that complies with federal law, the Consent Decree – which is subject to the review and approval of the Court – imposes a strong federal Monitor and requires the City, among other things, to provide $1.2 billion of additional capital funding to NYCHA over the next five years, and $200 million every year thereafter until the problems are fixed and the Consent Decree is no longer necessary.
Along with other federal, state, and city funding, there will be approximately $ 4 billion available for capital improvements the first four years.
U.S. Attorney Geoffrey S. Berman stated: “NYCHA’s failure to provide decent, safe, and sanitary housing is simply unacceptable, and illegal. Children must be protected from toxic lead paint, apartments must be free of mold and pest infestations, and developments must provide adequate heat in winter and elevator service. NYCHA has put its residents at risk. Today’s unprecedented settlement will improve life for the 400,000 residents who call NYCHA home, while ensuring accountability, reform, and oversight at this troubled institution. The City’s commitment of resources to NYCHA is extraordinary and promises real relief for NYCHA residents.”
HUD Secretary Ben Carson said: “This historic agreement marks a new era for New York City’s public housing, one that puts families and their children first. New York City and New York State are making an unprecedented commitment to put NYCHA on a new path. The cooperation of Federal, State and city officials will vastly improve the living conditions for hundreds of thousands of New Yorkers who call NYCHA home.”
HUD OIG Principal Deputy Inspector General Helen M. Albert said: “We are proud of the integral work that the OIG staff performed which led to today’s settlement. This represents a consequential partnership with the U.S. Attorney and others to ensure that those who reside in NYCHA housing will do so in safe and sanitary conditions.”
EPA Administrator Scott Pruitt said: “Instead of protecting children from lead poisoning, NYCHA systematically violated EPA and HUD lead paint safety regulations and covered up its noncompliance. Today’s landmark settlement puts a stop to that. It is not only a great example of what EPA and HUD can achieve by working together, but it also sends a strong message to housing authorities, landlords, and renovators – violating the law and endangering public health will not be tolerated. This agreement will dramatically improve the living conditions of New York City’s most vulnerable residents.”
According to the Complaint filed today in Manhattan federal court:
For years, NYCHA has failed to comply with key HUD and EPA lead paint safety regulations, including by failing to inspect apartments for lead paint hazards and failing to remediate peeling lead paint. NYCHA also fails to ensure that its workers use lead-safe work practices. Children have been harmed as a result of NYCHA’s failures. Between 2010 and 2016, at least 19 lead-poisoned children were found to have been exposed to deteriorated lead paint in their NYCHA apartments, and thousands more were put at risk.
NYCHA also fails to provide “decent, safe, and sanitary” housing as required by HUD regulations. Mold grows unchecked at many NYCHA developments, often on a very large scale, threatening the health of residents with asthma. Across the city, NYCHA residents are provided inadequate heat in winter, leading to frigid apartment temperatures. Pest and vermin infestations are common. Elevators fail, leaving elderly or disabled residents trapped in their apartments or sleeping in building lobbies.
NYCHA has repeatedly made false statements to HUD and the public regarding these matters. These include false certifications by NYCHA each year that it would comply with HUD’s lead paint safety regulations. NYCHA also deceived HUD about living conditions at NYCHA, going so far as to publish a “Quick Tips” training guide for how to hide conditions from HUD’s inspectors.
* * *
The United States has filed a proposed Consent Decree today, which would resolve the allegations in the Complaint. The Consent Decree remains subject to review and approval by the Court. The Consent Decree provides for the appointment of a federal monitor to oversee fundamental reform at NYCHA. The Monitor has the authority, under the review of the Court, to set the performance standards that NYCHA must meet, devise the plans by which NYCHA will achieve those standards (including by implementing changes to NYCHA’s management, organization, and workforce structure), and require NYCHA to select independent contractors to perform certain work. The Monitor will be selected by the United States, after consultation with City and state officials and NYCHA stakeholders, and subject to approval by the Court.
The Consent Decree also commits the City of New York to provide an additional $1 billion in capital funds over the next four years, over and above what the City has budgeted, and at least an additional $200 million in capital funds each subsequent year until the conditions identified in the Complaint are addressed. Further, the Consent Decree requires NYCHA to comply immediately with HUD’s and EPA’s lead-safe work practices rules and to provide notice to residents in any apartment where NYCHA has identified lead paint.
* * *
In the Consent Decree submitted today, NYCHA admits, acknowledges, and accepts responsibility for the following:
-
- At least once a year, beginning no later than 2010 and extending through 2016, NYCHA’s certifications to HUD contained untrue representations that NYCHA “will comply with” HUD’s federal lead paint safety regulations.
- In more than half of NYCHA’s developments, NYCHA’s inspections (including statistical sampling) have confirmed the presence of lead paint somewhere on the premises, and in at least 92 developments, the inspections (including statistical sampling) have confirmed the presence of lead paint inside apartment units.
-
- Since at least 2010, NYCHA has not performed most of the biennial lead paint risk assessment reevaluations required by regulation for developments containing lead paint.
- From at least 2012 to 2016, NYCHA failed to perform visual assessments of apartments for lead paint hazards as required by regulation. In 2016, NYCHA began performing visual assessments in units where children under six reside, but NYCHA has not yet performed visual assessments in the majority of apartments that may contain lead paint.
- Since at least 2010, NYCHA has not ensured that staff use lead-safe work practices when performing work on surfaces that may contain lead paint.
-
- Currently, after NYCHA has removed mold from apartments, the mold returns at least 30% of the time.
-
- In Winter 2017-2018 alone, more than 320,000 residents, 80% of the public housing population, lost heat.
-
- In 2016 alone, NYCHA experienced an average of more than 13 outages per elevator.
-
- NYCHA’s data reflects more than 260,000 work orders for roaches between 2013 and 2016. For the same period, there were more than 90,000 mouse work orders and nearly 36,000 rat work orders.
-
- For a decade, NYCHA provided its staff with a list of “Quick Fix Tips” to improve its Public Housing Assessment System inspection scores.
Mr. Berman thanked HUD, HUD OIG, and EPA for their invaluable assistance in this matter. Mr. Berman also thanked Mark Peters and the Department of Investigation for their important wok in this area.
This case is being handled by the Office’s Environmental Protection Unit in the Civil Division. Assistant United States Attorneys Robert William Yalen, Mónica P. Folch, Jacob Lillywhite, Talia Kraemer, and Sharanya Mohan are in charge of the case.
-
Manchester Man Convicted of Interstate Transportation of a Minor for SexRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that a jury found Kurt Carpentino, 34, of Manchester, New Hampshire, guilty of transporting a minor with intent to engage in criminal sexual activity.
In a trial that began on June 7, 2018 and ended with the jury’s verdict on June 11, 2018, evidence demonstrated that Carpentino transported a person under the age of 18 from New Hampshire to Vermont with intent to engage in sexual activity.
Evidence at trial showed that on April 27, 2017, the Hinsdale, New Hampshire Police Department received a report of a missing 14-year-old child. The child was found later that morning at an abandoned motel owned by the defendant’s sister in Rockingham, Vermont. The child told the police that the defendant took her to the motel and that they had sex there. The defendant was observed driving by the motel and arrested nearby. Later that day, he admitted to taking the child from New Hampshire to Vermont and having sex with her at the hotel. A few weeks later, the defendant wrote the victim letters from jail, attempting to get her to recant her statement to the police.
Sentencing is scheduled for September 19, 2018. The defendant faces a mandatory minimum sentence of ten years and a maximum sentence of life in prison.
“Those who prey on children will be prosecuted aggressively,” said U.S. Attorney Murray. “There is no place in our community for those who attempt to rob children of their innocence. I am grateful for the courage of the young victim, as well as the hard work and dedication of the investigators and prosecutors who secured this guilty verdict.”
The investigation in this case was led by the Vermont State Police, Homeland Security Investigations in Manchester, New Hampshire, the Hinsdale, New Hampshire Police Department, the Manchester, New Hampshire Police Department, the Springfield, Vermont Police Department, and the New Hampshire State Police, with the assistance of the New Hampshire Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorneys Seth R. Aframe and Georgiana L. Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Man Sentenced for $9 Million Credit Card Refund SchemeRead the Press Release
RICHMOND, Va. – A man who led a $9 million nationwide credit card fraud scheme was sentenced today to 10 years in prison.
According to court documents, Michael Cooper, 30, of Orlando, Florida, owned and operated several different entities for the sole purpose of defrauding credit card customers, credit card companies, and various Internet service companies by obtaining refunds of money paid by credit card customers to these Internet service companies. Between 2012 and 2016, Cooper and employees of his entities, Homeland Arbitration LLC, Smith Associates, P.A., and Cohen Associates, LLP, targeted Internet service companies that offered to assist individuals in setting up or managing an Internet presence for their small business. Cooper and his employees located former clients of these companies and misrepresented that they worked at a law firm, provided legal services, and conducted “arbitration” to recover money credit card customers previously paid to the Internet service companies. Unbeknownst to these credit card customers, Cooper and his employees then impersonated these individuals in phone calls and written communications with the individual’s credit card companies, and fabricated contracts and other documents to obtain refunds on their behalf. Cooper charged his clients 40 percent of any amount recovered on their behalf. In total, Cooper and his employees obtained more than $9 million in fraudulent refunds from at least 76 different businesses.
In addition to Cooper, the following four individuals who were employed by Cooper have pleaded guilty to offenses arising from their unlawful participation in the credit card refund scheme described above:
Name, Age
City, State
Convictions
Sentencing Date
Dustin Lee Faulkner, 24
Orlando, FL
Conspiracy to Commit Mail Fraud
June 12
Ashley R. Davis, 34
Fort Lauderdale, FL
Conspiracy to Commit Mail Fraud
June 12
Gustavo Carvajal, 28
Coral Springs, FL
Conspiracy to Commit Mail Fraud
July 12
Michael E. Gordon, 29
Jacksonville, FL
Conspiracy to Commit Mail Fraud
August 3
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Joseph Cronin, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys Katherine Lee Martin and Thomas A. Garnett 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-124.
Lower Brule Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on June 11, 2018, by U.S. District Judge Roberto A. Lange.
Tristan Patterson, a/k/a Tristan Johnson, age 20, was sentenced to 20 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Patterson was indicted by a federal grand jury on September 12, 2017. He pled guilty on March 21, 2018.
The conviction stemmed from an incident on July 29, 2017, when Patterson was being booked into the Lower Brule Correctional Facility following a tribal arrest. Patterson was non-compliant with the booking process. As he was escorted to a holding cell and his wrist restraints were removed, Patterson stood up and began to wrestle with correctional staff. A restraint chair was brought in and he was ordered to sit in the chair.
Patterson resisted and began to tense up his arms in an attempt to avoid being restrained. He also attempted having his legs restrained by kicking his legs out and up. In the course of resisting, Patterson struck one of the correctional officers on the side of the face with his foot, knocking his glasses up. Then Patterson began to spit towards the correctional officers and was placed in a spit mask. No injuries were noted, though one of the correctional officer’s watch was broken in the struggle.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Patterson was immediately turned over to the custody of the U.S. Marshals Service.
Loves Park Man Pleads Guilty to Producing Child PornographyRead the Press Release
ROCKFORD — A Loves Park man pleaded guilty Monday before U.S. District Judge Philip G. Reinhard to producing child pornography.
GRANT WOJAHN, 37, admitted in his written plea agreement that he created a Facebook account and posed as a female teenager. Wojahn admitted that on March 20, 2015, while using that profile, he contacted a minor female victim using the Facebook private messaging feature and persuaded and enticed the minor female victim to engage in sexually explicit conduct for the purposes of having the minor victim take photographs of the sexually explicit conduct and then having the minor victim transmit the images to Wojahn using the private messaging service on Facebook. According to the plea agreement, the female victim was 13 years of age at the time the pictures were produced and transmitted. Wojahn also admitted that between May 21, 2014, and April 5, 2015, he similarly persuaded six other minor female victims, who were between the ages of ten and 12, to do the same.
Wojahn also admitted that on March 25, 2015, he used the Facebook private messaging service to chat and send another user a number of images of child pornography depicting one of the minor victims. Wojahn further admitted that on Sept. 1, 2015, he possessed numerous images of child pornography on a USB storage device, a cellphone, and other devices, and that he possessed at least 43 videos of child pornography and at least 71 images of child pornography.
Wojahn faces a maximum sentence of 30 years’ imprisonment, and a statutory mandatory minimum sentence of 15 years, and a term of supervised release of five years to life. This offense also carries a maximum fine of $250,000.
Sentencing for Wojahn is set for Sept. 26, 2018, at 9:00 a.m., in federal court in Rockford.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Louisiana Man Sentenced for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – A Bossier City, Louisiana, man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in the Lake of the Ozarks area.
Kenneth Harvey Hudson, 29, of Bossier City, was sentenced by U.S. District Judge Brian C. Wimes to 11 years in federal prison without parole.
On Feb. 8, 2018, Hudson pleaded guilty to participating in a conspiracy to distribute methamphetamine in Camden County, Mo.
According to court documents, investigators received information from a confidential source that several individuals from Louisiana were in possession of methamphetamine and guns. Officers contacted Hudson, who was driving a Malibu with co-defendants Sir Master Ford, 29, of Greenwood, La., and Philip Daniel Dennington, 30, of Bossier City, as passengers, at a gas station in Osage Beach, Mo. Officers searched Hudson’s vehicle and found a bag that contained 922 grams of methamphetamine and four firearms, including a loaded 12-gauge shotgun, a loaded Glock .40-caliber pistol, a loaded Smith & Wesson .22-caliber revolver and a loaded Roam/Sontheim .22-caliber revolver.
In 2011, Hudson was convicted of distributing methamphetamine in Louisiana and sentenced to five years in prison. He was on parole for that offense at the time of his arrest in this federal case. Hudson admitted to a long history of substance abuse and methamphetamine use.
Ford was sentenced on Feb. 8, 2017, to two years in federal prison after pleading guilty to being a felon in possession of a firearm. Dennington pleaded guilty to his role in the conspiracy and to possessing methamphetamine with the intent to distribute and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Lake Area Narcotics Enforcement Group and the Missouri State Highway Patrol.
Lockport Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Sterling Jones, 24, of Lockport, NY, who was convicted of possession of child pornography, was sentenced to serve 36 months in federal prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that on March 31, 2017, the defendant possessed 295 videos and 11 images of child pornography. These videos and images were on the cellular telephone and were stored by the defendant in his DropBox online storage account. Over 600 images of child pornography were recovered from Jones’ cellular telephone and some of the images included prepubescent minors and depictions of violence.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Local Man Sentenced for Multiple Child Exploitation ChargesRead the Press Release
HOUSTON – A 24-year-old man from Houston has been ordered to federal prison for receipt and possession of child pornography, announced U.S. Attorney Ryan Patrick. Lucio Banda pleaded guilty March 21, 2018.
Today, U.S. District Judge Kenneth Hoyt sentenced Banda to 120 months in prison. At the hearing, Banda tried to mitigate his responsibility by claiming he did not distribute child pornography on the internet through his use of a peer-to-peer program. The court heard arguments and reviewed evidence regarding how the file-sharing program worked with respect to the sharing and distribution of files Banda made available. In handing down the sentence, the court noted Banda was responsible for the distribution of child pornography. He was further ordered to pay $18,136.40 in restitution to the known victims included in his collection and will serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Banda first came to the attention of law enforcement after they found multiple images of child pornography associated with his online account.
Authorities conducted a search at his residence, at which time they seized Samsung Galaxy Note 3 cellular phone and a San Disk Micro SD Ultra flash drive and a San Disk Ultra Plush flash memory card. Forensic analysis ultimately uncovered 2,191 images and 251 videos contained child pornography which included a substantial number of files with minor females under the age of five. Some of the images are known victims identified through the National Center for Missing and Exploited Children.
He admitted the child pornography was his as well as the online account he used to obtain child pornography and acknowledged using peer-to-peer software to search for, download and obtain child pornography. He also admitted to viewing child pornography for at least five years and that he had been doing so for at least two to three years.
Banda was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Julie N. Searle is prosecuting the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lackawanna Man Sentenced for Attempting to Provide Support to ISISRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – Arafat M. Nagi, 47, of Lackawanna, NY, was sentenced to serve 15 years in prison and 15 years supervised release by U.S. District Judge Richard J. Arcara for attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney James P. Kennedy, Jr. for the Western District of New York, and Special Agent-in-Charge Gary Loeffert of the FBI’s Buffalo Office made the announcement.
On August 28, 2014, a community member advised the FBI that the defendant spoke about violent jihad to various people in the Lackawanna community and it was common for Nagi to get into verbal complaints over his jihadi beliefs. Further investigation determined that the defendant pledged allegiance to ISIS and the leader of the terrorist group, Abu Bakr al Bagdadi.
Investigators learned that the defendant traveled to Turkey on two occasions, in October 2012 and July 2014, with the intention of meeting with members of ISIS. Prior to traveling to Turkey, the defendant purchased a large number of military combat items, including a tactical vest, army combat shirt, body armor, Shahada Flag, combat boots, backpack, burn kit, a hunting knife, machete and night vision goggles. Once in Turkey, Nagi purchased a SIM card and activated a Turkish cell phone number. Facebook messages showed that the defendant contacted other individuals, who were prepared to help the defendant enter Syria to join ISIS, and exchanged Turkish cell phone numbers. In addition, evidence seized from the defendant’s electronic devices showed that the defendant, while in Turkey, was researching how to travel from Istanbul to cities close to the Syrian border.
During follow up interviews in December, 2014 and March 2015, the community member who alerted the FBI regarding Nagi’s actions stated that the defendant still possessed radical political and religious views. According to the individual, Nagi was angry about the killing of rebels in Yemen which he blamed on the United States; pledged an oath to ISIS leaders; expressed agreement with ISIS tactics, including the killing of innocent men, women and children. The individual further reported that defendant planned to travel to Yemen and Turkey again soon.
“Today’s sentencing serves as yet another sobering reminder that terrorism’s reach knows no boundaries and that its supporters may be found—even in our own backyard,” said U.S. Attorney Kennedy. “Yet, today’s sentencing also demonstrates how members of the community play an important role in helping us to identify and eliminate those in our midst who support terrorism. Working with the community and with our partners in law enforcement, this Office will continue its vigilance in discharging our duty to enforce the rule of law so as to protect the lives of Americans at home and abroad and to preserve those values—such as liberty, tolerance, and justice—which define us as Americans.”
“Although today's sentencing of Arafat Nagi closes one FBI Buffalo counter-terrorism investigation, our office continues to identify and investigate potential existing or emerging threats,” said Assistant Special Agent-in-Charge Philip Frigm. “Nagi's actions were not only a threat to this country, but his behavior exposed those around him to unwarranted public scrutiny and speculation. That, too, is unacceptable. Our office continues to engage with our partner communities to understand their perspectives and to provide them with the protection afforded every member of our society. It is through these partner communities that we gain a true understanding of radicalization and use our combined conviction to deter recruitment and the spread of radicalization propaganda. The sentencing is the culmination of an investigation by the FBI Joint Terrorism Task Force.”
This case was investigated by the FBI Joint Terrorism Task Force, and assistance was provided by the New York State Attorney General’s Office. The case was prosecuted by Assistant U.S. Attorneys Timothy C. Lynch and Joel L. Violanti of the Western District of New York, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
Justice Department Files Statement of Interest in Michigan Free Speech CaseRead the Press Release
The Department of Justice today filed a Statement of Interest in Speech First, Inc., v. Schlissel in the Eastern District of Michigan. The plaintiff, Speech First, a nationwide organization dedicated to defending civil liberties, alleges that the University of Michigan has adopted policies prohibiting and punishing speech protected by the First and Fourteenth Amendments. Speech First alleges that the University of Michigan’s policies on “harassment,” “bullying,” and “bias” are so vague and overbroad as to prompt students to limit their speech out of fear that they might be subject to disciplinary sanction, including “individual education” or “restorative justice” at the hands of the University’s Bias Response Team.
The United States’ Statement of Interest argues that the University of Michigan’s Statement of Student Rights and Responsibilities, which prohibits “harassment,” “bullying,” and “bias,” is unconstitutional because it offers no clear, objective definitions of the violations. Instead, the Statement refers students to a wide array of “examples of various interpretations that exist for the terms,” many of which depend on a listener’s subjective reaction to speech.
The United States also argues that the University’s Bias Response Policy chills protected speech through its Bias Response Team. The Bias Response Team, which consists of University administrators and law enforcement officers, has the authority to subject students to discipline and sanction. It encourages students to report any suspected instances of bias, advising them: “[t]he most important indication of bias is your own feelings.” According to the plaintiff, the Bias Response Team has responded to more than 150 alleged incidents of bias in the last year.
In filing the Statement of Interest, Acting Associate Attorney General Jesse Panuccio provided the following statement:
“Freedom of speech and expression on the American campus are under attack. This Justice Department, under the leadership of Attorney General Jeff Sessions, is committed to promoting and defending Americans’ first freedom at public universities."
This is the fourth Statement of Interest filed by the Department of Justice in a First Amendment case under Attorney General Jeff Sessions. The first was filed on Sept. 26, 2017 in Uzuegbunam v. Preczewski, the second was filed on Oct. 24, 2017 in Shaw v. Burke, and the third was filed on January 25 in Young America’s Foundation and Berkeley College Republicans v. Janet Napolitano.
Honduran Man Sentenced for Illegal Use of a Social Security NumberRead the Press Release
JOSE ALBERTO SANTOS-MONTALVAN, age 42, a citizen of Honduras was sentenced yesterday after pleading guilty to a one-count indictment for illegal use of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court documents, SANTOS-MONTALVAN used a social security number that was not assigned to him by the Social Security Administration to register for a safety training course that he was required to complete before he could begin working for a local construction company on various job sites in the local area.
U.S. District Court Judge Eldon E. Fallon sentenced SANTOS-MONTALVAN to a sentence of time served. Following the completion of his sentence, SANTOS-MONTALVAN will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Guilty Verdict for Last of 19 Charged Defendants from Violent Drug OrganizationRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a federal jury has convicted Romel Anthony, the last of the 19 defendants charged in the Khalil Smith indictment. Anthony was part of a violent drug gang that was responsible for, among other things, waterboarding, pistol-whipping, and torturing its victims with boiling water. Anthony was found guilty of one count of Attempted Possession with Intent to Distribute Cocaine. The other members of the drug gang either pleaded guilty or were previously convicted at earlier trials.
“This was an extremely violent drug organization and it’s a credit to our prosecutors and the investigators involved that every single member of this gang has now been convicted and taken off the streets,” said U.S. Attorney McSwain. “Gangs like this terrorize communities and hold neighborhoods hostage and this particular group is an example of why violent crime is a priority for both the Department of Justice and our office.”
“This conviction of the last member of the Khalil Smith home invasion robbery crew represents conclusive justice for the involved victims and their families and for the citizens of Philadelphia," said Special Agent in Charge Donald Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. “This conviction is the culmination of nearly four years of relentless investigation by the men and women of ATF Philadelphia, local law enforcement, and our outstanding partnership with the United States Attorney’s Office.”
The investigation was led by the ATF, with assistance from the Philadelphia Police Department, the Hatfield Township Police Department, the Whitpain Township Police Department, and the Cherry Hill Police Department. It is being prosecuted by Assistant United States Attorneys Salvatore Astolfi and Jeanine Linehan.
Ghanaian Man Sentenced for His Role in Internet Romance Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy announced today that Adams Amen, 32, a citizen of Ghana residing in Detroit, Michigan, who was convicted of conspiracy to commit wire fraud, was sentenced to serve 44 months in federal prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that between March 28, 2015, and June 15, 2017, the defendant conspired with Jason Osei Bonsu and other Ghanaian nationals to devise an internet romance scheme to defraud victims and obtain money.
In furtherance of the scheme, Amen’s co-conspirators utilized a dating website, MillionaireMatch.com, to engage victims in communications online and over the phone to develop a rapport with victims and convince victims that they were developing romantic relationships via the internet. Victims received alleged pictures of the co-conspirators that were actually photographs of others downloaded from the internet. For example, Victim 1, who resides in the Western District of New York, received images of a person known to her as “Marvin Roecker,” but the image actually depicted a real estate agent from Texas, whose name is not “Marvin Roecker.”
After successfully building rapport, victims were asked to wire money to assist with fictitious business ventures, family emergencies, or inheritances. Victims did so, wiring funds to accounts in Ghana, the United Kingdom, and to accounts in the United States controlled by Ghanaian nationals, including Amen.
On March 2, 2016, Victim 1 wired $65,000 to Amen’s TD Bank account. Text messages between the defendant and co-defendant Jason Osei Bonsu demonstrate that both were participants in the scheme to defraud Victim 1. For instance, Amen and Bonsu discussed quickly withdrawing Victim 1’s money to prevent the bank from becoming suspicious. Subsequently, on March 21, 2017, following a request by “Marvin Roecker,” Victim 1 wired another $180,000 to a bank account located in the United Kingdom, which was controlled by a co-conspirator.
Between March 28, 2015, and June 15, 2017, victims wired $881,656 directly to accounts controlled by the defendant. One victim deposited $27,990 cash directly into Amen’s account. Victims lost a total of $909,646.
Jason Osei Bonsu was previously convicted and sentenced to 24 months in prison.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Former Office Manager Pleads Guilty to Embezzling over $300KRead the Press Release
NEWPORT NEWS, Va. – A Norfolk woman pleaded guilty today to an embezzlement scheme that resulted in a loss of over $300,000.
According to court documents, Evelyn Gregory, 49, worked as the office manager of a women’s health clinic from 2007 through April 2016, and had access to multiple office credit cards which she misappropriated for her own use without the practice’s knowledge or consent. During this time Gregory incurred $250,000 in unauthorized purchases of office credit cards. As Gregory’s scheme progressed, she stopped paying office expenses, which caused the practice to accrue debts of which the owners were not aware due to the fact that Gregory concealed her activities by withholding credit card statements from the practice’s accountants. In the latter years of her tenure, Gregory started a debt collection company to which she referred debts owed to the practice without the owner’s knowledge or consent. Gregory and her son operated this company, and aggressively pursued patients for payment, collecting nearly $50,000 in funds owed to the practice. Gregory did not use the collected funds to satisfy the patients’ debt, instead charging the debt off the practice’s books and depositing the collected funds into her personal accounts.
Gregory pleaded guilty to money laundering and faces a maximum penalty of 20 years in prison when sentenced on September 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Joseph Cronin, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin Gratton Cooke 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. 4:18-cr-21.
Former Nashville Airport Employee Pleads Guilty to Mail FraudRead the Press Release
John Pat Banister, Sr., 52, of Springfield, Tennessee, pleaded guilty today in U.S. District Court, to mail fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Banister, a former Telecommunications Service Manager at the Metropolitan Nashville Airport Authority (MNAA), was charged by information on April 5, 2018, with one count of mail fraud, after an investigation determined that he had used his airport credentials to fraudulently order 282 cell phones and sold them to another individual for profit. During the plea hearing, Banister admitted that from February 2015 through January 2017, he used his position and purchasing credentials to order the phones and that he personally profited from the scheme. According to court records, the MNAA paid approximately $134,627.21 for the cell phones.
At sentencing, Banister faces up to 20 years in prison, and up to a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Nashville International Airport Police. Assistant U.S. Attorney Stephanie N. Toussaint is prosecuting the case.
Former Merced County Store Manager Sentenced for Conspiracy to Defraud Government Benefits ProgramRead the Press Release
FRESNO, Calif. — Suzy Vang Lo, 41, formerly of Merced, was sentenced today by U.S. District Judge Lawrence J. O’Neill to 21 months in prison for conspiring to defraud the United States by unlawfully purchasing Supplemental Nutrition Assistance Program (SNAP) benefits from recipients in exchange for cash, U.S. Attorney McGregor W. Scott announced.
Suzy Vang Lo and her husband, Michael Chu Lo, pleaded guilty to the scheme in March 2018. According to court documents, Suzy Vang Lo was the manager of LV Market in Winton. Her husband performed many employee functions at the store even though he was not officially employed at the store. Suzy Vang Lo conspired with her husband to give SNAP recipients cash in exchange for swiping their benefit cards. When the defendants exchanged SNAP benefits for cash, it caused the U.S. Department of Agriculture (USDA) to wire sums of money into an account that Suzy Vang Lo controlled.
Special Agent-in-Charge Lori Chan, United States Department of Agriculture (USDA), Office of Inspector General (OIG), Western Region, stated: “The USDA OIG has the responsibility for protecting the integrity of the Supplemental Nutrition Assistance Program. Protecting the integrity of SNAP is a major investigative priority for OIG. OIG conducts investigations in each region of the United States to deter and uncover criminal activity that undermines important USDA nutrition programs. Vendors who engage in SNAP fraud exploit the program’s needy beneficiaries and misuse the substantial funding that taxpayers provide. The OIG at USDA works to ensure SNAP funds are used for their intended purpose, feeding families, not for the enrichment of criminal enterprises.”
The USDA, through its Food and Nutrition Service, administers SNAP, a food assistance program designed to help low-income individuals and families purchase food. In California, the Food and Nutrition Service authorizes retail food stores to accept SNAP benefits for eligible food items from authorized recipients via the Electronic Benefit Transfer (EBT) system. Through EBT, the funds provided by SNAP and other state benefits programs are loaded onto the benefit recipients’ EBT debit cards. When a recipient wishes to use SNAP benefits to purchase eligible food items at a participating store, the store or customer swipes the recipient’s EBT card, and the recipient enters a Personal Identification Number (PIN). The SNAP dollar amount is immediately deducted from the customer’s SNAP account and is credited dollar-for-dollar to the retailer’s bank account.
When a retailer is authorized to participate in SNAP, it is informed that it may accept SNAP benefits only in exchange for eligible food items, and it must acknowledge in writing that trading cash for SNAP benefits is illegal.
In this case, for approximately three and a half years, the defendants swiped SNAP beneficiaries’ EBT cards and give them cash in the approximate amount of 69 cents per dollar of SNAP benefits. Michael Chu Lo kept notes at the cash registers to warn customers to remain silent during the transactions to avoid detection, and he attempted to hide large transactions by swiping EBT cards multiple times.
This case is the product of an investigation by the U.S. Department of Agriculture Office of Inspector General. Assistant U.S. Attorneys Megan A. S. Richards and Jeffrey A. Spivak are prosecuting the case.
Co-defendant Michael Lo is scheduled to be sentenced on July 25, 2018.
Former Georgia Prison Guard Sentenced in Connection with Sexual Assaults of Female Inmates and Bomb ThreatRead the Press Release
The Justice Department today announced that former Georgia prison guard Edgar Daniel Johnson, 51, was sentenced to 51 months in prison for sexually assaulting three female inmates at the Emanuel Women’s Facility in Swainsboro, Georgia; for coercing the women to help him cover up the assaults; and for making a bomb threat at Elba Island on a separate occasion, in May, 2017. The Court will determine the amount of restitution owed to the victims at a later hearing.
In Oct. 2017, Johnson pleaded guilty in the Southern District of Georgia to three counts of willfully depriving the inmates of their Eighth Amendment rights under color of law, three counts of obstruction for coercing the women to cover up the assaults, and one count of maliciously conveying false information about explosive materials. During the plea hearing, Johnson admitted that, between Nov. 1, 2012, and Sept. 30, 2013, while he was working as a Georgia Department of Corrections prison guard at the Emanuel Women’s Facility, he engaged in non-consensual vaginal intercourse, on more than one occasion, with female inmates S.A., M.A., and M.P. Johnson further admitted that each act of intercourse was against the inmate’s will and violated the inmate’s right under the Eighth Amendment to be free from cruel and unusual punishment, which includes the right to be free from unwanted sexual assaults. Johnson further admitted that he coerced each of the inmates to cover up the assaults.
Johnson also admitted that on May 3, 2017, in an unrelated matter, he used a cellular telephone to call Southside Fire in Chatham County, Georgia, and falsely report a bomb threat at Elba Island. Johnson admitted that at the time he called in the bomb threat, he maliciously conveyed the threat even though he knew the threat to be false.
“This defendant abused his legal authority to prey on vulnerable women who had been entrusted to his care,” said Acting Assistant Attorney General John Gore. “The Civil Rights Division is committed to protecting the rights of all individuals, and will hold law enforcement officers who violate the law accountable.”
“No one is above the law, and the criminal actions of this former prison guard compel a strong rebuke. Anyone who chooses to prey on others under color of official right should expect federal prosecution and jail,” said United States Attorney Bobby L. Christine.
“Corrections officials have a difficult and important job, but we cannot allow them to abuse their authority and assault the very people they are charged with supervising," said J.C. Hacker, Acting Special Agent in Charge of FBI Atlanta. "The FBI will not allow the actions of a few to tarnish the many corrections officials who do their job every day, maintaining order and respecting the law."
This case was investigated by the FBI’s Augusta Resident Agency with assistance from the Georgia Department of Corrections and the District Attorney’s Office for Swainsboro, Georgia. The case is being prosecuted by Assistant U.S. Attorneys Tara Lyons and Matthew Josephson of the Southern District of Georgia and Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division.
Former Biscayne Park Police Chief and Two Former Patrol Officers Indicted for Conspiring to Violate Juvenile’s Civil rights by Intentionally Making False ArrestsRead the Press Release
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General John Gore, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced federal charges against former Biscayne Park Police Chief Raimundo Atesiano and former Officers Charlie Dayoub and Raul Fernandez for their roles in conspiring to falsely arrest a 16-year-old juvenile, T.D., for four unsolved burglaries.
Atesiano, Dayoub and Fernandez were charged with conspiracy to violate civil rights under color of law, in violation of Title 18, United States Code, Section 241; and deprivation of T.D.’s civil rights, under color of law, in violation of Title 18, United States Code, Section 242. If convicted, Atesiano, Dayoub and Fernandez each face a maximum statutory sentence of 11 years in prison. An initial hearing for Atesiano was held today, in Miami, before U.S. Magistrate Judge John J. O’Sullivan.
The indictment alleges that Atesiano, as the Biscyane Park Police Chief, caused and encouraged officers to knowingly arrest T.D. without a legitimate basis in order to maintain a fictitious 100 percent clearance rate of reported burglaries. Atesiano directed Dayoub and Fernandez to arrest T.D. on June 13, 2013, and falsely charge him with unsolved burglaries knowing that there was no evidence and no lawful basis to support such charges. The indictment further alleges that following Atesiano’s instruction, Dayoub and Fernandez gathered information for four unsolved burglary cases, completed four arrest affidavits for the burglaries, and included a false narrative that an investigation revealed that T.D. had committed the four burglaries of unoccupied dwellings. Atesiano, Dayoub and Fernandez knew there was no evidence and no lawful basis to arrest and charge T.D. with those crimes. On July 9, 2013, at a meeting of the City Council for The Village of Biscayne Park, Atesiano announced that his department had a 100 percent clearance rate for burglaries.
An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Mr. Greenberg commends the investigative efforts of the FBI, the FBI Miami Area Corruption Task Force and FDLE in this matter.
Mr. Greenberg thanked the Miami-Dade State Attorney’s Office for its assistance. The case is being prosecuted by Assistant U.S. Attorney Harry Wallace and Special Assistant United States Attorney Trent Reichling of the Southern District of Florida, and Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Biscayne Park Police Chief and Two Former Patrol Officers Indicted for Conspiring to Violate Juvenile’s Civil Rights by Intentionally Making False ArrestsRead the Press Release
Acting Assistant Attorney General John Gore, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced federal charges against former Biscayne Park Police Chief Raimundo Atesiano and former Officers Charlie Dayoub and Raul Fernandez for their roles in conspiring to falsely arrest a 16-year-old juvenile, T.D., for four unsolved burglaries.
Atesiano, Dayoub, and Fernandez were charged with conspiracy to violate civil rights under color of law, in violation of Title 18, United States Code, Section 241; and deprivation of T.D.’s civil rights, under color of law, in violation of Title 18, United States Code, Section 242. If convicted, Atesiano, Dayoub, and Fernandez each face a maximum statutory sentence of 11 years in prison. An initial hearing for Atesiano will be held at 1:30 p.m. today, in Miami, before U.S. Magistrate Judge John J. O’Sullivan.
The indictment alleges that Atesiano, as the Biscyane Park Police Chief, caused and encouraged officers to knowingly arrest T.D. without a legitimate basis in order to maintain a fictitious 100 percent clearance rate of reported burglaries. Atesiano directed Dayoub and Fernandez to arrest T.D. on June 13, 2013, and falsely charge him with unsolved burglaries knowing that there was no evidence and no lawful basis to support such charges. The indictment further alleges that following Atesiano’s instruction, Dayoub and Fernandez gathered information for four unsolved burglary cases, completed four arrest affidavits for the burglaries, and included a false narrative that an investigation revealed that T.D. had committed the four burglaries of unoccupied dwellings. Atesiano, Dayoub and Fernandez knew there was no evidence and no lawful basis to arrest and charge T.D. with those crimes. On July 9, 2013, at a meeting of the City Council for The Village of Biscayne Park, Atesiano announced that his department had a 100 percent clearance rate for burglaries.
An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Miami Field Office of the Federal Bureau Investigation including the FBI Miami Area Corruption Task Force and FDLE. The case is being prosecuted by Assistant U.S. Attorney Harry Wallace and Special Assistant United States Attorney Trent Reichling of the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, and Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice.
Exective Director of RARES Pleads Guilty to Filing False Tax ReturnsRead 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 John Brian Mount, 60, of Pittsford, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci to filing a false tax return. The charge carries a maximum penalty of three years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Mount was the executive director of Regional Area Recreation and Employee Services (RARES), a non-profit business located at 312 West Commercial Street in East Rochester. The non-profit provides discounted tickets and services to subscribing companies. The defendant received salary and commissions from RARES that he failed to report on his 2010 through 22103 federal tax returns. In total, Mount failed to report approximately $227,835.77 in additional income on his tax returns, which resulted in the defendant failing to pay $60,977 in taxes to the Internal Revenue Service.
Today’s plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Mount’s sentencing is scheduled for September 19, 2018, at 3:00 p.m. before Judge Geraci.
Erica MacDonald Takes Oath of Office as United States Attorney for the District of MinnesotaRead the Press Release
Erica H. MacDonald has taken the oath of office to become the United States Attorney for the District of Minnesota. U.S. Attorney MacDonald was nominated by President Donald Trump on April 10, 2018, and confirmed by the U.S. Senate on May 24, 2018. She took the oath of office from U.S. District Court Chief Judge John R. Tunheim this morning. She succeeds Gregory Brooker who has served as the United States Attorney since March 2017.
“It is truly an honor to return to this office and serve as United States Attorney,” said U.S. Attorney MacDonald. “I am looking forward to leading a team of dedicated professionals and working alongside our law enforcement partners in the pursuit of justice on behalf of all Minnesotans.”
As United States Attorney, Ms. MacDonald is the top-ranking federal law enforcement official in the District of Minnesota. She will oversee a staff of 99 employees, including 52 attorneys and 47 support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, firearms, narcotics, child exploitation, human trafficking, financial fraud, healthcare fraud, and public corruption. The office is also responsible for representing the United States in affirmative and defensive civil cases, as well as assisting communities throughout Minnesota in appropriate community-building efforts designed to enhance public safety.
Before taking office, U.S. Attorney MacDonald was a judge in Dakota County since 2009. Prior to her judgeship, from 2000-2009, U.S. Attorney MacDonald served as an Assistant U.S. Attorney for the Northern District of Illinois and for the District of Minnesota. She began her legal career in 1997 as a judicial clerk to Judge James Henry Alesia of the U.S. District Court in Chicago. She then joined the firm of Kirkland and Ellis in 1999.
U.S. Attorney MacDonald received her J.D. degree, with honors, from DePaul University College of Law, and her B.A. degree from the University of Notre Dame.
Upon taking office, U.S. Attorney MacDonald thanked Mr. Brooker for his continued and dedicated service to the office and to the Department of Justice.
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Epsom Woman Sentenced to Eight Years in Prison on Fentanyl Trafficking and Firearm ChargesRead the Press Release
CONCORD – Nicole Roskos, 30, of Epsom, was sentenced to eight years in federal prison for conspiracy to possess with intent to distribute controlled substances and using and carrying a firearm during and in relation to a drug trafficking crime, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, the investigation began when the defendant sold fentanyl to a cooperating individual. In September of 2017, police executed a search warrant at the defendant’s residence and found four firearms, ammunition, over 511 grams of fentanyl, and approximately $24,000.
Roskos previously pleaded guilty to the charges on March 2, 2018. After she is released from prison, the defendant will serve a three-year term of supervised release.
“The deadly combination of fentanyl trafficking and firearms pose a substantial threat to public safety,” said U.S. Attorney Murray. “We will continue to work with all of our law enforcement partners to identify and prosecute those who distribute deadly drugs such as fentanyl. It should be noted, that drug dealers who choose to use guns to further their unlawful activities subject themselves to longer prison terms when convicted.”
This matter was investigated by the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
###
Dorchester Landlords and Property Manager Agree to Settle False Claims Act AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today a $57,000 settlement with two landlords and a property manager of three Dorchester apartments to resolve allegations they submitted false claims to the federal government after receiving impermissible excess rent payments from two low income tenants while participating in a federal housing subsidy program.
The Department of Housing and Urban Development provides federal funding through the Federal Housing Choice Voucher program, commonly referred to as “Section 8,” to assist low income individuals in securing safe housing. The funding is provided through vouchers that are administered by local public housing agencies. The housing subsidy, which may cover all or a portion of a tenant’s monthly rent, is paid directly to the landlord. As a condition for receiving the housing subsidy, the landlord contractually agrees not to charge the tenant rent in excess of the amount set by the public housing agency.
Despite this restriction, the landlords, Latchmin Nannan and David Nannan, and the property manager, Rhea Nannan, allegedly collected excess rent from two Section 8 tenants each month at various times between September 2006 and December 2015. Kafer Nevins, one of the two Section 8 tenants, first raised this allegation in a lawsuit filed against the defendants under the qui tam, or whistleblower, provisions of the False Claims Act.
“The Section 8 program provides precious funding for low income individuals to afford safe housing,” said United States Attorney Andrew E. Lelling. “We will hold landlords to their obligations under the program to ensure that Section 8 tenants will not be taken advantage of.”
“This office places a high priority on investigating allegations of waste, fraud and abuse related to HUD’s Public Housing Program,” said Christina Scaringi, Special Agent in Charge, Office of Inspector General, U.S. Department of Housing and Urban Development. “Today’s settlement should serve as a warning to those willing to commit fraud involving HUD funded programs that we will pursue such cases to the fullest extent of the law,” she concluded.
The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The settlement agreement requires the defendants to pay $57,000 to the United States. Mr. Nevins will receive approximately $11,400 of the recovery in this case.
U.S. Attorney Lelling and HUD OIG SAC Scaringi made the announcement today. This case was handled by Assistant U.S. Attorneys Steven Sharobem and Elianna Nuzum of Lelling’s Office with the assistance of the United States Department of Housing and Urban Development’s Office of Inspector General.
District Man Sentenced to 15 ½ Years in Prison for Stabbing Two People in Southeast WashingtonRead the Press Release
WASHINGTON - Ulysses Goodine, 39, of Washington, D.C., was sentenced today to a 15 ½-year prison term for stabbing a man in Southeast Washington and then stabbing a woman who tried to stop the attack, U.S. Attorney Jessie K. Liu announced.
Goodine was found guilty by a jury in March 2018 of one count each of aggravated assault while armed and assault with significant bodily injury while armed, and two counts of assault with a dangerous weapon. The verdict followed a trial in the Superior Court of the District of Columbia. Goodine was sentenced by the Honorable Juliet McKenna. Upon completion of his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 18, 2016, at approximately 10:45 p.m., Goodine got into an altercation with a 19-year-old man in in the 5000 block of D Street SE. The altercation followed a series of interactions between the two men that evening that had ranged from verbal exchanges to a friendly handshake. The chain of events ended with Goodine calling the victim over to him and stabbing him several times in the arm, shoulder, and back. The most severe wound – which penetrated the victim’s chest cavity and collapsed his lung – was delivered to the back, as the victim was attempting to run away. In addition to stabbing this victim, Goodine attacked a woman who tried to intervene by stabbing her in the hand.
Goodine was arrested on Oct. 21, 2016, and has been in custody ever since. At sentencing, the government noted that Goodine now has 15 convictions as an adult, including for offenses such as distribution of drugs and assaults.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department and the United States Park Police. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Kathryn Rakoczy, Jennifer Kerkhoff, and Laura A. Bach; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Paralegal Specialists Antoinette Sakamsa and Tierra Nanches; Litigation Technology Specialist Claudia Gutierrez, and Victim/Witness Security Specialists Debra Cannon and Lesley Slade.
Finally, she expressed appreciation for the work of Assistant U.S. Attorneys Ellen D’Angelo and Maryam Adeyola, who investigated and prosecuted the case.
District Court Enters Permanent Injunction Against Mississippi Compounding Pharmacy and Two of its Officers to Prevent Distribution of Adulterated DrugsRead the Press Release
WASHINGTON – The U.S. District Court for the Northern District of Mississippi entered a consent decree of permanent injunction against defendants Delta Pharma, Inc. (Delta Pharma), its President, Dr. Tommy T. Simpson, and its Vice President and Pharmacist in Charge, Charles Michael Harrison, to prevent the distribution of adulterated drugs in violation of federal law, the Department of Justice announced today.
The entered permanent injunction stems from a complaint the Department filed in the U.S. District Court for the Northern District of Mississippi on June 4, 2018, at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged, among other things, that the defendants distributed adulterated drugs in interstate commerce.
As part of the permanent injunction, defendants are enjoined from manufacturing, holding, or distributing any drugs manufactured from their facility unless they comply with specific remedial measures. Those measures include submitting a plan to FDA, which will provide for an independent expert to conduct inspection(s) of defendants’ facility and ensuring that defendants implement all recommended corrective actions. In addition, the defendants must report to FDA the actions they have taken to correct all insanitary conditions and deviations from current good manufacturing practice brought to their attention by the FDA or defendants’ expert. The permanent injunction provides that defendants cannot resume manufacturing, holding, and distributing such drugs until FDA notifies them in writing that they appear to be in compliance with the ordered remedial measures.
“Compounding pharmacies have a responsibility to ensure that they process and label drugs in a manner that ensures the safety and quality of such drugs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with FDA to ensure that doctors and patients can rely on the drug safety protections in federal law.”
“The Food, Drug, and Cosmetic Act is designed to protect the American people,” said U.S. Attorney William C. Lamar for the Northern District of Mississippi. “This civil action demonstrates our commitment to enforce laws designed to protect the health and safety of the American public.”
According to the complaint filed by the Department, defendants’ drugs were adulterated because they were prepared, packed, or held under insanitary conditions whereby they may have been contaminated or may have been rendered injurious to health. The complaint also alleged that defendants’ drugs were adulterated because defendants failed to comply with current good manufacturing practice requirements.
FDA conducted an inspection of Delta Pharma in February 2017. According to the complaint, FDA investigators observed and documented numerous insanitary conditions, including the use of fifty-foot-long tubing to process purportedly sterile drugs, without determining whether the procedures for sterilizing the tubing are effective or assessing the tubing’s compatibility with the drug products to ensure that chemicals or particulates from the tubing do not leach, interact, or otherwise contaminate such drug products.
In addition, the complaint alleges that during the 2017 inspection, FDA documented numerous deviations from current good manufacturing practice requirements for drugs, including defendants’ failure to establish and follow appropriate written procedures that are designed to prevent microbiological contamination of drug products purporting to be sterile. According to the complaint, the FDA also documented that defendants failed to thoroughly review and investigate any unexplained discrepancy or the failure of a batch or any of its components to meet any of its specifications; and failed to establish an adequate quality control unit that has the responsibility and authority to approve or reject all components, drug product containers, closures, in-process materials, packaging material, labeling, and drug products, and has the authority to investigate any errors that may have occurred.
The consent decree of permanent injunction also resolved allegations in the complaint filed by the Department that the defendants distributed misbranded and unapproved new drugs in violation of the federal Food, Drug, and Cosmetic Act.
The government is represented by Trial Attorney Joshua D. Rothman of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney John Gough of the U.S. Attorney’s Office for the Northern District of Mississippi, with the assistance of Associate Chief Counsel Laura Akowuah of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Mississippi, visit its website at https://www.justice.gov/usao-ndms.
Delevan Man Sentenced to More Than 20 Years in Prison on A Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John P. Cutler, 35, of Delevan, NY, who was convicted receipt of child pornography following a prior conviction, was sentenced to serve 262 months in federal prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that between July 2016 and September 26, 2016, the defendant searched for and downloaded images and videos of child pornography online. Cutler saved the child pornography on a laptop computer. A forensic examination of the computer revealed approximately 1875 images and 199 videos of child pornography. Some of the images and videos depicted prepubescent minors as well as depictions of violence against the minors.
The defendant was previously convicted in New York State Court of committing a Criminal Sexual Act in the Second Degree.
Today’s sentencing is the result of an investigation by agents of the Federal Bureau of Investigation, under the direction of Gary Loeffert, Special Agent-in-Charge, and the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb.
Delaware Businessman Sentenced to Prison for Tax CrimesRead the Press Release
Wilmington, Del. – David C. Weiss, United States Attorney for the District of Delaware announced today that Jeffrey Minner, age 55, was sentenced to 18 months in prison by U.S. District Court Judge Gregory Sleet. In addition, Minner was ordered to pay $1,223,660 in restitution to the IRS.
According to statements made at the sentencing hearing and documents filed in court, Minner owned and operated Advanced Enterprises Incorporated, a commercial cleaning company that employed between 140 and 185 employees at any given time. Minner pled guilty to withholding taxes from his employees but failing to pay those monies over to the Internal Revenue Service (“IRS”).
Over the course of five years between 2011 and 2016, Minner collected in excess of $1.2 million in employee Medicare, Social Security, and income taxes that he did not pay over to the IRS. Instead, Minner used a portion of those monies to fund his lifestyle and pay off other debts.
In sentencing Minner to prison, U.S. District Court Judge Gregory Sleet said, “I hope this sentence will promote a greater respect for the law.”
U.S. Attorney Weiss added, “The U.S. Tax Code operates on a system of voluntary compliance. Not only will this sentence deter others who might consider diverting employee tax obligations to line their own pockets, but it represents justice for every tax-paying citizen.”
The case was prosecuted by Assistant U.S. Attorneys Whitney C. Cloud and Alexander P. Ibrahim and investigated by special agents from IRS Criminal Investigation.
DOJ Reaches Settlement with Washington Health Care Authority to Improve Services to Patients Who are Deaf or Hard of HearingRead the Press Release
The U.S. Department of Justice, working through the U.S. Attorney’s Office, and the Washington Health Care Authority (HCA) today entered into a settlement designed to improve important interpreter services for low income patients with hearing disabilities, announced U.S. Attorney Annette L. Hayes. The settlement calls for HCA to vastly increase the number of sign language interpreters it has available to attend Apple Health Plan (Medicaid) medical appointments and interpret for patients who are hearing impaired and/or their companions. Under the terms of the settlement, the number of interpreters under contract statewide will be increased from fewer than ten to more than 100.
“The ability of people with hearing disabilities to fully understand and thus participate in their medical care is a fundamental right protected by federal law,” said U.S. Attorney Annette L. Hayes. “Healthcare providers, and state agencies involved in healthcare, must ensure that their services are provided in a manner that does not exclude people with disabilities.”
An investigation by the U.S. Department of Justice, led by the U.S. Attorney’s Office for the Western District of Washington, revealed that since 2012, HCA’s Interpreter Services Program has contracted with CTS LanguageLink to provide interpreter services for medical appointments. However, during the term of that five year contract, CTS LanguageLink only had between zero and eight sign language interpreters available for Apple Health appointments state-wide, with no sign language interpreters available in most counties. This resulted in fewer than 30% of all requests for interpreter services being fulfilled. As a result, appointments with medical professionals were often cancelled or rescheduled when no interpreter was available. In some instances the appointments went forward with inferior means of communicating with the patient or their caregiver. The investigation concluded that HCA was violating the Americans with Disabilities Act because it failed to ensure that the Medicaid benefits of the Apple Health program were being provided equally to qualified individuals with disabilities.
Under the terms of the settlement, by July 1, 2018, HCA will contract with an interpreter service provider that has at least 100 sign language interpreters statewide. By April 2019, HCA will need to show an appointment fulfillment rate of at least 90 percent. If any region of the state falls short of that requirement, the settlement calls for HCA to take specific steps to recruit additional sign language interpreters.
The settlement also calls for immediate relief for the interpreter shortfalls by requiring HCA to permit healthcare providers to immediately obtain their own ASL interpreter for healthcare appointments outside of the HCA system and receive reimbursement by HCA for those services. The settlement also calls for HCA to use the Apple Health website and other communications tools to inform patients of their rights to interpreter services along with a grievance procedure if they believe their rights have been violated.
The agreement will be in force for three years and during that time the HCA will collect data on requests and fulfillment for sign language interpreting. The data will be provided to the U.S. Attorney’s Office, Western District of Washington on a quarterly basis so that the Department of Justice can ensure services are being provided as required.
Assistant United States Attorney Christina Fogg led the investigation and negotiated the settlement.
Convicted Felon Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Aaron Lucas, aka B-Wise, 39, of Buffalo, NY, who was convicted of being a felon-in- possession of a firearm, was sentenced to serve 48 months in federal prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on October 25, 2015, a New York State search warrant was executed at the defendant’s Busti Avenue residence in Buffalo. Officers recovered a .22 caliber semi-automatic rifle.
Lucas was convicted in 2003 of a felony charge in state court and as a result was prohibited from legally possessing a firearm.
The sentencing is the culmination of an investigation on the part of the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Claims Specialist at Social Security Administration Arrested on Fraud and Identity Theft Charges for Allegedly Misappropriating at Least $680,000 in Fraudulent BenefitsRead the Press Release
CHICAGO — A claims specialist for the U.S. Social Security Administration has been indicted on federal fraud and identity theft charges for allegedly approving and pocketing at least $680,000 in fraudulent benefits.
ANNE AROSTE, also known as “Ann Aroste,” worked as a claims specialist at the SSA’s field office in Aurora. Aroste was responsible for processing applications for Social Security benefits via the agency’s electronic records system. According to the indictment, Aroste created fraudulent applications for benefits on the Social Security earnings records of deceased workers. She then used her employee credentials to approve the applications and to route the payments to bank accounts she controlled, the indictment states.
From 2013 to last month, Aroste caused the U.S. Treasury Department to issue at least $680,962, in fraudulent payments, the indictment states.
The indictment charges Aroste, 42, of Montgomery, with five counts of wire fraud and five counts of aggravated identity theft. She was arrested this morning and pleaded not guilty at an afternoon arraignment before U.S. Magistrate Judge Daniel G. Martin. A detention hearing is set for June 13, 2018, at 11:00 a.m., before U.S. District Judge Manish S. Shah.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tracey Thanos, Special Agent-in-Charge of the Social Security Administration’s Office of Inspector General in Chicago; and Benjamin Sides, Special Agent-in-Charge of the U.S. Department of State, Diplomatic Security Service Chicago Field Office.
The indictment describes five instances in which Aroste allegedly caused an application for Social Security benefits to be submitted in the names of individuals whom Aroste falsely claimed had been married to deceased workers. Aroste used her employee credentials to approve the fraudulent applications for survivor’s benefits based on the Social Security earnings of the deceased workers, the indictment states. The Treasury then transmitted the benefit payments into Aroste’s bank accounts.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in prison, while each count of aggravated identity theft carries a mandatory, consecutive prison sentence of two years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Special Assistant U.S. Attorney Jared C. Jodrey.
Bangor Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that David Jack, 44, of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 10 years in prison and 15 years of supervised release for possessing child pornography. Jack pleaded guilty on January 26, 2018.
According to court records, in the summer of 2016, the defendant, while living in Bangor, used his cellular telephone to show images of children engaged in sexual activity to a 9-year-old girl. Shortly thereafter, detectives with the Bangor Police Department obtained a search warrant for the defendant’s home and seized two laptop computers and a cellular telephone. A forensic examination of those devices revealed over two thousand images of children, many of them prepubescent, engaged in sexually explicit conduct.
The case was investigated by the Bangor Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. 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. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Albany Man Sentenced to 210 Months for Producing Child PornographyRead the Press Release
ALBANY, NEW YORK – Brennan McNeil, age 26, of Albany, was sentenced today to 210 months in prison for sexually exploiting a child for the purpose of producing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of his guilty plea on March 5, McNeil admitted that, in early 2017, he produced a video of a 10-year-old child being subjected to sexually explicit conduct. McNeil produced the video in North Carolina, where he lived at the time, and saved it on a thumb drive that he brought with him when he moved, in May 2017, from North Carolina to New York
Senior United States District Judge Thomas J. McAvoy also sentenced McNeil to a life term of post-imprisonment supervised release. McNeil must also register as a sex offender upon his release from prison.
This case was investigated by the FBI, the Colonie Police Department, and the New York State Police, and was prosecuted by Assistant U.S. Attorneys Joseph A. Giovannetti and Katherine Kopita.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Albany Attorney Admits to Stealing from Elderly Clients in $11.8 Million Estate FraudRead the Press Release
ALBANY, NEW YORK – Richard J. Sherwood, age 58, of Guilderland, New York, pled guilty today to money laundering and tax crimes, and admitted his role in stealing approximately $11.8 million from estates for which he served as an attorney and fiduciary.
The announcement was made by United States Attorney Grant C. Jaquith; New York Attorney General Barbara D. Underwood; Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation; and James D. Robnett, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.
Sherwood also pled guilty today, in Albany County Court, to grand larceny in the second degree, in a case brought by the New York Attorney General’s Office.
United States Attorney Grant C. Jaquith stated: “Richard Sherwood betrayed his clients and his profession when he stole $11.8 million from their estates. His elderly clients, including one who suffered from dementia, planned to continue their philanthropy after their deaths by using their estates to support churches, charities, and civil organizations. Instead of carrying out their wishes, as he was required to do by both legal and ethical obligations, Sherwood used his legal skills to divert and steal their money. Any lawyer preying on elders should take notice that criminal conduct by attorneys will be aggressively investigated and prosecuted to the fullest extent of the law.”
New York Attorney General Barbara D. Underwood said: “New Yorkers should be able to trust that their financial advisors will make sound decisions – not scheme to line their own pockets. We will continue to hold accountable those that try to game the system and violate the public trust.”
Sherwood, an attorney since 1988, practiced primarily in the area of trusts and estates. Starting in about 2006, he provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York. Sherwood was advising the Bruggemans when, in 2006, they signed wills directing that all their assets go to charities, churches and civic organizations, aside from bequests to Anne Urban and Julia Rentz, Pauline’s other sister.
Warren Bruggeman died in April 2009, and Pauline died in August 2011. At the time of her death, Pauline had personal and trust assets valued at approximately $20 million.
In pleading guilty, Sherwood admitted that after Pauline Bruggeman’s death, he and another person conspired to steal millions of dollars from her estate as well as from Anne Urban, who died in 2013. Their conspiracy came to include the diversion and transfer to themselves of several million dollars belonging to Julia Rentz, a resident of Ohio, who was suffering from dementia at the time of the thefts and died in 2013.
FBI Acting Special Agent in Charge Janelle M. Miller stated: “Richard Sherwood abused his position and defrauded clients who trusted him with their life savings. This is a case about greed and abuse of trust. The FBI will continue to work with our partners to ensure this kind of malicious behavior is investigated and prosecuted. Mr. Sherwood will now face serious consequences for his fraudulent actions.”
IRS-CI Special Agent in Charge James D. Robnett stated: “Richard Sherwood was entrusted to ensure the financial security of these innocent victims but instead chose to utilize his profession to unjustly enrich himself. Attorneys who abuse their fiduciary responsibilities and commit their own financial crimes must be held responsible.”
Sherwood admitted that he and a co-conspirator stole $11,831,563, and that nearly $3.6 million was transferred outright to him, with an additional $1.96 million transferred to an entity, Empire Capital Trust, LLC, that he and the conspirator controlled. Sherwood also admitted that he transferred to himself the Bruggeman family camp located on Galway Lake in Galway, New York.
Sherwood’s co-conspirator is presumed innocent unless and until proven guilty.
Sherwood admitted that he and the co-conspirator induced Anne Urban to create a trust whose purpose, unknown to her, was to allow him and the co-conspirator to transfer Bruggeman/Urban assets to themselves. Sherwood and his co-conspirator also set up more than 10 bank accounts, and created a limited liability company (Empire Capital Trust, LLC), to first conceal the theft of the money and then transfer the money to themselves.
Sherwood also pled guilty to filing false federal tax returns in 2013 and 2015. These returns were false because he did not report, as other income, about $4.7 million that he received from the fraudulent scheme.
Sherwood faces up to 20 years in prison, a maximum fine of $250,000, and up to 3 years of post-imprisonment supervised release when he is sentenced by Senior United States District Judge Lawrence E. Kahn. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Sherwood has agreed to forfeit $3,742,211.65 that the United States Attorney’s Office and FBI have already seized from him, as well as the residence on Galway Lake that had previously belonged to the Bruggemans.
Sherwood served as Guilderland Town Justice from 2014 until his arrest, on state charges, on February 23, 2018. He resigned his position on March 5.
The federal case is being investigated by the FBI and IRS-CI, and is being prosecuted by Assistant U.S. Attorney Michael Barnett. Assistant U.S. Attorney Tamara B. Thompson is prosecuting the forfeiture aspects of this case.
The state case is being prosecuted by Assistant Attorneys General Christopher Baynes and Matthew Peluso of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Daniel G. Cort and Deputy Bureau Chief Stacy Aronowitz. The Criminal Justice Division is led by Executive Deputy Attorney General Margaret Garnett.
The investigation was led by Investigator Mark Spencer of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator Antoine Karam. The Investigations Bureau is led by Chief Dominick Zarrella. Meaghan Scovello, Associate Forensic Auditor, provided the financial analysis. The Forensic Audit Section is supervised by Edward Keegan. Senior Analyst Sara Pogorzelski assisted in the investigation.