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8 June 2018
Shepherdsville Man Convicted of Selling Counterfeit Bicycle Helmets on EbayRead the Press Release
LOUISVILLE, KENTUCKY—After a four day trial, Matthew S. Stepp, age 40, of Shepherdsville, Kentucky, was found guilty today of eight counts of mail fraud and three counts of trafficking in counterfeit goods, United States Attorney Russell M. Coleman announced.
“What might appear on its face to be an esoteric white collar prosecution is, in fact, an all-out effort to keep kids and families safe” said U.S. Attorney Russell Coleman “This office will continue to work with our federal law enforcement partners to protect Americans from counterfeit personal safety equipment and companies from theft of their intellectual property.”
Martin H. Nguyen, the former General Counsel of BRG Sports – which owned one of the helmet manufacturers victimized by the defendant – stated “This is a sterling example of industry and government collaborating for the public benefit. The private and public sectors should remain constantly vigilant in both enforcement of intellectual property rights and protection of consumers.”
Stepp was charged with conducting a scheme to defraud consumers by marketing and selling high-end, counterfeit bicycle helmets on eBay between May 2014 and November 2014. Stepp had purchased the counterfeit helmets for pennies on the dollar from Ali Express, a Chinese website. Stepp was also charged with three counts of trafficking in counterfeit goods for selling counterfeit Specialized, Giro, and Catlike helmets on eBay.
During trial, representatives from Specialized testified that in mid-October 2014 they realized that Stepp was marketing Chinese counterfeit Specialized S-Works Prevail bicycle helmets for sale, and that Stepp was the first American distributor of Chinese counterfeit Specialized bicycle helmets on eBay. Concerned for customer safety, Specialized immediately notified eBay and the National Intellectual Property Rights Coordination Center (NIPRCC), who immediately contacted Homeland Security Investigations in Louisville. A search warrant was executed at Stepp’s home on November 6, 2014, where 45 counterfeit helmets were seized. Additional packages containing counterfeit helmets that Stepp had placed in the mail for delivery were also seized from the Post Office.
During trial, the United States introduced evidence showing that Stepp purchased counterfeit Specialized S-Works Prevail, Giro Aeon, and Catlike Whisper bicycle helmets on Ali Express for between $50 and $70, and sold those helmets on eBay for upwards of $150. The retail value of the helmets was over $200. Sample counterfeit Specialized and Giro helmets seized from Stepp were tested to see if they satisfied Consumer Product Safety Commission safety standards. The counterfeit helmets were found not to contain roll cages or the internal reinforcements that are standard in high-end authentic Specialized and Giro bicycle helmets. When placed on a head form and dropped onto a testing surface at approximately 11 miles per hour, the counterfeit helmets broke into pieces during impact testing, resulting in direct contact between the head forms and the testing surface. Testimony at trial revealed that a consumer wearing one of the counterfeit helmets and suffering a similar impact might suffer a fractured skull, brain damage, or death.
Stepp will be sentenced by United States District Court Judge Claria Horn Boom in Louisville on September 10, 2014 at 10 a.m. The case was investigated by the Department of Homeland Security/Homeland Security Investigations, and the United States Postal Inspection Service, and was prosecuted by Assistant United States Attorneys Daniel P. Kinnicutt and David R. Weiser, and paralegal Elizabeth Fauxpoint.
Shelton Man Sentenced to 5 Years in Federal Prison for Downloading Child Pornography from the Dark WebRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL HULL, 61, of Shelton, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by five years of supervised release, for possessing child pornography.
According to court documents and statements made in court, a Homeland Security Investigations (HSI) operation revealed that HULL was accessing the dark web to search for, view and download child pornography. On May 31, 2017, HSI agents and Shelton Police officers conducted a court-authorized search of HULL’s Shelton residence and seized approximately 16 electronic devices, including computers and external hard drives. Forensic analysis of the seized devices revealed 13 images and 126 videos of child pornography, including many images and videos depicting children younger than 12 engaged in sexually explicit conduct. Among the items seized were two encrypted tablets and an encrypted hard drive that could not be searched.
The investigation also revealed that HULL had a video camera installed in his bathroom. The camera was connected to a VCR that captured images of individuals, including children, who used his bathroom. Agents located and seized several VHS tapes containing these recordings in the home.
HULL has been detained since his arrest on May 31, 2017. On January 30, 2018, he pleaded guilty to one count of receipt of child pornography.
As part of the sentence, pursuant to the Justice for Victims of Trafficking Act of 2015, Judge Underhill ordered HULL to pay a special assessment of $5,000, which is used to fund victim services.
This matter was investigated by Homeland Security Investigations, the Shelton Police Department and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Shawnee Man Sentenced to 12 Years in Prison for Receipt of Child PornographyRead the Press Release
OKLAHOMA CITY – CHRISTOPHER MARCUS WELLS, 47, of Shawnee, was sentenced today to 12 years in federal prison for receipt of child pornography, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
Wells was indicted for child pornography offenses on November 15, 2017. On January 5, 2018, Wells pleaded guilty to one count of receipt of child pornography. According to an affidavit in support of a search warrant in this case, Wells’ computer was sharing child pornography files via peer-to-peer file sharing software on June 17, 2017. An undercover Federal Bureau of Investigation ("FBI") agent downloaded child pornography files that Wells’ computer was sharing. Pursuant to a search warrant issued by a United States Magistrate Judge, agents later searched Wells’ home and seized his computer equipment for forensic analysis. During the course of its investigation, the FBI learned that Wells had acquired terabytes of child pornography via the Dark Web and peer-to-peer file sharing software.
At sentencing today, United States District Judge Joe Heaton sentenced Wells to 12 years in federal prison. In sentencing Wells, the Court took into consideration records indicating that Wells had molested a young girl approximately 25 years ago. After his prison sentence, Wells will serve five years on supervised release. Wells has been held in federal custody since December 18, 2017.
This case is the result of an investigation by the FBI. Assistant U.S. Attorney Brandon Hale prosecuted the case.
Reference is made to court filings for further information.
Seven Members of Brooklyn Crew Led by Crips Gang Member Indicted for Drug TraffickingRead the Press Release
A seventh defendant, Tysheim Warren, was arrested today in connection with a nine-count indictment filed in federal court in Brooklyn, also charging Javier Blackett, John Paul Balcazar, David Maldonado, Hassan McClean, Kevin Raphael and Andrew Rose with crimes stemming from their participation in a drug-trafficking organization that distributed more than 400 grams of crack cocaine in the Prospect Lefferts Gardens/Flatbush neighborhoods of Brooklyn. The indictment was returned by a grand jury on May 10, 2018. Blackett, Maldonado, Raphael and Rose were arrested on May 15, 2018. Balcazar was arrested on May 18, 2018, and McClean was arrested on May 22, 2018. They were arraigned and ordered detained pending trial. Warren was arraigned this afternoon before United States Magistrate Judge Steven M. Gold and ordered detained.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
According to the indictment and court filings, the defendants’ drug-selling operations centered around several residential buildings approximately three blocks southeast of the Prospect Park ice skating rink. Since March 2017, members of law enforcement made numerous controlled purchases totaling more than 400 grams of crack cocaine from the defendants’ organization and intercepted, pursuant to court order, communications discussing their distribution of significantly more narcotics. Blackett, a member of the Eight Trey set of the Crips street gang, was the leader of the organization; Raphael was one of his principal suppliers; and Balcazar, Maldonado, McClean, Rose and Warren were workers.
“The residents of Brooklyn are entitled to streets that are free of the dangerous drugs the defendants were allegedly selling,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, will continue to work tirelessly to put drug dealers out of business and hold them accountable for their crimes.”
“These dealers are alleged to have operated very close to a place where families go, where children play and where people find sanctuary in the city,” stated FBI Assistant Director-in-Charge Sweeney. “When doing business with gang members and drug dealers, violence inevitably follows and innocent people could have been caught up in it. The FBI Metro Safe Streets Task Force works every day to protect the community from these dangerous gang members and preventing them from proliferating their deadly drugs.”
“The NYPD’s efforts to eradicate drug trafficking are greatly strengthened by our close partnerships with the FBI and the U.S. Attorney for the Eastern District,” stated NYPD Commissioner O’Neill. “I commend everyone involved in this case, particularly the investigators who put themselves directly in harm’s way. Those who illegally deal in narcotics should be prepared for the full weight of our nation’s best law enforcement professionals to bear down upon them.”
If convicted of the conspiracy charge, the defendants face a mandatory minimum sentence of 10 years’ imprisonment and up to life in prison. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being prosecuted by Assistant United States Attorneys Mathew S. Miller and Sarah Evans.
The Defendants:
JAVIER BLACKETT (also known as “Gutta” and Cito”)
Age: 35
Brooklyn, New YorkJOHN PAUL BALCAZAR (also known as “Johnny”)
Age: 21
Brooklyn, New YorkDAVID MALDONADO
Age: 30
Brooklyn, New YorkHASSAN McCLEAN (also known as “Freak”)
Age: 19
Brooklyn, New YorkKEVIN RAPHAEL (also known as “Millz” and “M”)
Age: 39
Brooklyn, New YorkANDREW ROSE (also known as “Nice”)
Age: 29
Brooklyn, New YorkTYSHEIM WARREN (also known as “Ty”)
Age: 18
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-245 (PKC)
Sentencings for June 4, 2018Read the Press Release
OMAR GOMEZ-SALAZAR, 25, of San Luis Potosi, Mexico was sentenced by Federal District Court Judge Nancy D. Freudenthal on June 4, 2018 for illegal re-entry of a previously deported alien into the United States. Gomez-Salazar was arrested in Platte County, Wyoming. He received time served plus ten days to allow for deportation proceedings and a $100.00 special assessment to be remitted at the time of deportation. The U.S. Immigration and Customs Enforcement investigated this case.
MATEO BEDOLLA-AGUILAR, 34, of Tlaxcala, Mexico was sentenced by Federal District Court Judge Nancy D. Freudenthal on June 4, 2018 for illegal re-entry of a previously deported alien into the United States. Bedolla-Aguilar was arrested in Jackson, Wyoming. He received time served plus ten days to allow for deportation proceedings and a $100.00 special assessment to be remitted at the time of deportation. The U.S. Immigration and Customs Enforcement investigated this case.
Rogers Man Sentenced to 30 Years in Federal Prison for Production and Possession of Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jason Fields, age 39, of Rogers, Arkansas, was sentenced yesterday to 30 years in federal prison without the possibility of parole to be followed by 20 years of supervised release on one count each of Production of Child Pornography and Possession of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in October of 2017, law enforcement received a report from the National Center for Missing and Exploited Children that a Northwest Arkansas resident distributed an image of child pornography via the internet application “Chatstep.” During the subsequent investigation, law enforcement obtained a search warrant for Fields, residence. Said warrant was executed on or about November 3, 2017. While on the scene, Fields was read his Miranda rights, and thereafter confirmed that he has sent and received via the internet images of minors engaging in sexually explicit conduct. Fields also told law enforcement that he saved several of such images to a thumb-drive located in his laptop computer. Additionally, Fields stated that he had taken nude images of an approximately 5-year-old male.
A subsequent forensic examination of Fields’ devices revealed over 100 images of minors engaged in sexually explicit conduct. At sentencing, the Government presented the Court with evidence that some of the minors depicted in the images were as young as approximately 2 years of age.
Fields was indicted in December 2017 on federal charges and plead guilty in January 2018.
This case was investigated by the Department of Homeland Security, the Arkansas State Police, and the Northwest Arkansas Internet Crimes Against Children Taskforce, and the Rogers Police Department. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Robbery Getaway Driver Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY VITO, 28, pleaded guilty today in Bridgeport federal court to one count of aiding and abetting an armed bank robbery in Thomaston last year, and admitted that he aided and abetted two other commercial robberies on the same day.
According to court documents and statements made in court, on December 8, 2017, VITO drove Anthony Provost to the Mobil Gas Station and Dunkin Donuts located at 750 Straits Turnpike in Middlebury. Provost first threatened the cashier at the Mobil station with what appeared to be a firearm, and instructed her to open the cash register and provide her with all of its contents. The cashier complied and provided him with $578. The cashier also complied with Provost’s demand that she give him cigarettes valued at approximately $131. Provost then went to the cashier at the Dunkin Donuts, lifted his shirt to display what appeared to be a firearm and demanded money. During the robbery, when a customer entered the premises, Provost pointed the firearm at her and told her to keep her hands out of her pocketbook. The cashier gave Provost approximately $350. Provost then fled the premises in the vehicle driven by VITO.
VITO then drove Provost to the Thomaston Savings Bank located at 508 South Main Street in Thomaston. At the bank, Provost handed the teller a note stating “Robbery 20’s, 50’s, 100’s, quiet.” Provost also displayed what appeared to be a firearm. After the teller gave him money, Provost told her to get money from the other teller. The teller complied, and Provost left the bank with $1,471. Provost and VITO then fled the scene.
On December 9, 2017, Provost was arrested by Waterbury Police officers in a motel room that was occupied by VITO and another individual. At the scene, officers recovered a silver and beige handled CO-2 powered BB gun, a black ski mask, a gray ski mask, $542 in cash, and multiple packs of cigarettes. Officers also seized a red Ford Explorer that had been used during several of the robberies. VITO was arrested shortly thereafter.
Provost and VITO have been detained since their arrests.
VITO is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on August 31, 2018, at which time he faces a maximum term of imprisonment of 25 years.
On April 26, 2018, Provost pleaded guilty to one count of armed bank robbery and admitted that he committed these robberies and several others in Connecticut, Massachusetts and New Hampshire late last year. He awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation and the Waterbury, Southington, Thomaston, Putnam, Avon, Middlebury, Shrewsbury (Mass.) and Nashua (N.H.) Police Departments. This case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Project Safe Neighborhoods grant announcementRead the Press Release
SHREVEPORT / MONROE / ALEXANRIA / LAKE CHARLES / LAFAYETTE, La. – United States Attorney David C. Joseph and the Project Safe Neighborhoods (PSN) Task Force announced the availability of approximately $159,488 in PSN grants funds for the Western District of Louisiana. The Department of Justice, the Office of Justice Programs and the Bureau of Justice Assistance is seeking applications for funding of a grant under the Project Safe Neighborhoods (PSN) Program. Approximately $143,539 of the grant funds will be designated for grants under the Project Safe Neighborhoods (PSN) Program to fund new and/or current comprehensive gun crime and gang violence reduction strategies in our district.
PSN furthers the Department of Justice=s mission to reduce violent crime by providing support to state, local and tribal efforts to create safer neighborhoods through a sustained reduction in violent crimes and gang violence committed with firearms.
Various types of single or multi‑grantee grant proposals are welcome including those that address the following:
- Gang violence and gun violence reduction, deterrence, prevention, community outreach and education;
- Enforcement, adjudication and supervision programs;
- Prisoner reentry programs; or
- Other innovative related projects.
Grant proposals must be submitted to the U.S. Attorney’s Office, ATTN: PSN Grant Competition, 800 Lafayette Street, Suite 2200, Lafayette, LA 70501, no later than 5 p.m. on Wednesday, June 27, 2018.
The FY 2018 PSN Grant Announcement, OMB No. 1121-0329 can be found at www.bja.gov/funding/PSNFormula18.pdf. Please also visit the Western District of Louisiana U.S. Attorney’s Office website at: www.justice.gov/usao-wdla, as well as www.psn.gov or www.bja.gov/programs/psn for more particulars on this grant.
Interested applicants may also contact Assistant U.S. Attorney and PSN Coordinator Jamilla A. Bynog at (337) 262-6618 for additional information.
Portland Man Pleads Guilty to Running an Illegal Gambling BusinessRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that William Flynn, 76, of Portland, Maine, pleaded guilty yesterday in U.S. District Court to running an illegal gambling business.
According to court records, between 2010 and April 7, 2017, Flynn was a participant in Stephen Mardigan’s illegal sports gambling business operating in Portland. This business received bets on professional and college sporting events. Flynn coordinated bets with Mardigan, shared profits and losses with him, and communicated regularly with him about sports lines, bets taken, and other aspects of the business. Mardigan also served as the “bank” for Flynn’s bets.
The defendant faces up to five years in jail and twice the gain on the gambling charge. He agreed to forfeit $74,690. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the FBI’s Southern Maine Gang Task Force; the Portland, South Portland, Lewiston, Westbrook, Bangor, and Cape Elizabeth Police Departments; the Maine State Police; the Internal Revenue Service, Criminal Investigation; and the U.S. Postal Inspection Service.
Pine Ridge Man Sentenced for Assault on a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Assault on a Federal Officer was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Franklin Long Black Cat, age 24, was sentenced on June 1, 2018, to 2 years in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Long Black Cat was indicted for the charge by a federal grand jury in December 2017. The charge related to Long Black Cat punching a tribal corrections officer in the cheek with his fist on October 23, 2017.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Long Black Cat was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia Personal Injury Attorney Indicted on Fraud ChargesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain today announced that a Philadelphia attorney who struggled to pay his law firm’s expenses was indicted on fraud charges.
Donald F. Manchel, 84, of Bryn Mawr, PA, was charged with wire and mail fraud.
The indictment alleges that on multiple occasions, Manchel used settlement funds due to clients to instead pay his firm’s business expenses, including payroll and employee insurance premiums. Additionally, he used the settlement funds due to one client to pay another client. According to the indictment, Manchel made false statements and engaged in acts of deception in an effort to hide the fact that he already had spent his clients’ settlement funds, and to avoid having to issue payment to clients of the settlement funds due to them.
“Under the law, attorneys are required to keep settlement funds separate from other money,” said U.S. Attorney McSwain. “And when an attorney deliberately deceives his clients, he must be held accountable.”
If convicted, the defendant faces a maximum possible sentence of 220 years’ imprisonment, three years of supervised release, a $2.5 million fine, and a $2,000 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty
Philadelphia Heroin Dealer with Connections to Mexican Drug Ring Sentenced to 57 Months’ ImprisonmentRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Marcos Callejas-Nava, a citizen of Mexico and convicted heroin dealer, was sentenced this week to 57 months’ imprisonment.
Callejas-Nava had pleaded guilty to one count of conspiracy to distribute two kilograms of heroin and one count of possession with intent to distribute two kilograms of heroin. He is also facing deportation proceedings upon completion of his federal sentence. At the sentencing hearing, Judge Joel H. Slomsky noted his concern about the seriousness of the offense and the dangerousness of heroin in the community.
“The defendant was an active and eager participant in a cross-border conspiracy to import and distribute heroin in a region that has been ravaged by the deadly effects of heroin addiction and overdose. We are in the midst of an epidemic and we have to stop those who are bringing this poison into our communities,” U.S. Attorney McSwain stated.
The case arose out of an investigation by Montgomery County Detective Bureau (MCDB) Narcotics Enforcement Team (NET), the Drug Enforcement Administration (DEA) and the Montgomery County District Attorney’s Office Local Drug Task Force into a Mexican drug trafficking organization distributing kilogram quantities of heroin in the Philadelphia area. The case is being prosecuted by Assistant U.S. Attorney Jennifer Jordan.
Omaha Man Sentenced for Bank RobberiesRead the Press Release
United States Attorney Joe Kelly announced today that on June 4, 2018, Chief United State District Court Judge Laurie Smith Camp, sentenced Wayne Rolling, age 25, of Omaha, Nebraska, for his conviction for three bank robberies. Rolling was sentenced to a jail term of 64 months, placed on supervised release for three years and ordered to make restitution to the victim banks.
Defendant in a span of one week in November 2017 robbed three financial institutions in the Omaha metro area. All three of the financial institutions, two SAC Federal Credit Union locations and a First National Bank of Omaha branch, were located in three separate Hy-Vee stores throughout Omaha. In all three of the bank robberies defendant was unarmed but presented demand notes to the tellers.
This case was investigated by the Federal Bureau of Investigation and the Omaha Police Department.
New York Man Sentenced for Trafficking OxycodoneRead the Press Release
BOSTON – A New York-based oxycodone trafficker was sentenced yesterday in federal court in Boston.
Ilir Bregu, 46, of Staten Island, N.Y., was sentenced by U.S. District Court Judge George A. O’Toole Jr. to six years in prison and three years of supervised release. In March 2018, Bregu was convicted of conspiracy to possess with intent to distribute and to distribute oxycodone.
In 2014 and 2015, agents observed foot and vehicle traffic consistent with street-level drug sales coming and going from the home of Mario Scata, 71, and his son, Manuele Scata, 45, of Revere, and from Manuele Scata’s business, D & M Auto Doctor, on Bennington Street in East Boston. While investigating the Scatas’ oxycodone trafficking, Scatas’ pill supplier, Bregu, was identified through surveillance and phone analysis. After obtaining a search warrant to track the precise location of Bregu’s phone, it was determined that every two-to-three weeks, Bregu drove his vehicle from Staten Island to Revere or East Boston, met with one or both of the Scatas, and then returned to Staten Island.
On July 16, 2015, a series of search warrants were executed after tracking Bregu’s phone from Staten Island to East Boston and then watching as Bregu met with Mario and Manuele Scata at D & M Auto Doctor. During the searches, a sophisticated hidden compartment was discovered in Bregu’s vehicle, which contained $37,800. In addition, approximately 1,900 oxycodone pills, a loaded firearm, and a machete were recovered from Manuele Scata’s vehicle and additional oxycodone pills, a hand-written drug ledger, and nearly $12,000 were recovered from the Scatas’ home.
In December 2017, Mario Scata pleaded guilty to conspiracy to distribute oxycodone and possession with intent to distribute oxycodone. He is scheduled to be sentenced on June 21, 2018. In February 2018, Manuele Scata pleaded guilty to conspiracy to distribute oxycodone, possession with intent to distribute oxycodone, and use of a firearm during and in relation to a drug trafficking offense. His sentencing is scheduled for July 26, 2018.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Revere Police Chief James Guido; Quincy Police Chief Paul Keenan; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorneys Christopher Pohl, of Lelling’s Organized Crime and Gang Unit, and Miranda Hooker, of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
New Haven Gang Member Sentenced to More Than 7 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY HARTSELL, also known as “Pop Off,” 37, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 90 months of imprisonment, followed by three 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, brought the firearms back to New Haven and distributed them to gang members. HARTSELL served as second-in-command of the RSGB.
In September 2011, leaders of the RSGB, including Benton and HARTSELL, ordered Robert Short, also known as “Santana,” to murder Darrick Cooper, who was a leader of a rival New Haven gang and seen as a threat. On September 19, 2011, Short lured Cooper to a location in Hamden. Short then shot Cooper in the back of the head as Cooper walked up a staircase.
On May 17, 2016, HARTSELL pleaded guilty to one count of conspiracy to commit murder in aid of racketeering.
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 and Short pleaded guilty to various offenses stemming from this investigation, and both admitted to participating in the murder of Darrick Cooper. Benton also admitted that he participated in three other gang-related murders and one attempted murder.
On October 4, 2017, Benton was sentenced to 480 months of imprisonment. Short awaits sentencing.
U.S. Attorney Durham noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
HARTSELL will begin serving his federal sentence after he completes a state sentence for an unrelated offense.
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.
Nebraska Man Sentenced to Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Joe Kelly announced today that Owen J. Drew, 33, of Omaha, Nebraska, was sentenced to 70 months’ imprisonment by the Hon. Robert F. Rossiter, Jr. After release from the Bureau of Prisons, Drew will serve eight years of supervised release. He will be required to register as a sex offender, also.
Between May of 2016 and May of 2017, Drew knowingly received a visual depiction of sexually explicit conduct involving the use of a minor. In April of 2017, FBI Task Force Officers in the Douglas County Sheriff’s Office identified Drew through his use of a peer-to-peer file exchange software in which an undercover agent downloaded multiple child pornography files being shared from the defendant’s computer. After executing a federal search warrant, law enforcement identified multiple video files depicting child pornography in a “downloads” folder on the defendant’s laptop computer. Drew was arrested pursuant to a warrant on August 25, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 www.justice.gov/psc.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
Murdaland Mafia Piru Gang Member Sentenced to 180 Months in Prison for Federal Racketeering and Drug Conspiracy ChargesRead the Press Release
Baltimore, Maryland – On June 7, 2018, United States District Judge Catherine C. Blake sentenced Melvin Lashley, a/k/a “Menace,” age 28, of Baltimore, to fifteen years in federal prison, followed by five years of supervised release, for racketeering conspiracy and conspiracy to distribute a kilogram of more of heroin and 280 grams or more of crack cocaine. Lashley pleaded guilty to these crimes in May 2017.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Matthew Varisco of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Interim Police Commissioner Gary Tuggle of the Baltimore Police Department; Chief Terrance B. Sheridan of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
Murdaland Mafia Piru (MMP), also know as the “Mob” or “Mobsters,” was a violent subset of the Bloods gang that operated in Maryland and elsewhere beginning in or about 2011. MMP was modeled after the Italian Mafia, and was organized hierarchically with a “Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. For many years, MMP controlled the drug trade in large swaths of Northwest Baltimore City. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from western Maryland and neighboring states. MMP’s members used violence and threats of violence—including murder—to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.
According to his plea agreement, Lashley admitted was a member of MMP during the dates of the racketeering conspiracy, and that he agreed with other members of MMP to conduct and participate in the gang’s affairs through a pattern of racketeering activity that included offenses involving drug trafficking.
In particular, Lashley admitted that on August 29, 2015, Co-Defendant 1 called Lashley from a recorded jail telephone. During the call, Lashley stated that he had recently gotten an MMP gang tattoo between his eyes. Lashley and Co-Defendant 1 also recounted an incident in which they participated in an assault and robbery of a rapper who is associated with a rival Crips gang.
On August 30, 2015, Co-Defendant 1 again called Lashley from a recorded jail telephone. Lashley recounted a recent incident in which an individual stole a drug sale worth $850 from Co-Defendant 2, and as a result, Co-Defendant 3 “beat the fu** out of him, broke his jaw and all that” and “beat his sister and his mother up.”
Between July and August 2016, law enforcement officers conducted a court-authorized wiretap of telephones belonging to Co-Defendants 2, 4, and 5. Lashley was intercepted in a number of calls over these telephone lines discussing drug transactions. For instance, in a call on July 24, 2016, Co-Defendant 2 told Lashley he was coming to get “cruddy cracks” from him—a reference to narcotics packaged for distribution. Lashley told Co-Defendant 2 that the drugs were already gone, but that he had $140 in drug proceeds for Co-Defendant 2. On July 27, 2016, in a series of calls, Lashley and Co-Defendant 2 discussed acquiring an additional supply of heroin from a stash house operator. Lashley advised Co-Defendant 2 to be careful because of a vehicle in the area they believed was being operated by federal agents.
On July 2, 2016, law enforcement officers intercepted a call in which Co-Defendant 2 advised Co-Defendant 4 that Lashley was “throwing threats to them nig**as”—a reference to rival drug dealers—and “talking ‘bout he gonna kill all y’all, I’m gonna kill all y’all.”
On September 27, 2016, law enforcement officers executed a federal search warrant at Lashley’s residence in Baltimore and recovered roughly 20 grams of heroin and a loaded J.P. Sauer & Sohn .32 ACP caliber pistol belonging to Lashley. At the time, Lashley was prohibited from possessing firearms and ammunition due to a disqualifying felony conviction.
Lashley agreed that he conspired with other members of MMP to distribute heroin and cocaine base in furtherance of the gang, and that it was reasonably foreseeable to him that between one and three kilograms of heroin and between 280 and 840 grams of cocaine base would be distributed by members of the conspiracy.
The following twelve co-defendants, also members or associates of MMP, have all previously pleaded guilty to conspiring to violate federal racketeering and drug trafficking laws:
- William Banks, a/k/a “Trouble,” age 29;
- Dominick Wedlock, a/k/a “Rage,” age 30;
- Dwight Jenkins, a/k/a “Huggie,” age 48;
- William Jones, a/k/a “Smalls,” age 27;
- Jarmal Harrid, a/k/a “J-Rock,” age 27;
- Jamal Smith, a/k/a “Mal,” age 25;
- Takuma Tate, a/k/a “Oop,” age 39;
- Maurice Pollock, a/k/a “Reese,” age 22;
- Charles Blackwell, a/k/a “Ci-Bo,” age 21;
- Kenneth Torry, a/k/a “Kenny,” age 40;
- Delante Lee, a/k/a “Tay Tay,” age 22; and
- Jay Greer, a/k/a “Champagne,” age 26.
United States Attorney Robert K. Hur commended the ATF Baltimore Field Division, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Hur thanked Assistant United States Attorneys Christina A. Hoffman and Lauren E. Perry, who are prosecuting the case.
Mount Oliver Man Admits Robbing PNC Bank in Homestead, Citizens Bank in MonroevilleRead the Press Release
PITTSBURGH, PA – A former Allegheny County resident pleaded guilty in federal court to two counts of bank robbery, United States Attorney Scott W. Brady announced today.
David Payo, age 52, formely of Mount Oliver, pleaded guilty before United States District Court Judge Mark Hornak.
In connection with the guilty plea, the court was advised that on May 27, 2017, Payo entered the PNC Bank in Homestead wearing a black baseball hat, black hoodie, and approached the teller. Payo stated, "This is a robbery, give me 50’s, 100’s, 20’s, and no dye packs." Payo escaped with $3,460 in cash out of the front door of the bank.
The court was also advised that on June 8, 2017, Payo, wearing an orange sweatshirt, black baseball cap and black sunglasses on top of the hat, approached a teller at the Citizens Bank in Monroeville, PA. He sat down at the desk and told her, "This is a robbery." He then repeated, "This is a robbery, give me your 100’s, 50’s, and 20’s, no 10’s, and no dye packs." The teller complied and handed over $1890.00 in cash and one dye pack. Payo fled from the bank. A search of Payo’s residence recovered dye stained clothes from the exploding dye pack given to him at the Citizens Bank.
Payo faces a total maximum sentence of not more than 40 years in prison, a fine of not more than $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The FBI Pittsburgh’s Violent Crimes Task Force, the Homestead Police Department, the Allegheny County Police Department, and the Monroeville Police Department conducted the investigation leading to the guilty plea in this case.
Mississippi Physician Sentenced to over Three Years in Prison for Role in $3 Million Compounding Phamacy Fraud SchemeRead the Press Release
WASHINGTON – A Biloxi, Mississippi physician was sentenced today to 42 months in prison for his involvement in a $3 million compounding pharmacy fraud scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney D. Michael Hurst Jr. of the Southern District of Mississippi; Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Field Division; Acting Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s (IRS-CI) New Orleans Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Albert Diaz, M.D., was sentenced by U.S. District Judge Keith Starrett of the Southern District of Mississippi. Restitution to TRICARE and other insurance companies will be determined at a later date. On March 2 after a five-day jury trial, Diaz was convicted of one count of conspiracy to commit health care fraud and wire fraud, four counts of wire fraud, one count of conspiracy to distribute and dispense a controlled substance, four counts of distributing and dispensing a controlled substance, one count of conspiracy to falsify records in a federal investigation and five counts of falsification of records in a federal investigation.
According to evidence presented at trial, between 2014 and 2015, Diaz participated in a scheme to defraud TRICARE and other insurance companies by prescribing medically unnecessary compounded medications, some of which included ketamine, a controlled substance, to individuals he had not examined. The evidence further demonstrated that, based on the prescriptions signed by Diaz, Advantage Pharmacy in Hattiesburg, Mississippi, dispensed these medically unnecessary compounded medications and sought and received reimbursement from TRICARE and other insurance companies totaling more than $3 million. The trial evidence further demonstrated that in response to a TRICARE audit, Diaz falsified patient records to make it appear as though he had examined patients before prescribing the medications.
The FBI, IRS-CI, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services Office of Inspector General, the Mississippi Bureau of Narcotics and other government agencies investigated the case. Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Middletown Man Sentenced to 4 Years Imprisonment in Embezzlement CaseRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that Donald Rice, formerly of Middletown, was sentenced on May 29, 2018, by Chief U. S. District Court Judge Leonard P. Stark to 48 months imprisonment.
The sentencing came after Mr. Rice pleaded guilty on October 26, 2017 to two counts of wire fraud and one count of making false statements on tax returns.
In December 2012, Mr. Rice became the trustee for a trust established to liquidate the assets of a closely-held investment company. As part of the trust plan, Mr. Rice was responsible for maintaining the funds set aside to cover the anticipated taxes associated with the dissolution of the company. Instead, between January 2013 and January 2015, Mr. Rice diverted approximately $3 million into his personal accounts through a series of wire transfers and the deposit of a cashier’s check. Mr. Rice then used this money for personal expenses, including the acquisition of several tax preparation franchises, a down payment on a new home, jewelry and a luxury vehicle. Federal law requires that all income, whether obtained legally or illegally be declared on tax returns. However, Mr. Rice failed to report the proceeds of his fraud on his tax return for 2013.
Mr. Rice also perpetrated a fraud against an elderly widow, and, after her death, her estate. While assisting this client with her “estate planning” in August 2011, Mr. Rice gained signature authority over her bank accounts and became executor of her estate. Following her death in March 2012, Mr. Rice wrote a series of checks to himself and his related business account, and liquidated a certificate of deposit for his personal use. In addition, Mr. Rice failed to notify a public pension system of his client’s death and continued to collect and spend her pension payments until October 2013, approximately 18 months after her death. Through these actions Mr. Rice stole additional funds totaling approximately $120,000.
U.S. Attorney Weiss stated, “The defendant preyed upon people who placed their trust in him, victimizing companies and vulnerable senior citizens alike. His actions were unconscionable. Individuals like Mr. Rice who take advantage their positions and of vulnerable members of society should understand that their conduct will be uncovered and will be met with serious consequences. The sentence the Court imposed on Mr. Rice should send a clear signal to those thinking about abusing positions of trust and power.”
The case was investigated by the Internal Revenue Service Criminal Investigation and the FBI. It was prosecuted by Assistant U.S. Attorney Lesley Wolf. U.S. Attorney Weiss thanked the investigators for their excellent work in pursuing this investigation.
Mexican National Charged with Illegal Re-EntryRead 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 Renato Jardines-Santiago, of Mexico, was arrested and charged by criminal complaint with re-entry after deportation after having been convicted of a felony crime. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, on June 4, 2018, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO) learned that the defendant, a citizen and national of Mexico and a prior deported alien had illegally returned to the United States. Jardines-Santiago was arrested on June 2, 2018, by the Wayne County Sheriff's Office and charged with Assault 3rd and Driving While Intoxicated.At the time of his arrest, the Wayne County Sheriff's Department captured a complete set of fingerprints from the defendant. Subsequent investigation determined that in May 2009, the defendant was arrested for Simple Assault and Harassment in Allentown, Pennsylvania. On July 31, 2009, Jardines-Santiago was removed from the United States to Mexico and advised that he could not re-enter the United States without the permission of the United States Attorney General.
On October 14, 2012, the defendant was arrested by the United States Border Patrol near Victory, NY and once again removed from the United States to Mexico.
The defendant made an initial appearance before U.S Magistrate Judge Marian W. Payson and is being detained.
The complaint is the culmination of an investigation led by Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction Thomas E. Feeley, Buffalo Field Office Director.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Metro East Man Pleads Guilty to Using Seniors' Personally Identifiable Information to Commit FraudRead the Press Release
Christopher Rhodes, age 53, from Lovejoy, Illinois, entered pleas of guilty to aggravated identity theft and wire fraud, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Rhodes faces a maximum sentence of up to twenty years in prison for each of the wire fraud offenses and a mandatory consecutive two years in prison for aggravated identity theft. Sentencing is scheduled for September 18, 2018.
The convictions are the result of Rhodes’ conduct as an employee of St. Paul’s Senior Community, a not-for-profit retirement community in Belleville, Illinois. In his position, Rhodes had access to sensitive patient/resident information, including medical records containing personally identifiable information (PII). From at least 2012 and continuing through approximately July of 2017, Rhodes used the names, social security numbers and other PII of patients/residents of St. Paul’s Senior Community, without legal authority, to obtain and maintain electric and gas service, water service, and satellite television service at his residence.
The successful prosecution is the result of an investigation conducted by the U.S. Postal Inspection Service with the assistance of the St. Clair County Sheriff’s Department. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
Memphis Man Sentenced for His Role in Interstate Sex Trafficking SchemeRead the Press Release
OXFORD, Miss. – U.S. Attorney William C. Lamar and FBI Special Agent in Charge Christopher Freeze announced today that a Memphis man was sentenced in Mississippi on Thursday for his role in a human trafficking scheme. Mario D. Collins of Memphis, Tennessee was sentenced to 24 months imprisonment by U.S. District Judge Michael P. Mills for trafficking a victim from Georgia to Tennessee and ultimately to Oxford, Mississippi for commercial sex purposes.
An investigation conducted by the Oxford Police Department and the FBI revealed that the female victim was transported from Atlanta, Georgia to Oxford, Mississippi by Collins and Clayton so that she could engage in prostitution. Evidence presented at a December 2017 trial established that OPD Officers responded to an Oxford motel on April 27, 2017, after receiving a 911 call indicating that the victim was being held against her will. Collins and Clayton were arrested in the hotel parking lot and the victim was recovered from inside the hotel. OPD Officers Joshua Shipp and Brandon Jenkins were among the officers who initially responded to the 911 call and assisted throughout the investigation and trial of the case.
Assistant U.S. Attorneys Clay Dabbs and Sam Stringfellow represented the United States in this case which was spearheaded by agents and officers from the FBI and the Oxford Police Department.
U.S. Attorney William C. Lamar praised the cooperative teamwork of the FBI and the Oxford Police Department. Lamar further remarked, “We are dedicated to keeping our communities safe, especially from human trafficking. Women, many of whom are very young, are often coerced into prostitution by predators, taken advantage of, and are frequently victims of violence themselves. We will continue to work with our local, state and federal law enforcement partners to address this problem in our District and prosecute those responsible.”
“Human trafficking in any form is reprehensible, and those who promote trafficking human beings for sex or labor are not welcome in our communities,” said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. The FBI and our law enforcement partners statewide will continue to aggressively seek out those who exploit innocent victims to line their own pockets.”
Manderson Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Manderson, South Dakota, man convicted of Abusive Sexual Contact was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Edward Red Feather, age 32, was sentenced on June 5, 2018, to 2 years and 7 months in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Red Feather engaging in sexual contact with a female while she was passed out in November 2017, at Manderson.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Bureau of Indian Affairs. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Red Feather was immediately turned over to the custody of the U.S. Marshals Service.
Malott Habitual Domestic Violence Offender Sentenced to 120 MonthsRead the Press Release
Spokane–Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Joseph Trevino, age 35, of Malott, Washington, was sentenced after having pleaded guilty on March 15, 2018, to Domestic Assault by a Habitual Offender. United States District Judge Stanley A. Bastian sentenced Joseph Trevino to a 120-month term of imprisonment, to be followed by a three-year term of court supervision after he is released from federal prison.
According to court records, Trevino had previously been convicted of Fourth Degree Assault, Domestic Violence in Okanogan County and Pierce County District Courts in 2005 (having been arrested in 2004) and 2006 respectively. He was then convicted of Battery Domestic Violence in 2015 in Tribal Court for the Confederated tribes of the Colville Reservation. This case involved yet another domestic violence assault in October of 2017. The most recent assault marked Trevino’s fourth domestic violence offense.
Trevino’s 2015 and 2017 offenses were his most violent domestic violent offenses. The 2015 offense left the victim with her nose broken in two places and requiring stitches in her forehead and lip. Trevino’s most recent offense, in October 2017, gave the victim a broken rib, a hematoma on her spleen and bruises all over her body.
Judge Bastian told Trevino, “The facts of this case are very serious in and of themselves, independent of the serious history that you have” and the victim’s “injuries reflected you were acting in a way you have acted consistently with respect to domestic partners.” Judge Bastion further commented that Trevino abused his domestic partners since 2004 and protecting the public was an important sentencing factor.
United States Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington, the Federal Bureau of Investigation, and the Colville Tribal Police Department are committed to investigating and prosecuting violent crimes occurring in the exterior boundaries of the Colville Indian Reservation.”
This investigation was conducted by the Federal Bureau of Investigation and the Colville Tribal Police. The case was prosecuted by Alison L. Gregoire, Assistant United States Attorney for the Eastern District of Washington.
Louisville Man Sentenced to 10 Years in Prison for Violating Federal Child Exploitation LawsRead the Press Release
LOUISVILLE, Ky. – United States District Judge David J. Hale sentenced Robert L. Tomlinson, 56, to 10 years in prison followed by a 15-year term of Supervised Release, announced United States Attorney Russell M. Coleman. There is no parole in the federal system. Tomlinson remains in the custody of the United States Marshals Service.
Tomlinson previously admitted to online communications with a person he believed to be a 15-year-old girl for the purpose of meeting her to engage in sexual conduct. According to the Plea Agreement and other Court records, law enforcement officials became aware of Tomlinson’s criminal conduct through an online undercover operation. While authorized by the Attorney General to conduct undercover operations within the Commonwealth of Kentucky, an investigator with the Kentucky Attorney General’s Department of Criminal Investigations conducted such an operation on March 14, 2017. That day, the investigator responded to a Craigslist ad posted in the Louisville personals section. The investigator responded to the ad over the Craigslist server. He did so in an undercover persona of a 15-year-old female (15YO) living in Louisville, Kentucky.
The person who posted the ad (later determined to be Tomlinson), responded back the same date. When asked by Tomlinson for the undercover persona’s age, the investigator responded “15.” The conversations lasted several weeks over text message and email. On April 1, 2017, the investigator agreed to Tomlinson’s request to meet.
On April 5, 2017, investigators watched Tomlinson arrive at the agreed upon location. Law enforcement officials approached Tomlinson’s vehicle, removed him, and located an LG model 550 smart phone in his possession. The investigator observed the screen was unlocked and that the ongoing conversation with the investigator was open. Later forensic examination of the phone confirmed it was the device Tomlinson had used for communicating with the investigator.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Attorney General’s Office – Department of Criminal Investigations conducted the investigation with support from the United States Secret Service.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Leavitt Sentenced to 36 Months in Prison After Convictions for Wire Fraud, Money Laundering in Connection with Fraud SchemeRead the Press Release
SALT LAKE CITY -- Ronald Wayne Leavitt, age 61, of Stansbury Park, Utah, who targeted friends, members of his church, and some of their relatives in an affinity fraud scheme, will serve 36 months in federal prison. U.S. District Judge David Nuffer imposed the sentence Friday. Leavitt must pay $519,420.55 in restitution and serve 36 months of supervised release when he finishes his federal prison sentence.
Leavitt pleaded guilty to wire fraud and money laundering in March.
In a court document filed as a part of a plea agreement reached in the case, Leavitt acknowledged that he told a variety of lies to friends and neighbors to get them to invest in his schemes. He told some that he owned several limousines while telling others he was the executor of large trust fund and that he owned property worth millions of dollars. He also told some victims he had inherited millions of dollars from his parents. He also told victims that the investment opportunity was limited and, if they were lucky, he could get them a spot in the investment. He told others victims that an investor had pulled out and, although other investors would be upset, he would allow them to invest and make it work.
After gaining their trust, Leavitt admitted he convinced several individuals to invest in one of three different ventures. Leavitt pitched a real estate venture in California, a high-end real estate development venture in Moab called Hidden Mesa, and a sugar substitute start-up company.
According to documents filed as a part of the plea agreement, Leavitt admitted that the real estate venture in California was an investment he fabricated.
The Hidden Mesa real estate development venture was an idea that Leavitt had discussed with an individual who had purchased land in Moab. This individual discussed with Leavitt the possibility of developing the land and talked with Leavitt about seeking investors for the project. However, without this individual’s knowledge, Leavitt used the concept of the venture to pitch the investment opportunity to some of his neighbors and some of their family members, eventually persuading some of them to invest in the venture. He promised them returns as large as 300 percent within 60 to 90 days. Leavitt admitted that once they made an investment in the project, he never provided any of that money to the individual who had purchased the land in Moab.
The sugar substitute start-up company is an actual company that Leavitt’s brother was involved in. Leavitt had talked with his brother and another individual about trying to find investors. As a part of his scheme to defraud, Leavitt admitted he convinced individuals to invest in the company. Once they did, he did not inform the company of their investment or give them the money. Like the other two ventures, Leavitt admitted he kept the funds for himself and spent them.
Leavitt admitted that he spent the majority of the money he took from victims of the fraud schemes rather than investing it in anything.
Special agents of the FBI and members of its Financial Crimes Task Force investigated the case. An IRS Criminal Investigation agent, assigned to the task force, also investigated the case. The case was prosecuted by the U.S. Attorney’s Office in Salt Lake City.
Law Enforcement Officers Join Students for a Day of LearningRead the Press Release
TALLAHASSEE, FLORIDA – The United States Attorney’s Office for the Northern District of Florida, the Alachua County Sheriff’s Office, and Eastside High School will present a BLAST Program event on Tuesday to approximately 75 students.
Event: BLAST Program
Location: Eastside High School
1201 SE 43rd Street
Gainesville, FL 32641Date: Tuesday, June 12, 2018
Time: 8:30 a.m. – 1:00 p.m. EDT
- 8:30 – 9:15 a.m. Opening Remarks
- 9:15 a.m. – 11:45 p.m. Rotating Group Breakouts (40 minutes each)
- 11:45 – 12:00 p.m. “Returning from Prison” Presentation
- 12:00 – 1:00 p.m. Lunch
Press: Please RSVP to Amy Alexander at [email protected] if you plan to attend.
The BLAST Program offers students an opportunity to meet representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement, and interact with law enforcement officers in a familiar setting. Law enforcement officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
The schedule will include the following discussion sessions, during which students will have a chance to participate in role play with law enforcement officers. (Students with media permissions will be identified.)
- Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
This session is open to the media, and videography and photography is permitted.
- Domestic Violence: Students will participate in a scenario in which law enforcement officers respond to a domestic disturbance. Discussion includes the challenges officers face, rights of witnesses and suspects, and benefits of providing information to law enforcement. This session is open to the media, and videography and photography is permitted.
- Traffic Stop Simulation: Participants and officers alternate playing the roles of civilians and officers in a traffic stop. Discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop. This session is open to the media, and videography and photography is permitted.
- Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation. This session is closed to the media. Reporters may try the simulator equipment after the event ends.
Participating agencies include:
- United States Attorney’s Office, Northern District of Florida
- Alachua County Sheriff’s Office
- Gainesville Police Department
- Eastside High School
- Federal Bureau of Investigation
- Drug Enforcement Administration
- U.S. Marshals Service
- Bureau of Alcohol, Tobacco, Firearms & Explosives
- Florida Highway Patrol
- FAMU Police Department
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Lake Charles felon pleads guilty to possessing sawed-off shotgun, drugsRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a Lake Charles man previously convicted of a felony pleaded guilty Tuesday to possessing a sawed-off shotgun in addition to other firearms and trafficking drugs.
Mark Washington, 45, of Lake Charles, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of possession of a shotgun with a barrel of less than 18 inches in length and one count of possession with intent to distribute a controlled substance. According to the guilty plea, members of the Calcasieu Parish Combined Anti-Drug Taskforce responded to a report of drug activity at a home on April 18, 2017 at Hinton Drive in Lake Charles. Upon arriving at the scene, taskforce agents found Washington standing in the driveway of the residence with two men inside a car. Agents searched the residence and found one Sigarms Model 250 semi-automatic pistol with a magazine containing 12 live rounds; one Glock Model 36, .45 caliber semi-automatic pistol containing a magazine with four live rounds; one sawed-off Stevens Model 940E, .410 gauge break-action shotgun; and one sawed-off 20 gauge break-action shotgun of unknown make and model. They also found loose synthetic marijuana on the television stand in the living room, and they located 936 pills, two pink plastic bags of synthetic marijuana, a cigarette pack containing a glass vile with drug residue, a cellophane baggie with five ecstasy pills and $1,145. Washington said he lived in the residence and had bought the guns on the streets. Washington also admitted to being a convicted felon, and that he was not allowed to be around firearms.
Washington faces up to 10 years in prison and a 10,000 fine for the firearms count, and he faces up to 20 years in prison and a $1 million fine for the drug count. He also faces up three years of supervised release and forfeiture of the seized weapons. The court set a sentencing date of October 1, 2018.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The ATF and Calcasieu Parish Combined Anti-Drug Taskforce conducted the investigation. Assistant U.S. Attorney Robert F. Moore is prosecuting the case.
Jury Convicts Former CIA Officer of EspionageRead the Press Release
Today, a federal jury convicted Kevin Patrick Mallory, 61, a former Central Intelligence Agency case officer of Leesburg, Virginia, on espionage charges related to his transmission of classified documents to an agent of the People’s Republic of China.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the verdict.
“It is a sad day when an American citizen is convicted of spying on behalf of a foreign power,” said Assistant Attorney General Demers. “This act of espionage was no isolated incident. The People's Republic of China has made a sophisticated and concerted effort to steal our nation's secrets. Today's conviction demonstrates that we remain vigilant against this threat and hold accountable all those who put the United States at risk through espionage.”
“There are few crimes in this country more serious than espionage,” said U.S. Attorney Terwilliger. “This office has a long history of holding those accountable who betray their country and try and profit off of classified information. This case should send a message to anyone considering violating the public’s trust and compromising our national security by disclosing classified information. We will remain steadfast and dogged in pursuit of these challenging but critical national security cases.”
“This trial highlights a serious threat to U.S. national security,” said Assistant Director in Charge McNamara. “Foreign intelligence agents are targeting former U.S. Government security clearance holders in order to recruit them and steal our secrets. This case should send a message to foreign intelligence services and those caught up in their web: we are watching and we will investigate and prosecute those who willfully violate their obligations to protect national security secrets. I want to start by thanking the prosecutors of the U.S. Attorney’s Office, the trial attorneys of the Justice Department and particularly the special agents, analysts and professional staff of the FBI’s Washington Field Office for their hard work.”
According to court records and evidence presented at trial, in March and April 2017, Mallory travelled to Shanghai and met with an individual, Michael Yang, whom he quickly concluded was working for the People’s Republic of China Intelligence Service (PRCIS). During a voluntary interview with FBI agents on May 24, 2007, Mallory stated that Yang represented himself as working for a People’s Republic of China think tank, however Mallory stated that he assessed Yang to be a Chinese Intelligence Officer.
Mallory, a U.S. citizen who speaks fluent Mandarin Chinese, told FBI agents he travelled to Shanghai in March and April to meet with Yang and Yang’s boss. After Mallory consented to a review of a covert communications (covcom) device he had been given by Yang in order to communicate covertly with Yang, FBI agents viewed a message from Mallory to Yang in which Mallory stated that he could come in the middle of June and he could bring the remainder of the documents with him at that time. Analysis of the device, which was a Samsung Galaxy smartphone, also revealed a handwritten index describing eight different documents later determined to be classified. Four of the eight documents listed in the index were found stored on the device, with three being confirmed as containing classified information pertaining to the same U.S. government agency. One of those documents was classified TOP SECRET, while the remaining two documents were classified SECRET. FBI analysts were able to determine that Mallory had completed all of the steps necessary to securely transmit at least four documents via the covcom device, one of which contained unique identifiers for human sources who had helped the U.S. government.
Evidence presented at trial included surveillance video from a FedEx store in Leesburg where Mallory could be seen scanning the eight classified documents and a handwritten table of contents onto a micro SD card. Though Mallory shredded the paper copies of the eight documents, an SD card containing those documents and table of contents was later found carefully concealed in his house when it was searched on June 22, 2017, the date of his arrest. A recording was played at trial from June 24, 2017, where Mallory could be heard on a call from the jail calling his family to ask them to search for the SD card.
Mallory has held numerous positions with various government agencies and several defense contractors, including working as a covert case officer for the CIA and an intelligence officer for the Defense Intelligence Agency. As required for his various government positions, Mallory obtained a Top Secret security clearance, which was active during various assignments during his career. Mallory’s security clearance was terminated in October 2012 when he left government service.
Mallory was convicted of conspiracy to deliver, attempted delivery, delivery of defense information to aid a foreign government, and making material false statements. He faces a maximum penalty of life in prison when sentenced on Sept. 21. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Assistant U.S. Attorneys John T. Gibbs and Colleen E. Garcia of the Eastern District of Virginia, and Trial Attorney Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Jury Convicts Former CIA Officer of EspionageRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a former Central Intelligence Agency case officer today on espionage charges related to his transmission of classified documents to an agent of the People’s Republic of China.
According to court records and evidence presented at trial, in March and April 2017, Kevin Patrick Mallory, 61, of Leesburg, travelled to Shanghai and met with an individual, Michael Yang, whom he quickly concluded was working for the People’s Republic of China Intelligence Service (PRCIS). During a voluntary interview with FBI agents on May 24, 2007, Mallory stated that Yang represented himself as working for a People’s Republic of China think tank, however Mallory stated that he assessed Yang to be a Chinese Intelligence Officer.
“There are few crimes in this country more serious than espionage,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This office has a long history of holding those accountable who betray their country and try and profit off of classified information. This case should send a message to anyone considering violating the public’s trust and compromising our national security by disclosing classified information. We will remain steadfast and dogged in pursuit of these challenging but critical national security cases.”
Mallory, a United States citizen who speaks fluent Mandarin Chinese, told FBI agents he travelled to Shanghai in March and April to meet with Yang and Yang’s boss. After Mallory consented to a review of a covert communications (covcom) device he had been given by Yang in order to communicate covertly with Yang, FBI agents viewed a message from Mallory to Yang in which Mallory stated that he could come in the middle of June and he could bring the remainder of the documents with him at that time. Analysis of the device, which was a Samsung Galaxy smartphone, also revealed a handwritten index describing eight different documents later determined to be classified. Four of the eight documents listed in the index were found stored on the device, with three being confirmed as containing classified information pertaining to the same U.S. government agency. One of those documents was classified TOP SECRET, while the remaining two documents were classified SECRET. FBI analysts were able to determine that Mallory had completed all of the steps necessary to securely transmit at least four documents via the covcom device, one of which contained unique identifiers for human sources who had helped the United States government.
“It is a sad day when an American citizen is convicted of spying on behalf of a foreign power,” said Assistant Attorney General Demers. “This act of espionage was no isolated incident. The People's Republic of China has made a sophisticated and concerted effort to steal our nation's secrets. Today's conviction demonstrates that we remain vigilant against this threat and hold accountable all those who put the United States at risk through espionage.”
Evidence presented at trial included surveillance video from a FedEx store in Leesburg where Mallory could be seen scanning the eight classified documents and a handwritten table of contents onto a micro SD card. Though Mallory shredded the paper copies of the eight documents, an SD card containing those documents and table of contents was later found carefully concealed in his house when it was searched on June 22, 2017, the date of his arrest. A recording was played at trial from June 24, 2017, where Mallory could be heard on a call from the jail calling his family to ask them to search for the SD card.
“This trial highlights a serious threat to U.S. national security,” said Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office. “Foreign intelligence agents are targeting former U.S. Government security clearance holders in order to recruit them and steal our secrets. This case should send a message to foreign intelligence services and those caught up in their web: we are watching and we will investigate and prosecute those who willfully violate their obligations to protect national security secrets. I want to start by thanking the prosecutors of the U.S. Attorney’s Office, the trial attorneys of the Justice Department and particularly the special agents, analysts and professional staff of the FBI’s Washington Field Office for their hard work.”
Mallory has held numerous positions with various government agencies and several defense contractors, including working as a covert case officer for the CIA and an intelligence officer for the Defense Intelligence Agency. As required for his various government positions, Mallory obtained a Top Secret security clearance, which was active during various assignments during his career. Mallory’s security clearance was terminated in October 2012 when he left government service.
Mallory was convicted of conspiracy to deliver, attempted delivery, delivery of defense information to aid a foreign government, and making material false statements. He faces a maximum penalty of life in prison when sentenced on September 21. 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, John C. Demers, Assistant Attorney General for National Security, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the verdict. Assistant U.S. Attorneys John T. Gibbs, Colleen E. Garcia, and Trial Attorneys Jennifer Kennedy Gellie and Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section 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. 1:17-cr-154.
Jefferson County Man Sentenced to 57 Months on Drug ChargesRead the Press Release
SYRACUSE, NEW YORK – Andrew Rowley, age 28, of Watertown, New York, was sentenced yesterday to serve 57 months in prison for possessing with intent to distribute cocaine and 3,4 Methylenedioxymethamphetamine (MDMA), also referred to as “ecstasy,” announced United States Attorney Grant C. Jaquith and New York State Police Superintendent George P. Beach II. After his imprisonment, Rowley will serve a 3-year term of supervised release. Rowley also agreed to forfeit a total of $100,685 in drug proceeds and two vehicles.
In pleading guilty Rowley admitted that on May 4, 2017, he possessed with intent to distribute approximately 616 grams of cocaine, and approximately 1,506 grams of MDMA, which were seized during the execution of a search warrant his residence.
This case was investigated by the New York State Police, the Metro-Jefferson Drug Task Force (Watertown, NY), and the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), and was prosecuted by Assistant U.S. Attorney Carl Eurenius.
Indianapolis Man Arrested for Threatening Boston Free Speech Rally Attendees in 2017Read the Press Release
BOSTON – An Indiana man was arrested today in connection with posting a threat to shoot white attendees at the Boston Free Speech Rally held at the Boston Common in August 2017.
Eric M. Radulovic, 32, was indicted on one count of transmitting in interstate and foreign commerce a threat to injure the person of another. Radulovic was arrested this morning and will appear in federal court in Indiana this afternoon. He will appear in Boston on June 20, 2018.
According to the indictment, on or about Aug. 13, 2017, the day after violent events in Charlottesville, Va., that occurred immediately following the “Unite the Right” rally, a “Politically Incorrect” discussion board on 4chan.org promoted a Boston Free Speech Rally scheduled for Saturday, Aug. 19, 2017, on the Boston Common. The initial post invited “[l]ibertarians, conservatives, traditionalists, classical liberals, Trump supporters or anyone else who enjoys their right to free speech,” to attend, “network and befriend others who share your views, come for good food, and come to stand up against ANTIFA terrorism.” ANTIFA is short for “anti-fascists,” a movement of people who generally oppose the white supremacist and “Alt-Right” movements, sometimes by protesting events or engaging in property damage or violence.
In addition, the initial post warned people not to bring “any illegal weapons” or to “behave in a manner that makes you look bad.” It also warned people not to “[c]ome planning to instigate violence,” and that “[a]ny fights must be strictly defensive.” After the Boston Rally was announced on 4chan.org, participants in the discussion board discussed whether the Boston rally would face similar political movements and violence seen at the Charlottesville rally. The first posted response warned, “Be prepared everyone. this can get bad.” Later posts included predictions of violence, attempts to persuade against violence, and discussions of possible violence.
Radulovic, an Indiana resident who lives outside Indianapolis, was allegedly aware of and upset about the death following the Charlottesville Rally. As a result, on Aug. 13, 2017, Radulovic, allegedly posed as a member of the “Alt-Right” or white supremacist movement, anonymously posting a message on the 4chan.org discussion board regarding the Boston Rally in which he said he would shoot whites at the rally as a means to obtain sympathy for the “Alt-right” movement: “I’m going to bring a Remington 700 and start shooting Alt-right guys. We need sympathy after that landwhale got all the liberals teary eyed, so someone is going to have to make it look like the left is becoming more violent and radicalized. It’s a false flag for sure, but I’ll be aiming for the more tanned/dark haired muddied jeans in the crowd so real whites won’t have to worry.” The indictment alleges further that Radulovic posted this for the purpose of issuing a threat and knowing that it would be interpreted as a threat.
The charge of transmitting in interstate and foreign commerce a threat to injure the person of another provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division made the announcement today. The FBI Boston conducted the investigation with assistance from the Indianapolis Joint Terrorism Task Force. Assistant U.S. Attorneys Scott Garland of Lelling’s National Security Unit and Anne Paruti of Lelling’s Major Crimes Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Illegal aliens from Mexico plead guilty to reentering the United StatesRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that two illegal aliens from Mexico pleaded guilty this week to reentering the United States after having been previously removed. United States Magistrate Judge Kathleen Kay presided over the hearings. The pleas will become final when accepted by U.S. District Judge Robert G. James. The court set the defendants’ sentencing hearings for October 1, 2018.
Illegal alien arrested in Allen Parish reentered United States 5th time
Bartolo Marquez-Cantera, 36, of Mexico, pleaded guilty Wednesday to one count of illegal reentry of a previously deported alien. According to the guilty plea, law enforcement agents found Marquez-Cantera on March 28, 2018, in Allen Parish. After reviewing his record, he was found to have been removed from the United States on four previous occasions with the most recent removal being on October 6, 2011.
Marquez-Cantera faces up to 10 years in prison, three years of supervised release and a $250,000 fine. United States Customs and Border Protection conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips is prosecuting the case.
Illegal alien arrested near Lake Charles reentered country 4th time
Sergio Garcia-Mateo, 30, of Mexico, pleaded guilty Wednesday to one count of illegal reentry of a previously deported alien. According to the guilty plea, U.S. Border Patrol agents conducted a traffic stop on a vehicle containing nine people on February 21, 2018 that was traveling eastbound on Interstate 10 near Lake Charles. Garcia-Mateo was questioned and stated that he was a citizen of Mexico. His file was reviewed, and he was found to be in the United States illegally after having been removed from the country in March of 2014, February of 2017 and January of 2018.
Garcia-Mateo faces up to 10 years in prison, three years of supervised release and a $250,000 fine. United States Border Patrol conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
Illegal alien arrested in Cameron Parish reentered U.S. after 2010 removal
Jose Salvador Meza-Vasquez, 28, of Mexico, pleaded guilty Tuesday to one count of illegal reentry of a previously deported alien. According to the guilty plea’s factual basis, a Cameron Parish Sheriff’s deputy arrested Meza-Vasquez for a traffic infraction on March 12, 2018. He admitted to the deputy that he was in the United States illegally. After reviewing his record, agents discovered he had been removed from the United States in 2010 and had not received permission to reenter the country.
Meza-Vasquez faces up to two years in prison, one year of supervised release and a $250,000 fine. United States Border Patrol and the Cameron Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
Huntsville Sex Offender Sentenced to 10 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Otis Willt, age 34, of Huntsville, Arkansas, was sentenced today to 10 years in federal prison followed by twenty-five years of supervised release on one count of Accessing the Internet with the Intent to View Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in June of 2017, Officers with Arkansas Community Corrections conducted a search of the residence occupied by Willt. During the search, three cellular phones were confiscated as evidence. These phones were subsequently turned over to the Northwest Arkansas Internet Crimes Against Children Taskforce for forensic analysis.
During the subsequent forensic examinations, law enforcement was able to determine that Willt had used the seized phones to search the internet for images of child pornography. Specifically, forensic examiners were able to recover previously used internet search terms related to child pornography, as well as images of child pornography saved in the temporary internet files of the devices.
During the prosecution of the case, the Government presented the Court with evidence that Willt had previously been convicted under the laws of the State of Virginia of an offense related to the Possession of Child Pornography.
Willt was indicted in October 2017 on federal charges and plead guilty in January 2018.
This case was investigated by Arkansas State Probation and Parole, Homeland Security Investigations, and the Northwest Arkansas Internet Crimes Against Children Taskforce. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
Heroin User Sentenced to Probation for Lying to Federal Agents about Two Pistols She Sold for DrugsRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to one year of probation on her conviction for lying to federal agents, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Cythnia Mahoney, age 49, of South Park, PA.
According to information presented to the court, Mahoney lawfully purchased two pistols and later began to use heroin. Mahoney told federal agents that the guns were stolen, when in fact she had sold them for money to buy heroin.
Judge Bissoon noted that the federal sentencing guideline range included a sentence of probation, and indicated that Mahoney’s subsequent efforts at drug rehabilitation were important to her sentencing decision. Judge Bisson noted the very serious nature of the offense and indicated that if Mahoney violates her probation, her next sentence "won’t be a probationary sentence." Mahoney’s conviction will also preclude her from possessing a firearm or ammunition in the future.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for the investigation leading to the successful prosecution of Mahoney and noted the valuable assistance of the Pittsburgh Bureau of Police and the Pennsylvania State Police. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Henrietta Man Arrested on Child Pornography ChargesRead 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 Mark Buechler, 44, of Henrietta, NY, was arrested and charged by criminal complaint with production of child pornography, and possession of child pornography, including child pornography involving prepubescent minors or minors less than 12 years old. The charges carry a maximum penalty of 30 years in prison.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, on May 3, 2018, an 11-year-old boy, Minor Victim #1 (MV1), disclosed to his school counselor that the defendant performed various sexual acts on him on an ongoing basis at the defendant’s home on Stone Road in Henrietta. The counselor contacted Child Protective Services (CPS) to report the alleged incidents. A Monroe County CPS Investigator and a Monroe County Sheriff’s Office Investigator interviewed MV1 and Buechler was arrested later that day for the physical sexual abuse of MV1 and other crimes.
Also on May 3, 2018, a state search warrant was executed at the defendant’s Stone Road residence. Multiple digital and storage devices were seized, including computers, tablets, phones, SD cards, thumb drives, and digital cameras.
On May 7, 2018, Sheriff’s Office Investigators interviewed Minor Victim #2 (MV2), an 18 year old boy who had visited Buechler’s residence when he was younger. MV2 also disclosed that he was sexually abused by the defendant over an extended period of time. A second state search warrant was executed on May 7, 2018, at which time additional digital devices were seized.
The Federal Bureau of Investigation was contacted and on May 24, 2018, a federal search warrant was obtained to review the items seized during the execution of the state search warrants. A review of some of the items seized uncovered approximately 8,700 images and two videos of child pornography produced by Buechler, some of which depicted the defendant abusing the minor victims.Buechler made an initial appearance this afternoon before U.S Magistrate Judge Marina W. Payson and was detained.
The complaint is the result of an investigation by the Monroe County Sheriff’s Office Monroe County District Attorney’s Office, Major Crimes Unit, under the direction of Sheriff Todd Baxter; the Monroe County District Attorney’s Office, Special Victims Unit, under the direction of District Attorney Sandra Doorley; Monroe County Child Protective Services, under the direction of Amy Natale-McConnell; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; and the Bivona Child Advocacy Center, under the direction of Executive Director Deb Rosen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Harrisburg Man Charged with Possession of A Firearm in Furtherance of Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Demarius Hawkins, age 27, of Harrisburg, Pennsylvania, was indicted on June 6, 2018, by a federal grand jury on firearms and drug trafficking charges.
According to United States Attorney David J. Freed, the indictment alleges that between April 13, 2017 and January 23, 2018, Hawkins distributed cocaine base and heroin in Dauphin County. It is further alleged that on November 21, 2017, Hawkins unlawfully possessed a Jimenez Arms, 9-MM handgun in furtherance of drug trafficking.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania Attorney General’s Office, and the Harrisburg Police Department. Assistant U.S. Attorney Chelsea Schinnour is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Ghana Citizen Sentenced for Conspiracy to Commit Wire FraudRead 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 Jason Osei Bonsu, 36, of Ghana, who was convicted of conspiracy to commit wire fraud, was sentenced to 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that between December 2015 and May 2017, Bonsu and his co-conspirators devised an internet romance scheme to defraud victims and obtain money.
In furtherance of the scheme, the defendnat’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 Bonsu.
On March 2, 2016, Victim 1 wired $65,000 to a TD Bank account. Text messages between Bonsu and co-defendant Adams Amen demonstrate that both were participants in the scheme to defraud Victim 1. For instance, the defendant and Amen 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, controlled by a co-conspirator.
Victims lost over $211,000 as a result of Bonsu’s participation in the scheme.
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.Four Central Kentucky Men Indicted for Crop Insurance Fraud and Money LaunderingRead the Press Release
LEXINGTON, Ky. – According to court records unsealed today, four men from Carlisle, Kentucky were indicted on June 6, 2018, for engaging in crop insurance fraud and money laundering-related offenses.
A federal grand jury in Lexington returned a twenty-count indictment charging 34-year-old Bradley Price, 27-year-old Brandon Price, 57-year-old Jimmy Price, and 58-year-old Lonnie Brierly with multiple counts of making false statements to influence the Federal Crop Insurance Corporation (“FCIC”) and companies the FCIC reinsures; one count each of committing a conspiracy to commit an offense against the United States; and one count of conspiracy to commit money laundering.
The indictment alleges that as early as 2009, the Prices and Brierly, all agricultural producers in Bourbon and Nicholas Counties, falsely understated their tobacco production to insurance companies, in order to claim damage to their crop and receive insurance indemnity payments to which they were not entitled. These indemnity payments are funded by the federal government, through the FCIC. For this conduct each defendant is charged with multiple counts of making false statements to influence the FCIC. The indictment also charges each defendant with conspiracy to commit crop insurance fraud. According to the indictment, the Prices and Brierly sold the tobacco they falsely claimed not to have produced, and, working with others, “hid” this production by making it appear as if the tobacco they sold had been purchased from Clay’s Tobacco Warehouse instead of produced on their respective farms.
Finally, according to the Indictment, the Prices and Brierly conspired with each other and others to launder the proceeds of the sales of their hidden tobacco by funneling money through Farm Credit Mid-America, an agricultural lending cooperative, in violation of federal money laundering statutes.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Karen Citizen-Wilcox, Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; Christopher Altemus, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Dwayne Depp, Director, Kentucky Department of Insurance Fraud Investigation Division, jointly announced the Indictment.
The investigation preceding the indictment was conducted by the United States Department of Agriculture Office of Inspector General, United States Department of Agriculture Risk Management Agency, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and Kentucky Department of Insurance. The indictment was presented to the grand jury by Assistant U.S. Attorneys Kathryn M. Anderson and Erin M. Roth.
A date for the Prices and Brierly to appear in court has not yet been scheduled. For each charge of making false statements to the FCIC, the Prices and Brierly face up to 30 years in prison and a fine of $1,000,000. For the conspiracy to violate federal law charge, each faces up to 5 years in prison and a fine of $250,000. For the remaining money laundering charge, each faces 20 years’ imprisonment and a $1,000,000 fine. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former Pain Management Doctor Receives 5 Years in Health Care Fraud Case, Ordered to Pay More Than 15 Million Dollars in RestitutionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Chief United States District Judge Kristi K. DuBose sentenced Rassan M. Tarabein, 58, a former neurologist residing in Fairhope, Alabama, to 60 months imprisonment in a health care fraud case. The judge ordered that Tarabein pay restitution totaling $15,010,682 to six different health care benefit programs, including Medicare and the Alabama Medicaid Agency. The judge also ordered Tarabein to undergo one year of supervised release after finishing his term of imprisonment, and pay a $200 mandatory special assessment.
Tarabein previously operated the Eastern Shore Neurology and Pain Center, a private clinic in Daphne, Alabama where he offered services relating to neurology and pain management, such as spinal injections. He had advertised himself as a “World Leading Physician” on his clinic’s website.
On June 28, 2017, a federal grand jury for the Southern District of Alabama returned a 22–count superseding indictment against Tarabein, charging him with health care fraud, making false statements relating to health care matters, lying to a federal agent, unlawfully distributing schedule II controlled substances, and money laundering. He was arrested two days later at Mobile Regional Airport en route to the Middle East and taken to federal district court in Mobile, Alabama for an initial appearance.
On August 31, 2017, Tarabein pleaded guilty before Chief Judge DuBose to one count of health care fraud and one count of unlawful distribution of a schedule II controlled substance. As part of his guilty plea, Tarabein admitted that from around 2004 to May 2017, he ran an insurance scam in which he induced patients to visit his clinic so that he could bill health care benefit programs for medically unnecessary tests and procedures. The purpose of Tarabein’s admitted scheme was to maximize personal financial gain by fraudulently seeking payments from health care benefit programs such as Medicare, Medicaid, Blue Cross Blue Shield of Alabama, Humana, UnitedHealthcare, Cigna HealthSpring, and other private insurers. In pleading guilty, Tarabein acknowledged that he violated the traditional standards of medical care in numerous ways. For example, Tarabein admitted to:
- Administering unnecessary injections and attempting to inject patients in places where they were not experiencing pain.
- Telling patients that they had to receive spinal procedures and diagnostic testing in order to receive prescriptions for controlled substances.
- Using improper medical techniques and equipment in performing procedures.
- Failing to provide informed consent to patients about procedures.
- Superimposing his patients’ electronic signatures onto forms that indicated that his patients were waiving their right to monitoring “against medical advice.”
- Failing to monitor his patients’ vital signs during and after procedures, putting them at risk for complications.
- Spending little time with patients to maximize billings.
- Discriminating against Alabama Medicaid patients in services rendered, including by singling out certain Alabama Medicaid patients to receive spinal injections in regular exam rooms – as opposed to the fluoroscope procedure room – without imaging guidance if he was behind schedule.
- Fraudulently documenting patient records, including by falsifying records to describe procedures that were at times anatomically impossible to execute and by falsely recording the use of imaging guidance.
- Submitting false claims to insurance companies and inflating billing codes.
- Failing to properly train his clinic’s employees about best medical practices, such as sterility and accurate record keeping.
- Issuing prescriptions for controlled substances without a legitimate medical purpose and outside the usual course of professional practice, including by relying on pre-signing blank prescriptions when outside the United States to prescribe opioids.
- Disregarding audits and regulatory actions.
During Tarabein’s health care fraud scheme, the Alabama Board of Medical Examiners and several health care benefit programs had repeatedly placed Tarabein on notice, both verbally and in writing, for shortcomings in his medical practice, such as performing unnecessary procedures and prescribing controlled substances for no legitimate medical purpose. Despite receiving multiple warnings and reprimands, Tarabein persisted in his offense conduct for years and made millions of dollars in the process.
As a result of his felony convictions, Tarabein is prohibited from practicing medicine and prescribing controlled substances in the United States. Moreover, he has agreed to forfeit numerous properties in connection with his health care fraud scheme. These assets include:
- $3,717,249.73 seized by law enforcement officials who executed warrants on eight financial accounts in June 2017.
- $287,983.25 in cash seized by officials while executing a search warrant at Tarabein’s home in October 2016.
- Eight real estate properties. Six of these properties were previously sold to generate funds for restitution to financial victims, netting around $1,639,652.36.
Upon completion of the forfeiture process, the United States will request that the Department of Justice’s Money Laundering and Asset Recovery Section direct that all forfeited and liquidated assets be restored to the crime victims to provide them as much restitution as possible.
Several of Tarabein’s former patients spoke at today’s sentencing hearing. They described to Chief Judge DuBose the lingering physical and emotional impact of the treatment they received from Tarabein at his clinic. One patient told the judge, “Dr. Tarabein can forget me, but his name is etched in my mind the rest of my life.” Referring to Tarabein, this patient also noted, “No matter how much time in prison he gets, I am imprisoned in this body.” Another former patient who received spinal injections from Tarabein said in court, “He ruined my life for the rest of my life.” The patient went on to remark, “I feel sorry he let his greed take people’s lives.” A third patient victim portrayed Tarabein as a disgrace upon the medical profession.
Dr. Tarabein also briefly addressed the court at sentencing. He told the judge, “My American dream came to a complete end, as did my career as a doctor.”
Tarabein has a related state case pending in Montgomery County, Alabama. On June 16, 2017, a state grand jury returned a 2–count indictment against Tarabein, charging him with Medicaid fraud and theft of property in the first degree, each a felony offense. On September 19, 2017, Tarabein pleaded guilty in state court to Medicaid fraud. His expected sentencing date in that case is June 28, 2018.
United States Attorney Moore stated, “Medical professionals must be trustworthy. When they mistreat their patients and break the law, they must be held to account. In this case, the defendant stole millions of dollars from health care benefit programs and sacrificed the health of his patients for greed. I thank all the investigators for their hard work for helping to bring this defendant to justice and protecting the public safety. Health care fraud and opioid abuse continue to have a devastating impact on our communities, both locally and nationwide. Our office’s prosecution of Dr. Tarabein is an example of the Department of Justice’s unwavering commitment to combating health care fraud and our country’s opioid epidemic.”
“This doctor’s actions demonstrate an appalling abuse of his patients’ trust and callous exploitation of their medical conditions to cheat health care and insurance agencies out of millions of dollars,” said Alabama Attorney General Steve Marshall. “I am proud of the work by my Medicaid Fraud Control Unit in partnership with the U.S. Attorney’s Office for the Southern District of Alabama, the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA) and the U.S. Department of Health and Human Services Office of Inspector General (OIG), to bring Tarabein to justice and am pleased that he has been held to account with this prison sentence and order to pay restitution for his crimes.”
FBI Special Agent in Charge, James Jewell, stated, “The FBI is dedicated to identifying and assisting in the prosecution of doctors that clearly take advantage of the medical system. This case shows that the law enforcement community in the State of Alabama will work together to bring these corrupt caregivers to justice.”
“Rassan Tarabein took an oath to serve humanity as a medical professional and decided to violate that oath and his duty by choosing to unlawfully distribute prescription drugs and commit health care fraud for one sole purpose – greed. His disgraceful conduct is part of the massive opioid epidemic Alabama and the entire nation is facing today. Let this sentence be a message to all that DEA will continue to pursue, arrest, and prosecute drug traffickers of every type, including rouge medical professionals. We will continue to work with all of our law enforcement and community partners in an effort to combat this opioid epidemic and keep our communities safe,” stated DEA Assistant Special Agent in Charge Bret Hamilton.
“Schemes such as this deprive federal health care programs of the ability to deliver quality care and ultimately cheat patients out of vital taxpayer-funded programs,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG continues to emphasize the investigation of unscrupulous providers who put their own financial gain above that of the health of their patients.”
The FBI, DEA, OIG, and Alabama Medicaid Fraud Control Unit investigated the federal case. Assistant United States Attorney Sinan Kalayoglu prosecuted the federal case. Assistant Attorney General Bruce M. Lieberman is prosecuting the state case.
Former Oldham County EMS Worker Sentenced to 30 Years in Prison for Violating Federal Child Exploitation LawsRead the Press Release
LOUISVILLE, Ky. – Senior United States District Judge Thomas B. Russell sentenced Richard Wayne Johnson, 39, to 30 years in prison followed by a life term of Supervised Release, announced United States Attorney Russell M. Coleman. There is no parole in the federal system. Johnson remains in the custody of the United States Marshals Service.
Johnson previously admitted to advertising, distributing and possessing child pornography. Under federal law, child pornography includes any images or videos that depict someone under the age of 18 engaging in sexually explicit conduct.
According to the plea agreement and other court records, law enforcement officials initially became aware of Johnson’s conduct as the result of Cybertips from the National Center for Missing and Exploited Children. The online service provider, America Online (AOL) reported that one of their users was transferring child pornography by email. The email account traced back to Johnson. In the message, Johnson noted that he had “pics/videos to trade” and claimed to be rebuilding his child pornography collection because the laptop had been destroyed. Johnson attached a video of child pornography and asked for materials in return. The video included several clips involving three different female children under the age of six. The girls were being sexually abused by adult men.
Separate from the Cybertips, on September 13, 2013, the Kentucky State Police received a complaint from the Oldham County EMS. A KSP Detective spoke with the Executive Director of Oldham County EMS and learned that the Executive Director wanted to file a complaint regarding the suspicious behavior of an employee, Johnson. According to the complaint, Johnson had recently signed up for an EMT refresher course. As part of signing up for that course, Johnson provided an email address that was unusual and raised concerns among higher ranking EMS supervisors. Supervisors searched the email address using Google and found it was linked to several sites that appeared to be dedicated to incest and sex with children. Law enforcement officials also discovered Johnson’s use of the email for trading child pornography. During the investigation into one such account, the Detective received the message: "Yes I trade young. You send first," from Johnson.
While executing a state Search Warrant on Johnson’s home, Kentucky State Police Detectives discovered evidence suggesting Johnson’s actual sexual abuse of a child. The Commonwealth’s Attorney for Oldham County prosecuted Johnson for the crimes of incest and sodomy of a child. That prosecution resulted in a 17-year sentence of imprisonment. The federal sentence will be served after Johnson completes the state sentence.
The search of Johnson’s residence also resulted in the seizure of digital devices. Forensic review of the devices showed the presence of thousands of files depicting the sexual abuse of children. He had several labeled files where he stored the child pornography images.
Assistant United States Attorney Jo E. Lawless prosecuted the case with assistance from the Oldham County Commonwealth’s Attorney Courtney T. Baxter. The Kentucky State Police conducted the investigation.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Former Chihuahua, Mexico State Police Officer Sentenced to Prison on Federal Racketeering ChargeRead the Press Release
In El Paso, a federal judge on Tuesday sentenced 55-year-old former Chihuahua, Mexico State Police Officer Mario De La O Lopez (aka “Flaco”) to 324 months in federal prison for his role in Sinaloa Cartel narcotics distribution operations. In addition to the prison term, United States District Judge Frank Montalvo also ordered that the defendant pay a $1,000 fine.
That announcement was made by United States Attorney John F. Bash; Drug Enforcement Administration (DEA) Special Agent in Charge Kyle W. Williamson, El Paso Division; Federal Bureau of Investigation (FBI) Special Agent in Charge Emmerson Buie, Jr., El Paso Division; and, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jeffrey C. Boshek, II, Dallas Division.
On June 15, 2017, Lopez pleaded guilty to one count of conspiracy to violate the Racketeering Influenced Corrupt Organization statute (RICO). By pleading guilty, Lopez admitted to participating in the criminal enterprise from 2005 through 2009 by safeguarding and repackaging cocaine, weapons and bulk cash shipments.
“The sentencing of Mario De La O Lopez is yet another strike against the powerful and violent drug trafficking organizations whose reach stretches across international borders and directly threatens our communities in the United States”, stated DEA El Paso Division Special Agent in Charge Kyle W. Williamson. “We will continue to work together with our law enforcement partners on both sides of the border to pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs.”
“This sentencing is a result of the ongoing partnership and collaboration between the FBI, DEA and international partners to bring to justice members of the Sinaloa Cartel,” said FBI Special Agent Emmerson Buie, Jr. “This effort not only exemplifies our commitment to prevent drug war violence and criminal activity from poisoning the communities of El Paso and our sister city, Ciudad Juarez, but it also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent drug enterprises.”
“When agencies work in concert, criminals cannot victimize residents and communities in the United States then hide behind shifting geographic jurisdictions,” stated ATF Special Agent in Charge Jeffrey C. Boshek, II. “Leveraging partnerships between ATF and federal, state and local agencies in the pursuit of firearms and narcotics traffickers that fuel underground markets and violent crime ensures the most-appropriate prosecution and maximum sanctions for the public we serve.”
Lopez was one of 24 high ranking Sinaloa Cartel leaders, including Joaquin Guzman Loera (aka “El Chapo”) and Ismael Zambada Garcia (aka “Mayo”), indicted on federal racketeering charges in April 2012. To date, only De La O Lopez has pleaded guilty to federal charges in connection with the investigation into this criminal enterprise. Three defendants--Gabino Salas-Valenciano, Jesus Rodrigo Fierro-Ramirez and Emigdio Martinez, Jr.--have died since the indictment was returned in 2012. Twenty (20) other defendants remain under indictment. Trial is scheduled for November 2018.
This investigation resulted in the seizure of hundreds of kilograms of cocaine, thousands of pounds of marijuana in cities throughout the United States. Law Enforcement also took possession of millions of dollars in drug proceeds which were destined to be returned to the Cartel in Mexico. Agent and Officers likewise seized hundreds of weapons and thousands of rounds of ammunition intended to be smuggled into Mexico to assist the Cartel’s battle to take control of Juarez and the local drug trafficking corridors.
The DEA, FBI, and ATF together with the Immigration and Customs Enforcement –Homeland Security Investigations (ICE-HSI), United States Border Patrol, Customs and Border Protection (CBP), United States Marshals Service, El Paso Police Department, El Paso Sheriff’s Office, and the Texas Department of Public Safety investigated this case.
Florida Scammer Sent to Prison for Repeat Telemarketing OffenseRead the Press Release
Wesley Scott Aldred, 30, of Kissimmee, Florida, has been sentenced to 21 months in prison for violating his supervised release on his prior telemarketing fraud conviction, Donald S. Boyce, U.S. Attorney for the Southern District of Illinois, announced today.
Aldred was previously sentenced in 2015 for participating in a timeshare resale fraud scam known as Premier Timeshare Solutions, which victimized timeshare owners all over the country, including southern Illinois. While he was on supervised release for that conviction, Aldred was caught engaging in a similar telemarketing fraud scam targeting timeshare owners.
On June 7, 2018, at the federal courthouse in East St. Louis, Illinois, United States District Judge Nancy J. Rosenstengel revoked Aldred’s supervised release and ordered him to serve 21 months in federal prison, to be followed by an additional 39 months of supervised release. The sentence imposed by the court was the maximum term recommended by the U.S. Sentencing Guidelines.
An ongoing investigation is being conducted by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case was prosecuted by Assistant United States Attorneys Ranley R. Killian and Scott A. Verseman.
First Defendant in Interstate Cocaine Trafficking Ring SentencedRead the Press Release
PITTSBURGH, Pa – A resident of Donora, Pennsylvania, has been sentenced in federal court to 35 months in jail, to be followed by three years of supervised release on his conviction for possession with intent to distribute cocaine, United States Attorney Scott W. Brady announced today. Davis is the first defendant to plead guilty and be sentenced in connection with the Mendoza/Lightfoot Drug Trafficking Organization Indictments. The cases against the 38 other co-defendants remain pending.
United States District Judge Mark Hornak imposed the sentence on Anthony Davis, age 41.
According to information presented to the court from approximately April 2017 to December 2017, Anthony Davis operated a cocaine "stash – house" for the Mendoza/Lightfoot Drug Trafficking Organization. Davis stored large amounts of cocaine, marijuana, along with drug production and distribution materials at his personal home in Donora. Davis ran this operation with Mendoza/Lightfoot DTO member and co-defendant Brandon Thomas.
On December 13, 2017, FBI Special Agents, Task Force Officers, as well as members of the Pennsylvania State Police executed a search warrant at Davis’ home. During the search, investigators recovered approximately five ounces of cocaine, large amounts of marijuana, approximately $11,025 in cash, and a large hydraulic kilo press in the basement of Davis’ home. As part of his guilty plea, Davis agreed to forfeit the items seized at his home on that day.
Assistant United States Attorney Timothy M. Lanni is prosecuted this case on behalf of the government.
The Federal Bureau of Investigation - The Monongahela Valley Residential Agency, and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the guilty plea in this case.
Financial advisor sentenced to seven years in federal prison for defrauding former Colts playerRead the Press Release
California man stole $4.7 million through elaborate eight-year fraud scheme
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today that Kenneth Ray Cleveland, 64, of Agoura Hills, California, was sentenced to 84 months (seven years) in federal court by U.S. District Court Judge Tanya Walton Pratt. Cleveland’s sentence followed his guilty plea to previously filed federal fraud and money laundering charges in connection with a long-running investment fraud aimed at Cory Redding, a former NFL player, and others.
“People should have confidence that those they entrust with their hard-earned money will treat them fairly and honestly,” said Minkler. “This defendant exploited that trust through lies and deception for purely personal gain. Today’s sentence underscores that such egregious conduct cannot, and will not, be tolerated.”
Cleveland worked as Redding’s financial advisor for a decade, starting not long after Redding entered the NFL after college. Redding did not want to become the all-too-common story of a sports star who squandered his earnings, so he sought out professional financial advice to help he and his family save for his inevitable retirement from football. Cleveland, who was referred to Redding through a college professor, held himself out as an investing guru and sold Redding on a simple investment strategy that appealed to Redding’s life goals: put your money in conservative investments, live off the interest, and the principal will be there for you when you retire. Cleveland called it “fixed income” investing.
Over the next decade, Redding invested millions with Cleveland. Throughout this time, Cleveland kept Redding apprised of the status – and purported “success” – of his investments. Through financial statements, emails, text messages, and in-person meetings, Cleveland described down to the penny how much money Redding had and how much he was making through his smart investment decisions. He made money available to Redding when he needed it. He periodically paid Redding “interest.” He even played on Redding’s fears and stoked his confidence by comparing him to less financially successful NFL players. By the end of the 2014 season, when Redding was ready to retire from the NFL, Cleveland claimed to have made him millions.
But that was a lie. Redding’s money was gone. It had been gone for some time. There were no “investments.” Years before, beginning in 2007, Cleveland started spending Redding’s money for his own purposes: credit cards, mortgages, office rent, employee payroll, legal expenses, utilities, health care, cash withdrawals, daily personal and business purchases, and even payments to his mother, sister, and daughter. He also used Redding’s money to pay “interest” to other “investors” (victims) whom he had also promised financial success. In other words, he used Redding’s money in a Ponzi scheme. In fact, Cleveland had used Redding’s money to make “interest” payments to Redding himself. At the end, there was nothing left.
Redding, however, did not know any of that. The dozens of financial statements, emails, and text messages that Cleveland sent to Redding, and the information Cleveland conveyed during numerous in-person meetings, were all part of an elaborate scheme to conceal the fact that Cleveland was stealing Redding’s money. Even as Cleveland was being prosecuted in California for another fraud scheme, he still tried to convince Redding that his money was safe. At this point, though, Redding knew better.
But the damage had been done. Cleveland had stolen over $4.7 million from Redding. As a result, Redding did not retire after the 2014 season with the Indianapolis Colts. He played one additional season for the Arizona Cardinals to try to earn back a portion of what was taken.
This case was investigated by the Federal Bureau of Investigation.
“This sentence reaffirms the FBI’s commitment to aggressively pursue and investigate those who utilize positions of trust and influence to commit financial fraud,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, large-scale fraud schemes, particularly those that exploit positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1)
Assistant United States Attorney Nick Linder, who prosecuted the case for the government, said that Cleveland was also ordered to pay full restitution of $4,706,066.86.
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Federal Drug and Violent Crime Enforcement Operation Nets 12 Defendants Wanted for Guns, Drugs and Other ChargesRead the Press Release
HENDERSON – As part of “Take Back North Carolina Initiative,” the United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that “Operation Thunderstruck,” a heroin and opioid centered Organized Crime and Drug Enforcement Task Force Operation (OCDETF) resulted in the arrest of twelve (12) defendants for outstanding federal charges in a coordinated warrant enforcement operation. In addition, at least one defendant related to this operation was found to be in the custody of the North Carolina Department of Corrections. A federal detainers has been filed against this subject. Also, one subject was arrested on state charges.
This operation was conducted as part of the Eastern District of North Carolina Take Back North Carolina Initiative as part of the federal focus on the alarming level of opioid use and the deaths associated with it. This initiative is bringing the full weight and resources of the federal court system in the fight against crime in Vance, Granville, Franklin and Warren Counties in partnership with District Attorneys’ Offices and federal, state, and local law enforcement.
The following individuals were charged by way of Criminal Indictment. The individual charges for each defendant is contained in the parenthesis following the personal information.
- Lorenzo Alston, 28, of Henderson, NC (Possession with Intent to Distribute Heroin)
- Jermill Keith Blacknall, 30, of Henderson, NC (Felon in Possession of a Firearm, Possession with Intent to Distribute Heroin, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, Maintaining a Place for Manufacture & Distribution of Heroin)
- Odell Terrance Burrell, 40, of Vance County, NC (Possession with Intent to Distribute Cocaine Base (Crack) and Marijuana & Maintaining a Place for Manufacture and Distribution of Cocaine Base (Crack) and Marijuana)
- Kyle Victor Fisher, 29, of Granville County, NC (Felon in Possession of a Firearm & Ammunition)
- Roy Lee Fowler, 53, of Vance County, NC (Felon in Possession of a Firearm)
- Dominique Renna Russell, 30, of Henderson, NC (Possession with Intent to Distribute Heroin, Aiding and Abetting, Maintaining a Place for Manufacturing & Distributing Heroin, aiding and abetting, possession of a firearm in furtherance of a drug trafficking crime.)
- Daryl Russell, 31, of Henderson, NC (Felon in Possession of a Firearm)
- Mario Jamal Steed, 29, of Henderson, NC (Conspiracy to Possess with Intent to Distribute Heroin, Felon in Possession of a Firearm)
- James Edward Downey, 41, of Oxford, NC (Conspiracy to Possess with the Intent to Distribute Cocaine Base (Crack))
- Markest Foye, 32, of Oxford, NC (Conspiracy to Possess with the Intent to Distribute Cocaine Base (Crack))
- Jamal Kendale Watson, 27, of Fayetteville, NC (Conspiracy to Possess with the Intent to Distribute Cocaine Base (Crack))
- Toney Fields, 42, of Oxford, NC (Conspiracy to Possess with the Intent to Distribute Cocaine Base (Crack)
The charges and allegations contained in the Indictments are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
The enforcement operation was conducted by the Drug Enforcement Agency (DEA), Bureau of Alcohol, Tobacco, Firearms, & Explosives, (ATF), the United States Marshal Service, Internal Revenue Service Criminal Investigations, Henderson Police Department, Oxford Police Department, North Carolina State Bureau of Investigation, Vance County Sheriff’s Office, Franklin County Sheriff’s Office, Warren County Sheriff’s Office, Granville County Sheriff’s Office, North Carolina Ninth Judicial District Attorney’s Office, and the United States Probation Office.
Executive of Yacht Sharing Club Sentenced to Prison for Defrauding InvestorsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ANDREW DEME, 52, of Fort Lauderdale, Florida, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for defrauding investors in a yacht sharing club.
According to court documents and statements made in court, DEME was the President and sole Director of Waters Club Worldwide, Inc. (“WCW”). In November 2016, WCW completed a merger with Petrus Resources Corporation and the merged company subsequently changed its name to Waters Club Holdings, Inc. (“Waters Club”). DEME became President, Chief Executive Office and Chief Financial Officer of Waters Club. According to a Waters Club document used to solicit investors and business partners, Waters Club sought to “introduce a revolutionary Sharing Economy model to yachting” by “form[ing] a membership-based Club with a fleet of yachts strategically located in the world’s leading cruising regions that members can share and use interchangeably for their yachting vacations.”
Promoters that DEME hired, including Thomas Heaphy, Jr. and Brian Ferraioli, made certain misrepresentations to prospective investors in Waters Club, including that money would be used to develop the business and fund the operations of Waters Club, and that promoters were not being paid commissions for recruiting investors. In truth, DEME knew that approximately half of all the money paid by investors for shares of Waters Club was paid to Heaphy and Ferraioli as sales commissions. Due in part to these payments, Waters Club lacked the capital to develop its membership-based club, did not pursue an IPO, and the shares purchased by investors were unsalable.
Heaphy and Ferraioli recruited at least 12 investors to pay a total of at least $1,289,500 for shares of Waters Club stock. Heaphy’s total gain from the scheme was $307,658, and Ferraioli’s total gain was $297,546. One of the victims of this investment scheme was a Connecticut resident who invested $475,000 in Waters Club.
Judge Meyer ordered DEME to pay restitution in the amount of $1,289,500.
DEME was arrested on December 5, 2017. On March 15, 2018, he pleaded guilty to one count of conspiracy to commit mail and wire fraud.
DEME, who is released on a $100,000 bond, was ordered to report to prison on July 12, 2018.
Heaphy, of East Moriches, New York, and Ferraioli, of Sayville, New York, previously pleaded guilty to the same charge. On May 7, 2018, they were each sentenced to 72 months of imprisonment for their roles in this scheme and an unrelated investment fraud scheme.
This investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.
Dominican National Charged with Identity TheftRead the Press Release
Boston – A Dominican national was indicted yesterday in federal court in Boston on Social Security fraud and identity theft charges.
Rafael Aguasviva Peralta, 31, was indicted on one count of misuse of a Social Security number and one count of aggravated identity theft.
The indictment alleges that, on Nov.19, 2013, Aguasviva Peralta falsely represented that a Social Security number was his own, when it was not.
The charge of misuse of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Posts Advisory Opinions on FARA.Gov WebsiteRead the Press Release
John Demers, Assistant Attorney General for National Security, announced today the public release of the advisory opinions issued by the Department of Justice’s Foreign Agents Registration Act (FARA) Registration Unit since January 1, 2010. See https://www.justice.gov/nsd-fara/advisory-opinions.
“Eighty years ago, Congress passed and President Franklin D. Roosevelt signed the Foreign Agents Registration Act (FARA) to combat the spread of hidden foreign influence in American politics,” Assistant Attorney General Demers said. “Today is the law’s 80th anniversary, and it remains a vital tool to combat this threat. To enhance compliance, we are making these advisory opinions available publicly and online for the first time. By posting these advisory opinions, the Department of Justice is making clearer how we interpret some of FARA’s key provisions.”
FARA, as amended, 22 U.S.C. § 611 et seq., requires persons in the United States who engage in specified activities as agents of foreign principals to register with the Department of Justice (the “Department”) unless they are exempt. Disclosures under FARA help to ensure transparency in the activities of foreign principals and make it more difficult for those principals to maintain secret their role in activities occurring in the United States. Within the Department’s National Security Division (NSD), responsibility for the administration and enforcement of FARA resides with the FARA Registration Unit, which is part of the Counterintelligence and Export Control Section.
Pursuant to regulations that the Department has issued implementing FARA, potential registrants or their counsel may ask the FARA Registration Unit how the Department interprets and applies FARA. See 28 C.F.R. § 5.2. Such inquiries must be in writing, must pertain to an actual, as opposed to hypothetical situation, and must disclose the identities of the parties involved. Written materials submitted pursuant to such a request are treated as confidential.
The FARA Registration Unit has issued 49 advisory opinions since January 1, 2010, which are being posted on the FARA.gov website together with three other letters sent in response to requests for general information. The opinions and letters will be organized on the website by topic of inquiry or the aspects of the statute they discuss. Any proprietary information, including any information that would identify the parties who made the requests has been redacted. The FARA Unit will post future advisory opinions in a similar manner on a periodic basis.
In its September 2016 Audit of NSD’s Enforcement and Administration of FARA, the Department’s Inspector General recommended that NSD consider the value of making advisory opinions publicly available. NSD agreed with that recommendation and posted summaries of a few opinions on the website. With the public posting of a more comprehensive repository of correspondence, the Department has demonstrated its commitment to improving the public’s understanding of FARA.