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7 June 2018
Father and Son Sentenced in Conspiracy to Make Payments and Gratuities to City of Buffalo Police OfficersRead 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 James Mazzariello, Jr., 63, and his son, Adam Mazzariello, 38, both of Alden, NY, who were convicted of conspiring to pay bribes to City of Buffalo police officers, were sentenced to serve 12 months and six months in federal prison respectively by U.S. District Judge Richard J. Arcara. James Mazzariello, Jr. was also convicted of making and subscribing a false tax return.
Assistant U.S. Attorneys Russell T. Ippolito, Jr., and Maura K. O’Donnell, who handled the prosecution, stated that James Mazzariello, Jr. owned and operated Jim Mazz Auto, Inc. (“Jim Mazz Auto”) and National Towing, Inc. (“National Towing”). The companies were involved in all aspects of the automobile towing and repair business, including collision repair work, mechanical repair work, towing and storage work, and the sale of used automobiles. Adam Mazzariello supervised the towing services aspect of his father’s businesses.
Between January 2009 and May 2012, Jim Mazz Auto tow truck operators, at the direction of the defendants, made payments to certain City of Buffalo police officers for their assistance in enabling the drivers to tow motor vehicles damaged in accidents in the City of Buffalo. The tow truck operators made these payments from their own personal funds and were then reimbursed by the defendants. James Mazzariello, Jr. and Adam Mazzariello also directed and authorized others to make reimbursement payments to tow truck operators for payments.
The investigation examined and substantiated 19 different payments made by Jim Mazz Auto tow truck operators to City of Buffalo Police Officers. Approximately $500 in payments were made to City of Buffalo police officers while the gross revenue Jim Mazz Auto derived from making such payments totaled $43,022.74. The gross revenue consisted of payments made to Jim Mazz Auto for towing, as well as for mechanical and collision repair work.
In addition, James Mazzariello, Jr. filed false corporate tax returns and individual tax returns for tax years 2009 and 2010. He also significantly underreported the total amount of gross revenue for his business in order to pay less in federal taxes. The total tax loss was $125,311.
The sentencings are the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Internal Revenue Service Criminal Investigation Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office; the New York State Department of Motor Vehicles’ Division of Field Investigation, under the direction of Owen McShane, Director of Investigations; the New York State Department of Taxation and Finance Criminal Investigations Division, under the direction of Upstate Chief of Investigations Pat Simet; the New York State Department of Financial Services Criminal Investigations Unit, under the direction of Director Frank Orlando; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Egg Harbor Township, New Jersey, Man Charged with Receipt of Child PornographyRead the Press Release
TRENTON, N.J. – An Egg Harbor Township man was arrested by federal agents today for allegedly receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Matthew Wolny, 40, is charged by complaint with two counts of receiving child pornography. Wolny is expected to appear this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.
According to the complaint:In September 2013, Wolny, who was then living in Jackson, New Jersey, used peer to peer file sharing software on his computer to download video files containing images of child sexual abuse from the internet. When law enforcement officers searched Wolny's Jackson residence and his car in September 2013, they seized numerous electronic devices containing approximately 2,000 images and 1,600 videos of suspected child pornography.
Each charge of receiving child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato, with the investigation. He also thanked the Little Egg Harbor Police Department, under the direction of Chief Richard J. Buzby Jr, for its assistance.
The government is represented by Assistant U.S. Attorney Molly Lorber of the Criminal Division in Trenton.
Eddy County Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Stephanie Murray, 30, of Loving, N.M., pled guilty today in federal court in Las Cruces, N.M., to narcotics trafficking charges arising out of the sale of methamphetamine to an undercover law enforcement agent.
Murray and co-defendants Jimmy Myers, 24, of Lockhart, Texas, and Jesus Sanchez, 31, of Carlsbad, N.M., were charged with methamphetamine trafficking offenses in an indictment filed on Dec. 13, 2017. The three-count indictment charged Murray, Myers and Sanchez with participating in a methamphetamine trafficking conspiracy and distributing methamphetamine on April 28, 2017. It also charged Myers with distributing methamphetamine on May 18, 2017. According to the indictment, the defendants committed the crimes in Eddy County, N.M.
During today’s proceedings, Murray pled guilty to conspiracy and distributing methamphetamine. In entering the guilty plea, Murray admitted that on April 28, 2017, she provided methamphetamine to an individual who then distributed the methamphetamine to an undercover law enforcement agent.
Myers previously entered a guilty plea on May 8, 2018. At sentencing, Murray faces a maximum penalty of 20 years in federal prison, and Myers faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. They both remain in custody pending sentencing hearings, which have yet to be scheduled.
Sanchez has entered a plea of not guilty to the charges in the indictment. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by Homeland Security Investigations and the New Mexico State Police. Special Assistant U.S. Attorney Joni Autrey of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Dunkirk Man Pleads Guilty to Selling CocaineRead 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 Fred Santiago, 30, of Dunkirk, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and distribution of, five kilograms or more of cocaine. The charge carries a mandatory minimum sentence of 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between July 2016 and May 2, 2017, the defendant conspired with co-defendant Michael Pacheco to distribute kilogram quantities of cocaine in and around the Western District of New York. Santiago obtained the cocaine from a source of supply in New York City for sale and distribution to others.
On May 2, 2017, a state search warrant was executed at the defendant’s residence on Lincoln Avenue in Dunkirk. Approximately 640 grams of cocaine was seized from a safe, and approximately 39 grams of marijuana was seized from the kitchen counter. In addition, law enforcement officers seized four drug scales, $44,000 in cash, $2,000 in money orders, a heat sealer, plastic bags, and a metal kilo drug press.
Charges are pending against co-defendant Michael Pacheco. 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.
The plea is the culmination of an investigation by the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Evans Police Department, under the direction of Chief Douglas Czora; the Dunkirk Police Department, under the direction of Chief David Ortolano; and the Chautauqua County Drug Task Force, under the direction of Sheriff Joseph Gerace.
Sentencing is scheduled for September 20, 2018, before Judge Geraci.
Drug Dealer Indicted for Fentanyl Distribution Resulting in OverdoseRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Dumfries man with distributing Fentanyl, a very potent pain killer used in the medical profession, that resulted in the non-fatal overdose of a Virginia woman.
According to the indictment, since November 2017, Christopher Sorensen, 31, engaged in a conspiracy to distribute Fentanyl, distributed Fentanyl, distributed oxycodone, and possessed Fentanyl and oxycodone with the intent to distribute such substances.
Sorensen is charged with one count of Fentanyl distribution causing serious bodily injury as well as six other drug-distribution counts. If convicted, Sorensen faces a mandatory minimum of 20 years in prison and a maximum sentence of life in prison. 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, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant United States Attorney James L. Trump and Special Assistant U.S. Attorneys Matthew Reilly and Kaitlin Paulson 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 are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-237.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Dominican National Charged with Illegal ReentryRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with illegally reentering the United States after being deported.
Luis Marcial Peguero-Espinal, 38, was indicted on one count of illegal reentry of a deported alien.
According to court documents, Peguero-Espinal was previously deported on June 16, 2011, and Sept. 19, 2017. When law enforcement officers discovered Peguero-Espinal on May 23, 2018, they determined him to be unlawfully present in the United States.
Peguero-Espinal faces a sentence of no greater than 20 years in prison, up to three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings. 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 Todd M. Lyons, Deputy Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit is prosecuting this case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Departments of Justice and Homeland Security Release Quarterly Alien Incarceration Report Highlighting the Negative Effects of Illegal Immigration and the Need for Border SecurityRead the Press Release
President Trump’s Executive Order on Enhancing Public Safety in the Interior of the United States requires the Department of Justice (DOJ) and the Department of Homeland Security (DHS) to collect relevant data and provide quarterly reports on data collection efforts. On June 7, 2018 DOJ and DHS released the FY 2018 1st Quarter Alien Incarceration Report, complying with this order.[1] The report found that more than one-in-five of all persons in Bureau of Prisons custody were known or suspected aliens, and 93 percent of confirmed aliens in DOJ custody were in the United States unlawfully.
"The illegal immigrant crime rate in this country should be zero," said Attorney General Sessions. "Every crime committed by an illegal alien is, by definition, a crime that should have been prevented. It is outrageous that tens of thousands of Americans are dying every year because of the drugs and violence brought over our borders illegally and that taxpayers have been forced, year after year, to pay millions of dollars to incarcerate tens of thousands of illegal aliens. That is another reason why the Department of Justice under President Trump's leadership has instituted a zero tolerance policy for illegal entry on our Southwest border. Today's report is yet another reminder that we must continue this policy and help fulfill President Trump's goals of restoring lawfulness to our immigration system and ensure that immigration serves the good of this country."
“Bad actors know well our legal loopholes which act as a magnet for illegal immigration,” said Secretary Nielsen. “As DHS continues to carry out President Trump’s immigration priorities to keep America safe, Congress must urgently act to close dangerous loopholes that attract criminal aliens and also inhibit our ability to remove them.”
Section 16 of the Executive Order directs the Secretary of Homeland Security and the Attorney General to collect relevant data and provide quarterly reports regarding: (a) the immigration status of all aliens incarcerated under the supervision of the Federal Bureau of Prisons; (b) the immigration status of all aliens incarcerated as federal pretrial detainees under the supervision of the United States Marshals Service; and (c) the immigration status of all convicted aliens in state prisons and local detention centers throughout the United States.
A total of 57,820 known or suspected aliens were in in DOJ custody at the end of FY 2018 Q1, including 38,132 persons in BOP custody and 19,688 in USMS custody. Of this total, 42,284 people had been confirmed by U.S. Immigration and Customs Enforcement (ICE) to be aliens (i.e., non-citizens and non-nationals), while 15,536 aliens were still under investigation by ICE to determine alienage and/or removability.
Among the 42,284 confirmed aliens, 39,413 people (93 percent) were unlawfully present. These numbers include a 62 percent unlawful rate among 38,132 known or suspected aliens in BOP custody and a 78 percent unlawful rate among 19,688 confirmed aliens in USMS custody.
Approximately 16,233 aliens in USMS custody required housing in state, local, and private facilities, which cost $1,458,372.72 a day.
For the first time, the Quarterly Alien Incarceration Report included examples of newly sentenced or incarcerated aliens in BOP custody. These examples include, but are not limited to:
- Anibel Rondolpho Rodriguez, an illegal alien from Honduras who was residing in Freeport, NY, was sentenced to 45 years in prison after he pled guilty to racketeering charges, two murder conspiracies, two attempted murders, and threatening to commit assault.
- Eduardo Martinez, an illegal alien who was residing in Fort Wayne, Indiana, was sentenced to 324 months in prison after he pled guilty to possession with intent to distribute more than a kilogram of heroin, distribution of over 50 grams of methamphetamine, and possession of a firearm.
- Pedro Quintero-Enriques, an illegal alien from Mexico who was residing in Summerdale, Alabama, was sentenced to 108 months in prison after he pled guilty to illegal reentry after deportation and felon in possession of firearms.
This report does not include data on the alien populations in state prisons and local jails because state and local facilities do not routinely provide DHS or DOJ with comprehensive information about their inmates and detainees—which account for approximately 90 percent of the total U.S. incarcerated population.
Information Regarding Immigration Status of Aliens Incarcerated Under the Supervision of the Federal Bureau of Prisons
The Department of Justice’s Bureau of Prisons (BOP) has an operational process for maintaining data regarding foreign-born inmates in its custody. On a quarterly basis, BOP supplies this information to U.S. Immigration and Customs Enforcement (ICE). ICE, in turn, analyzes that information to determine the immigration status of each inmate and provides that information back to BOP.
Out of the 183,058 inmates in BOP custody, 38,132 (twenty-one percent) were reported by BOP as known or suspected aliens. Further details regarding these 38,132 known or suspected aliens are as follows:
- 20,976 (55 percent) were unauthorized aliens who are subject to a final order of removal;
- 11,698 (31 percent) remain under ICE investigation;
- 2,850 (seven percent) were unlawfully present and now in removal proceedings;
- 2,484 (approximately seven percent) were lawfully present aliens but are now in removal proceedings; and
- 124 were aliens who have been granted relief or protection from removal.
Information Regarding the Immigration Status of Aliens Incarcerated as Federal Pretrial Detainees
USMS identified 19,688 confirmed aliens under ICE investigation detained at USMS facilities. Further details regarding these 19,688 confirmed aliens are as follows:
- 13,858 (70 percent) were aliens who are subject to a final order of removal;
- 3,838 (19 percent) remain under ICE investigation;
- 1,560 (7.9 percent) were unlawfully present and now in removal proceedings;
- 387 (approximately two percent) were lawfully present but are now in removal proceedings; and
- 45 were aliens who have been granted relief or protection from removal.
Pending Charges Against Confirmed Aliens in USMS Custody
Of the 19,688 confirmed aliens in USMS custody, 10,971 (56 percent) were in custody for an immigration related offense. Additionally, 4,665 (nearly 24 percent) aliens were in custody for drug related offenses. Further details regarding the related charges of these inmates are as follows:
- 974 (approximately five percent) were in custody for supervision violations;
- 889 (approximately five percent) were in custody for property offenses;
- 391 (approximately five percent) were in custody for weapons violations;
- 378 (approximately two percent) were in custody for violent crimes;
- 745 (approximately four percent) in custody were material witnesses.
Immigration Status of All Convicted Aliens Incarcerated in State Prisons and Local Detention Centers Throughout the United States
Some state and local jurisdictions already take proactive measures to make this data available to the public. For example, the Texas Department of Public Safety publishes data online regarding criminal alien arrests and convictions. These data do not account for all aliens in the Texas criminal justice system, as they are limited to criminal alien arrestees who have had prior interaction with DHS resulting in the collection of their fingerprints.
As reported by the Texas Department of Public Safety (DPS), 251,000 criminal aliens have been booked into local Texas jails between June 1, 2011 and April 30, 2018, according to DHS status indicators. These criminal aliens were charged with:
- More than 663,000 criminal offenses;
- 1,351 homicides;
- 7,156 sexual assaults;
- 9,938 weapons charges;
- 79,049 assaults;
- 18,685 burglaries;
- 79,900 drug charges;
- 815 kidnappings;
- 44,882 thefts;
- 4,292 robberies.
Additional conviction data can be found in the report.
The Departments continue to progress towards establishing data collection of the immigration status of convicted aliens incarcerated in state prisons and local detention centers through the Department of Justice’s Office of Justice Programs, Bureau of Justice Statistics and the Department of Homeland Security’s Office of Immigration Statistics.
Department of Justice Announces New DEA Division Office in OmahaRead the Press Release
The Drug Enforcement Administration will establish the Omaha Field Division – its 23rd division office in the United States – on July 8, 2018. The division will include Nebraska, Iowa, Minnesota, North Dakota and South Dakota.
"In January, DEA reorganized its field divisions for the first time in nearly 20 years. Today, just five months later, we are adding another new field division," said Attorney General Jeff Sessions. "That’s because we are facing a drug threat today the likes of which we have never seen before—but we are rising to the challenge. The Omaha Division will help us address the methamphetamine and opioid threat in Nebraska, Iowa, Minnesota, North Dakota, and South Dakota. The people of these states can rest assured that, in the face of an unprecedented crisis, we are taking steps to be more effective and put the traffickers and crooked doctors where they belong—behind bars."
“This action converts the existing Omaha District Office into a division in an effort to enhance DEA enforcement efforts within the Great Plain states region and unify drug trafficking investigations under a single Special Agent in Charge,” said DEA Acting Administrator Robert W. Patterson.
“DEA anticipates that this change will produce more effective investigations on methamphetamine, heroin, fentanyl and prescription opioid trafficking, all of which have a significant impact on the region,” said DEA Omaha’s Special Agent in Charge Matthew R. Barden.
The division will also better align DEA with the U.S. Attorneys’ Offices districts in those areas, similar to current ATF and FBI offices, and also to the Midwest High Intensity Drug Trafficking Areas (HIDTA) Program.
The Omaha Division will be led by Special Agent in Charge Matthew R. Barden, who comes from the St. Louis Division where he served as Associate Special Agent in Charge.Cross Lanes Man Sentenced to Federal Prison for Receiving Child PornographyRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man was sentenced today to 78 months in federal prison for a child pornography crime, announced United States Attorney Mike Stuart. Charles William Lourett, 62, previously entered his guilty plea in February to receiving child pornography. U.S. Attorney Stuart commended the investigative efforts of the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the Parkersburg Police Department, the FBI, and the FBI Violent Crimes Against Children Task Force.
“We have a great team of investigators and prosecutors working tirelessly to identify those who use the Internet to target and exploit children,” said United States Attorney Mike Stuart. “Sex offenders like Lourett need to be locked up.”
Lourett previously admitted that on September 22, 2016, he received a video of a prepubescent minor engaged in sex acts. The video was received on Lourett’s computer located at his residence. The investigation revealed that Lourett was using a peer-to-peer file sharing program to download, receive, and distribute child pornography. Lourett further admitted to possessing over 600 images and videos of minors engaged in sex acts.
Upon Lourett’s release from prison, he will be required to serve a term of supervised release of 15 years and will be required to register as a sex offender.
First Assistant United States Attorney Lisa G. Johnston and Assistant United States Attorney Jennifer Rada Herrald were in charge of the prosecution. The sentencing hearing was held before United States District Judge John T. Copenhaver, Jr..
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Company Owner and Bookkeeper Indicted on Wire Fraud Conspiracy Charges in Connection with Unemployment Insurance Benefits SchemeRead the Press Release
ASHEVILLE, N.C. – A grand jury sitting in Asheville returned a federal criminal indictment today, charging Marion Kent Covington, 63, and Diane Mary McKinny, 65, both of Rutherfordton, N.C., with a conspiracy to commit wire fraud in connection with an unemployment insurance benefits scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; and Rafiq Ahmad, Special Agent in Charge of the Department of Labor-Office of the Inspector General, join U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, at all relevant times, Covington was the president, owner, and registered agent of Diverse Corporate Technologies, (“DCT”), a plastics manufacturing company located in Rutherford County, N.C. McKinny worked for Covington at DCT. The indictment alleges that, in late 2008, DCT was struggling financially, so the co-defendants developed and implemented a scheme to defraud the State of North Carolina by placing DCT employees on Unemployment Insurance Benefits (“UI Benefits”), while those employees continued to work at the business in excess of what was permitted by the program eligibility requirements. The indictment alleges that the scheme allowed DCT to reduce the cost-of-labor component of its cost-of-goods-sold, thereby increasing its net profitability.
The indictment alleges that in November or December 2008, in order to accomplish the scheme, the co-defendants “laid off” nearly all of the employees at DCT. The co-defendants provided some employees with separation notices and instructed them as to how to file their own claims for UI Benefits. Those employees received UI Benefits based on their asserted “totally unemployed” status. Next, the indictment alleges, Covington called a business meeting at DCT and informed the remaining DCT employees that the company could no longer afford to pay their wages, and that they therefore would be placed on UI Benefits, but that Covington expected the employees to continue to work at DCT, just as they had before they were laid off, in order to help the business survive. The indictment alleges that Covington used his position of authority within his church community, which included most, if not all, of the employees at DCT, to coerce the employees to comply. Around the same time, McKinny filed claims for UI Benefits on behalf of the employees whom Covington had required to continue working at DCT while they received UI Benefits. In filing the necessary information for UI Benefits, McKinny certified the claimants’ initial and continuing eligibility to receive those benefits.
The indictment alleges that, at Covington’s direction, at least five of the employees for whom McKinny made claims for UI Benefits then continued to work at DCT on a full-time or near-full-time basis while collecting UI Benefits every week. Through the operation of the scheme outlined above, the co-defendants obtained more than six months of free labor for DCT, paid for by the government, instead of by the business itself.
The indictment further alleges that by September 2009, several other businesses run by members of the same church community to which Covington and McKinny belonged, and employing many members of that same church community, were facing their own financial struggles related to the economic downturn. According to the indictment, the co-defendants then began to promote the fraud that they had devised at DCT to other members of the church community.
In addition to promoting the scheme to other business owners, Covington implemented the scheme a second time, with McKinny’s help, at Integrity Marble, Inc., d/b/a Integrity Marble & Granite, another for-profit company that Covington owned and managed, in or about March of 2010. Covington then implemented a variation of the scheme a third time at Sky Catcher Communications, Inc., a company he managed, in or about May of 2011.
In total, between November 2008 and March 2013, the scheme resulted in over $250,000 in fraudulent claims for UI Benefits by employees who continued to work full-time or near-full-time at businesses owned or managed by co-conspirators, and who were therefore ineligible to claim those UI Benefits.
Covington and McKinny are charged with conspiracy to commit wire fraud affecting a financial institution, which carries a maximum prison term of 30 years and a maximum fine of $1,000,000. They have been ordered to appear on a summons in federal court.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray commended HSI, SBI, and the Department of Labor for their investigation of the case. U.S. Attorney Murray also thanked District Attorney Ted Bell, of the Rutherford County District Attorney’s Office, for his assistance and support throughout the investigation.
Assistant U.S. Attorney Daniel Bradley of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Comanche Woman Pleads Guilty to Embezzling More Than $280,000Read the Press Release
OKLAHOMA CITY – ANNETTE M. STRAILY, of Comanche, Oklahoma, pleaded guilty yesterday to bank fraud and signing a false federal income tax return, in connection with a $283,000 embezzlement scheme from a Duncan dental office, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On May 24, 2018, Straily was charged by information with one count of bank fraud and one count of filing a false federal income tax return. From April 2012 until June 2017, Straily worked as the office manager of a dental office in Duncan, Oklahoma. According to the information, as part of her job, she prepared checks, paid invoices, managed the accounting system, and maintained the petty cash fund. Yesterday, Straily pleaded guilty to preparing an unauthorized office check, in the amount of $1,266.80, made payable to herself in February 2017. Straily admitted that she forged the signature on the dental office’s check and later presented that check for payment against the dental office’s bank account at a local bank. As part of her plea, Straily further admitted that she embezzled funds from her former employer from around April 2012 through June 2017. Straily stipulated in a plea agreement that the total restitution due to the Duncan dental office from the embezzlement scheme is $283,005.11.
In addition to pleading guilty to bank fraud, Straily pleaded guilty to signing a false tax return. She admitted that on April 13, 2016, she signed a personal federal tax return for the 2015 calendar year that she knew was false because it reported only $49,127 in total income. At yesterday’s plea hearing, Straily admitted that she omitted on the 2015 return more than $100,000 of embezzled income for that year from the dental office. As part of her plea agreement, Straily agreed that she owes $54,286 in restitution to the Internal Revenue Service for the tax loss.
At sentencing, Straily faces up to 30 years in prison on the bank fraud count, plus five years of supervised release, and a $1,000,000 fine. Straily also faces up to three years in prison on the tax count, in addition to one year of supervised release, and a $250,000 fine. Straily will be sentenced in approximately 90 days. Reference is made to the public filings for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Rozia McKinney-Foster.
Columbia Man Sentenced for Possessing a Firearm and Selling CocaineRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated today that Caster Delaney Whetstone was sentenced in federal court in Columbia, South Carolina, for being a felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1) and 924(e) and possession with the intent to distribute cocaine, in violation 21 U.S.C. § 841(a)(1). United States District Judge Joseph F. Anderson, Jr. of Columbia sentenced Whetstone to 180 months (15 years) incarceration followed by 5 years of supervised release and $100 special assessment.
Evidence presented at the change of plea hearing established that on June 10, 2014, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department (CPD) used an informant to purchase a half an ounce of cocaine from Whetstone. The informant met Whetstone at a local store in Five Points. Whetstone gave the informant the cocaine and the informant paid Whetstone $600 cash.
On June 24, 2014, ATF and CPD used another informant to attempt to make a purchase of a half-ounce of cocaine and a firearm from Whetstone. They met and Whetstone sold the informant a .32 caliber Harrington and Richardson model 632 revolver with 6 rounds of ammunition and what he represented was 14 grams of cocaine. The cocaine was later determined to be fake.
Whetstone is prohibited under federal law from possessing firearms based upon his prior separate state convictions for armed robbery (2 counts), kidnapping, discharging a firearm into a dwelling, and assault with intent to kill.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the City of Columbia Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney William K. Witherspoon of the Columbia office handled the case.
Project CeaseFire is 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.
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Columbia Man Pleads to Federal Firearm Charge and Misprison of FelonyRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Jokari T. Jones, age 36, of Columbia, plead guilty today in federal court to being a felon in possession of firearms and ammunition and misprison of a felony, all in violation of Title 18, United States Code, Sections 4, 922(g)(1), 924(a)(2), and 924(e). United States District Judge Mary Geiger Lewis, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on July 29, 2017, Jones’ brother Shamari Delresse Jones, a/k/a “Amari, was arrested on state charges, including felon in possession of ammunition. Thereafter, Jokari T. Jones, who was on a state ankle monitor at the time, moved firearms and ammunition belonging to his brother from Columbia to their mother’s residence in Heath Springs, which is in Lancaster County. On July 30, 2017, the Lancaster County Sheriff’s Office responded to Jones’ mother’s home in reference to a shooting. No one was injured, but while at the home, a number of firearms and rounds of ammunition were recovered by law enforcement, including a Bushmaster .223 caliber rifle with an extended magazine and two 12 gauge shotguns. Jones’ brother, a known gang member, had attended an offender notification meeting in October 2015, in which he, and others, were advised by law enforcement officials that should they be found in possession of firearms and ammunition, their case would be considered for federal prosecution in light of their extensive prior record. Jones moved the firearms in an effort to keep law enforcement from finding the firearms following his brother’s arrest for ammunition.
Jones is prohibited under federal law from possessing firearms and ammunition and has prior South Carolina state convictions for unlawful carrying of a pistol (2003), assault with intent to kill and unlawful carrying of a pistol, wherein he shot at someone (2005), and carrying weapons on school property and possession of a firearm by a person convicted of a crime of violence, wherein he shot a handgun on the premises of a local elementary school (2012).
Jones faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of firearms and ammunition charge. He faces a maximum of 3 years imprisonment, a fine of $250,000, and 1 year of supervised release on the misprison of a felony charge.
Jones’ brother Shamari Delresse Jones, a/k/a “Amari,” entered a guilty plea in federal court in earlier this year to being a felon in possession of firearms and ammunition, and is currently awaiting sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Columbia Police Department, and the Lancaster County Sheriff’s Office and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Chelsea Gang Member Sentenced on Racketeering and Drug Trafficking ChargesRead the Press Release
BOSTON – An East Side Money Gang (ESMG) member was sentenced yesterday in federal court in Boston on racketeering and drug trafficking charges.
Henry Del Rio, a/k/a “Junior,” a/k/a “JR,” 21, of Chelsea, was sentenced by U.S. District Court Judge Richard G. Stearns to five years in prison and four years of supervised release. In February 2018, Del Rio pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly known as RICO, one count of conspiracy to distribute cocaine and cocaine base, one count of conspiracy to distribute heroin, and one count of possession of a firearm with an obliterated serial number.
Del Rio is a self-admitted member of the ESMG, a Chelsea-based street gang, which uses violence to further its criminal activities and enforce its internal rules. Specifically, ESMG uses violence to protect its members/associates, target rival gang members/associates and intimidate potential witnesses. The ESMG is also involved in drug trafficking, including cocaine, cocaine base (a/k/a crack) and heroin in Chelsea and surrounding communities.
Del Rio conspired with other gang members and associates to distribute heroin and other drugs in Chelsea. Additionally, Del Rio sold a confidential informant a .45 caliber semi-automatic handgun with an obliterated serial number and a 30-round, high-capacity magazine from Del Rio’s residence on Gerrish Street in Chelsea.
Del Rio is one of 53 defendants indicted in June 2016 on federal firearms and drug charges following an investigation into a network of street gangs that had created alliances to traffic weapons and drugs throughout Massachusetts and to generate violence against rival gang members. According to court documents, the defendants, who are leaders, members, and associates of the 18th Street Gang, East Side Money Gang and the Boylston Street Gang, were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
Central Georgia Individuals Plead Guilty to Offenses Related to Human Trafficking EnterpriseRead the Press Release
COLUMBUS: United States Attorney for the Middle District of Georgia, Charles E. Peeler, announces that guilty pleas were entered on June 7, 2018, in front of United States District Judge Marc T. Treadwell by Curtis Hall, age 37, of East Dublin, Georgia, Lantesia Lanier, age 41, of Dublin, Georgia, and Jackie Fields, age 47, of Cochran, Georgia to offenses related to a human trafficking enterprise spearheaded by co-defendant Jessie Lee Hall, Jr. Fields and Lanier each entered a plea to one count of misprision of a felony for misleading law enforcement about their knowledge of the enterprise, while Curtis Hall entered a plea to a single count charging him with interstate travel in aid of a racketeering enterprise for his role in the criminal endeavor.
Jessie Lee Hall, Jr., age 38, of Dublin, Georgia previously entered a guilty plea on May 9, 2018 in front of Judge Treadwell to one (1) count of conspiracy to commit sex trafficking by force, fraud, or coercion, five (5) counts of transportation for illegal sexual activity, and one (1) count of inducement to travel to engage in criminal sexual activity.
Jessie Lee Hall, Jr., acted as a pimp for the several victims known to law enforcement. The first victim of the conspiracy was encountered by law enforcement on June 12, 2016, at a hotel in Macon. The victim stated that Hall was her pimp and she met him through the internet. In May 2016, Mr. Hall convinced the victim to travel from Ohio and work as a prostitute for him in Georgia. The victim was forced by Hall to perform commercial sex acts in hotels throughout Central Georgia.
During the investigation, Bibb County Sheriff’s Office received information that Jessie Lee Hall, Jr., was trafficking other women for sex. A second victim confirmed that Jessie Lee Hall, Jr., was her pimp and that she had worked for him from approximately July, 2013, until February, 2016. Mr. Hall advertised her services on Backpage.com and transported her to hotels inside and outside Georgia for commercial sex acts.
A third victim was also identified and was required to perform commercial sex acts throughout central Georgia.
All three victims stated that a combination of threats of force, fraud, or coercion had been used by Mr. Hall to cause them to perform commercial sex acts. They additionally stated that defendants Curtis Hall, Lantesia Lanier, and Jackie Fields had knowledge of the operation and participated in it to varying degrees.
Curtis Hall is facing a maximum of 5 years imprisonment, while Fields and Lanier are facing a maximum 3 years prison sentence. All are subject to a maximum fine of $250,000.00.
“Human trafficking is a crime that literally trades in the bodies and souls of its victims. The investigation and prosecution of these crimes are among the highest priorities of the Department of Justice and of my office,” said United States Attorney Peeler.
“The FBI and its law enforcement partners have made human trafficking a top priority, and this case is an example of our determination,” said Murang Pak, Acting Special Agent in Charge of FBI Atlanta. “Human trafficking is an unspeakable crime against some of the most vulnerable in our society and we will continue to devote significant resources toward these reprehensible crimes.”
Sentencing will be scheduled for late September or early October of 2018.
This case was investigated by the Federal Bureau of Investigation and Bibb County Sheriff’s Office, with support from the Laurens County Sheriff’s Office and the Bleckley County Sheriff's Office. Assistant U.S. Attorney Crawford Seals is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Casselberry Resident Sentenced to 25 Years for Sexually Exploiting A ChildRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Oscar Luis Burgos (32, Casselberry) to 25 years in federal prison for production and receipt of child pornography. He pleaded guilty on March 9, 2018.
According to court documents, Burgos initially met the child victim online in May 2017. Although the victim told Burgos that she was 14 years old, he still engaged her in highly sexualized online chat conversations. He also persuaded her to produce and send to him images of herself engaging in sexually explicit conduct. At one point during their conversations, Burgos also discussed murdering the girl’s father and having sex with her next to his corpse.
This case was investigated by the Federal Bureau of Investigation and the Lawrence (Kansas) Police Department. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
California Man Pleads Guilty to Heroin ConspiracyRead the Press Release
Hattiesburg, Miss – Juan Pablo Zamora Gomez, 32, of Modesto, California, pled guilty yesterday before U.S. District U.S. District Judge Keith Starrett to conspiracy to possess with intent to distribute 100 grams or more of heroin, announced U.S. Attorney Mike Hurst and DEA Assistant Special Agent in Charge J. Derryle Smith.
Zamora Gomez pled guilty to conspiring to possess with intent to distribute heroin from August 2017 through December 13, 2017. He will be sentenced on September 18, 2018, by Judge Starrett, and he faces a maximum penalty of 40 years in prison and a $5 million fine.
The investigation into Zamora Gomez started after agents with the DEA executed a search warrant at Jermaine Newell’s property in Soso, Mississippi. Agents located 951 grams of heroin in Newell’s possession. After Newell’s arrest, agents learned that he received the heroin from Zamora Gomez and Vincente Manuel Ruiz. Agents had recorded phone calls in which Zamora Gomez was heard discussing the heroin and set up a meeting to further the conspiracy.
Jermaine Antonio Newell, 32, of Gautier, Mississippi, was sentenced on May 10, 2018, to 60 months in federal prison followed by five years of supervised release for conspiracy to possess with intent to distribute 100 grams or more of heroin. Vincente Manuel Ruiz will be sentenced by Judge Starrett on July 17, 2018. He faces a maximum penalty of 40 years in prison and a $5 million fine.
This case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics and the Jones County Sheriff’s Department. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
California Man Pleads Guilty to Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Loren Glen Warner, 28, of Fresno, CA, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to production of child pornography. The charges carry a mandatory minimum penalty of 15 years, a maximum of 30 years and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in early January, 2017, the defendant met the 14 year-old victim at her family’s church in Cattaraugus County, NY, and the two began communicating via Facebook and Snapchat. During those communications, Warner, who knew the victim was 14 years-old, began making sexual references and statements, and sent sexually explicit images of himself to the victim. The defendant also asked for and received nude photographs of the victim.
Warner also met a 13 year-old victim at a church in Fresno, California. Over several years, the defendant requested and received child pornography images and videos from that victim as well.
In March 2017, the defendant pleaded guilty to Rape in the Second Degree, and Endangering the Welfare of a Minor in Cattaraugus County Court and was sentenced to seven years in prison.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the New York State Police, under the direction of Major Edward Kennedy; and the Cattaraugus County District Attorney’s Office, under the direction of Lori Rieman.
Sentencing is scheduled for October 25, 2018, at 12:00 p.m. before Judge Wolford.
Buffalo Woman Sentenced for Twitter Threats to Promote Terrorism on Behalf of ISISRead the Press Release
SPRINGFIELD, Mo. – A Buffalo, Mo., woman was sentenced in federal court today for using Twitter to transmit threatening communications against several persons, including two FBI employees and two former members of the military and their families, on behalf of the Islamic State of Iraq and al-Sham, also known as ISIS.
Safya Roe Yassin, 40, of Buffalo, was sentenced by U.S. District Judge M. Douglas Harpool to nine years in federal prison without parole.
According to court documents, Yassin engaged in a concerted and prolonged effort to support the online activities of the Islamic State of Iraq and al-Sham (ISIS). ISIS is a foreign terrorist organization that has encouraged and taken credit for attacks against civilians throughout the world, including in the United States. By maintaining numerous social media accounts and posting violent messages to them, Yassin was steadfast and outspoken in her support for ISIS and its murderous mission. She communicated directly with at least one person she believed to be an ISIS operative overseas, and admitted that on two occasions she helped ISIS threaten and terrorize the four victims in this case, whom ISIS targeted for no reason other than their honorable service to the United States.
On Feb. 28, 2018, Yassin pleaded guilty to two counts of transmitting threatening communications across state lines. Yassin admitted that she maintained a series of Twitter accounts under the pseudonym “Muslimah” that she used to post, or tweet, messages in support of ISIS, a designated foreign terrorist organization. Yassin also re-posted, or re-tweeted, messages she knew were authored by ISIS operatives residing overseas.
Beginning in May 2015, Yassin communicated over Twitter with a person identified in court documents as “Individual A,” whom she believed was an ISIS operative located outside the United States. They discussed ISIS’s publishing of personally identifying information of U.S. government employees and others, to threaten violence against those persons on behalf of ISIS. From May 2015 through at least October 2015, Yassin and Individual A routinely communicated about promoting new pro-ISIS accounts to like-minded followers before Twitter suspended them.
Yassin knew that Individual A used Twitter accounts, including those that Yassin promoted, to tweet personally identifying information of government employees and others and to threaten those persons on behalf of ISIS. Yassin admitted that, knowing Individual A’s intent to threaten, she re-retweeted the personally identifying information on her Muslimah accounts several times so that the information could be more widely disseminated.
Throughout the month of August 2015, ISIS operatives tweeted additional personally identifying information, which Yassin re-tweeted to her followers, knowing that the intent of the messages was to threaten on behalf of ISIS. Yassin admitted that on Aug. 24, 2015, she re-tweeted one such message that contained the phrase “Wanted to kill,” followed by the first and last name, status as an employee of the FBI, city of residence, zip code, and phone number of Victim 1. In the same communication, she repeated the same “Wanted to kill” phrase, followed by the same personally identifying information for Victim 2. Yassin intended this communication as a threat against Victims 1 and 2.
Yassin also admitted that on Oct. 8, 2015, she re-tweeted a message from Individual A that linked to a publically viewable document containing the name and home address of Victim 3, a U.S. service member, along with photos of Victim 3, his family, and the names of his wife and children. The document further stated, “Once again I leave these details online to cause havoc in his life & for my brothers and Al-Qaeda in the U.S. to eventually hunt him down & kill him.”
The linked document also contained the name and home address of Victim 4, a former U.S. service member who had been the previous target of threats on Twitter by ISIS. Yassin knew that Individual A had previously threatened Victim 4 with violence and called him ISIS’s “number one target.” Yassin admitted that she intended to aid and assist Individual A in threatening Victims 3 and 4.
This case was prosecuted by Assistant U.S. Attorneys Brian Casey and Abram McGull II. It was investigated by the FBI.
Buffalo Man Sentenced on Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Quashawn Lawrence, 24, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute 100 grams or more heroin, and possession of a defaced firearm, was sentenced to 41 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on October 20, 2015, co-defendant Jay Neal sold a quantity of heroin to a confidential source working with the Drug Enforcement Administration. The following day, on October 21, 2015, Neal once again agreed to sell a quantity of heroin. Neal drove to the vicinity of Dodge Street and Michigan Avenue where a man later identified as defendant Lawrence exited a residence with a tan back pack and entered Neal’s vehicle. Neal drove to a residence at 87 Mariner Street in Buffalo. About an hour later, Neal and Lawrence were arrested by police. At the time of his arrest, Neal was armed with a 9mm handgun and had $10,000 in cash. A search warrant executed inside 87 Mariner recovered a gun with the serial number defaced inside Lawrence’s tan back pack, another gun, ammunition and 10 grams of heroin inside a dresser drawer, and multiple scales.
Neal was previously convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
Buffalo Man Sentenced for His Role in A Drug Trafficking Ring Linked to A Mexican Drug CartelRead 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 Pethrod Dunnigan, 40, of Buffalo, NY, who was convicted of conspiracy to distribute five kilograms or more or cocaine, and money laundering conspiracy, was sentenced to serve 156 months in federal prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between 2012 and March, 2016, the defendant conspired with Jose Manuel Lua-Guizar, Gerardo Ballardo, Enrique Munoz, Max Riestra, and others, to distribute cocaine and hide the proceeds from the illegal drug sales.
Co-defendants Ballardo and Lua-Guizar received shipments from California and then sold the cocaine to Dunnigan and others. The defendant paid $35,000 for each kilogram of cocaine received and then took the kilograms of cocaine to an apartment building on Delaware Avenue and store them in an abandoned apartment.
Most of the drug proceeds were sent back to California by structured deposits made under the $10,000 reporting requirement at Bank of America branches. Dunnigan made multiple structured deposits at different Bank of America branches. The defendant and his co-conspirators accounted for over $1,000,000.00 in structured deposits in Buffalo. A ledger for structured deposits was recovered from a stash house in California. In that stash house, law enforcement officers also recovered shipping materials, 21 kilograms of cocaine, and three kilograms of heroin. On at least one occasion, the defendant shipped about $500,000 in U.S. currency to California by hiding the cash in a small refrigerator within a crate.
A total of seven defendants have been indicted in this sophisticated drug trafficking organization with ties to a Mexican drug cartel operating out of the Los Angeles, California area. The organization shipped drugs to various states including New York, New Jersey, Illinois, Colorado, and Ohio. To date, four defendants have been convicted. Charges are pending against the remaining defendants. 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.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California.
Buffalo Man Pleads Guilty to Selling Thousands of Bags of HeroinRead 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 Emmanuel Lopez, 27, of Buffalo, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession with intent to distribute, and distribution of, 100 grams or more of heroin. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between 2016 and December 5, 2017, the defendant sold heroin and fentanyl in the Buffalo area. In October, 2017, the ICE-HSI Border Enforcement Security Team (BEST) conducted two controlled purchases from Lopez. During the buys, the defendant turned over 52 small yellow bags which later tested positive for heroin, fentanyl, and tramadol.
At other times in October and November 2017, HSI agents observed Lopez engage in hand-to-hand transactions with suspected heroin customers. On at least one occasion, one of the customers was stopped by law enforcement and found to be in possession of suspected heroin. During a subsequent interview, the customer admitted to buying heroin from the defendant and the customer’s phone contained the defendant’s cell phone number.
Lopez was arrested on December 5, 2017. HSI agents then executed a federal search warrant at the defendant’s residence on Riverside Avenue in Buffalo. At the time of Lopez’s arrest, agents found $2,556 in cash in the pocket of the defendant’s sweatshirt, and his cellular telephone.
A subsequent search of the defendant’s cellular telephone established that during the latter part of 2017, Lopez sold approximately 6,022 bags of heroin.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, Border Enforcement Security Team, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for September 25, 2018 at 4:00 p.m. before Judge Wolford.
Buffalo Man Pleads Guilty to Interfering with A Federal OfficerRead 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 Kevin Allen, Jr, 29, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to forcible interference with a federal officer with a dangerous weapon. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on November 1, 2016, the defendant, a fugitive, was driving a vehicle on Kilhoffer Street in Buffalo when two United States Deputy Marshals attempted to pull the vehicle over. Rather than comply, Allen rammed into the two vehicles being driven by the Deputy Marshals. The Marshals were not injured but the vehicles sustained extensive damage.
The plea is the result of an investigation by the U.S. Marshals Service, under the direction of Marshal Charles Salina.
Sentencing is scheduled for September 12, 2018 at 12:30 p.m. before Judge Arcara.
Brockton Man Sentenced to 10 Years in Federal Prison for Distributing FentanylRead the Press Release
BOSTON – A Brockton man was sentenced yesterday in federal court in Boston for distributing fentanyl.
Dany Brandao, 30, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 10 years in prison and eight years of supervised release. In March 2018, Brandao was convicted by a federal jury of four counts of fentanyl distribution and one count of possession with intent to distribute more than 40 grams of fentanyl.
On Oct. 7, 2016, Oct. 11, 2016, Oct. 25, 2016, and Nov. 1, 2016, Brandao met with an undercover police detective and sold him plastic baggies containing fentanyl. On Nov. 8, 2016, law enforcement executed a search warrant at Brandao’s home, where they located fentanyl, plastic baggies, cash, and a digital scale. The controlled purchases and search resulted in the seizure of more than 180 grams of fentanyl from Brandao. At the time of these offenses, Brandao was on federal supervised release stemming from a June 2013 conviction for heroin trafficking conspiracy.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts States Police; Brockton Police Chief John Crowley; East Bridgewater Police Chief Scott Allen; and Marshfield Police Chief Phil Tavares made the announcement today. Assistant U.S. Attorneys Leah Foley, Ann Taylor, and Craig Estes of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Boston Man Charged with Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man was charged today in federal court in Boston with illegally possessing a firearm and ammunition.
Jason Cobb, 31, was indicted on one count of being a felon in possession of a firearm and ammunition. Cobb was arrested in April 2018 and charged by complaint; he has been in custody since his arrest.
According to court documents, on Jan. 25, 2018, police officers in Mattapan approached Cobb, and he immediately fled, resulting in a foot chase. Cobb was soon found lying on the ground between two residential houses. After a subsequent search of the area, law enforcement located a KEL TEC, model number P-3AT, .380 caliber handgun loaded with one round of .380 caliber ammunition. Cobb has a prior felony conviction for possession of a firearm.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, one year of supervised release, and a fine of up to $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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Baltimore BGF Gang Member Sentenced to 321 Months in Prison for Federal Racketeering and Drug Conspiracy ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact Bailey Drumm
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On June 6, 2018, United States District Judge James K. Bredar sentenced David Albert Hunter, a/k/a Lil Dave, a/k/a Dave, age 31, of Baltimore, Maryland to 321 months in prison, to be followed by five years of supervised release, for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family gang’s Greenmount Avenue Regime. Hunter distributed drugs in the gang’s territory and committed multiple acts of violence, including two murders. The Court found at sentencing that a total prison term of 33 years was appropriate, but it adjusted the sentence downward to account for the fact that Hunter has served 75 months in prison in connection with three related state cases.
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; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation (FBI) Baltimore Field Office; Interim Police Commissioner Gary Tuggle of the Baltimore Police Department; Maryland Attorney General Brian E. Frosh; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Hunter admitted that he shot and killed Henry Mills, a/k/a “Nique,” in the 2400 block of Greenmount Avenue on June 14, 2011. After murdering Mills, Hunter participated in a BGF meeting at Mund Park, during which fellow BGF and others congratulated Hunter for the just-completed murder. Hunter also admitted to distributing drugs in furtherance of BGF, and that it was reasonably foreseeable to him that members of the gang would distribute and possess with intent to distribute 280 grams or more of cocaine base.
The government presented further evidence of Hunter’s criminal conduct during the roughly two-month jury trial against three of Hunter’s co-defendants—Gerald Johnson, a/k/a “Geezy,” Kenneth Jones, a/k/a “Slay,” and Marquise McCants, a/k/a “Digga.” Notably, the government presented evidence that on July 22, 2005, in the 200 block of E. 22nd Street, Hunter shot and killed Dante Jordan using a .32-caliber handgun. The Court found at sentencing that Hunter was responsible for Jordan’s murder.
The following eight co-defendants, also members of the BGF gang, have all previously pleaded guilty or were found to be guilty of conspiring to violate federal racketeering and drug trafficking laws;
Joseph Laurence Bonds, a/k/a/ Joe, a/k/a Yo Gotti, age 36;
Wesley Jamal Brown, a/k/a Shike White, a/k/a Wes, age 25;
Kenneth Lee Faison, a/k/a Roscoe, age 28;
Norman Tyrone Handy, a/k/a Lil Norm, a/k/a Norm, age 23;
Montel Harvey, a/k/a Telly, a/k/a Telephone, a/k/a Big Head, age 26;
Kenneth Jones, a/k/a K-Slay, and Slay, age 30
Gerald Thomas Johnson, a/k/a “Geezy,” age 35; and
Marquise McCants, a/k/a Digga, age 25.
United States Attorney Robert K. Hur commended the ATF, the FBI, the Baltimore Police Department, the Maryland Attorney General’s Office, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Peter J. Martinez and Christina Hoffman, who prosecuted the case.
Attorney General Sessions Announces 311 New Assistant United States Attorney PositionsRead the Press Release
Largest Increase in AUSAs in Decades Allocates [3] Prosecutors to the Middle District of Pennsylvania to Focus on Violent Crime, Civil Enforcement, and Immigration Crimes
HARRISBURG – Attorney General Jeff Sessions and U.S. Attorney David J. Freed for the Middle District of Pennsylvania announce that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSA’s will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
"Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements," said Attorney General Jeff Sessions. "We have a saying in my office that a new federal prosecutor is 'the coin of the realm.' When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades."
In the Middle District of Pennsylvania, one of these AUSAs will focus on violent crime, one on affirmative civil enforcement, and one on litigation involving illegal immigrants challenging their detention status.
“In the Middle District of Pennsylvania we are excited and energized that Attorney General Sessions and his team have recognized that our hard work in these focus areas merits additional resources,” said United States Attorney Freed. “We are laser focused on working with all of our federal, state and local partners in the fight to reduce violent crime. We are taking a strong stand against fraud stemming from the opioid crisis including overprescribing and treatment scams, consistent with the Attorney General’s mandate to reduce opioid related deaths, and working hard to uphold the integrity of our borders by focusing on recidivist illegal immigrants. We are looking forward to welcoming new members to our team.”
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6 June 2018
“Double Hat Bandit” Pleads Guilty to 18 Bank Robberies in Seven States; August Sentencing Date SetRead the Press Release
SALT LAKE CITY – Shayne Carson, age 54, of Albuquerque, New Mexico, dubbed the “Double Hat Bandit during a string of bank robberies committed in Utah and six other states between Oct. 15, 2016, and Sept. 16, 2017, has pleaded guilty to 18 robberies. Sentencing is set for Aug. 15, 2018, in U.S. District Judge Jill Parrish’s courtroom in Salt Lake City.
The plea agreement reached with federal prosecutors in the U.S. Attorney’s Office in Utah resolves four robberies in Oregon, three in Colorado, three in Washington, one in Idaho, two in Iowa, one in Ohio, and four in Utah. The majority of the robberies took place at banks inside grocery stores and involved a man wearing two hats.
Carson admitted to a Dec. 19, 2016, robbery of US Bank located at 4065 South Redwood Road in West Valley City; two Dec. 27, 2016, robberies of US Banks in West Jordan – one at 4080 West 9000 South and one at 7061 South Redwood Road. He returned to Utah to rob a US Bank at 922 East 2100 South in Salt Lake City on June 21, 2017.
The string of robberies charged in the Utah case started with an Oct. 15, 2016, bank robbery in Colorado Springs, Colorado, and ended with a credit union robbery in Cedar Rapids, Iowa, on Sept 16, 2017. He received between $834 and $8,377 in each of the robberies.
In the majority of the robberies, Carson admitted he told the teller he had a gun and, in some cases, he admitted he brandished what appeared to be a handgun during the robbery. Law enforcement authorities now believe the handgun was not a real firearm.
The plea agreement includes a stipulated sentence of at least 144 months but not more than 180 months. The stipulated sentencing range is subject to the approval of the court. The amount of restitution Carson will be ordered to pay will be determined at the sentencing hearing in August.
The U.S. Attorney’s Office in Salt Lake City is prosecuting the case. According to prosecutors, FBI special agents did excellent work in solving a difficult case with assistance from a FBI analyst in New Mexico. Carson was arrested in Indiana in September 2017. Local and state law enforcement agencies in many states also assisted with the investigation.
“BMB” Gang Member Convicted in Manhattan Federal Court of Murder, Racketeering, Narcotics, and Firearms ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DONQUE TYRELL, a/k/a “Polo Rell,” was found guilty yesterday of murder in aid of racketeering, racketeering conspiracy, narcotics trafficking conspiracy, distributing narcotics near schools and playgrounds, and firearms offenses in connection with his membership in the “Big Money Bosses” (“BMB”), a violent street gang that operated primarily on White Plains Road from 215th Street to 233rd Street in the Bronx. TYRELL was convicted of aiding and abetting the murder of 17-year-old Keshon Potterfield on June 22, 2014, at a backyard party in the vicinity of East 232nd Street in the Bronx. A unanimous jury convicted TYRELL on all counts of the controlling indictment following a six-day trial before United States District Judge Jed S. Rakoff.
U.S. Attorney Geoffrey S. Berman said: “As proven at trial, Donque Tyrell participated in the murder of a 17-year-old who dared go to a backyard party in a part of the Bronx that Tyrell’s gang, the Big Money Bosses, claimed as its own. Tyrell then celebrated that murder on Facebook and in YouTube rap videos. Gang violence threatens the safety and security of all New Yorkers, and we will continue to work with our law enforcement partners to prevent this type of violence from happening in our neighborhoods.”
According to court documents and the evidence at trial:
BMB is a subset of the “Young Bosses,” or “YBz” street gang, which operates throughout New York City. Between 2007 and 2016, members and associates of BMB committed numerous acts of violence against rival gang members in the Bronx – including murders, attempted murders, and armed robberies – and sold crack cocaine and marijuana.
TYRELL was a member of BMB. On June 22, 2014, TYRELL and other members of BMB showed up at a birthday party in the backyard of a residence in the vicinity of East 232nd Street in the Bronx, in an area that BMB considered to be part of its territory. Potterfield was one of the guests at the party, and was perceived to be associated with a rival gang. After arriving at the party, TYRELL obtained a gun from an associate and passed it to another BMB member who then shot and killed Potterfield. Potterfield was 17. TYRELL celebrated Potterfield’s murder in public Facebook postings and in rap music videos posted on YouTube in which he taunted rival gang members and threatened future violence.
TYRELL was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s Bronx Gang Squad (the “Bronx Gang Squad”), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx. On April 27, 2016, 63 members and associates of BMB were charged with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and firearms charges. TYRELL was the last defendant outstanding in the case.
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In addition to the murder in aid of racketeering conviction, TYRELL, 22, of the Bronx, New York, was convicted of conspiring to commit racketeering as a result of his membership in BMB, conspiring to sell narcotics, selling narcotics within 1000 feet of schools and playgrounds, using firearms in connection with the gang and drug offenses, an attempted assault with a firearm in connection with his BMB membership, and attempting to rob a livery cab driver in the Bronx by hitting him in the head with a firearm. TYRELL is facing a mandatory minimum sentence of life in prison. TYRELL is scheduled to be sentenced on September 14, 2018, before Judge Rakoff.
Mr. Berman praised the outstanding work of the NYPD’s Bronx Homicide Task Force, the NYPD’s 47th Precinct Detective Squad, the NYPD’s Bronx Gang Squad, HSI, DEA, and ATF.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Drew Skinner, Hagan Scotten, and Allison Nichols tried the case.
Western Kentucky Man Sentenced to Prison for Federal Archaeological ViolationsRead the Press Release
Louisville, Ky. – U.S. District Judge Greg N. Stivers sentenced Gary Womack, Age 60, from Woodburn, Simpson County, Kentucky, to 15 months imprisonment for 3 felony violations of the federal Archaeological Resources Protection Act (ARPA). Womack had previously pleaded guilty to the violations on March 8, 2018.
The case resulted from a three-year undercover investigation by the National Park Service, based upon allegations that Womack possessed human remains which originated from Mammoth Cave National Park. The Federal Bureau of Investigation (FBI) assisted Park Service agents throughout.
The undercover investigation revealed Womack’s dealings in artifacts removed from the graves of Native Americans buried in caves and rock shelters in South Central Kentucky and also burials from as far away as the Ohio and Mississippi Rivers. Womack dealt in artifacts from the so-called “G.E. Mound” case prosecuted in the Southern District of Indiana in 1992. Artifacts recovered from that case were supposed to have been returned and re-buried at a site in Posey County, Indiana; however, Womack purchased artifacts from the previous prosecution in 2015 in Boonville, Indiana for approximately $2,500, and transported them to Kentucky, where a portion of them were sold to the undercover federal agent. Womack also pled guilty to two additional counts charging him with trafficking in archaeological resources (Native American artifacts) from the Western United States. All artifacts in the case have been recovered and will be repatriated according to law.
In sentencing, Judge Stivers told Womack that he was disturbed that the defendant had chosen to dig the graves of the ancestors of Native Americans for profit and had done so while being fully aware of the laws he had chosen to violate.
A letter from Ben Barnes, Second Chief of the Shawnee Tribe, of Miami, Oklahoma, was made a part of the record and read at the sentencing hearing. The letter states, in part: “The remains that are within the soils of our original homelands contains the hallowed remains of human beings, our ancestors. We would urge the court to send a message to all those what would desecrate a grave, that ARPA violators will be prosecuted to the fullest extent of the law.”
This case was prosecuted by Assistant United States Attorney Randy Ream. The investigation was conducted by the National Park Service Law Enforcement Division and the Bowling Green Resident Agency of the FBI.
Utah Financial Advisor Sentenced to Prison for Tax Evasion, Securities Fraud and Wire FraudRead the Press Release
ST. GEORGE, UT - A St. George, Utah, financial advisor was sentenced to 72 months in prison in U.S. District Court in St. George, Utah, Monday for his role in selling fraudulent tax-avoidance and investment strategies to his clients. Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah announced the sentencing.
Henry Brock pleaded guilty to tax evasion, securities fraud and wire fraud earlier this year. According to documents and information provided to the court, Brock founded a financial services company in 2009 and served as the president from 2009 through 2017. As President, he marketed and sold a fraudulent tax scheme, called “IRA Exit Strategy,” to potential investors. Brock promised investors that he could provide a way for them to avoid paying taxes on IRA withdrawals, which would otherwise be subject to Internal Revenue Service (IRS) penalties and taxes.
To implement his scheme, Brock caused his business to issue tax forms to his clients falsely representing that they were investors in his business who incurred losses, which served to offset the clients’ tax liabilities. As a result, Brock caused clients to file fraudulent income tax returns claiming a total of approximately $3.8 million in bogus business losses and resulting in a tax loss of more than $1.1 million.
During this period, Brock fraudulently raised more than $10.8 million in investments by making false representations to investors regarding the “IRA Exit Strategy,” the financial condition of his company and other matters. On at least one occasion, Brock also transferred $196,323 of a client’s investment funds and used the money for his own personal and business expenses.
In addition to the term of imprisonment, U.S. District Court Judge Ted Stewart ordered Brock to serve three years of supervised release and to pay restitution in the amount of $12 million.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation and the Utah Division of Securities, who conducted the investigation, and Assistant U.S. Attorney Trina Higgins and Trial Attorney Matthew Hoffman of the Tax Division, who are prosecuting this case.
Utah Financial Advisor Sentenced to Prison for Tax Evasion, Securities Fraud and Wire FraudRead the Press Release
A St. George, Utah, financial advisor was sentenced to 72 months in prison on June 4th for his role in selling fraudulent tax-avoidance and investment strategies to his clients, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to documents and information provided to the court, Henry Brock, pleaded guilty to tax evasion, securities fraud and wire fraud. Brock founded a financial services company in 2009 and served as the president from 2009 through 2017. As President, he marketed and sold a fraudulent tax scheme, called “IRA Exit Strategy,” to potential investors. Brock promised investors that he could provide a way for them to avoid paying taxes on IRA withdrawals, which would otherwise be subject to Internal Revenue Service (IRS) penalties and taxes. To implement his scheme, Brock caused his business to issue tax forms to his clients falsely representing that they were investors in his business who incurred losses, which served to offset the clients’ tax liabilities. As a result, Brock caused clients to file fraudulent income tax returns claiming a total of approximately $3.8 million in bogus business losses and resulting in a tax loss of over $1.1 million.
During this period, Brock fraudulently raised more than $10.8 million in investments by making false representations to investors regarding the “IRA Exit Strategy,” the financial condition of his company and other matters. On at least one occasion, Brock also transferred $196,323 of a client’s investment funds and used the money for his own personal and business expenses.
In addition to the term of imprisonment, U.S. District Court Judge Ted Stewart ordered Brock to serve three years of supervised release and to pay restitution in the amount of $12 million.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation and the Utah Division of Securities, who conducted the investigation, and AUSA Trina Higgins and Trial Attorney Matthew Hoffman of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
U.S. Customs and Border Protection Paralegal Faces Federal Child Pornography ChargesRead the Press Release
A paralegal employed by the Department of Homeland Security, Customs and Border Protection, has been arrested on federal child pornography charges.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigations (FBI), and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
Richard Russo, 54, of Boynton Beach, was charged by criminal complaint with receipt and possession of child pornography, in violation of Title 18, United State Code, Section 2252(a)(2) and (b)(4). If convicted, Russo faces a minimum sentence of five years in prison and a statutory maximum term of 20 years in prison. Russo is currently being detained, without bond, pending further proceedings. His preliminary hearing and arraignment are scheduled to take place on June 14, 2018 at 10:00 a.m. in U.S. District Court in West Palm Beach.
According to the court record, including allegations contained in the criminal complaint, beginning in late 2017, Russo, a Paralegal Specialist with Customs and Border Protection began communicating and receiving child pornography from another individual using a cross-platform messaging service.
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 the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A criminal complaint is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty in a court of law.
Mr. Greenberg commended the investigatory efforts of the FBI and BSO in this matter. He also thanked the FBI Child Exploitation Task Force, Florida Department of Law Enforcement and Department of Homeland Security - Office of the Inspector General for their assistance. This case is being prosecuted by Assistant United States Attorney Corey Steinberg.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Attorney's Office and ICE Return Christopher Columbus Letter to SpainRead the Press Release
WILMINGTON, Del. — Today, U.S. Attorney David C. Weiss and U.S. Immigration and Customs Enforcement (ICE) returned a more than 500-year-old copy of Christopher Columbus’ letter describing his discoveries in the Americas to Spain during an evening repatriation ceremony at the Residence of the Spanish Ambassador to the United States. The letter, originally written in 1493, was stolen from the National Library of Catalonia in Barcelona and sold for approximately $1 million.
The return of the letter was the culmination of a seven-year investigation jointly conducted by ICE’s Homeland Security Investigations (HSI) and the U.S. Attorney’s Office in Delaware. It began in 2011 when HSI Wilmington (Del.) and the Delaware U.S. Attorney’s Office received a tip that several 15th century original manually printed copies of the Columbus Letter were stolen from European libraries and replaced with forgeries without the knowledge of library officials or local law enforcement. The investigation determined that the stolen Columbus Letter from Spain was sold in November of 2005 for 600,000 Euros by two Italian book dealers.
In June 2012, a subject matter expert, accompanied by an HSI Wilmington Special Agent, visited the National Library of Catalonia in Barcelona and reviewed the Columbus Letter in the possession of the library at which time it was determined, in coordination with Spanish authorities and with support from HSI Madrid that the letter at the library was a forgery.
In March 2013, it was discovered that the Columbus Letter believed to have been stolen from Barcelona was reportedly sold for 900,000 euros in June 2011. Following extensive negotiations with the U.S. Attorney’s Office for the District of Delaware, the individual in possession of the letter volunteered to transfer custody to HSI Special Agents, which was then brought to Wilmington, Delaware in February 2014 for further examination. In March 2014, a subject matter expert evaluated the letter and determined that the document was “beyond all doubt” the original stolen from the National Library of Catalonia. Additionally, other experts conducted a series of non-invasive digital imaging tests, which determined, among other things, the probable use of a chemical agent to bleach the ink of National Library of Catalonia’s stamp and that the paper fibers of the Catalonia Plannck II Columbus Letter had been disturbed from their original state where the stamps were previously located.
U.S. Attorney Weiss stated, “The recovery of this Plannck II Columbus Letter on behalf of the Spanish government exemplifies not only the significance of federal agency partnerships in these complicated investigations, but the close coordination that exists between American and foreign law enforcement agencies. We are truly honored to return this historically important document back to Spain – its rightful owner. I commend the dogged efforts of HSI special agents and Department of Justice attorneys who are dedicated to the recovery of stolen cultural artifacts from around the world.”
“This evening ceremony is a showcase of the ties that bind the United States and Spain together,” said Ambassador of Spain to the United States Pedro Morenés. “The cooperation between Homeland Security Investigations and special units of the Guardia Civil has born great fruit in ensuring the return of stolen cultural property to Spain,” Ambassador Morenes added.
“I am pleased to be able to return a priceless piece of cultural property to its rightful owners,” said HSI Acting Deputy Executive Associate Director Alysa D. Erichs . “I would like to thank Ambassador Morenés for his hospitality in hosting us tonight, HSI Wilmington, Madrid, Brasilia, and Paris for their excellent work on this investigation, as well as the tremendous assistance by our partners at the U.S. Attorney’s Office in the District of Delaware, without whom today’s repatriation would not be possible,” Erichs added.
This case is being investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Jamie M. McCall.
Two Orange County Men Sentenced to Federal Prison in $21 Million ‘Builder Bailout’ Fraud Scheme Operated during 2008 Financial CrisisRead the Press Release
SANTA ANA, California – Two men from Orange County have been sentenced to federal prison for participating in a “builder bailout” mortgage fraud scheme that resulted in the fraudulent purchase of more than 100 condominium units around the country, causing more than $10 million in losses when the properties went into foreclosure.
Maher Obagi, 32, of Huntington Beach, was sentenced to 78 months in prison and ordered to pay just over $10 million in restitution. A second defendant – Mohamed Salah, 43, of Mission Viejo – was sentenced to 57 months in prison and was ordered to pay just over $7 million in restitution. Both defendants were sentenced on Tuesday by United States District Judge Andrew Guilford.
Obagi and Salah, along with several co-conspirators, operated the scheme through Excel Investments and related companies that were based in Santa Ana and then Irvine. The scheme involved kickbacks from condominium builders during the 2008 financial crisis, kickbacks that were hidden from lenders to convince them to fund loans in excess of actual purchase price.
During the course of the scheme, co-conspirators identified condominium developments around the country in which the builders were struggling to sell units and then arranged with the builders to purchase multiple units at a discount. The builders benefitted by making it appear that their condos were selling and maintaining their value, while members of the conspiracy obtained the kickbacks.
The co-conspirators negotiated with condominium builders in California, Florida and Arizona for discount units. The defendants bought units for themselves, their relatives, and on behalf of “straw buyers” whom they brought into the scheme. They identified straw buyers by looking for individuals with good credit scores and then recruited them into the scheme by giving them an upfront payment for their participation and by presenting the scheme as an investment opportunity that required no down payment and would generate income through rental payments.
To obtain mortgages for the properties, Obagi and other co-conspirators prepared loan applications with false information about the straw buyers – including fake employment, income and assets, as well as fabricated W2s, pay stubs and bank statements. The mortgage applications also included false information about the terms of the transactions, such as concealing the large kickbacks from lenders through false and misleading HUD-1 forms. As a result of the false statements in the fraudulent loan applications, mortgage lenders provided over $21 million in financing to purchase more than 100 properties.
Many of these loans went into default, and mortgage lenders lost more than $10 million after foreclosing on the properties. The Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) purchased dozens of these loans on the secondary mortgage market and suffered losses of at least $1.3 million as a result of defaults and foreclosures on the properties.
Following a trial in 2015, Obagi was found guilty of one count of conspiracy and three counts of wire fraud. Salah was found guilty by the same federal jury of one count of conspiracy.
Several other defendants were charged in connection with the same scheme. They are:
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Ali Khatib, 53, of Newport Coast, who pleaded guilty in a related case and is scheduled to be sentenced on July 16;
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Momoud Aref Abaji, 37, of Huntington Beach, who was convicted at trial and is scheduled to be sentenced on June 14;
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Jacqueline Burchell, 57, of Orange, who pleaded guilty and is scheduled to be sentenced on July 16;
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Wajieh Tbakhi, 53, who is a fugitive; and
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Mohamed El Tahir, who is now deceased.
This matter was investigated by the Federal Bureau of Investigation; the Federal Housing Finance Agency, Office of the Inspector General; and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.
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Tulsa Man Pleads Guilty to Firearm OffenseRead the Press Release
United States Attorney R. Trent Shores announced today that Tracy Allen Crawford, 32, of Tulsa, pleaded guilty to brandishing a firearm during and in relation to a crime of violence before Chief Judge Gregory K. Frizzell.
On February 13, 2017, Crawford and another individual stole $900 from a Burger King located at 3242 E. 11th Street in Tulsa. Crawford pointed a hand gun at one of the employees and demanded she open the safe. The employee could not open the safe, but directed Crawford to an office that contained cash register drawers. Crawford and the other individual took the money from the drawers. Crawford will be sentenced on September 5, 2018. The parties entered into a plea agreement recommending a sentence of 30 years imprisonment.
“I will not cede one neighborhood or street corner to violent criminals. My office will partner with the men and women of the Tulsa Police Department and agents with the ATF to reduce violent crime,” said United States Attorney Shores.
This prosecution resulted from an investigation by the Tulsa Police Department Robbery Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Dennis A. Fries handled the prosecution of this case.
Troy Woman Sentenced to 12 Months for Distributing HeroinRead the Press Release
ALBANY, NEW YORK – Angelina L. Cedeno, age 35, of Troy, New York, was sentenced today to 12 months in prison, to be followed by 3 years of supervised release, for distributing heroin in Albany County.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of her guilty plea on February 6, Cedeno admitted to distributing heroin in the Town of Bethlehem, Albany County, in August 2016.
This case was investigated by the FBI and New York State Police, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Three Defendants Arrested for Trafficking Firearms from Virginia to New YorkRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Joseph Johnson, Brianna Glee and Tyshon Stevens as members of a gun trafficking conspiracy that used straw gun buyers to purchase more than 40 firearms from dealers in Virginia between April 2017 and May 2018. Johnson and Stevens were also charged with being felons in possession of a firearm. According to court filings, multiple firearms that were illegally acquired and distributed by the defendants were recovered by law enforcement officers in the New York area.
Johnson and Glee were arrested today and are scheduled to be arraigned this afternoon at the federal courthouse in Norfolk, Virginia. Stevens is currently in Virginia state custody, and will be presented in federal court in Brooklyn at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives, New York Field Division (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the indictment.
“As alleged in the indictment, the defendants’ illegal trafficking of firearms put deadly weapons into the hands of criminals,” stated United States Attorney Donoghue. “This Office is working tirelessly with our partners to stop the flow of illegal firearms through the Interstate 95 corridor by individuals who traffic in firearms and the straw buyers who enable their business.” Mr. Donoghue thanked the ATF and the NYPD’s Brooklyn South Gang Squad for their outstanding efforts during this investigation.
“The defendants allegedly took part in a scheme to traffic illegal firearms thus endangering the lives of each and every citizen on the street,” stated ATF Special Agent-in-Charge Benedict. “ATF remains committed to combating violent crime by aggressively identifying, investigating, and arresting individuals who seek to put dangerous firearms into the hands of individuals that should not possess them. I would like to thank the personnel from our multiagency cooperative working group at ATF’s New York Field Division Crime Gun Intelligence Center, ATF’s Washington Field Division and our local partners at NYPD’s Brooklyn South Gang Squad. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”
“This case underscores some disturbing truths: Illegal guns proliferate and circulate in higher-crime neighborhoods that still need our help,” stated NYPD Commissioner O’Neill. “In lockstep with our federal partners at the ATF and the Eastern District, the NYPD will continue to perform the incredibly dangerous work of preventing these firearms from getting into criminals’ hands.”
As set forth in the indictment and other filings by the government, the gun-trafficking operation was run by Johnson, who enlisted straw buyers including Glee to purchase multiple firearms. As part of the scheme, the straw buyers lied on ATF Forms 4473 by falsely certifying that they were not purchasing the firearms on behalf of others. Johnson then used Facebook to market those firearms to multiple individuals with gang ties in Brooklyn. In June 2017, Johnson contacted a potential buyer in Brooklyn on Facebook sending images of an array of firearms. Johnson also relied on Stevens and others to find buyers for the firearms in New York City. Stevens, using Facebook, communicated with Johnson about his inventory and prices. Two firearms obtained by Johnson’s straw purchasers were subsequently seized by the NYPD from previously convicted felons in New York.
If convicted, Johnson and Stevens face a maximum sentence of 20 years’ imprisonment. Glee faces up to five years’ imprisonment on each count. 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 Attorney Drew G. Rolle.
The Defendants:
Joseph Johnson
Age: 34
Virginia Beach, VirginiaBrianna Glee
Age: 25
Virginia Beach, VirginiaTyshon Stevens
Age: 34
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-279 (MKB)
Thibodaux Woman Sentenced to 100 Months Imprisonment for Wire Fraud Scheme Which Netted $350,000 While Holding Power of Attorney for Cancer Patient Mother and Theft of Government Check from Disabled SisterRead the Press Release
JILL ANDRAS LEBLANC a/k/a JILL FREMIN, 41, of Thibodaux, Louisiana, was sentenced in federal court today by U.S. District Judge Lance M. Africk to serve 100 months in federal prison, pay $383,201 in restitution and serve three years of supervised release after she is released from prison for one (1) Count of wire fraud and one (1) Count of theft of government funds, announced U. S. Attorney Duane A. Evans.
LEBLANC was charged by a Superseding Bill of Information on December 19, 2017. LEBLANC stole several hundred thousand dollars from her mother's retirement account. More specifically, the defendant was appointed power of attorney on October 29, 2008 for her mother who was terminally ill with cancer. The defendant's father, an oil field worker, had accumulated a substantial individual retirement account (IRA) during his working life. He passed away in 2005. This investment account was managed by a national brokerage house whose home offices are in Minneapolis, Minnesota. During the defendant's administration of her mother's account, she stole approximately $369,701.00 from the account and spent it on personal, frivolous items.
LEBLANC also stole a Social Security disability check meant for her disabled sister in the amount of $13,500.
LEBLANC faced a possible maximum statutory sentence of twenty (20) years imprisonment on the wire fraud count, and/or a fine of $250,000 and up to three (3) years of supervised release. On the theft of government property, she faced ten (10) years incarceration.
The case was investigated by the Internal Revenue Service, Criminal Investigation, the Lafourche Parish District’s Attorney’s Office, and the Louisiana State Inspector General. The case was prosecuted by Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit.
Statement by United States Attorney William M. McSwain Regarding the Federal Charges Filed Against Taiwanese Teenager Who Allegedly Amassed an Arsenal and Threatened to “Shoot up” Local High SchoolRead the Press Release
“Far too often in this country, we as a nation have grieved the brutal murders of innocent people as a result of mass shootings and terrorism. Americans should be safe from such terror, no matter who or where they are. Studying in school or going to work, worshiping at church or cheering for friends at a marathon, relaxing at a movie theater or enjoying an evening at a night club – all of these activities should be safe-havens for every American. But as we know, places like these have turned into horrific crime scenes over the past few years where innocent lives have been lost. One more mass shooting is one too many.
Law enforcement and the U.S. Attorney’s Office in the Eastern District of Pennsylvania take seriously every threat of gun violence in our community and will do everything in our power to prevent tragedy from occurring. The federal complaint charging An-Tso Sun (a/k/a “Edward”) shows that we are doing just that. Mr. Sun may have said he was “just kidding” after he made the threat, but his alleged threat is no laughing matter. Regardless of race, gender, or immigration status, if an individual threatens to “shoot up” a school, or any other location, law enforcement will act swiftly upon that threat to ensure the safety of our community. I would also like to point out that if Sun is convicted of the current charge against him – possessing ammunition while being in the United States on a nonimmigrant visa – this is an aggravated felony that will operate as a permanent bar to his reentry into this country.
I want to take this opportunity to thank the hard-working and dedicated law enforcement personnel and prosecutors who responded so quickly in this matter. Thank you to the involved school officials, the Upper Darby Police Department, Delaware County District Attorney Katayoun M. Copeland, and her team of prosecutors and investigators, including Deputy District Attorney Daniel McDevitt, and our partners at the Department of Homeland Security, Homeland Security Investigations, including Special Agent in Charge Marlon V. Miller, Assistant Special Agent in Charge Jamie Holt, and Special Agent Zachary Kuzowsky, who helped avert a potential tragedy. And thank you to First Assistant U.S. Attorney Jennifer Arbittier Williams, Acting Chief of National Security Tay Aspinwall, and Assistant U.S. Attorney Sarah Wolfe for prosecuting this case on behalf of the United States Attorney’s Office.
To the student who heard the alleged threat and reported the incident to school officials – thank you. Thank you for being a good citizen and reporting it. It cannot be said too often: if you see something or hear something, you need to say something. Countless incidents have been averted because of vigilant people like you.
Finally, I would like to address parents, guardians, and all other adults who are responsible for children in their lives. It is your responsibility to know what your children are up to. No child should have access to firearms or other dangerous weapons without their parents’ or guardians’ knowledge. No child should be amassing an arsenal under the nose of the adults in their lives without the adults knowing about it. And when the adults know about it, they should do something about it. Ask questions. Go into your children’s bedrooms and look around. Pay attention to their online behavior and social media accounts. Wake up and do your job. Being a responsible parent means that your children’s business is your business.
We have a sacred duty, not only to our own children, but to all children in our community to make sure that they remain safe. To make sure that they can enjoy being children without fear or threat of violence. Thus, I am putting all parents and guardians in our community on notice. Law enforcement is not the first line of defense in these matters – you are. I ask that you take that responsibility seriously. Our children’s lives depend on it. And if you don’t fulfill that responsibility and then tragedy strikes, I will do everything in my power to hold you personally responsible, when the law allows it.”
Springdale Man Sentenced to 96 Months 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 Matthew Lee Anglin, age 29, of Springdale, Arkansas, was sentenced today to 96 months in federal prison followed by ten years of supervised release on one count of Receipt 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 December 2016, Homeland Security Investigations (HSI) officers assigned to the Internet Crimes Against Children (ICAC) Task Force in Northwest Arkansas received information from the National Center for Missing and Exploited Children (NCMEC) that a user uploaded 166 images of child pornography onto the Google Drive Cloud Storage. An investigation into the email address and associated phone number revealed that the email address used to upload the images belonged to Anglin. In May of 2017, a local business employee contacted HSI investigators and advised that they recovered a cellphone left behind by a customer that contained suspected child pornography. The cellphone was seized by HSI investigators. In August of 2017, investigators conducted a forensic examination of the cellphone and found that it contained 169 images of child pornography, 82 images of child erotica, and 149 images of suspected child pornography. The cellphone number was associated with Anglin’s email address that uploaded images of child pornography onto the Google Drive cloud storage.
A federal grand jury indicted Anglin in October 2017, and he pleaded guilty in January of 2018.
This case was investigated by Homeland Security Investigations and the Internet Crimes Against Children Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
South Carolina Man Pleads Guilty to Forced Labor for Compelling Man with Intellectual Disability to Work at RestaurantRead the Press Release
WASHINGTON – Defendant Bobby Paul Edwards, 53, of Conway, South Carolina, pleaded guilty Monday in United States District Court for the District of South Carolina to one count of forced labor, admitting that he used violence, threats, isolation and intimidation to compel a man with an intellectual disability to work for over 100 hours a week without pay, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and United States Attorney Sherri A. Lydon of the District of South Carolina.
According to court documents, between 2009 and 2014, Edwards managed a restaurant in Conway, South Carolina, where the victim, identified in court documents as “JCS,” had worked since he was 12 years old. Once Edwards began managing the restaurant in 2009, he increased JCS’s duties, requiring him to work more than 100 hours per week. The defendant stopped paying JCS and began using violence, threats, isolation, and intimidation to compel victim JCS’s continued service. According to court documents and Edward’s admissions, he subjected JCS to abusive language, racial epithets, threats, and acts of violence that included beating JCS with a belt, punching JCS with his fists, hitting JCS with pots and pans, and burning JCS’s bare neck with hot tongs, in order to compel JCS to work faster or to punish JCS for mistakes.
The defendant compelled JCS to continue working under these conditions until October 2014, when authorities removed victim JCS from the premises after receiving complaints about the abuse.
“Human trafficking through forced labor can happen on farms, in homes, and as today’s case shows – in public places, such as restaurants,” said Acting Assistant Attorney General John Gore. “Edwards abused an African-American man with intellectual disabilities by coercing him to work long hours in a restaurant without pay. Combatting human trafficking by forced labor is one of the highest priorities of this Justice Department and today’s guilty plea reflects our commitment to seeking justice on behalf of victims of human trafficking.”
“This defendant abused a vulnerable victim, and today’s guilty plea holds the defendant responsible for his criminal acts,” said U.S. Attorney Sherri Lydon for the District of South Carolina.
Edwards faces a maximum of 20 years in prison for forced labor, a $250,000 maximum fine, and mandatory restitution to the victim. A sentencing date has not yet been scheduled. According to the terms of the plea agreement, the defendant will also be required to pay restitution to victim JCS in an amount to be determined at the time of sentencing.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Department of Labor’s Wage and Hour Division. The case is being prosecuted by Special Litigation Counsel Jared Fishman, Trial Attorney Lindsey Roberson of the Civil Rights Division’s Criminal Section and its Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Alyssa Leigh Richardson of the District of South Carolina.
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South Carolina Man Admits Illegally Storing Hazardous Waste at Camden, New Jersey, Chemical CompanyRead the Press Release
CAMDEN, N.J. – The former president and CEO of Concord Chemical Co. Inc. (Concord) today admitted illegally storing hazardous waste, U.S Attorney Craig Carpenito announced.
Miguel Castillo, 63, of Hilton Head, South Carolina, pleaded guilty before Judge Joseph H. Rodriguez to one count of storing hazardous waste at Concord’s Camden, New Jersey, facility in violation of the Resource Conservation and Recovery Act (RCRA).
According to documents filed in this case and statements made in court:
RCRA was enacted in 1976 to address a growing nationwide problem with industrial and municipal waste. RCRA was designed to protect human health and the environment by prohibiting the treatment, storage or disposal of any hazardous waste without a permit.
During its operation, Concord manufactured, repackaged and distributed a wide variety of chemical products, including cresylic acid, soaps, waxes, pipe lubricants and emulsions. Some of Concord’s products and the raw materials used to make them were hazardous. Castillo was Concord’s president or CEO from at least 2004 through August 2011.
As president and CEO, Castillo’s responsibilities included making decisions about the disposal of waste at the Camden facility. From at least 2005 through August 2010, Castillo knew that there were containers that stored hazardous waste at the Camden facility and that Concord did not have a permit to store such waste.
In August 2010, the U.S. Environmental Protection Agency (EPA) conducted a site visit of the Camden facility and discovered that the facility was devoid of employees, abandoned in a deteriorated condition and filled with drums containing corrosive and ignitable hazardous waste. From October 2010 through March 2011, the EPA removed the hazardous substances from the facility.
The illegal storage of hazardous waste charge carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Castillo’s sentencing is set for Sept. 10, 2018.
U.S. Attorney Carpenito credited special agents of the EPA, under the direction Special Agent in Charge Tyler Amon, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.
Defense counsel: Lisa Lewis Esq., Assistant Federal Public Defender, Camden
Romanian Nationals Indicted for Fraud Conspiracy and ID TheftRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment today charging a two Romanian nationals with bank fraud, debit card fraud, and aggravated identity theft.
According to the indictment, Florin Bersanu, 31, and Viorel Naboiu, 43, participated in a scheme to insert skimming devices inside the card slots of multiple banks in Virginia, West Virginia and Florida. As bank customers conducted ATM transactions, the skimming devices captured the victim customers’ debit card numbers when they inserted their cards into the ATM slot. Bersanu and Naboiu also installed small, covert surveillance cameras, disguised to blend into the ATMs’ exterior, which videoed the finger movements of bank customers as they entered their PINs during the transactions. The defendants later encoded the skimmed debit card numbers onto blank plastic magnetic stripe cards, and using the videoed PINs they made cash withdrawals from the victim customers’ bank accounts. The defendants are accused of stealing at least $42,756.80 in funds from BB&T Bank and Henrico Federal Credit Union in Virginia, United Bank in West Virginia, and Pen Air Federal Credit Union and Eglin Federal Credit Union in Florida.
Bersanu and Naboiu are charged with conspiracy to commit bank fraud, bank fraud, aggravated identity theft and access device fraud. If convicted, they face maximum possible sentences of 30 years on the bank fraud and conspiracy to commit bank fraud charges, 10 years on the access device fraud charge, and a mandatory minimum term of two years for aggravated identity theft that must run consecutive to any other punishment imposed. 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, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement. Assistant U.S. Attorney Brian R. Hood is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-75.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Randall Swartz Charged with Mail Fraud in Agri-Mark TheftRead the Press Release
The United States Attorney for the District of Vermont announced that a federal grand jury in Rutland today indicted Randall Swartz, 58, of Orleans, on 11 counts of mail fraud. Swartz will be arraigned on these charges in the near future in U.S. District Court in Burlington. No court date has been set.
According to today’s indictment, until January 2017 when he was fired, Swartz was employed as the maintenance manager at Agri-Mark’s cheese-making plant in Cabot. As maintenance manager, Swartz was responsible for maintaining, repairing and replacing all machinery and equipment at the Cabot site. The maintenance budget amounted to several hundred thousand dollars each month. Swartz also owned a side-business, Kingdom RO, which sold reverse osmosis systems that were used by producers of maple syrup to concentrate and purify maple sap. Agri-Mark also employed reverse osmosis technology at its Cabot facility.
The indictment alleges that beginning no later than 2010 and continuing up to the time of his termination, Swartz defrauded Agri-Mark by causing the company to order hundreds of thousands of dollars worth of reverse osmosis equipment that was too small for Agri-Mark to use in its cheese-making processes. Instead, Swartz allegedly stole the equipment and installed it in smaller RO systems he sold to clients of Kingdom RO. It is charged that Swartz further defrauded Agri-Mark by using company employees, on company time, to assemble and install these RO systems. The indictment alleges that Swartz used the U.S. Postal Service and private commercial carriers to deliver this fraudulently-obtained RO equipment either to the Cabot plant or to Swartz’ house.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Swartz faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Vermont State Police, the Federal Bureau of Investigation and U.S. Department of Homeland Security Investigations.
Swartz is represented by Richard Goldsborough. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Prince George's County Liquor Store Owner Sentenced and Fined in Federal BriberyRead the Press Release
FOR IMMEDIATE RELEASE Contact Bailey Drumm
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paula Xinis sentenced the former owner of a Prince George’s County liquor store, Shin Ja Lee, age 56, of Highland, Maryland, to twelve months and one day in prison, followed by three years of supervised release for bribery, in a scheme involving alcoholic beverage licenses in Prince George’s County, Maryland. The defendant also was ordered to forfeit $242,945.43, and to pay an additional fine of $50,000.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service – Criminal Investigation; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to her plea agreement and other court documents, Lee was the owner of Palmer Liquor Store and the resident agent of Multi-Bil, Inc. Together with David Son, a former Commissioner on the Prince George’s County Board of License Commissioners (“Liquor Board”), and Young Paig, the former owner of Central Avenue Restaurant & Liquor Store in Prince George’s County, Lee paid bribe payments to two then-Maryland State Delegates, William Alberto Campos-Escobar (“Will Campos”) and Michael Vaughn. The bribes were in exchange for obtaining passage of legislation that permitted certain liquor stores in the County to sell liquor on Sundays (“Sunday Sales Bill”).
Lee participated in bribe payments on five separate occasions in 2015 and 2016. For example, on April 22, 2015, after the passage of the legislation, Son arranged a lunch between Campos, Paig, and Lee. A lobbyist and attorney, Matthew Gorman, also attended. During the lunch, Son told Campos to meet Paig in the men’s bathroom, saying that Paig was “going to hook you up.” In the men’s bathroom, Paig handed Campos an envelope containing a total of $4,000 cash, which constituted a bribe from Son, Paig, Lee, and Gorman. Later that same day, Son, Paig, and Lee made a cash bribe payment to Delegate Vaughn.
Lee and Paig subsequently talked to Son about getting beneficial legislation introduced related to the Sunday Sales bill and indicated that they would be willing to pay $50,000 to make that happen. Son spoke with Delegate Vaughn, who agreed to introduce additional legislation in the 2016 legislative session. On November 10, 2015, Son arranged for Paig and Lee to meet with Vaughn so they could make a “down payment.” After the meeting, law enforcement observed Paig and Vaughn get into Vaughn’s car, while Lee and Son waited in the parking lot. Shortly after Paig got out of the car, Vaughn drove directly to a bank in the same shopping center. Bank surveillance video shows Vaughn pulling a stack of cash out of his right pocket and handing it to the teller, and then doing the same from his left pocket. Bank records show that Vaughn deposited a total of $4,000.
Paig pleaded guilty to bribery and was sentenced to 41 months in prison. Campos pleaded guilty to conspiracy and bribery and was sentenced to 54 months in prison. Son pleaded guilty to conspiracy, bribery, and obstruction of justice and was sentenced to 60 months in prison. Gorman pleaded guilty and also is pending sentencing. Delegate Vaughn was convicted of bribery and conspiracy at a trial that concluded in March 2018, and is pending sentencing.
United States Attorney Robert K. Hur commended the FBI, the IRS-CI, and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Previously Convicted Felon from Essex County, New Jersey, Admits Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – A Newark man who was arrested following a domestic disturbance in which he discharged his weapon pleaded guilty today to possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Dequan Farlow, 37, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an indictment charging him with one count of possession of a firearm as a previously convicted felon.
According to documents filed in this case and statements made in court:
Farlow was arrested by Newark police officers on June 30, 2017 after he allegedly shot a speaker next to his ex-girlfriend’s mother and struck the mother with the gun at her residence in Newark.
Farlow admitted today that he knowingly possessed a loaded Hi-Point JCP semi-automatic handgun, despite having at least one prior felony conviction in Essex County Superior Court. As part of his plea agreement, Farlow also acknowledged that he knowingly fired the gun on June 30, 2017.
The felon in possession of a firearm charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing will be scheduled at a later date.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officers of the Newark Police Division, under the direction of Department of Public Safety Director Anthony F. Ambrose, for their assistance.The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Philadelphia Attorney Sentenced to 84 Months in Prison for Receiving and Possessing Child PornographyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Philadelphia lawyer Devon Edward Sanders, 48, of Glenside, was sentenced on June 4 to 84 months in federal prison for downloading and possessing more than 94,000 images and videos of child pornography.
Chief U.S. District Judge Lawrence F. Stengel called the defendant’s collection “massive” and described the images and videos of children being sexually assaulted “dehumanizing, horrendous, and disgusting.” In rejecting the defendant’s request for probation, the court ruled that a significant sentence of incarceration was warranted based on the defendant’s “disturbing” crimes over a 10-year period. The court further ruled that a restitution hearing for the 25 victims seeking mandatory restitution will be held within the next 90 days.
“We agree wholeheartedly with Chief Judge Stengel’s assessment,” said U.S. Attorney McSwain. “By possessing these horrific images, this defendant victimized innocent children for more than a decade. A significant prison term was not only warranted but necessary.”
In addition to the term of imprisonment, the court imposed a 10-year term of supervised release and ordered that the defendant undergo a sex offender evaluation and treatment after his release from federal prison.
The case was investigated by Department of Homeland Security and was prosecuted by Assistant United States Attorney Michelle Rotella.
Pennsylvania Man Sentenced on Federal Drug ChargesRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that a Reading, Pennsylvania man was sentenced on drug charges in federal court. Angel Diaz-Gibson, 26, was sentenced to 36 months in federal prison for distribution of heroin and using a telephone to facilitate the commission of a federal drug felony. Diaz-Gibson pled guilty in March, admitting that on August 22, 2015, he distributed 148 stamps of heroin to a confidential informant in Fairlea, and that he had a telephone conversation with the informant to help set up the deal. Each stamp is considered to be one dose of heroin.
Stuart praised the investigative work of the Greenbrier Valley Drug and Violent Crime Task Force.
“Tragically, the heroin epidemic has spread into even our small, more rural communities like Fairlea,” said United States Attorney Mike Stuart. “My Office and our team of law enforcement partners are working hard every day to shut down drug trafficking in our communities.”
Assistant United States Attorney John File prosecuted the case. United States District Judge Irene C. Berger presided at the plea hearing.
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Oswego County Man Sentenced for Methamphetamine-Related ChargeRead the Press Release
SYRACUSE, NEW YORK -- Arthur LaDuke, age 46, of Minoa, New York, and formerly of Oswego County, was sentenced today to serve one year and one day in prison for possessing pseudoephedrine, knowing it would be used to manufacture methamphetamine, announced United States Attorney Grant C. Jaquith, United States Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division, and New York State Police Superintendent George P. Beach II. LaDuke was also ordered to serve three years of supervised release after he is released from prison.
As part of his guilty plea, LaDuke admitted that on approximately 21 occasions between October 2015 and January 2017, he purchased pseudoephedrine pills from different drug stores in and around Oswego County, New York, with an aggregate weight of approximately 50 grams. LaDuke further admitted that he purchased the approximately 50 grams of pseudoephedrine knowing it was intended to be used in the manufacture of methamphetamine. Arthur LaDuke manufactured methamphetamine with the pills he himself purchased, as well as utilizing additional pills provided to him by others, for which he provided finished methamphetamine.
This case was investigated by the New York State Police (NYSP), the New York State Intelligence Center (NYSIC), and the U.S. Drug Enforcement Agency DEA), and was prosecuted by Assistant U.S. Attorney Carl Eurenius