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Thursday 19 April 2018
New Orleans Man Pleads Guilty in Methamphetamine Trafficking ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that GARRET TEMPLETON, age 33, of New Orleans, pled guilty today to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically, TEMPLETON pled guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine. TEMPLETON faces a mandatory minimum sentence of 10 years in prison and a maximum life sentence, a fine of up to $10,000,000 and at least five years of supervised release.
U.S. District Judge Ivan L.R. Lemelle set sentencing for TEMPLETON on July 18, 2018.
According to court documents, during the timeframe of this conspiracy, codefendant Steven LYONS was a major methamphetamine distributor in the New Orleans area. LYONS obtained methamphetamine by U.S. Mail and other means from several sources, including codefendants Carlos Mario CANTU-COX and Christopher CANTU-COX in Texas (who also supplied Anna THOMPSON); Eric WILLIS in Texas; Trung PHAM in California; and TEMPLETON in Louisiana. Codefendants Tommy WELLS, Clark McALPIN, Dwayne CLAUSE, and Dawn CONRAVEY acted as sellers or brokers of methamphetamine for LYONS in the New Orleans area.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Amtrak Police, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
New Orleans Man Charged with Gun and Drug OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that TERRELL MUSE, age 24 of New Orleans, was indicted April 12 by a federal grand jury.
According to the indictment, MUSE, a convicted felon, illegally possessed two firearms and quantities of crack cocaine and heroin. If convicted on the charges, MUSE faces a term of imprisonment of up to 10 years, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment.
U.S. Attorney Evans reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Orleans Police Department. Assistant United States Attorney Jeffrey Sandman is in charge of the prosecution.
More Than a Dozen Defendants Charged in Federal Drug Probe on West Side of ChicagoRead the Press Release
CHICAGO — More than a dozen individuals, including the owner of an auto body shop where drugs were stashed, are facing criminal charges as part of a federal investigation into drug trafficking on the West Side of Chicago.
The investigation, dubbed “Operation Broken Roe,” centered on drug sales in the city’s Little Village and West Garfield Park neighborhoods, and resulted in the seizure of distribution quantities of heroin, fentanyl, MDMA pills and cocaine. Authorities also seized 12 illegal firearms, including an assault rifle, and nearly $60,000 in narcotics proceeds.
One of the defendants publicly advertised the sale of MDMA pills – commonly known as ecstasy – on social media. His Instagram posting displayed a photo of dozens of pills, alongside a telephone number. Another defendant owned an auto body shop where illegal narcotics were mixed, packaged and stored.
The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking organizations.
Criminal complaints and affidavits filed in federal court in Chicago charge 14 defendants with various drug offenses. Several of the defendants were arrested Wednesday. Detention hearings will be held on April 24, 2018, before U.S. Magistrate Judge Jeffrey Cole. Five other defendants were charged in state complaints and will appear at a later time in Cook County Criminal Court.
The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Eddie Johnson, Superintendent of the Chicago Police Department; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Cook County State’s Attorney’s Office and the Internal Revenue Service Criminal Investigation, Chicago Field Office, provided valuable assistance.
According to the charges, JONATHAN REYNA, 25, of Berwyn, and MARCO MENDOZA, 24, of Lyons, operated a drug trafficking organization that distributed heroin and fentanyl in the Chicago area. COREY BENSON, 23, of Chicago, participated in the organization by regularly distributing Reyna’s and Mendoza’s narcotics and collecting payment from customers, according to the charges. ANTON COLE, 23, of Chicago, ANTON LITTLE JR., 20, of Chicago, and DEVONTAY JOHNSON, 26, of Chicago, worked with Benson to distribute heroin to customers. PRINCE BRUNT, 36, of Chicago, who owns the auto body shop in the 3300 block of West Cermak Road in Chicago, participated in the organization by permitting Benson to manufacture and store narcotics at the shop, according to the charges. LARRY JONES, 55, of Chicago, and COMMANDER WHITE, 27, of Chicago, also distributed Reyna’s and Mendoza’s narcotics, the complaint states.
Undercover law enforcement officers purchased various quantities of heroin and MDMA pills from Johnson in the summer and fall of 2017, the complaints state. The purchases occurred near a residence in the 4300 block of West Wilcox Street in Chicago, where NATASHA SUMMERVILLE, 30, of Chicago, maintained a drug stash house, the charges allege. It was Johnson – using the profile name deadendboi_vtay – who publicly posted the photo of the MDMA pills on Instagram, the complaint states. Johnson’s sources for the pills were MAURICE CARROLL, 28, of Chicago, and HENRY MERRILL, 31, of Chicago, the charges allege.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Assistant U.S. Attorneys Elizabeth R. Pozolo and Aaron R. Bond are representing the government.
Moline Man Sentenced to Two Years in Prison for Falsifying Records, Making False Statements Under Oath in Bankruptcy ProceedingsRead the Press Release
ROCK ISLAND, Ill. -- A Moline, Ill., man, Samir A. Patel, 49, was sentenced today for bankruptcy fraud. Chief U.S. District Judge James E. Shadid ordered Patel, of the 3600 block of 73rd Street, to serve 24 months in prison, and upon release from prison, to remain on supervised release for a three-year term.
On Oct. 17, 2017, Patel pleaded guilty to the charges as alleged in the indictment that he falsified records and lied under oath related to bankruptcy proceedings. After filing a bankruptcy petition in June 2013 to discharge his debts under Chapter 7 of the U.S. Bankruptcy Code, in August and September 2013, Patel provided the Bankruptcy Trustee with altered bank statements and summaries of his bank account.
In addition, Patel admitted that he falsely testified under oath in a bankruptcy proceeding, a September 2013 meeting of creditors, that a $5,000 wire transfer deposit into his account was a loan from a friend of his wife to help the couple pay living and business expenses. In fact, the deposit was a $315,000 wire transfer from a law firm related to a business transaction and which Patel was attempting to conceal from creditors and the Bankruptcy Trustee.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Central District of Illinois. The charges were investigated by the U.S. Postal Inspection Service and the IRS Criminal Investigation Division, in collaboration with the Central Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. Assistant U.S. Attorney John K. Mehochko prosecuted the case.
“Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system,” stated Nancy J. Gargula, U.S. Trustee for Central Illinois, Southern Illinois and Indiana. “I am grateful to U.S. Attorney Childress and our law enforcement partners for their strong commitment to combating bankruptcy related crimes, as demonstrated by today’s sentencing.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
Minnesota Doctor Agrees to Pay $30,000 to Resolve Alleged Controlled Substances Act ViolationRead the Press Release
United States Attorney Gregory G. Brooker today announced a $30,000 civil settlement with DR. MICHAEL T. SCHULENBERG, a Minnesota physician. The civil settlement stems from allegations that DR. SCHULENBERG violated the Controlled Substances Act.
According to an investigation conducted by the Drug Enforcement Administration (“DEA”), on April 14, 2016, DR. SCHULENBERG, prescribed Schedule 2 controlled substances in the name of an individual, knowing that the controlled substances were intended to be used by another individual, in violation of the Controlled Substances Act.
As a licensed physician in the State of Minnesota registered with the DEA as a practitioner authorized to dispense Schedule 2-5 controlled substances, DR. SCHULENBERG is subject to requirements of the Controlled Substance Act as administered by the DEA. The U.S. Attorney’s Office and DEA contend that DR. SCHULENBERG’S conduct amounted to a civil violation of the Controlled Substances Act.
“Doctors are trusted medical professionals and, in the midst of our opioid crisis, they must be part of the solution,” said U.S. Attorney Greg Brooker. “As licensed professionals, doctors are held to a high level of accountability in their prescribing practices, especially when it comes to highly addictive painkillers. The U.S. Attorney’s Office and the DEA will not hesitate to take action against healthcare providers who fail to comply with the Controlled Substances Act. We are committed to using every available tool to stem the tide of opioid abuse.”
DEA Minneapolis-St. Paul Division Assistant Special Agent in Charge Kenneth Solek said, “As Minnesota and the Nation struggle in the throes of an opioid crisis, the Drug Enforcement Administration will always strive to ensure that those responsible will be held accountable, no matter what their position may be.”
As part of the settlement, DR. SCHULENBERG has agreed to pay $30,000 to the United States within thirty days of the effective date of the agreement.
According to the settlement agreement, DR. SCHULENBERG entered into a Memorandum of Agreement (“MOA”) with the DEA under which he agreed to comply with heightened compliance requirements for logging and reporting his prescriptions of controlled substances to the DEA for a period of two years. DR. SCHULENBERG agreed to the following terms and conditions:
- Maintain log(s) of all controlled substances prescribed, including the initials and address of the patient, date, quantity, strength, dosage and diagnosis for the controlled substance.
- Allow DEA personnel to access and inspect the log(s) and all other required controlled substance records, reports and inventories and to enter his registered location at any time during business hours, without prior notice, to verify compliance with the Agreement.
- Submit to DEA copies of controlled substance log(s) on a quarterly basis.
- Allow DEA access to prescribing history using the State of Minnesota Prescription Monitoring Program and, upon demand by DEA, provide a prescribing history report to the DEA from the Minnesota Board of Pharmacy.
This matter was investigated by the DEA Minneapolis-St. Paul Division and was handled by Assistant U.S. Attorney Bahram Samie of the Civil Division of the U.S. Attorney’s Office for the District of Minnesota.
In reaching this settlement, DR. SCHULENBERG did not admit liability and the government did not make any concessions regarding the legitimacy of the claims.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican National Sentenced for Illegal Use of a Social Security NumberRead the Press Release
U.S. Attorney Duane A. Evans announced that ERNESTO CONTRERAS-REYES, age 42, a citizen of Mexico, was sentenced today after pleading guilty to a one-count indictment charging him with illegal use of a Social Security number.
U.S. District Judge Ivan L.R. Lemelle sentenced CONTRERAS-REYES to time served, and he was placed on supervised release for one year. Following the completion of his sentence, CONTRERAS-REYES will be surrendered to the custody of U.S. Immigration and Customs Enforcement for removal proceedings.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Mescalero Apache Man Sentenced for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Russel Patrick Bearshield, 30, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 30 months in prison for his assault conviction. He will be on supervised release for two years after completing his prison sentence.
The BIA arrested Bearshield on June 23, 2017, on a criminal complaint charging him with assaulting a Mescalero Apache woman on Sept. 9, 2016, on the Mescalero Apache Indian Reservation in Otero County, N.M. Bearshield assaulted the woman by throwing a television at her, and by punching, striking and kicking her in the face.
On Oct. 5, 2017, Bearshield pled guilty to a felony information charging him with assault resulting in serious bodily injury. In entering the guilty plea, Bearshield admitted that on Sept. 9, 2016, he assaulted the victim by punching her several times with a closed fist. As the result of the assault, the victim suffered a fractured orbital bone, which required surgery.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Luzerne County Woman Sentenced to Prison for Participating in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Brianna Rattigan, age 25, of Wilkes-Barre, Pennsylvania, was sentenced on April 18, 2018, to serve one year in prison by Senior U.S. District Court Judge James M. Munley, for her role in a heroin trafficking conspiracy that operated in Luzerne County during February through November 2014.
According to United States Attorney David J. Freed, Rattigan previously pleaded guilty to conspiracy to possess with intent to distribute more than 100 grams of heroin. Rattigan admitted to allowing her sister, Megan Fox, to store between 100 and 400 grams of heroin in Rattigan’s residence. That quantity of heroin is approximately equivalent to between 4,000 and 16,000 retail bags of heroin.
Megan Fox previously pleaded guilty to running the heroin trafficking operation while the leader of the drug ring, Desmond Mercer, was in prison. Fox was sentenced to 30 months in prison. Mercer was sentenced to 14 years in prison.
Shaliek Stroman and Shaquan Murphy, two key associates of Mercer, were each sentenced to more than 12 years in prison for their roles in the conspiracy. Another member of the drug ring, Antuan Jamison, was sentenced to five years in prison.
Rattigan was indicted by a federal grand jury in February 2016, as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Luzerne County District Attorney’s Office, and Kingston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Judge Munley also ordered Rattigan to serve three years on supervised release following her prison sentence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Lincoln Man Convicted of Methamphetamine ChargesRead the Press Release
United States Attorney Joseph P. Kelly announced that on April 19, 2018, Rodney P. Mazzulla, 57, of Lincoln, Nebraska, was convicted by a federal jury of three charges involving the distribution of pure methamphetamine. Mazzulla was convicted of conspiracy to distribute and possess with intent to distribute 50 grams or more of actual (pure) methamphetamine between 2013 and April of 2017. He was also convicted of two counts of possession with intent to distribute actual (pure) methamphetamine. The trial began in federal court in Lincoln on Monday, April 16, 2018, before United States District Judge John M. Gerrard. The jury received the case on Thursday afternoon and deliberated for a total of approximately five hours before returning their verdict on Friday morning.
On April 2, 2017, a search warrant was executed at a large storage garage in southwest Lincoln. Mazzulla was found to be living in a camper inside the garage. Officers found at least 49 grams of pure methamphetamine, a loaded 9mm pistol, a digital scale, and packaging materials in the camper. A second firearm was found elsewhere in the garage. On April 22, 2017, a second search warrant was executed at the same storage building. Mazzulla was again found inside. At that time, officers found at least 210 grams of pure methamphetamine hidden under the hood of a van parked in the garage. Witnesses testified about Mazzulla’s involvement in the distribution of methamphetamine in the Lincoln area prior to the April, 2017, searches. In addition, evidence was presented regarding a contact made by Lincoln officers with Mazzulla in July of 2015 in which he was found to be in possession of a small amount of methamphetamine. At that time, Mazzulla told officers he had been selling methamphetamine since 2013 and that he had sold one to two ounces per week over the prior year.
Sentencing is scheduled for July 13, 2018. Mazzulla faces a possible sentence of not less than 10 years nor more than life imprisonment and a fine of up to $10,000,000.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lincoln County Man Sentenced to Prison for Failing to Register as a Sex OffenderRead the Press Release
BECKLEY, W.Va. – A South Carolina man who moved to Lincoln County and failed to register as a sex offender was sentenced to 2 years in federal prison today, announced United States Attorney Mike Stuart. Cody Matthew Wroblewski, 33, of Harts, will spend 10 years on federal supervised release following his sentence. Stuart praised the work of the United States Marshals Service and the West Virginia State Police.
“Sex offenders that do not register as required must be held accountable,” said United States Attorney Mike Stuart. “The safety of our children depends on it.”
Wroblewski admitted that from January 2017 until his arrest on August 30, 2017, he failed to register as a sex offender as required by the Sex Offender Registration and Notification Act. On August 30, 2017, Wroblewski was located and arrested at his residence on Bag Harts Creek Road in Lincoln County. Wroblewski was required to register as a sex offender because of a 2011 South Carolina conviction for third degree criminal sexual conduct involving a minor victim. He was also previously convicted in 2012 in South Carolina for failing to update his sex offender registration.
Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution. United States District Judge Irene C. Berger presided over the sentencing hearing.
This case was 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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Las Vegas Man Charged with Selling Hundreds of Firearms Without A LicenseRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who allegedly sold hundreds of firearms without a license, some of which were subsequently used in crimes, was charged in federal court today, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Sylvester Mitchell, 47, made his initial appearance in court before U.S. District Magistrate Judge Peggy Leen. He was charged by a federal criminal complaint with one count of dealing in firearms without a license. The charge carries a maximum term of five years in prison. A preliminary hearing is set for May 16, 2018.
As alleged in the criminal complaint that was unsealed today, Mitchell purchased approximately 438 firearms between January 2004 and November 2017. Of those firearms, approximately 42 were subsequently recovered and found to have been illegally possessed, used in a crime, or suspected to have been used in a crime. Those firearms were recovered in Southern California, Nevada, and Mexico. Two of the most recent recoveries were from homicide scenes in Las Vegas, Nevada. Over the course of 2017, Mitchell purchased 199 firearms for a total cost of $58,942.
The complaint alleges that Mitchell, who did not have a license to sell firearms, placed several advertisements offering firearms for sale on Backpage.com. ATF records showed a pattern of Mitchell purchasing new firearms from Federal Firearm Licensees (FFLs) on a weekly basis and that he went to multiple FFLs on the same day. In some instances, he purchased firearms from FFLs and posted the firearms for sale on Backpage.com a few days or weeks later. It further alleges that between June 1, 2017 and September 14, 2017, law enforcement conducted multiple undercover firearms purchases from Mitchell based on his Backpage.com advertisements. Among the purchases was an AR-15 rifle.
A criminal complaint contains allegations that the defendant has committed a crime, and the defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Christopher Burton is prosecuting the case.
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Lance Armstrong Agrees to Pay $5 Million to Settle False Claims Allegations Arising from Violation of Anti-Doping Provisions of U.S. Postal Service Sponsorship AgreementRead the Press Release
WASHINGTON – Former professional cyclist Lance Armstrong agreed to pay the United States $5 million to resolve a lawsuit alleging that his admitted use of performance-enhancing drugs and methods (“PEDs”) resulted in the submission of millions of dollars in false claims for sponsorship payments to the U.S. Postal Service (“USPS”), which sponsored Armstrong’s cycling team during six of the seven years Armstrong appeared to have won the Tour de France, the Department of Justice announced today.
“No one is above the law,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “A competitor who intentionally uses illegal PEDs not only deceives fellow competitors and fans, but also sponsors, who help make sporting competitions possible. This settlement demonstrates that those who cheat the government will be held accountable.”
From 1996 through 2004, the USPS sponsored a professional cycling team. The sponsorship agreements required the team to follow the rules of cycling’s governing bodies, including the rules prohibiting the use of certain performance enhancing substances and methods. Between 1999 and 2004, Lance Armstrong was the lead rider on the team, and he appeared to win cycling’s most prestigious event, the Tour de France, six consecutive times.
“This settlement resolves allegations that Lance Armstrong violated the terms of his team’s sponsorship by the U.S. Postal Service,” said U.S. Attorney for the District of Columbia Jessie K. Liu. “We will continue to work with our federal partners to protect taxpayer dollars and to ensure that those who do business with the federal government fulfill their contractual obligations.”
The United States’ lawsuit against Armstrong alleged that Armstrong and his team regularly and systematically employed PEDs, in violation of the USPS sponsorship agreements. The lawsuit further alleged that Armstrong made numerous false statements, directly and through team managers and spokesmen, to USPS management and to the public denying his PED use to induce the USPS to renew its sponsorship of the team in late 2000, and to increase the sponsorship fees (and, by extension, Armstrong’s own salary) in light of Armstrong’s apparent Tour de France victories in 1999 and 2000. In addition, the lawsuit alleged that Armstrong took active measures to conceal his PED use during the USPS sponsorship, and even after the sponsorship ended, including lying under oath about his PED use in a 2005 arbitration proceeding involving his entitlement to a bonus for the 2004 Tour de France result; suing the Times of London and one of its sources – a former team masseuse – for libel; and threatening other people with similar lawsuits and other forms of retribution for disclosing their knowledge or suspicions of his doping activities.
“The Postal Service has strongly supported the Department of Justice’s intervention and pursuit of this case, as it always has been our position that Lance Armstrong misled the Postal Service,” said Thomas J. Marshall, U.S. Postal Service General Counsel and Executive Vice President. “This matter has now been resolved in a manner that imposes consequences for that wrongful action. With this case, as in all other instances, the Postal Service vigorously defends our brand and our position as a trusted government institution.”
In October 2012, the U.S. Anti-Doping Agency (“USADA”) issued a report and decision finding that Armstrong and his USPS teammates had engaged in a persistent and concerted doping program designed to enable Armstrong to win the Tour de France. In the wake of the USADA report, Armstrong was stripped of all of his competitive cycling results, including the seven Tour de France wins, and was banned from participating in competitive sports. Armstrong admitted to his extensive PED-use in a nationally televised interview with Oprah Winfrey in January 2013.
“The U.S. Postal Service manages approximately 30,000 contract actions and spends more than $13 billion on contracted supplies and services each fiscal year,” said Scott Pierce, Special Agent in Charge, U.S. Postal Service Office of Inspector General. “The Office of Inspector General supports the Postal Service by aggressively investigating allegations of misconduct within the contracting process. In this instance, we worked hand-in-hand with the Civil Division, the United States Attorney’s Office and the U.S. Postal Service Office of the General Counsel. Today’s result will have a positive impact on the entire contracting process.”
The allegations against Armstrong were originally brought in a whistleblower complaint filed in June 2010 by Floyd Landis, a former teammate of Armstrong, who admitted that he, too, had participated in PED use as member of the USPS-sponsored team. Landis filed his complaint under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The Act permits the government to intervene in the whistleblower suit, as the government did here, in part. Landis will receive $1,100,000 as his share of the settlement.
The settlement announced today represented a coordinated effort of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the Offices of Inspector General and the General Counsel for the United States Postal Service, in their investigation and litigation of this matter.
The lawsuit is captioned United States ex rel. Landis v. Tailwind Sports Corporation, et al., No. 10-cv-976 (CRC) (D.D.C.). The claims against Armstrong contained in the complaint are allegations only and do not constitute a determination of liability.
Lance Armstrong Agrees to Pay $5 Million to Settle False Claims Allegations Arising from Violation of Anti-Doping Provisions of U.S. Postal Service Sponsorship AgreementRead the Press Release
Former professional cyclist Lance Armstrong agreed to pay the United States $5 million to resolve a lawsuit alleging that his admitted use of performance-enhancing drugs and methods (“PEDs”) resulted in the submission of millions of dollars in false claims for sponsorship payments to the U.S. Postal Service (“USPS”), which sponsored Armstrong’s cycling team during six of the seven years Armstrong appeared to have won the Tour de France, the Department of Justice announced today.
“No one is above the law,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “A competitor who intentionally uses illegal PEDs not only deceives fellow competitors and fans, but also sponsors, who help make sporting competitions possible. This settlement demonstrates that those who cheat the government will be held accountable.”
From 1996 through 2004, the USPS sponsored a professional cycling team. The sponsorship agreements required the team to follow the rules of cycling’s governing bodies, including the rules prohibiting the use of certain performance enhancing substances and methods. Between 1999 and 2004, Lance Armstrong was the lead rider on the team, and he appeared to win cycling’s most prestigious event, the Tour de France, six consecutive times.
“This settlement resolves allegations that Lance Armstrong violated the terms of his team’s sponsorship by the U.S. Postal Service,” said U.S. Attorney for the District of Columbia Jessie K. Liu. “We will continue to work with our federal partners to protect taxpayer dollars and to ensure that those who do business with the federal government fulfill their contractual obligations.”
The United States’ lawsuit against Armstrong alleged that Armstrong and his team regularly and systematically employed PEDs, in violation of the USPS sponsorship agreements. The lawsuit further alleged that Armstrong made numerous false statements, directly and through team managers and spokesmen, to USPS management and to the public denying his PED use to induce the USPS to renew its sponsorship of the team in late 2000, and to increase the sponsorship fees (and, by extension, Armstrong’s own salary) in light of Armstrong’s apparent Tour de France victories in 1999 and 2000. In addition, the lawsuit alleged that Armstrong took active measures to conceal his PED use during the USPS sponsorship, and even after the sponsorship ended, including lying under oath about his PED use in a 2005 arbitration proceeding involving his entitlement to a bonus for the 2004 Tour de France result; suing the Times of London and one of its sources – a former team masseuse – for libel; and threatening other people with similar lawsuits and other forms of retribution for disclosing their knowledge or suspicions of his doping activities.
“The Postal Service has strongly supported the Department of Justice’s intervention and pursuit of this case, as it always has been our position that Lance Armstrong misled the Postal Service,” said Thomas J. Marshall, U.S. Postal Service General Counsel and Executive Vice President. “This matter has now been resolved in a manner that imposes consequences for that wrongful action. With this case, as in all other instances, the Postal Service vigorously defends our brand and our position as a trusted government institution.”
In October 2012, the U.S. Anti-Doping Agency (“USADA”) issued a report and decision finding that Armstrong and his USPS teammates had engaged in a persistent and concerted doping program designed to enable Armstrong to win the Tour de France. In the wake of the USADA report, Armstrong was stripped of all of his competitive cycling results, including the seven Tour de France wins, and was banned from participating in competitive sports. Armstrong admitted to his extensive PED-use in a nationally televised interview with Oprah Winfrey in January 2013.
“The U.S. Postal Service manages approximately 30,000 contract actions and spends more than $13 billion on contracted supplies and services each fiscal year,” said Scott Pierce, Special Agent in Charge, U.S. Postal Service Office of Inspector General. “The Office of Inspector General supports the Postal Service by aggressively investigating allegations of misconduct within the contracting process. In this instance, we worked hand-in-hand with the Civil Division, the United States Attorney’s Office and the U.S. Postal Service Office of the General Counsel. Today’s result will have a positive impact on the entire contracting process.”
The allegations against Armstrong were originally brought in a whistleblower complaint filed in June 2010 by Floyd Landis, a former teammate of Armstrong, who admitted that he, too, had participated in PED use as member of the USPS-sponsored team. Landis filed his complaint under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The Act permits the government to intervene in the whistleblower suit, as the government did here, in part. Landis will receive $1,100,000 as his share of the settlement.
The settlement announced today represented a coordinated effort of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the Offices of Inspector General and the General Counsel for the United States Postal Service, in their investigation and litigation of this matter.
The lawsuit is captioned United States ex rel. Landis v. Tailwind Sports Corporation, et al., No. 10-cv-976 (CRC) (D.D.C.). The claims against Armstrong contained in the complaint are allegations only and do not constitute a determination of liability.
Judge Sentences Convicted Felon to Jail Time for Illegally Possessing PistolRead the Press Release
PITTSBURGH, Pa. - A felon from Pittsburgh, Pennsylvania, has been sentenced in federal court to six months’ imprisonment, followed by three years’ supervised release, on his conviction of violating the federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Aaron Lyons, 23, of Pittsburgh, Pennsylvania.
According to information presented to the court, on or about August 27, 2015, Lyons, a convicted felon, was in possession of a .40 caliber Taurus pistol. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
United States Attorney Brady commended the Department of Alcohol, Tobacco, Firearms and Explosives, and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Lyons. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Jamestown Man Pleads Guilty to Food Stamp FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph M. Gullotti, 57, of Jamestown, NY, pleaded guilty to food stamp benefits fraud before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that the defendant owned and operated Fresh Cut Meats & More at 631 Newland Avenue in Jamestown. Gullotti, as the owner of Fresh Cut, was authorized to accept and redeem food stamps. The U.S. Department of Agriculture prohibits a retailer from accepting food stamps for ineligible items such as beer, cigarettes, and hot prepared food, from giving cash for the benefits, and from using the benefits to pay for items purchased on credit.
Between January 2015 and March 21, 2017, the defendant and others accpeted food stamp benefits to pay for merchandise purchased on credit by a beneficiary including ineligible items. During that time, Gullotti and others engaged in approximately $173,515 of unlawful transactions.The plea is the result of an investigation by the U.S. Department of Agriculture, under the direction of Special Agent-in-Charge Bethanne M. Dinkins; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Sentencing is scheduled for August 23, 2018, at 11:00 a.m. before Judge Wolford.
Jackson Man Pleads Guilty under Project EJECT for Illegally Possessing a Firearm and NarcoticsRead the Press Release
Jackson, Miss. – Jermaine Lockett, 47, of Jackson, pled guilty today, before United States District Judge Tom S. Lee, to being a felon in possession of a firearm and possessing controlled substances with intent to distribute, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives.
On December 17, 2017, officers with the Jackson Police Department were on patrol in the area of East Frontage Road and Canton Mart Road. An officer observed a vehicle driving erratically in the area and attempted a traffic stop. The driver failed to stop and instead increased speed and fled. The vehicle hit another vehicle before coming to a stop. Lockett ran from the vehicle and was found to be in possession of methamphetamine and fentanyl. A firearm was also recovered from the vehicle. Lockett was arrested and charged.
On March 30, 2018, a criminal information was filed charging Lockett on two counts – being a felon in possession of a firearm and possessing with intent to distribute methamphetamine and fentanyl. He had been previously convicted of felony evasion and possession of stolen property on April 7, 2011, in Madison County Circuit Court; and being a felon in possession of a firearm on November 6, 2008, in Hinds County Circuit Court.
Lockett is scheduled to be sentenced by Judge Lee on July 18, 2018 at 9:30 a.m., and faces a maximum sentence of 20 years in federal prison and a $250,000 fine.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with ATF agents and Project EJECT task force members. AUSA Erin Chalk is prosecuting the case.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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.
Investigation of Puerto Rico to Connecticut Cocaine Trafficking Ring Results in Indictment against 7 MenRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Albert Angelucci, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, and Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, announced that a federal grand jury in Hartford returned an indictment today charging seven individuals with trafficking cocaine from Puerto Rico to Connecticut through the U.S. Mail.
Charged in the indictment are:
ERICK SUAREZ, 29, of New Britain
LUIS COLLAZO-RIVERA, 37, of Caguas, Puerto Rico
JERRY RODRIGUEZ, a.k.a. “Bebo,” 28, of Hartford
LUIS GONZALEZ-OFARRIL, 23, of New Britain
LUIS TORRES, 35, of New Britain
GREGORY TORRES, 39, of Hartford
JOSE ROMERO-MAYSONET, 30, of Loiza, Puerto RicoAs alleged in court documents and statements made in court, since December 2017, the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service has been investigating a drug trafficking organization that was sending Priority Mail parcels containing kilogram-quantities of cocaine through the U.S. Mail from Puerto Rico to Connecticut and elsewhere. The investigation revealed that Suarez coordinated shipments of cocaine from Collazo-Rivera, Romero-Maysonet and others in Puerto Rico to addresses in New Britain, Hartford, Newington, East Hartford and Bridgeport, as well as Springfield, Massachusetts. To date, investigators have identified more than 50 suspect parcels mailed by the drug trafficking organization from Puerto Rico. Investigators intercepted five of the suspect parcels, each of which contained approximately one kilogram of cocaine.
On April 10, 2018, investigators arrested Rodriguez, Gonzalez-Ofarril, Luis Torres and Gregory Torres in Connecticut, and Collazo-Rivera and Romero-Maysonet in Puerto Rico. On that date, a search of Rodriguez’s Hartford residence revealed approximately 400 grams of cocaine, approximately 160 grams of heroin, items used to process and package narcotics for street sale, and a loaded .45 caliber handgun. Also on that date, investigators searched Suarez’s residence, as well as two storage units used by Suarez and one storage unit used by Rodriguez in West Hartford. The search of Suarez’s storage units revealed approximately $40,000 in cash and a search of Rodriguez’s storage unit revealed additional items used to process and package narcotics.
Suarez was arrested on April 12.
The indictment charges each of the defendants with one count of conspiracy to distribute and to possess with intent to distribute cocaine. If convicted of this charge, based on their conduct and the quantity of cocaine involved in the conspiracy, Suarez, Collazo-Rivera and Rodriguez face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and Gonzalez-Ofarril, Luis Torres, Gregory Torres and Romero-Maysonet face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
The indictment also charges Rodriguez with one count of possession with intent to distribute cocaine, an offense that carries a maximum term of imprisonment of 20 years, and one count of possession with intent to distribute 100 grams or more of heroin, an offense that carries a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Suarez, Collazo-Rivera and Rodriguez have been detained since their arrests. Gonzalez-Ofarril, Luis Torres, Gregory Torres and Romero-Maysonet are released on bonds pending trial.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The DEA Puerto Rico Caribbean Corridor Strike Force and U.S. Postal Inspection Service, Newark Division, San Juan (P.R.) Office, are assisting the investigation. This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Inmate at FCI-Berlin Pleads Guilty to Attempted Drug PossessionRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that John McLaurin, 28, an inmate at FCI-Berlin pleaded guilty to one count of attempting to possess a prohibited object within a federal prison. McLaurin admitted that he was attempting to possess a synthetic cannabinoid, commonly referred to as K2.
According to documents filed with the court and statements made at the change of plea hearing, in September 2017, McLaurin placed a greeting card in the mail at the prison. Prison staff intercepted the card and found a note hidden in the card. The note provided instructions for obtaining K2 and smuggling it into the prison.
A sentencing hearing is scheduled for July 31, 2018.
The Bureau of Prisons investigated this case. This case is being prosecuted by Assistant U.S. Attorney Donald A. Feith.
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Houston-Area Man and Woman Sentenced for Beaumont Robbery ConspiracyRead the Press Release
BEAUMONT, Texas – A Houston-area man and woman have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Johntre Johnson, 21, of Houston, pleaded guilty on Aug. 22, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 96 months in federal prison today by U.S. District Judge Ron Clark. Nakendra Dominique McKnight, 32, of Humble, Texas, pleaded guilty on Aug. 22, 2017, to conspiracy to commit Hobbs Act robbery and was sentenced to 90 months in federal prison today by Judge Clark.
According to information presented in court, on Feb. 22, 2017, law enforcement officers in Beaumont attempted to stop a white Cadillac Escalade truck in the vicinity of Dowlen Road and Delaware. The vehicle would not stop and instead led officers on a vehicle pursuit until it came to a stop in the 3500 block of Delaware. The three men in the vehicle fled on foot but were captured and detained by law enforcement officers. A fourth man, whose involvement was already known to officers, was located and detained at a nearby service station. Interviews with the suspects revealed an alleged conspiracy to commit an armed robbery in violation of the Hobbs Act in Beaumont, but law enforcements officers successfully intervened and prevented them from succeeding. Johnson and McKnight were charged along with six others in a five-count indictment returned on Mar. 22, 2017.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorneys Lesley Woods and John B. Ross.
Houston Man Sentenced to 25 Months in Prison for Cocaine ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that JOACOBO JOSE SANTOS, age 44, of Houston, Texas, was sentenced today for charges relating to narcotics trafficking.
SANTOS pled guilty on August 17, 2017, to conspiring to distribute 500 grams or more of cocaine hydrochloride.
Judge Nannette Jolivette Brown sentenced SANTOS to 25 months in the Federal Bureau of Prisons, as well as three years of supervised release following the term of imprisonment.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration. Assistant U.S. Attorneys Jeff Sandman and James Baehr are in charge of the prosecution.
Hells Angels Gang Member Sentenced to 15 Years in Prison for Distributing Methamphetamine in Exchange for Stolen FirearmsRead the Press Release
RIVERSIDE, California - A member of the Hells Angels outlaw motorcycle gang has been sentenced to 180 months in federal prison for distributing methamphetamine that he provided in exchange for stolen firearms.
Brian Shane Henson, 40, of Merced, was sentenced on Monday by United States District Judge Jesus G. Bernal.
In early 2017, while he was a prospective member of the Merced Chapter of the Hells Angels motorcycle club, Henson negotiated a deal to sell one pound of methamphetamine and four ounces of marijuana in exchange for 20 stolen firearms, according to court documents. Unbeknownst to Henson, he negotiated the deal with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On January 25, 2017, after negotiating the deal for about one week, Henson and co-defendant Hussein Fawas Eltareb, a full-patch member of the Hells Angels, drove approximately seven hours from Merced to Needles, California to meet the undercover agent. After arriving in Needles, according to prosecutors, Henson gave the undercover agent one pound of methamphetamine and one-quarter pound of marijuana, and Henson took possession of the 20 firearms, which he placed in the trunk of Eltareb’s car.
Immediately after the exchange, law enforcement officers arrested Henson and Eltareb. At this time, authorities recovered a loaded .38-caliber revolver, which was hidden next to the driver’s seat in Eltareb’s vehicle.
Henson pled guilty in October to distribution of methamphetamine and possessing firearms in furtherance of a drug trafficking crime and was sentenced to the mandatory minimum sentence of 180 months in federal custody.
After a bench trial in December, Judge Bernal found Eltareb, 27, of Merced, guilty of conspiracy to distribute methamphetamine, distribution of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. Judge Bernal is scheduled to sentence Eltareb on May 21, at which time he too will face a mandatory minimum sentence of 180 months in federal prison.
This case was investigated by the ATF’s Flagstaff, Arizona Field Office. The ATF received assistance from the Coconino County Narcotics Task Force, the Mohave County General Narcotics Task Force, and the California Highway Patrol.
The case is being prosecuted by Assistant United States Attorney Lindsay Bailey of the Organized Crime and Drug Enforcement Task Force and Assistant United States Attorney Roger Hsieh of the General Crimes section.
Helena Man Sentenced to Federal Prison for Firearm OffenseRead the Press Release
HELENA – Mario Antonio Alicea, a 28-year-old Helena resident, was sentenced today to 37 months in prison followed by 3 years supervised release after pleading guilty to felon in possession of firearms on November 16, 2017. U.S. District Judge Charles C. Lovell handed down the sentence.
On April 25, 2016, Alicea sold a Ruger, model Mark II, .22 caliber semi-automatic pistol for $180. It was loaded with eight rounds of ammunition but there was not a round in the chamber. At around the same time, Alicea also sold methamphetamine to a confidential informant. After he was arrested, Alicea admitted that he traded methamphetamine to acquire the gun.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Missouri River Drug Task Force and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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.
Hammond Man Sentenced to 108 Months in PrisonRead the Press Release
HAMMOND- Marquis Medellin, 31 years old, of Hammond, Indiana, was sentenced before Hammond District Court Judge Philip Simon following his conviction for conspiracy to commit racketeering activity as a member of the Latin King street gang, announced U.S. U.S. Attorney Thomas L. Kirsch II.
Medellin was sentenced to 108 months imprisonment and 2 years of supervised release upon completion of his prison term.
The Court held Medellin responsible for his managerial role in the Indiana Latin Kings and for activity involving at least 5 kilograms of cocaine from 2006 through 2015.
This case was jointly investigated by the FBI GRIT Task Force and ATF/HIDTA Task Force, and was prosecuted by AUSAs David J. Nozick and Dean R. Lanter.
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Guatemalan Man Charged with Unlawfully Re-entering the United States Following Previous RemovalRead the Press Release
SYRACUSE, NEW YORK – Marcial De Leon-Aguilar, 31, a citizen of Guatemala was charged today with unlawfully re-entering the United States after previously having been removed, announced United States Attorney Grant C. Jaquith and Thomas Feeley, Field Office Director, U.S. Immigration and Customs Enforcement (ICE), Buffalo, New York.
The defendant made his initial appearance today in United States District Court in Syracuse, New York, and was ordered held without bail pending a hearing on April 24, 2018. A copy of the publicly filed criminal complaint is attached hereto. The defendant was arrested on April 18, 2018 by U.S. Immigration and Customs Enforcement (ICE) Officers in Rome, New York.
The charge filed against Marcial De Leon-Aguilar carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and if a conviction is obtained, could result in his removal or deportation from the United States.1 A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.”
This case is being investigated by United States Department of Homeland Security, Immigration and Customs Enforcement (ICE).
Attachment:
Criminal Complaint
1 Deportation and removal proceedings are separate civil matters litigated in Immigration Court and are not adjudicated as part of a criminal prosecution.
Georgia Man Sentenced Man Sentenced to More Than Eight Years for Methamphetamine Distribution ConspiracyRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today Roger Darryl Brooks, 49, of Dallas, Georgia, to 100 months in prison and five years of supervised release for trafficking methamphetamine, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina
Wayne Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Chris Francis of the Rutherford County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court proceedings, Brooks and his codefendant, Tony Lee Stanfield, were involved in a drug conspiracy that trafficked large amounts of methamphetamine to Rutherford County and elsewhere. Court records show that Brooks was the main source of supply in Georgia, and Stanfield was responsible for delivering the drugs to Western North Carolina.
Law enforcement arrested Stanfield in January 2017, when he attempted to deliver nearly half a kilogram (464 grams) of 96% pure methamphetamine to Rutherford County. According to plea-related documents, Brooks was the supplier of methamphetamine that Stanfield was attempting to deliver to an individual in Rutherford County.
Brooks pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. Stanfield was previously sentenced to 10 years in prison for his role in the drug conspiracy.
ATF and the Rutherford County Sheriff’s Office led the investigation. Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Gangster Disciples Member Indicted for 2007 Tennessee MurderRead the Press Release
A federal grand jury in Nashville, Tennessee returned a superseding indictment today charging a Gangster Disciples member with murder in aid of racketeering and use of a firearm resulting in death, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran for the Middle District of Tennessee and Special Agent in Charge Marcus S. Watson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division.
Rex Andrew Whitlock, aka Stackhouse, 33, of Clarksville, Tennessee, is charged in a 45-count superseding indictment. Whitlock is already in custody in connection with this investigation, having been indicted on federal drug conspiracy charges in June 2017 and on federal racketeering charges in December 2017.
“According to today’s superseding indictment, Gangster Disciples member Rex Andrew Whitlock allegedly laid in wait for a member of a rival gang outside a gas station in Clarksville, followed him down the street and murdered him,” said Acting Assistant Attorney General Cronan. “The Department of Justice is committed to prosecuting gangs like the Gangster Disciples and to eradicating the scourge of violence that this gang and others like it have inflicted on too many communities.”
“This superseding indictment reflects the government’s ongoing efforts to hold the Gangster Disciples organization accountable for acts of violence in Middle Tennessee over the past decade,” said U.S. Attorney Cochran. “By this prosecution, we also seek to bring closure to the family of a victim of gang violence in Clarksville and justice to the community that suffered as a result of this crime. As this investigation continues, we will continue to bring charges like these whenever the evidence permits.”
“This superseding indictment highlights our commitment to vigorously investigate those criminal gangs who terrorize our neighborhoods,” said ATF Special Agent in Charge Watson. “All citizens have an absolute right to feel safe in their respective communities. ATF and its partners are committed to investigating and removing those individuals who illegally possess firearms and commit crimes.”
According to the superseding indictment, Whitlock and other members of the Gangster Disciples waited outside Dodge’s Chicken, a gas station in Clarksville, in the early morning hours of Sept. 1, 2007. Whitlock and other Gangster Disciples then followed a member of the rival Bloods gang as he left Dodge’s Chicken and drove down Tobacco Road in Clarksville, at which time Whitlock shot and killed him.
This extensive investigation was conducted by the ATF, the Tennessee Bureau of Investigation, the Montgomery County Sheriff’s Office, the Clarksville Police Department, the Rutherford County Sheriff’s Office, the Murfreesboro Police Department, the Gallatin Police Department, the Kentucky State Police and the 19th Judicial District Drug Task Force. Trial Attorney Ivana Nizich of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Ben Schrader are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
Gangster Disciples Member Indicted for 2007 Clarksville MurderRead the Press Release
A federal grand jury in Nashville, Tennessee returned a superseding indictment today, charging a Gangster Disciples member with murder in aid of racketeering and use of a firearm resulting in death, announced U.S. Attorney Don Cochran, for the Middle District of Tennessee, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Marcus S. Watson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Nashville Field Division.
Rex Andrew Whitlock, aka Stackhouse, 33, of Clarksville, Tennessee, is charged in a 45-count superseding indictment. Whitlock is already in custody in connection with this investigation, having been indicted on federal drug conspiracy charges in June 2017 and on federal racketeering charges in December 2017.
“This superseding indictment reflects the government’s ongoing efforts to hold the Gangster Disciples organization accountable for acts of violence in Middle Tennessee over the past decade,” said U.S. Attorney Cochran. “By this prosecution, we also seek to bring closure to the family of a victim of gang violence in Clarksville and justice to the community that suffered as a result of this crime. As this investigation continues, we will continue to bring charges like these whenever the evidence permits.”
“According to today’s superseding indictment, Gangster Disciples member Rex Andrew Whitlock allegedly laid in wait for a member of a rival gang outside a gas station in Clarksville, followed him down the street, and murdered him,” said Acting Assistant Attorney General Cronan. “The Department of Justice is committed to prosecuting gangs like the Gangster Disciples and to eradicating the scourge of violence that this gang and others like it have inflicted on too many communities.”
“This superseding indictment highlights our commitment to vigorously investigate those criminal gangs who terrorize our neighborhoods,” said ATF Special Agent in Charge, Marcus S. Watson. “All citizens have an absolute right to feel safe in their respective communities. ATF and its partners are committed to investigating and removing those individuals who illegally possess firearms and commit crimes.”
According to the superseding indictment, Whitlock and other members of the Gangster Disciples waited outside Dodge’s Chicken, a gas station in Clarksville, in the early morning hours of September 1, 2007. Whitlock and other Gangster Disciples then followed a member of the rival Bloods gang as he left Dodge’s Chicken and drove down Tobacco Road in Clarksville, at which time Whitlock shot and killed him.
If convicted, Whitlock potentially faces imposition of the death penalty.
This extensive investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Tennessee Bureau of Investigation; the Montgomery County Sheriff’s Office; the Clarksville Police Department; the Rutherford County Sheriff’s Office; the Murfreesboro Police Department; the Gallatin Police Department; the Kentucky State Police; and the 19th Judicial District Drug Task Force. Assistant United States Attorney Ben Schrader and U.S. Department of Justice Trial Attorney Ivana Nizich are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
Fort Thompson Man Sentenced for Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 19, 2018, by U.S. District Judge Roberto A. Lange.
Jordan Traversie, age 27, was sentenced to 15 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Traversie was indicted by a federal grand jury on January 17, 2018. He pled guilty on February 8, 2018.
The conviction stems from Traversie failing to register as a sex offender as required by federal law between October 23, 2017, and November 1, 2017. Traversie had previously been convicted of a sex offense in federal court which requires him to register until 2039.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case. Traversie was immediately turned over to the custody of the U.S. Marshals Service.
Fort Smith Man Sentenced to over 15 Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Kamel J. Lincoln, age 38, of Fort Smith, was sentenced today to 188 months in federal prison followed by five years of supervised release on one count of Distribution of Methamphetamine. The Honorable Chief Judge P.K. Holmes, III presided over the sentencing hearings in the United States District Court in Fort Smith.
According to court records, in September of 2016, the Drug Enforcement Administration (DEA) learned that methamphetamine was being distributed in the Fort Smith area by Lincoln. During the investigation, DEA arranged and conducted a controlled purchase of methamphetamine from Lincoln. The substance purchased was sent to the DEA South Central Laboratory for testing. The lab determined that the substance contained 11.728 grams of actual methamphetamine.
Lincoln was indicted by a federal grand jury in October 2017 and entered a guilty plea in January 2018.
This case was investigated by the Drug Enforcement Administration (DEA), Alcohol Tobacco and Firearms (ATF), Crawford County Sheriff’s Office, Fort Smith Police Department, Barling Police Department, Sebastian County Sheriff’s Office, Van Buren Police Department and the 12th/21st Judicial District Drug Task Force. Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
Former Venezuelan Official Pleads Guilty to Money Laundering Charge in Connection with Bribery SchemeRead the Press Release
HOUSTON - The former general manager of the procurement subsidiary of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), pleaded guilty today for his role in an international money laundering scheme involving bribes paid by the owners of U.S.-based companies to Venezuelan government officials to corruptly secure energy contracts and payment priority on outstanding invoices.
U.S. Attorney Ryan K. Patrick, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Field Office made the announcement.
Cesar David Rincon Godoy (Cesar Rincon), 50, a citizen of Venezuela previously residing in Spain, pleaded guilty today in federal court in Houston to one count of conspiracy to commit money laundering. U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas accepted Cesar Rincon’s plea and imposed a personal money judgment in the amount of $7,033,504.71 against the defendant, who agreed to the entry of an order of forfeiture. Sentencing is scheduled for July 9, 2018.
Cesar Rincon was arrested in Spain in October 2017 and subsequently extradited to the United States after a federal grand jury in the Southern District of Texas returned a 20-count indictment against him and Luis Carlos De Leon Perez (De Leon), 41; Nervis Gerardo Villalobos Cardenas (Villalobos), 50; Alejandro Isturiz Chiesa (Isturiz), 33; and Rafael Ernesto Reiter Munoz (Reiter), 39. According to admissions made in connection with Cesar Rincon’s plea, between January 2012 and June 2013, he conspired with De Leon, Villalobos, Isturiz, Reiter and others, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, to solicit PDVSA vendors for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. Specifically, Cesar Rincon admitted he accepted bribes from Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida, in exchange for taking official acts in his capacity as general manager of PDVSA’s procurement subsidiary in order to assist Roberto Rincon’s and Shiera’s companies, including their U.S.-based companies, in receiving payment priority and receiving additional PDVSA contracts. Cesar Rincon further admitted he then conspired with Roberto Rincon and Shiera to launder and conceal the proceeds of the bribery scheme through a series of financial transactions, including wire transfers to accounts in the United States and Switzerland held in the names of individuals or entities other than Cesar Rincon. Both Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to charges under the Foreign Corrupt Practices Act (FCPA) for their respective roles in the bribery scheme. They currently await sentencing.
As part of his plea agreement, Cesar Rincon also admitted to soliciting and receiving bribes from other owners of energy companies based in the United States in exchange for his assistance in helping those individuals and their companies win business with PDVSA and obtain payment from PDVSA on outstanding invoices ahead of other PDVSA vendors. In total, Cesar Rincon admitted to conspiring with others to launder at least $7,033,504.71 in proceeds from the various bribery schemes in which he participated.
The charges against De Leon, Villalobos, Isturiz and Reiter remain pending. Each of the four remaining defendants is charged with one count of conspiracy to commit money laundering and with one or more counts of money laundering. De Leon and Villalobos are also each charged with one count of conspiracy to violate the FCPA. De Leon was extradited from Spain on March 9 and was ordered detained pending trial following a detention hearing held on April 10 before U.S. Magistrate Judge Frances H. Stacy of the Southern District of Texas. Villalobos and Reiter remain in Spanish custody pending extradition and Isturiz remains at large.
Cesar Rincon becomes the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including Cesar Rincon, Roberto Rincon and Shiera, the Justice Department has announced the guilty pleas of a total of 11 individuals in connection with the investigation.
ICE-HSI in Houston is conducting the ongoing investigation with assistance from ICE-HSI in Boston and Madrid as well as from IRS - Criminal Investigation. Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson are prosecuting the case along with Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and John-Alex Romano of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil have provided substantial assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Venezuelan Official Pleads Guilty to Money Laundering Charge in Connection with Bribery SchemeRead the Press Release
The former general manager of the procurement subsidiary of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), pleaded guilty today for his role in an international money laundering scheme involving bribes paid by the owners of U.S.-based companies to Venezuelan government officials to corruptly secure energy contracts and payment priority on outstanding invoices.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Houston Field Office made the announcement.
Cesar David Rincon Godoy (Cesar Rincon), 50, a citizen of Venezuela previously residing in Spain, pleaded guilty today in federal court in Houston to one count of conspiracy to commit money laundering. U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas accepted Cesar Rincon’s plea and imposed a personal money judgment in the amount of $7,033,504.71 against the defendant, who agreed to the entry of an order of forfeiture. Sentencing is scheduled for July 9.
Cesar Rincon was arrested in Spain in October 2017 and subsequently extradited to the United States after a federal grand jury in the Southern District of Texas returned a 20-count indictment against him and Luis Carlos De Leon Perez (De Leon), 41; Nervis Gerardo Villalobos Cardenas (Villalobos), 50; Alejandro Isturiz Chiesa (Isturiz), 33; and Rafael Ernesto Reiter Munoz (Reiter), 39. According to admissions made in connection with Cesar Rincon’s plea, between January 2012 and June 2013, he conspired with De Leon, Villalobos, Isturiz, Reiter and others, all of whom were then-current officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, to solicit PDVSA vendors for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business. Specifically, Cesar Rincon admitted that he accepted bribes from Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida, in exchange for taking official acts in his capacity as general manager of PDVSA’s procurement subsidiary in order to assist Roberto Rincon’s and Shiera’s companies, including their U.S.-based companies, in receiving payment priority and receiving additional PDVSA contracts. Cesar Rincon further admitted that he then conspired with Roberto Rincon and Shiera to launder and conceal the proceeds of the bribery scheme through a series of financial transactions, including wire transfers to accounts in the United States and Switzerland held in the names of individuals or entities other than Cesar Rincon. Both Roberto Rincon and Shiera previously pleaded guilty in the Southern District of Texas to charges under the Foreign Corrupt Practices Act (FCPA) for their respective roles in the bribery scheme. They currently await sentencing.
As part of his plea agreement, Cesar Rincon also admitted to soliciting and receiving bribes from other owners of energy companies based in the United States in exchange for his assistance in helping those individuals and their companies win business with PDVSA and obtain payment from PDVSA on outstanding invoices ahead of other PDVSA vendors. In total, Cesar Rincon admitted to conspiring with others to launder at least $7,033,504.71 in proceeds from the various bribery schemes in which he participated.
The charges against De Leon, Villalobos, Isturiz and Reiter remain pending. Each of the four remaining defendants is charged with one count of conspiracy to commit money laundering and with one or more counts of money laundering. De Leon and Villalobos are also each charged with one count of conspiracy to violate the FCPA. De Leon was extradited from Spain on March 9, and was ordered detained pending trial following a detention hearing held on April 10, before U.S. Magistrate Judge Frances H. Stacy of the Southern District of Texas. Villalobos and Reiter remain in Spanish custody pending extradition and Isturiz remains at large.
The charges contained in the indictment are merely accusations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Cesar Rincon becomes the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Including Cesar Rincon, Roberto Rincon, and Shiera, the Justice Department has announced the guilty pleas of a total of 11individuals in connection with the investigation.
ICE-HSI in Houston is conducting the ongoing investigation with assistance from ICE-HSI in Boston and Madrid, as well as from IRS Criminal Investigation. Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and John-Alex Romano of the Criminal Division’s Fraud Section and Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil have provided substantial assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Production Manager at Portland Manufacturing Company Charged for Role in Product Certification Fraud Scheme Involving NASA and the Missile Defense AgencyRead the Press Release
A former production manager at an aluminum extrusion manufacturer was charged in an indictment filed April 18, for his alleged participation in a decade-long fraud scheme involving the fraudulent certification of mechanical properties for parts manufactured by his former employer.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Executive Officer Renee Juhans of the National Aeronautics and Space Administration’s (NASA) Office of Inspector General (OIG), Special Agent in Charge Loren “Renn” Cannon of the FBI’s Portland Field Office, Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service’s (DCIS) Western Field Office, and Special Agent in Charge John Khin of DCIS’s Southeast Field Office made the announcement.
Dennis Merkel, 71, of Portland, Oregon, was charged in an indictment filed in the District of Oregon with two counts of major fraud against the government. Merkel is scheduled to be arraigned on April 30, before U.S. District Judge Marco A. Hernández of the District of Oregon.
The indictment alleges that between May 1996 and December 2006, Merkel, as a production manager at a Portland-area aluminum extrusion manufacturing facility, carried out a scheme to falsify tensile test results on hundreds of occasions, which were typed onto test certificates provided to the manufacturing facility’s customers. Aluminum extrusions are manufactured for a variety of applications, including aeronautic uses such as rockets and military hardware. There are industry-set specifications for measuring the mechanical properties of extrusions, which are determined by conducting a tensile test. Merkel allegedly sent and caused to be sent testing certifications containing falsified mechanical properties test results in connection with government contracts for NASA and the Missile Defense Agency. The indictment alleges that Merkel and others carried out the scheme to conceal failing tensile test results, increase profits and productivity, and obtain bonuses, which were calculated in part based on a production metric.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the NASA OIG, the FBI’s Portland Field Office and DCIS. The case is being prosecuted by Trial Attorneys Jennifer G. Ballantyne and Emily C. Scruggs of the Criminal Division’s Fraud Section.
Former Physician’s Office Employee Pleads Guilty in Fraud SchemeRead the Press Release
Memphis, TN – Gloria Harris, 56, of Memphis entered a guilty plea to a charge of bank fraud in connection with the theft of approximately $292,500 from her former employer, Crescent Medical Corporation. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the plea today.
A federal grand jury returned an indictment against Harris in December of last year. According to the indictment, Harris a former data entry clerk for Crescent, fraudulently obtained $292,500 between January 2016 and March 2017. The indictment alleged that Harris stole checks payable to Crescent and deposited them to bank accounts at Trustmark Bank and Suntrust Bank which she had opened in the name of Crescent without the knowledge of Crescent’s owner, Dr. Ashan Kathawala.
Harris faces up to 30 years’ imprisonment; a one million dollar fine and 5 years supervised release on the bank fraud charge.
Harris is currently scheduled to be sentenced on July 20, 2018 before U.S. District Judge Sheryl H. Lipman.
This case was investigated by the United States Secret Service Economic Crimes Task Force.
Assistant U.S. Attorney Carroll L. Andre’ III is prosecuting this case on the government’s behalf.
Former Monroe correctional officers indicted for assault of inmates and obstruction of justiceRead the Press Release
MONROE, La. – Five former corrections officers at the Richwood Correctional Center (RCC) in Monroe, Louisiana, have been indicted by a federal grand jury for their roles in a conspiracy to physically assault five inmates in violation of their Constitutional protection against cruel and unusual punishment, as well as for their roles in covering up their actions, announced Acting Assistant Attorney General John Gore for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph.
Roderick Douglas, 37, of Monroe; Christopher Loring, 35, of Monroe; Demario Shaffer, 33, of Delhi, Louisiana; Quintail Credit, 26, of Winnsboro, Louisiana; and David Parker, 27, of Tallulah, Louisiana, were charged in a seven-count indictment returned under seal by a federal grand jury in Monroe, Louisiana, on March 29, 2018. The indictment was unsealed and made public today upon initial court appearances of the defendants.
According to the indictment, Douglas was a Captain, Loring was a Lieutenant, Shaffer was a Sergeant, and Credit and Parker were correctional officers. The indictment charges in Count One that the defendants conspired to inflict cruel and unusual punishment upon five inmates by spraying a chemical agent in their face and eyes while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Count Two charges defendants Douglas, Loring, Shaffer, Credit, and Parker with the infliction of cruel and unusual punishment against the inmates, and Count Three charges defendant Loring with failing to intervene in the assaults. The indictment alleges that the assaults charged in Counts One through Three involved a dangerous weapon and resulted in bodily injury to the inmates. Count Four charges the defendants with conspiring to submit false reports concerning the incident, and Counts Five through Seven charge defendants Douglas, Shaffer, and Parker, respectively, with making false statements to the FBI about the incident.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being prosecuted by Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, U.S. Department of Justice. The case was investigated by the Monroe Division of the FBI.
Former Maui Police Officer Pleads Guilty to Theft Under Color of Law and Witness TamperingRead the Press Release
Former police officer Anthony Maldonado, of Kahului, Maui, pleaded guilty today in federal court to one count of Deprivation of Rights Under Color of Law in violation of Title 18, United States Code § 242, and one count of Conspiracy to Commit Witness Tampering in violation of Title 18, United States Code § 1512(k).
According to court documents and information presented in court, Officer Maldonado conducted a traffic stop at the Mala Wharf on Maui in September 2015. He used the opportunity to steal approximately $1,800 in cash from the fanny pack of the person who he stopped. When the victim later realized the cash was missing, he reported the theft to Maui police. After the report was filed, the defendant and four others attempted to bribe the victim to withdraw the complaint. Three co-defendants previously pled guilty to Conspiracy to Commit Witness Tampering.
“Law enforcement officers must uphold their pledge to protect the members of their communities and conduct themselves with honor,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to enforce the law and protect the civil rights of all to be free from willful police misconduct.”
“Everyone should be able to trust that an encounter with law enforcement will not result in theft,” said U.S. Attorney Kenji M. Price for the District of Hawaii. “No one is above the law, least of all police officers who are charged with protecting our community.”
Maldonado’s sentencing is scheduled for August 23 before U.S. District Judge Helen Gilmor. He faces up to 21 years in prison, a fine of up to $350,000, and a period of supervised release of up to three years.
The case was investigated by the Federal Bureau of Investigation, and was prosecuted by Trial Attorney Mary Hahn of the Civil Rights Division of the U.S. Department of Justice, and Assistant U.S. Attorneys Jill Otake and Marc A. Wallenstein from the U.S. Attorney’s Office for the District of Hawaii.
Former Maui Police Officer Pleads Guilty to Theft Under Color of Law and Witness TamperingRead the Press Release
HONOLULU – Former police officer Anthony Maldonado, of Kahului, Maui, pleaded guilty today in federal court to one count of Deprivation of Rights Under Color of Law in violation of Title 18, United States Code § 242, and one count of Conspiracy to Commit Witness Tampering in violation of Title 18, United States Code § 1512(k).
According to court documents and information presented in court, Officer Maldonado conducted a traffic stop at the Mala Wharf on Maui in September 2015. He used the opportunity to steal approximately $1,800 in cash from the fanny pack of the person who he stopped. When the victim later realized the cash was missing, he reported the theft to Maui police. After the report was filed, the defendant and four others attempted to bribe the victim to withdraw the complaint. Three co-defendants previously pled guilty to Conspiracy to Commit Witness Tampering.
"Law enforcement officers must uphold their pledge to protect the members of their communities and conduct themselves with honor," said Acting Assistant Attorney General John Gore of the Civil Rights Division. "The Justice Department will continue to enforce the law and protect the civil rights of all to be free from willful police misconduct."
"Everyone should be able to trust that an encounter with law enforcement will not result in theft," said Kenji M. Price, U.S. Attorney for the District of Hawaii. "No one is above the law, least of all police officers who are charged with protecting our community."
Maldonado’s sentencing is scheduled for August 23 before Senior U.S. District Judge Helen Gilmor. He faces up to 21 years in prison, a fine of up to $350,000, and a period of supervised release of up to three years.
The case was investigated by the Federal Bureau of Investigation, and was prosecuted by Trial Attorney Mary Hahn of the Civil Rights Division of the U.S. Department of Justice, and Assistant U.S. Attorney Marc A. Wallenstein from the U.S. Attorney’s Office for the District of Hawaii.
Former Louisiana Corrections Officers Indicted for Assault of Inmates and Obstruction of JusticeRead the Press Release
Five former corrections officers at the Richwood Correctional Center (RCC) in Monroe, Louisiana, have been indicted by a federal grand jury for their roles in a conspiracy to physically assault five inmates in violation of their Constitutional protection against cruel and unusual punishment, as well as for their roles in covering up their actions, announced Acting Assistant Attorney General John Gore for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph.
Roderick Douglas, 37, of Monroe, Louisiana, Christopher Loring, 35, of Monroe, Louisiana, Demario Shaffer, 33, of Delhi, Louisiana, Quintail Credit, 26, of Winnsboro, Louisiana, and David Parker, 27, of Tallulah, Louisiana, were charged in a seven-count indictment returned under seal by a federal grand jury in Monroe, Louisiana, on March 29, 2018. The indictment was unsealed and made public today upon initial court appearances of the defendants.
According to the indictment, Douglas was a Captain, Loring was a Lieutenant, Shaffer was a Sergeant, and Credit and Parker were correctional officers. The indictment charges in Count One that the defendants conspired to inflict cruel and unusual punishment upon five inmates by spraying a chemical agent in their face and eyes while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Count Two charges defendants Douglas, Loring, Shaffer, Credit, and Parker with the infliction of cruel and unusual punishment against the inmates, and Count Three charges defendant Loring with failing to intervene in the assaults. The indictment alleges that the assaults charged in Counts One through Three involved a dangerous weapon and resulted in bodily injury to the inmates. Count Four charges the defendants with conspiring to submit false reports concerning the incident, and Counts Five through Seven charge defendants Douglas, Shaffer, and Parker, respectively, with making false statements to the FBI about the incident.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being prosecuted by Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, U.S. Department of Justice. The case was investigated by the Monroe Division of the FBI.
Former Liberian War Lord Known as “Jungle Jabbah” Sentenced to 30 Years in Prison for Immigration Fraud and PerjuryRead the Press Release
Mohammed Jabbateh, a violent and ruthless Liberian war lord also known as “Jungle Jabbah,” who had been living in East Lansdowne, Pennsylvania was sentenced today to 30 years in prison by U.S. District Judge Paul S. Diamond. Jabbateh, 51, was found guilty in October of two counts of fraud in immigration documents and two counts of perjury.
During the height of Liberia’s first civil war from 1992 to 1995, Jabbateh, while serving as commander of a warring faction known as the United Liberation Movement of Liberia for Democracy (ULIMO), committed various acts of shocking brutality including rapes, sexual enslavement, slave labor, murder, mutilation and ritual cannibalism. He also used children as soldiers.
“This defendant committed acts of such violence and depravity that they are almost beyond belief,” said U.S. Attorney William M. McSwain. “This man is responsible for atrocities that will ripple for generations in Liberia. He thought he could hide here but thanks to the determination and creativity of our prosecutors and investigators, he couldn’t. This prosecution was our only option under the law and his sentence achieves at least some measure of justice for his victims.”
According to trial testimony, in one instance Jabbateh ordered the heart of a captive be cooked and fed to his fighters. In another, fighters under the defendant’s command murdered a villager, removed his heart and ordered the town chief’s wife to cook it. Jabbateh later had the town chief himself murdered and ordered his widow to cook her husband’s heart.
In December 1998, when making application for asylum, and later for permanent legal residency, the defendant was not truthful about his activities during Liberia’s first civil war while he was a member of the ULIMO and later ULIMO-K rebel groups that battled for control of Liberia.
At Jabbateh’s trial, during two weeks of testimony from some two dozen witnesses, including 17 Liberian victims, the jury heard evidence that Jabbateh, as a ULIMO commander, either personally committed or ordered ULIMO fighters under his command to commit the following offenses: the murder of civilian noncombatants; the sexual enslavement of women; the maiming of civilian noncombatants; the torturing of civilian noncombatants; the enslavement of civilian noncombatants; the conscription of child soldiers; the execution of prisoners of war; the desecration of corpses and ritual consumption of human flesh; and the killing of persons because of race, religion, nationality, ethnic origin or political opinion.
“Let today’s sentencing serve as an example of Homeland Security Investigations (HSI) commitment to bring to justice individuals such as Mr. Jabbateh,” said Marlon Miller, special agent in charge of HSI’s Philadelphia office. “Human rights violators will not evade justice and will be held accountable for their crimes committed abroad, nor will they find refuge here in the United States.”
The case was investigated by Homeland Security Investigations (HSI) special agents Mark Gilland, Tom Eyre and Al Cabrelli, along with HSI Supervisory Special Agent Brian Jones. Also aiding in the investigation were Africa research specialist Marian Drake and victim assistance specialist Jackie Goldstein.
This case is being prosecuted by Assistant U.S. Attorneys Linwood C. Wright, Jr. and Nelson S.T. Thayer, Jr.
Former Las Cruces U.S. Customs and Border Protection Officer Pleads Guilty to Obstruction of JusticeRead the Press Release
The Justice Department today announced that former U.S. Customs and Border Protection (CBP) officer Christopher M. Holbrook pleaded guilty in federal court in Las Cruces, New Mexico, to obstruction of justice.
The charge stems from Holbrook’s falsification of a report regarding his use of force against an individual, referred to as R.A.M., on March 23, 2015. At the time of the incident, Holbrook, 31, was working as a CBP officer in Las Cruces.
In his plea agreement, Holbrook admitted falsifying an official document. Specifically, Holbrook falsely claimed in his use-of-force report that when he detained R.A.M., R.A.M. actively resisted and attempted to pull away. Holbrook further falsely claimed that he used the minimal amount of force necessary to control R.A.M. but that he lost control and they both fell to the floor. In pleading guilty, Holbrook admitted that in fact, and as he knew at the time, he intentionally swept R.A.M.’s legs out from under him and caused R.A.M.’s head to hit the floor. Holbrook also admitted that he falsified his use-of-force report to avoid getting in trouble with CBP.
Holbrook faces a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has yet to be scheduled.
“Federal law enforcement officers have an unassailable duty to uphold the law,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The defendant’s unlawful actions, obstruction of justice, and intentional falsification of a report, undermines the public’s confidence in our criminal justice system. This Justice Department will continue to vigorously prosecute such violations of the law.”
“Law enforcement officers are accorded tremendous power to enforce the law and ensure justice. Preventing the abuse of this authority is necessary to protect the rights of our citizens and to maintain public trust in law enforcement agencies,” said U.S. Attorney John C. Anderson of the District of New Mexico. “Those who take an oath to support and defend the Constitution of the United States must be held accountable when they willfully violate the constitutional rights of others and obstruct justice to cover up their crimes.”
This case was investigated by CBP’s Office of Professional Responsibility. Assistant U.S. Attorney Brock Taylor of the District of New Mexico U.S. Attorney’s Las Cruces Branch Office and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice are prosecuting the case.
Former Las Cruces U.S. Customs and Border Protection Officer Pleads Guilty to Obstruction of JusticeRead the Press Release
ALBUQUERQUE – The Justice Department today announced that former U.S. Customs and Border Protection (CBP) officer Christopher M. Holbrook pleaded guilty in federal court in Las Cruces, New Mexico, to obstruction of justice.
The charge stems from Holbrook’s falsification of a report regarding his use of force against an individual, referred to as R.A.M., on March 23, 2015. At the time of the incident, Holbrook, 31, was working as a CBP officer in Las Cruces.
In his plea agreement, Holbrook admitted falsifying an official document. Specifically, Holbrook falsely claimed in his use-of-force report that when he detained R.A.M., R.A.M. actively resisted and attempted to pull away. Holbrook further falsely claimed that he used the minimal amount of force necessary to control R.A.M. but that he lost control and they both fell to the floor. In pleading guilty, Holbrook admitted that in fact, and as he knew at the time, he intentionally swept R.A.M.’s legs out from under him and caused R.A.M.’s head to hit the floor. Holbrook also admitted that he falsified his use-of-force report to avoid getting in trouble with CBP.
Holbrook faces a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has yet to be scheduled.
“Federal law enforcement officers have an unassailable duty to uphold the law,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The defendant’s unlawful actions, obstruction of justice, and intentional falsification of a report, undermines the public’s confidence in our criminal justice system. This Justice Department will continue to vigorously prosecute such violations of the law.”
“Law enforcement officers are accorded tremendous power to enforce the law and ensure justice. Preventing the abuse of this authority is necessary to protect the rights of our citizens and to maintain public trust in law enforcement agencies,” said U.S. Attorney John C. Anderson of the District of New Mexico. “Those who take an oath to support and defend the Constitution of the United States must be held accountable when they willfully violate the constitutional rights of others and obstruct justice to cover up their crimes.”
This case was investigated by CBP’s Office of Professional Responsibility. Assistant U.S. Attorney Brock Taylor of the District of New Mexico U.S. Attorney’s Las Cruces Branch Office and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice are prosecuting the case.
Former Jersey City Police Officer Gets 18 Months in Prison for Scheme Involving Off-Duty Work AssignmentsRead the Press Release
NEWARK, N.J. – A former Jersey City police officer was sentenced today to 18 months in prison for fraudulently collecting income for off-duty work he never performed, U.S. Attorney Craig Carpenito announced.
Ehab Abdelaziz, 38, of Clifton, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to commit bribery. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Private contractors and utility companies sometimes needed the services of off-duty police officers for certain projects, including work in Jersey City that could obstruct the flow of traffic. Abdelaziz was a Jersey City police officer who was eligible to perform off-duty work.
From December 2015 through June 2016, Abdelaziz engaged in a conspiracy in which he made a total of $11,825 in bribe payments to another Jersey City officer who was authorized to assign off-duty work, in exchange for that officer’s official assistance in submitting phony vouchers to Jersey City indicating that Abdelaziz had completed certain off-duty assignments. As a result, Abdelaziz was compensated for work he never performed.
In addition to the prison term, Judge Vazquez sentenced Abdelaziz to two years of supervised release and ordered him to pay restitution of $33,955 and forfeiture of $22,449.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation.The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Anthony J. Iacullo Esq., Nutley, New Jersey
Former Defense Contractor Pleads Guilty to Engaging in Commercial Sex with a Minor in the PhilippinesRead the Press Release
A U.S. citizen pleaded guilty today to paying a 14-year-old girl for sex on multiple occasions in 2007.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., Special Agent in Charge Tracy Corimer of HSI St. Paul, Minnesota and Attaché Ransom J. Avilla of HSI Manila, Philippines made the announcement.
According to court documents, from in or about September 2007 until in or about December 2007, James Marvin Reed, then 52 years old, engaged in commercial sexual intercourse on multiple occasions with the then 14-year-old victim, and impregnated her, while he was working in the Philippines as a contractor for the U.S. Department of Defense. In 2016, he was arrested by Philippine authorities and returned to the United States for prosecution.
Reed pleaded guilty to one count of engaging in illicit sexual conduct in a foreign place. His sentencing is scheduled in June before U.S. District Judge Donovan W. Frank in the District of Minnesota.
Trial Attorneys Ralph Paradiso and James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case. CEOS Trial Attorney Kathryn Furtado also served as a vital member of the prosecution team at earlier stages of the litigation. The U.S. Attorney’s Office for the District of Minnesota also provided substantial assistance in this prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Athens County Assistant Prosecutor Pleads Guilty to Tax FraudRead the Press Release
COLUMBUS, Ohio – Michael (also known as Mickey) A. Prisley, 52, of Columbus, pleaded guilty to one count of conspiracy to submit false claims for income tax refunds with the Internal Revenue Service (IRS). As part of the plea, Prisley agreed to pay more than $250,000 in restitution to the IRS.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, announced the guilty plea entered into today before U.S. Magistrate Judge Norah McCann King.
According to court documents, Prisley was an attorney licensed to practice law in the State of Ohio and had served as an assistant prosecuting attorney for Athens County, Ohio from approximately August 2011 through January 2014.
Between the fall of 2009 and September 2015, Prisley conspired with others to defraud the IRS by filing hundreds of false income tax returns in an attempt to obtain fraudulent income tax refunds.
Prisley deposited fraudulently obtained income tax refund checks into his bank accounts and withdrew the funds in cash in order to pay his co-conspirators their share. Prisley also received controlled substances in exchange for cashing the fraudulently obtained income tax refund checks.
In addition, Prisley provided his co-conspirators with false power of attorney forms so that his co-conspirators could cash fraudulently obtained income tax refund checks without the listed taxpayer's knowledge.
As a result of the fictitious income tax return filings, a total of $466,842 in fraudulent income tax refunds was released by the IRS, of which Prisley assisted his co-conspirators in obtaining $250,220.99.
Conspiracy to submit false claims for income tax refunds carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
“A once trusted criminal prosecutor is now a convicted felon because he chose to line his pockets with stolen income tax refunds,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Co-defendants Tawnya Writesel (also known as Tawnya Rutan), Amy K. France and Denard T. Nelson were also charged in relation to this case.
France pleaded guilty in June 2016 to one count of conspiracy to submit false claims and one count of identity theft and was sentenced in January to 37 months in prison. France was also ordered to pay nearly $467,000 in restitution. Nelson pleaded guilty in September 2015 to one count of identity theft and was sentenced in May 2016 to five years of probation. He was also ordered to pay more than $87,000 in restitution.
Writesel was indicted in November 2017 on one count of conspiracy to submit false claims for income tax refunds and four counts of filing false claims for income tax refunds. Her case is pending.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
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Florida Executive Pleads Guilty to Orchestrating $150 Million Brazilian Factoring SchemeRead the Press Release
United States Attorney Gregory G. Brooker today announced the guilty plea of ANTONIO CARLOS DE GODOY BUZANELI, 56, for his role in a $150 million investment fraud scheme involving Brazilian factoring. BUZANELI entered his guilty plea earlier today before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minnesota. BUZANELI’S co-conspirators, JOSE MANUEL ORDOÑEZ, JR., 47, and JULIO ENRIQUE RIVERA, 61, each pleaded guilty to one count of conspiracy to commit mail fraud on February 13, 2018 and November 9, 2017, respectively. Sentencing dates for the three defendants have yet to be scheduled.
“Antonio Buzaneli orchestrated a massive fraud scheme that victimized hundreds of individual investors around the globe, including in Minnesota,” said U.S. Attorney Greg Brooker. “Many of these victims were elderly or vulnerable, and they invested their hard-earned retirement savings based on sophisticated lies about a complex investment Mr. Buzaneli and his co-conspirators claimed to be making in Brazil. Instead, they used the investors’ money to fund their lifestyles, to travel first class around the world, and to fund their other business ventures. The U.S. Attorney’s Office is grateful for the skilled investigative efforts put forth by our law enforcement partners to hold Mr. Buzaneli and his co-conspirators accountable for their scheme.”
“This vast and sophisticated fraud scheme truly circled the globe, touching venues as near as St. Louis Park, Minnesota and as far as Brazil, the United Kingdom, and China. Mr. Buzaneli and his co-conspirators lured their victims with the promise of novel international investments and huge financial returns. In reality, they stole millions simply to fund their personal interests and maintain their fraudulent conspiracy,” said Acting Special Agent in Charge Robert C. Bone II. “The FBI is committed to stopping these fraudsters and holding them accountable, no matter how complex the scheme or far flung the proceeds. We are grateful for the help of our partners at the U.S. Attorney’s Office, the United States Postal Inspection Service and the Minnesota Commerce Fraud Bureau in uncovering this complex scheme and bringing these defendants to justice.”
“Postal Inspectors take very seriously their mission to deter the illegal use of the mails for any criminal activity,” said Postal Inspector in Charge, Craig Goldberg. “We are committed to working together with our federal and local law enforcement partners to identify, investigate and bring to justice those who would attempt to mask their criminal activity through the use of the mail.”
“The defendant directed a massive fraud scheme that victimized numerous investors worldwide,” said Minnesota Commerce Commissioner Jessica Looman. “Both our securities enforcement unit and the Commerce Fraud Bureau began investigating when we received a tip about a suspicious investment opportunity being offered in Minnesota. A successful collaboration between the Fraud Bureau and federal authorities uncovered a far-reaching, sophisticated scheme that deceived investors about how their money would be used.”
According to the defendant’s guilty plea, BUZANELI, ORDOÑEZ and RIVERA were the principals of Providence Holdings International, Inc., a company based in Key Biscayne, Florida. BUZANELI and ORDOÑEZ became principals of Providence Financial Investments, Inc. and Providence Fixed Income Fund LLC (collectively, along with Providence Holdings International, Inc., “Providence”) in order to raise money from investors.
According to the defendant’s guilty plea and documents filed in court, from about 2010 until June 2016, Providence raised approximately $150 million from investors worldwide by representing that Providence would invest the money in Brazilian factoring. “Factoring” is a financial transaction in which accounts receivable are purchased at a discount. Providence’s marketing materials explained that in Brazil consumers write ten separate post-dated checks for $100 – one per month – to pay for $1,000 in retail items such as consumer electronics or groceries. The retailer then sells the post-dated checks to Providence for approximately $820, and Providence earns $180 over ten months as the checks mature. As a result, Providence claimed to make a 48 percent annual return on money invested in Brazil.
According to the defendant’s guilty plea and documents filed in court, Providence raised more than $64 million from U.S. investors by employing a network of brokers who sold promissory notes bearing annual interest rates between 12 percent and 24 percent. Investors were told their money would be used to factor accounts receivable in Brazil. BUZANELI, ORDOÑEZ and RIVERA provided the brokers with marketing materials to show investors that their money would be used to factor accounts receivable in Brazil. The materials falsely stated that funds would be used “for the sole purpose” of making loans to a Brazilian subsidiary of Providence “which will use the proceeds of the loan to acquire receivables or financial instruments such a post-dated checks and/or Duplicatas in the Brazilian Factoring Market.”
According to the defendant’s guilty plea and documents filed in court, BUZANELI and ORDOÑEZ instead used a significant amount of the investors’ funds to pay purported profits to other investors and to make commission payments to brokers. BUZANELI and ORDOÑEZ also diverted investor funds to other companies they controlled, including an import/export company, a travel company, a credit restoration service, a catering company and a food truck operated by BUZANELI’S wife.
According to the defendant’s guilty plea and documents filed in court, BUZANELI and ORDOÑEZ also opened Providence offices and affiliates around the world, including in London, Hong Kong, Taipei, Shanghai, Singapore, Vancouver, and Panama. In 2011 and 2012, for example, BUZANELI and ORDOÑEZ opened Providence-affiliated entities in the Bailiwick of Guernsey and in Hong Kong, through which they raised approximately $85 million from offshore investors by falsely representing they would use the investors’ money to invest in Brazilian factoring. In reality, Providence did not use the international investors’ money to purchase receivables in the Brazilian factoring market. Instead, much of the investors’ money was transferred to other Providence-controlled entities around the world as well as to bank accounts controlled by BUZANELI and ORDOÑEZ, where the money was used for payments unrelated to Brazilian factoring, including to pay commissions to U.S. brokers and to make interest payments to American investors in Providence’s U.S.-based entities. As a result of the fraud scheme, Providence investors worldwide lost a total of more than $100 million.
This case is the result of an investigation conducted by the FBI, United States Postal Inspection Service, and the Minnesota Commerce Fraud Bureau.
Assistant U.S. Attorneys Kimberly A. Svendsen and Joseph H. Thompson are prosecuting the case.
Defendant Information:
ANTONIO CARLOS DE GODOY BUZANELI, 56
Coral Gables, Fla.
Convicted:
- Conspiracy to commit mail fraud, 1 count
JOSE MANUEL ORDOÑEZ, JR., 47
Davie, Fla.
Convicted:
- Conspiracy to commit mail fraud, 1 count
JULIO ENRIQUE RIVERA, 61
Pembroke Pines, Fla.
Convicted:
- Conspiracy to commit mail fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Five Individuals Charged with Conspiring to Distribute Thousands of Doses of Heroin and Fentanyl in TampaRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging five individuals with conspiring to distribute more than one kilogram of heroin, 400 grams of fentanyl, and 100 grams of a fentanyl analogue. If convicted, Anthony Jerome Lang (60, Tampa); Travell Kinkay Jones (40, West Palm Beach); Vanzini Nicholas Hansell (37, Tampa); Amber Miller (32, Tampa); and Carlton Reid Mallard (61, Tampa) each face a maximum penalty of life in federal prison.
According to the indictment, from at least June 2017 through February 2018, Lang, Jones, Hansell, Miller, and Mallard participated in a conspiracy to distribute heroin, fentanyl, and fentanyl analogues in the Middle District of Florida.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is the result of an Organized Crime Drug Enforcement Task force investigation conducted by the Drug Enforcement Administration, with assistance from the Tampa Police Department and the Florida Highway Patrol. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those organizations primarily responsible for the nation’s illegal drug supply. The case will be prosecuted by Assistant United States Attorney Dan Baeza.
Financial Advisor Faces Federal Fraud and Money Laundering Charges Alleging Thefts from Ameriprise Clients and Other VictimsRead the Press Release
LOS ANGELES – A former Ameriprise financial advisor faces federal fraud and money laundering charges for allegedly defrauding clients by embezzling funds that she promised would be invested, United States Attorney Nicola T. Hanna announced today.
Li Lin Hsu, 40, of Diamond Bar, was arrested Wednesday morning by special agents with the FBI.
Hsu was taken into custody pursuant to an eight-count indictment returned by a federal grand jury the day before. The indictment charges Hsu with three counts of mail fraud, three counts of wire fraud, one count of money laundering, and one count of obstruction of justice.
Over a five-year period, while she was employed by Ameriprise and after her termination from Ameriprise in 2015, Hsu solicited investments from clients through, among other ways, advertisements in local Chinese-language newspapers. According to the indictment, Hsu failed to invest her clients’ funds, and instead spent the money on personal expenses, such as credit card bills, personal loans, luxury items and real estate. The money laundering charge in the indictment alleges that Hsu used nearly $1 million stolen from one victim to purchase a condominium in Diamond Bar.
The indictment alleges that Hsu attempted to conceal her scheme by using some of the money stolen from victims to pay back other victims, and that she sent her clients fabricated account statements and investment purchase confirmations.
The indictment alleges that there are at least 11 victims of Hsu, and investigators believe those victims sustained losses of at least $2 million.
Following her arrest, Hsu was arraigned on the indictment in United States District Court, where she pleaded not guilty. Hsu was ordered released on a $50,000 bond, and she was ordered to stand trial on June 12 before United States District Judge Andrew J. Guilford in Santa Ana.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of the charges in the indictment, Hsu would face a statutory maximum sentence of 20 years in federal prison on each of the fraud counts, 10 years on the money laundering count, and 5 years on the obstruction of justice charge.
Investors who provided money to Hsu and believe they were defrauded through her actions at Ameriprise or her own companies – American Capital Trading Group LLC and American Capital Republic, Inc. – should contact the FBI’s Los Angeles Field Office at (310) 477-6565.
This matter is being investigated by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Poonam Kumar of the Major Frauds Section.
Fifteen Individuals Charged with Trafficking Cocaine and HeroinRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of two indictments charging 15 individuals with federal drug trafficking violations. In one indictment, Jesus Manuel Rodriguez, a/k/a “Caltu,” (30, Brandon); Bryan Gomez Nevarez (30, Avon Park); Hector Jose Carrasquillo Perez, a/k/a “Tito” (25, Catano, Puerto Rico); Henry Coira (30, Avon Park); Luis Enrique Hernandez Quinones, a/k/a “Gordo” (28, Davenport); Avisys Lee Jackson (27, Tampa); Javier Albaladejo Lopez, a/k/a “the Barber” (23, Tampa); Jose Angel Mendoza, Jr. (28, Tampa); Pedro Luis Ramos Burgos (25, Kissimmee); William Leverne Norton, a/k/a “Cool” (40, Tampa); Edgar Hernandez, a/k/a “Chuck” (27, Tampa); and Ismael Pagan Marrero (42, Orlando) are charged with conspiracy and possession with the intent to distribute cocaine. If convicted, each faces a maximum penalty of life in federal prison. In a separate indictment, Roberto Torres Gracia, a/k/a “el Silencio” (40, Pinellas Park); Eddie Alberto Pagan Santiago, a/k/a “Primo” (37, San Juan, Puerto Rico); and David Santiago, a/k/a “Flaco” (33, Tampa) are charged with conspiracy and possession with the intent to distribute heroin. If convicted, each faces a maximum penalty of 40 years in federal prison.
According to the indictment and information presented in court, between May 2017 and April 2018, the defendants conspired to distribute more than 100 grams of heroin and more than 20 kilograms of cocaine.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this OCDETF operation include the Federal Bureau of Investigation, the Tampa Police Department, the Florida Department of Law Enforcement, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
Federal Jury Convicts Rochester Man of Escaping from Federal CustodyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Abdul Rasheed, 36, of Rochester, NY, was convicted after a jury trial of escaping from federal custody. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney, Kyle Rossi, who handled the prosecution of the case, stated that on March 27, 2016, the defendant, following a federal felony conviction in the Western District of New York, was sentenced to 12 months in prison. Rasheed served his prison sentence at United States Penitentiary Lee, located in Jonesville, Virginia. Near the end of his prison term, the defendant was offered the opportunity to complete the incarceration portion of his sentence at the Volunteers of America Residential Reentry Center, commonly referred to as a “halfway house,” located at 175 Ward Street in Rochester. After being released from USP Lee, Rasheed absconded and never appeared at the Volunteers of America. The defendant remained at large until he was arrested on October 29, 2016, in Pittsburgh, PA.
Pennsylvania authorities allege that, following his escape but prior to his apprehension, Rasheed shot two individuals, killing one, during an attempted robbery. He defendant is under indictment in Pennsylvania and is scheduled to go to trial on murder and other charges on May 29, 2018, in Allegheny County, PA.
The trial verdict is the result of an investigation by the United States Marshals Service in Rochester, under the direction of Marshal Charles Salina, and the United States Bureau of Prisons, USP Lee.
Sentencing is scheduled for July 19, 2018, before Judge Charles J. Siragusa who presided over the trial of the case.
Federal Inmates Sentenced on Weapons ChargesRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that two federal inmates were sentenced for possessing weapons. Stuart commended the work of the Federal Bureau of Prisons.
“The staff of the Bureau of Prisons has incredibly dangerous jobs,” said United States Attorney Mike Stuart. “I commend them for preventing violence within the Federal Correctional Institution (FCI) at Beckley.”
Brandon Owens, 22, an inmate at the FCI Beckley, was sentenced to 12 months in prison, to be served consecutively to the sentence he is now serving. Owens pled guilty in January, admitting that on June 3, 2017, he possessed a handcrafted weapon, often called a “shank,” inside the waistband of his pants. An FCI Beckley staff member found the weapon when he searched Owens.
George A. Harper, 33, also an inmate at FCI Beckley, was sentenced to 12 months, also to be served consecutively to his current prison sentence. He pled guilty in January, and admitted that on July 16, 2017, he hid a shank in his coffee cup. A prison staff member found the shank inside the cup.
United States District Judge Irene C. Berger imposed the sentences. The cases were prosecuted by Assistant United States Attorney John File.
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Fayette Man Sentenced to Federal Prison for Unlawful Possession of Multiple FirearmsRead the Press Release
A convicted felon who possessed stolen firearms was sentenced today to two years in federal prison.
Joshua Glen Sargent, age 34, from Fayette, Iowa, received the prison term after a September 27, 2017, guilty plea to possession of a firearm by a felon.
Information at sentencing showed that Sargent possessed multiple firearms that had been stolen during burglaries in Lacrosse County, Wisconsin. He sold two of these firearms to a person who did not know the firearms were stolen. Law enforcement later seized these firearms. During a search warrant at Sargent’s residence, law enforcement officers recovered two additional stolen firearms. Sargent had previously been convicted of theft in the second degree and going armed with intent, both felonies. Sargent has also been previously convicted of violating a protective order and unlawfully possessing a weapon.
Sargent was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Sargent was sentenced to 24 months’ imprisonment. He was ordered to make $1,100 in restitution to the person who bought the firearms from him. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Sargent is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Fayette Police Department, the Fayette County Sheriff’s Office, and the Lacrosse County, Wisconsin, Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02061.
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