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31 May 2018
Investment Bank Vice President Arrested in Insider Trading SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of WOOJAE JUNG, a/k/a “Steve Jung,” and unsealing of a criminal complaint charging JUNG with conspiracy and securities fraud in connection with an insider trading scheme. The defendant is expected to be presented this afternoon in the U.S. District Court for the Northern District of California.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Woojae Jung violated his duty to his company and traded on stolen insider information, over and over again. This Office remains committed to enforcing the nation’s securities laws to protect the fairness and integrity of the markets.”
FBI Assistant Director William F. Sweeney Jr. said: “Financial crimes, especially those that involve the exploitation of material nonpublic information of clients who have placed their trust in investment institutions, have a negative impact on the economy and individuals alike. We will continue to investigate those who engage in these illegal acts to help prevent future fraudulent activity in the financial markets.”
According to the allegations in the Complaint filed today in Manhattan federal court:[1]
WOOJAE JUNG, a/k/a “Steve Jung,” worked at an investment bank (the “Investment Bank”) that provided, among other services, financing and consulting to clients in connection with mergers, acquisitions, and corporate restructurings. The Investment Bank has offices around the world, including in New York, New York, and San Francisco, California. In his role as a vice president at the Investment Bank, JUNG has access to, among other materials, electronic files maintained on the Investment Fund’s computer servers, including files containing material nonpublic information (“MNPI”) relating to various clients.
JUNG used his position at the Investment Bank to obtain MNPI about a number of the Investment Bank’s clients and then, in multiple instances, JUNG and a co-conspirator (“CC-1”) used that MNPI to cause profitable securities trades. In an effort to conceal this illicit trading, JUNG and CC-1 conducted these illegal trades through a brokerage account held in the name of CC-1, who resides in South Korea. In contravention of his employer’s rules about outside investment accounts, JUNG accessed, used, and traded in that brokerage account repeatedly between in or about 2015 and in or about 2017, including on hundreds of occasions when the account was accessed through IP addresses subscribed in JUNG’s name.
Over the course of the scheme JUNG and CC-1 traded in securities of at least 10 companies based on MNPI and made more than approximately $130,000.
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JUNG, 37, of San Francisco, California, is charged with one count of conspiracy to commit securities fraud and six counts of securities fraud. The securities fraud counts each carry a maximum penalty of 20 years in prison. The conspiracy to commit securities fraud count carries a maximum penalty of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of the FBI, and thanked the Securities Exchange Commission, which has filed civil charges in a separate action.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrew Thomas is in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Inland Empire Man Who Admitted Selling Fentanyl Analogue that Resulted in Overdose Death Sentenced to 26 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Riverside man who sold a powerful synthetic opioid very similar to fentanyl to a friend – who then suffered a fatal overdose from the drug – was sentenced today to 312 months in federal prison.
Adam Scott Caward, 33, received the 26-year sentence from United States District Judge John A. Kronstadt after admitting that he sold and possessed acetyl fentanyl.
Caward pleaded guilty on November 30 to distribution of acetyl fentanyl resulting in death, and possession with the intent to distribute acetyl fentanyl.
The federal investigation into Caward began in June 2017, when U.S. Customs and Border Protection intercepted a package sent to Caward from China. The shipment contained a compound known as 4-FIBF, which is another analogue of fentanyl – meaning that the narcotic is chemically similar to fentanyl and designed to cause an effect similar to the powerful synthetic opioid.
A subsequent investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Drug Enforcement Administration, in cooperation with the Riverside Police Department, led to the discovery of controlled substances at Caward’s Riverside home in July. The investigation linked Caward to other fentanyl analogues and synthetic opioids that he possessed nine months earlier at his then-residence in Chino Hills.
According to court documents, Caward exchanged a series of text messages with a friend on November 7 and 8, 2016, which culminated in Caward selling his friend a purple powder containing acetyl fentanyl. Within hours of purchasing the narcotic from Caward, the friend died of acute acetyl fentanyl intoxication.
On November 16, 2016, the Riverside Police Department executed a state court search warrant on Caward’s Chino Hills residence, where they found a number of controlled substances, including fentanyl analogues. Among the drugs that Caward possessed was approximately 19.5 grams of the same purple powder containing acetyl fentanyl that was sold to the friend.
One week prior to his death, the friend had purchased acetyl fentanyl from Caward and suffered an overdose while driving, which resulted in a serious car accident that injured the friend and several people in another vehicle, according to prosecutors.
The investigation determined that Caward continued to use the dark web to contact Chinese suppliers and order more fentanyl analogues after the death of his friend.
During today’s sentencing hearing, prosecutors noted that the 2016 overdose death was not the first fatality linked to narcotics sold by Caward. In August 2015, Caward sold a fentanyl analogue to another man, who died of a drug overdose, prosecutors argued.
“Caward had no regard for human life and his conduct caused misery and death,” said United States Attorney Nick Hanna. “Synthetic opioids, such as fentanyl from China, are extremely dangerous and this sentence should send a message to drug dealers that we will seek to hold them responsible for the deaths caused by their criminal behavior.”
Because the narcotics involved in the distribution offense resulted in death, Caward faced a mandatory minimum sentence of 20 years in federal prison.
This case is being prosecuted by Assistant United States Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section.
Indiana Man Pleads Guilty to Counterfeiting at Dayton Dragon's GameRead the Press Release
DAYTON – Kenneth Stopkotte, 53, of Unionville, Ind., pleaded guilty in U.S. District Court to using counterfeit money.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service, and Dayton Police Chief Richard S. Biehl announced the plea entered into before U.S. District Judge Thomas M. Rose.
According to the Statement of Facts in this case, Stopkotte was on supervised release following a federal conviction for bank larceny, money laundering and access device fraud when he purchased more than 200 counterfeit $20 bills off a website on the “dark web.”
In April 2018, Stopkotte traveled from his home in Unionville, Ind. to Dayton to attend a Dayton Dragons minor league baseball game. He carried with him most of the counterfeit money and made numerous purchases, including his ticket, food and beverage and other concessions. He had previously used some of the fake $20 bills at a sporting event in Arizona.
He used 41 of the counterfeit $20 bills at the Dayton Dragons game, receiving genuine currency back on his purchases. As investigators approached him at the game, he attempted to hide 54 other bills under a stadium refrigerator. Law enforcement officials also discovered Stopkotte hid $166 in genuine currency in the sole of his shoe, and he had additional genuine currency elsewhere in his clothing.
Investigators later found an additional 136 fake $20 bills hidden in the cover of a boat at his residence in Indiana.
Stopkotte’s iPhone history revealed numerous searches regarding counterfeiting and research on the dark web.
As part of his plea, Stopkotte will forfeit his phone, and the genuine cash he possessed will be forfeited or applied to his restitution obligation and court fines.
U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Dayton Police, as well as First Assistant United States Attorney Vipal J. Patel, who is representing the United States in this case.
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IRS Revenue Officer Admits Filing False Documents with Federal Student Loan ProgramRead the Press Release
TRENTON, N.J. – A revenue officer with the IRS admitted today that she made false statements and submitted false documents to a federal program to defer repayment on a student loan, U.S. Attorney Craig Carpenito announced.
Chandra T. Porter, 53, of North Brunswick, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging her with one count of making false statements and representations.
According to documents filed in this case and statements made in court:
In June 2008 Porter applied for a Direct Plus Loan under the Federal Family Education Loan Program so that her relative could attend a college program. Between July 2008 and June 2010, the U.S. Department of Education disbursed $49,179 to the college program on behalf of Porter’s relative. After the relative completed the college program, the loan became due in December 2010, and Porter was required to make monthly payments towards the loan. However, beginning in April 2012, Porter began submitting Unemployment Deferment Request applications to defer the loan payments, falsely representing that she was unemployed and was unable to find suitable employment. Porter was, in fact, a full-time employee of the IRS as a revenue officer. Several of the deferment applications she submitted were faxed to the loan handlers from the IRS office where Porter worked.
The count of making false statements carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 30, 2018.U.S. Attorney Carpenito credited special agents of the U.S. Department of Education, Office of Inspector General, under the direction of Assistant Special Agent in Charge Debbi Mayer of the Eastern Regional Office, and the U.S. Department of the Treasury, Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Rodney A. Davis, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division.
Defense counsel: David A. Schwartz Esq., East Brunswick, New Jersey
Honduran Man Sentenced for Illegal Re-entry of a Previously Convicted Felon AlienRead the Press Release
Gulfport, Miss. – Oscar Alfredo Burgon-Urrea, 39, an illegal alien from Honduras, was sentenced to 5 years in federal prison today by U.S. District Judge Louis Guirola, Jr., for the crime of Unlawful Re-entry By a Removed Alien Previously Convicted of a Felony, announced U.S. Attorney Mike Hurst and David Rivera, Field Office Director of Enforcement and Removal Operations (ERO) for the Department of Homeland Security, in New Orleans. Burgon-Urrea pled guilty to the offense on March 7, 2018.
Burgon-Urrea also was sentenced to 3 years of supervised release upon completion of prison term, and will face removal proceedings by the U.S. Department of Homeland Security. If Burgon-Urrea were to return again to the United States, after removal and during the term his supervised release, he could face a separate term of imprisonment in addition to any other penalty.
On December 4, 2017, during Department of Homeland Security criminal alien program duties at the Jackson County Adult Detention Center, an Immigration and Customs Enforcement ("ICE") Deportation Officer arrested Burgon-Urrea, an illegal alien from Honduras. He was being held by local officials for public drunkenness, after the Moss Point Police Department found Burgon-Urrea by the side of Interstate 10 in an intoxicated condition.
Further investigation revealed that Burgon-Urrea had been lawfully removed from the United States in 2005, and had illegally re-entered the United States on six subsequent occasions. In 2011, Burgon-Urrea had been convicted in the United States District Court for the Western District of Texas, Del Rio Division, of the offense of Re-entry by a Deported Alien, a felony. It also was learned that the defendant had been known by multiple variations of his name including Oscar Alfredo Burgos-Urrea, Oscar Alredo Burgos Ureea, Oscar Alfredo Burgos, Oscar Burgos and Oscar Alfredo.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Department of Homeland
Security, Immigration and Customs Enforcement, the Moss Point Police Department, and the Jackson County Sheriff’s Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Honduran Man Sentenced for Illegal Re-entry of a Previously Convicted Felon AlienRead the Press Release
Gulfport, Miss. – Oscar Alfredo Burgon-Urrea, 39, an illegal alien from Honduras, was sentenced to 5 years in federal prison today by U.S. District Judge Louis Guirola, Jr., for the crime of Unlawful Re-entry By a Removed Alien Previously Convicted of a Felony, announced U.S. Attorney Mike Hurst and David Rivera, Field Office Director of Enforcement and Removal Operations (ERO) for the Department of Homeland Security, in New Orleans. Burgon-Urrea pled guilty to the offense on March 7, 2018.
Burgon-Urrea also was sentenced to 3 years of supervised release upon completion of prison term, and will face removal proceedings by the U.S. Department of Homeland Security. If Burgon- Urrea were to return again to the United States, after removal and during the term his supervised release, he could face a separate term of imprisonment in addition to any other penalty.
On December 4, 2017, during Department of Homeland Security criminal alien program duties at the Jackson County Adult Detention Center, an Immigration and Customs Enforcement (“ICE”) Deportation Officer arrested Burgon-Urrea, an illegal alien from Honduras. He was being held by local officials for public drunkenness, after the Moss Point Police Department found Burgon-Urrea by the side of Interstate 10 in an intoxicated condition.
Further investigation revealed that Burgon-Urrea had been lawfully removed from the United States in 2005, and had illegally re-entered the United States on six subsequent occasions. In 2011, Burgon-Urrea had been convicted in the United States District Court for the Western District of Texas, Del Rio Division, of the offense of Re-entry by a Deported Alien, a felony. It also was learned that the defendant had been known by multiple variations of his name including
Oscar Alfredo Burgos-Urrea, Oscar Alredo Burgos Ureea, Oscar Alfredo Burgos, Oscar Burgos and Oscar Alfredo.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, the Moss Point Police Department, and the Jackson County Sheriff’s Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Head of Pakistani Drug Trafficking Network Pleads Guilty in Manhattan Federal Court to Conspiring to Import Heroin into the United StatesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Raymond P. Donovan, Special Agent in Charge of the United States Drug Enforcement Administration (“DEA”) Special Operations Division, announced today that SHAHBAZ KHAN pled guilty to conspiring to import heroin into the United States, and to attempting to import heroin into the United States. KHAN was taken into custody by Liberian authorities on December 1, 2016, and expelled to the United States later that same day based on a pending Complaint in this District. He pled guilty today to a Superseding Indictment in Manhattan federal court before U.S. District Judge Lorna G. Schofield.
U.S. Attorney Geoffrey S. Berman stated: “Shahbaz Khan boasted to an undercover officer about his ability to smuggle drugs anywhere in the world without detection. The DEA put the lie to that boast. Khan has now admitted to conspiring and attempting to import massive quantities of heroin into the United States, and this international narcotics kingpin is now a convicted felon awaiting what could be a substantial sentence.”
Special Agent in Charge Raymond P. Donovan stated: “The arrest of Shahbaz Khan was a result of DEA’s relentless pursuit of global drug traffickers and other dangerous transnational criminal networks with our partners across the world. Khan led a massive and sophisticated heroin network based in Afghanistan and Pakistan, where the vast majority of drug trafficking proceeds have historically been used to finance terrorist insurgencies against the U.S. and our global allies. He agreed to send huge amounts of deadly drugs to American streets and neighborhoods, which would have fueled the current opioid epidemic and facilitated addiction and abuse by supplying huge amounts of heroin to New York and nationwide. We are pleased he is facing American justice in a United States court of law.”
According to the, Complaint, the Superseding Indictment, statements made during the plea proceeding, and other filings in this case:
KHAN, a Pakistani national, was the leader of a drug trafficking organization (the “DTO”) based in Afghanistan and Pakistan that produced and distributed massive quantities of heroin around the world. In 2007, KHAN was designated a Narcotics Kingpin under the Foreign Narcotics Kingpin Designation Act by then-president George W. Bush. Between approximately August 2016 and October 2016, KHAN conspired to send tens of thousands of kilograms of heroin hidden in maritime shipping containers and air cargo shipments to New York City.
Beginning in August 2016, KHAN began communicating in a series of telephone calls and in-person meetings in countries in Southwest Asia with individuals whom KHAN believed were heroin traffickers interested in purchasing kilogram quantities of heroin for importation into the United States. Those individuals were, in fact, working at the DEA’s direction, and included an undercover law enforcement officer (the “UC”).
In late September 2016, KHAN traveled to a country in Southwest Asia where KHAN met with the UC and others. During the meeting, KHAN agreed to provide the UC with an initial shipment of five kilograms of heroin for importation into the United States. KHAN informed the UC that, once the five kilograms of heroin successfully arrived in New York City, KHAN would begin supplying the UC with larger quantities of heroin on a regular basis, including up to 10,000 kilograms of heroin at a time. KHAN assured the UC that the heroin KHAN would provide was 100% pure. In describing his history as a narcotics trafficker, KHAN explained he had done work that “had not been done in the past hundred years,” including supplying 114 tons of heroin and hashish to a customer over a one-year period. KHAN explained that he could ship drugs “anywhere in the word,” hidden in maritime shipping containers or in air-cargo shipments.
In early October 2016, one of KHAN’s employees, acting at his direction, delivered the five-kilogram initial shipment of heroin in the same country in Southwest Asia. Through a series of recorded telephone calls, KHAN confirmed with the UC that the heroin his employee had provided was KHAN’s, that the heroin was to be transported to New York City, and that KHAN would be paid for the heroin once it arrived in the United States.
In December 2016, KHAN traveled with the UC to Liberia to inspect a warehouse that could serve as a transshipment point for maritime heroin shipments between Pakistan and New York. KHAN was arrested by Liberian authorities upon his arrival in Liberia and expelled to the United States.
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KHAN, 70, of Pakistan, pled guilty to one count of conspiring to import one kilogram and more of heroin into the United States, and to one count of attempting to distribute one kilogram and more of heroin, knowing and intending that it would be imported into the United States. KHAN faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for October 9, 2018, before Judge Schofield.
Mr. Berman praised the outstanding investigative efforts of the DEA’s Special Operations Division’s Bilateral Investigations Unit; the DEA Accra, Canberra, Sydney, Dubai, Islamabad, Kabul, Nairobi, and New Delhi Country Offices; the DEA New York Organized Crime Drug Enforcement Task Force Financial Investigative Team; the Government of Liberia; the Liberian Drug Enforcement Agency; the DEA Nairobi Country Office Kenyan Police Vetted Unit; the Australian Criminal Intelligence Commission; and the Maldives Police Service. The defendant’s arrest and subsequent expulsion are also the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York and the Department of Justice’s Office of International Affairs.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Rebekah Donaleski, Jason A. Richman, and Shawn G. Crowley are in charge of the prosecution.
Harrisburg Woman Pleads Guilty to Tax FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kenyatta Canidate, age 36, of Harrisburg, Pennsylvania, pled guilty on May 29, 2018, before Chief United States District Court Judge Christopher C. Conner to filing false federal income tax returns.
According to United States Attorney David J. Freed, Canidate was charged in a criminal information on May 4, 2018, with filing false federal income tax returns. Canidate filed six false tax returns on her own behalf and filed 41 false tax returns on behalf of acquaintances. The acquaintances paid Canidate $100 for each bogus return she filed on their behalf. The total tax loss to the IRS resulting from Canidate’s fraudulent conduct was approximately $138,000.
The case was investigated by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Joseph J. Terz is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hallandale Resident Convicted at Trial of Enticing a Minor While a Convicted Sex OffenderRead the Press Release
Peter Robert Bobal, 42, of Hallandale Beach, was convicted yesterday by a federal jury in Miami for enticing a 14-year-old to engage in sexual activity and committing a felony involving a minor while being required to register as a sex offender.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigations (FBI), made the announcement.
According to the court record, including evidence presented at trial, after receiving information from a concerned citizen, the FBI opened an investigation into Bobal. An undercover FBI agent posed as a 14 year-old girl and communicated with Bobal online. Over a period of twelve days in March of 2018, Bobal asked the individual he believed to be the 14 year-old minor more than 56 times to provide sexually explicit photographs and more than 70 times to meet him in person in order to engage in sexual activity. Bobal arranged to meet the 14-year old minor to commit a sexual act on March 14, 2018. On that date, Bobal was arrested when he arrived at the pre-arranged location to meet with the minor.
The jury found that Bobal committed a felony involving a minor while being required to register as a sex offender, following a 2005 conviction for enticement of a minor.
Bobal is to be sentenced on August 14, 2018 by U.S. District Court Judge Beth Bloom. He faces a mandatory minimum sentence of 20 years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigatory efforts of the FBI and FBI Miami Child Exploitation Task Force in this matter. This case is being prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz and Assistant United States Attorney Francis Viamontes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Haitian National Indicted for Visa Fraud Scheme Involving More Than 100 Fraudulent Visa ApplicationsRead the Press Release
U.S. Attorney Duane A. Evans announced that EMMANUEL PRIVA, age 37, a citizen of Haiti, was charged today in a two-count conspiracy indictment. As alleged in the indictment, PRIVA ran a visa fraud scheme from his home in Harvey, Louisiana and other locations. In exchange for money, PRIVA would agree to assist Haitian nationals in fraudulently obtaining visitor visas to travel to the United States. After receiving payment from Haitian nationals, PRIVA would submit online visa applications containing false information, create false documents to support the applications, and coach the aliens on how to deceive consular officers at interviews for the visas. The scheme was focused on making it appear that the Haitian nationals intended to temporarily visit, as opposed to illegally immigrate to the United States. The indictment alleges that PRIVA attempted to fraudulently obtain visas for more than 100 aliens, some of whom succeeded in obtaining visas to travel to the United States.
If convicted, EMMANUEL PRIVA faces maximum terms of imprisonment of ten years for conspiracy to induce and encourage aliens to unlawfully enter the United States and five years for conspiracy to defraud the United States and to commit visa fraud.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the U.S. Department of State, Diplomatic Security Service’s Criminal Fraud Investigations and Overseas Criminal Investigations Divisions in jointly investigating this matter, with support from its New Orleans Resident Office. U.S. Attorney Evans thanked the U.S. Citizenship and Immigration Services Fraud Detection and National Security Directorate and the Haitian National Police’s Direction Centrale de la Police Judiciaire (Central Directorate of the Judicial Police) for their assistance. Assistant United States Attorney Chandra Menon is in charge of the prosecution.
Guatemalan National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Ariel Humberto Diaz, 27, a Guatemalan national formerly residing in Framingham, pleaded guilty to one count of illegal reentry of a deported alien. U.S. District Court Judge William G. Young scheduled sentencing for Sept. 5, 2018.
On Feb. 4, 2018, law enforcement officers encountered Humberto Diaz and determined him to be illegally present in the United States. Humberto Diaz was previously deported on April 13, 2016.
Humberto Diaz faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Thomas P. Brophy, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit is prosecuting the case.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was charged today in federal court in Boston with illegally reentering the United States after being deported.
Antonio Solis, 34, was indicted on one count of illegal reentry of a deported alien.
According to court documents, law enforcement officers in Saugus encountered Solis on March 24, 2018, and determined him to be illegally present in the United States. Solis was previously deported on July 3, 2013.
Solis faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Thomas P. Brophy, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Grand Rapids Man Sentenced for Felon Firearm Possession and Falsely Attesting U.S. CitizenshipRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Franklin J. Flores, 42, most recently of Grand Rapids, Michigan, was sentenced to two concurrent terms of 24 months’imprisonment by U.S. District Judge Janet T. Neff, concurrent to his current State of Michigan sentence of 18 to 60 months for identity theft. Flores pleaded guilty pursuant to a plea agreement to one count of being a felon in possession of a firearm and ammunition, and one count of falsely attesting U.S. Citizenship on a Form I-130 Petition for Alien Relative and submitting that form to the Department of Homeland Security, U.S. Citizenship and Immigration Services with the intent toobtain benefit for another person.
The investigation began with reports by a New Mexico man that Flores had stolen his identity. On January 20, 2017, a search warrant conducted at Flores’ residence in Grand Rapids located a Springfield Armory XD-40 .40 caliber pistol and 11 rounds of .40 caliber ammunition. With a 2014 Carrying a Concealed Weapon conviction in Kent County, Michigan, Flores could not lawfully possess this firearm. Flores also assumed the identity of the New Mexico man and his U.S. Citizenship to petition to U.S. Citizenship and Immigration Services for alien relative status for his wife. U.S. District Court Judge Neff noted that Flores’ actions were some of the most egregious she has seen when he assumed the identity of the New Mexico man and thus his U.S. Citizenship status to obtain benefits for his wife.
“Franklin Flores flouted both federal gun and immigration laws,” U.S. Attorney Birge said. “The Court’s sentence is a message that the consequences are severe for convicted felons who violate federal gun laws and for those who try to steal and lie their way to immigration benefits.”
“Identity theft and weapons violations represent serious threats to both our national security and public safety,” said Steve Francis, Homeland Security Investigations (“HSI”) Detroit special agent in charge. “The sentencing handed down in this case makes it clear that these crimes remain a priority for HSI and our partner agencies.”
HSI Grand Rapids investigated this offense, with assistance from the Wyoming Police Department. Assistant U.S. Attorney Clay M. West prosecuted the case.
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Grand Jury Indicts Former Postal Worker in Two DeathsRead the Press Release
COLUMBUS, Ohio – DeShaune K. Stewart, 24, of Columbus, Ohio, was indicted by a federal grand jury today with two counts of murdering an officer of the United States Government.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Tommy D. Coke, Inspector in Charge, United States Postal Inspection Service (USPIS), Pittsburgh Division, Franklin County Prosecutor Ron O’Brien, Columbus Police Chief Kim Jacobs and Dublin Police Chief Heinz von Eckartsberg announced the charges.
According to the indictment, on December 23, 2017, Stewart killed Ginger E. Ballard and Lance Herrera-Dempsey. Both victims were employees of the United States Postal Service and killed on account of their official duties.
Stewart was charged by federal criminal complaint on December 27, 2017. The affidavit filed in support of the criminal complaint details that on December 23, at approximately 4:25am, Dublin Police were dispatched via a 911 call to the United States Post Office located at 6400 Emerald Parkway on reports of an active shooter.
When they arrived they found a male subject, Herrera-Dempsey, who was a Customer Services Supervisor with direct supervision duties over Stewart, deceased from two gunshot wounds.
At approximately 7:18am on the same day, Columbus Police Officers responded to Bowland Place North in Dublin.
Officers arrived to find Stewart completely nude, in possession of a handgun, and in the vicinity of a second deceased victim, Ballard, who was the Postmaster for Dublin. Stewart was arrested by Columbus Police Officers and has been in custody since.
Killing any officer or employee of the United States is a federal crime eligible to be punished by the death penalty.
U.S. Attorney Glassman commended the investigation of this case by Dublin and Columbus Police and USPIS, as well as Assistant United States Attorney David A. DeVillers and Special Assistant United States Attorney James Lowe, who are prosecuting the case.
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Georgia Man Admits Being Felon in Possession of 28 Illegal Firearms, Possession of Methamphetamine with Intent to DistributeRead the Press Release
NEWARK, N.J. – A Georgia man with prior felony convictions today admitted illegally possessing weapons and possessing methamphetamine with the intent to distribute, U.S. Attorney Craig Carpenito announced.
Tyheed Jefferson, 34, a/k/a “Solo,” of Albany, Georgia, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an indictment charging him with six counts of being a felon in possession of a weapon and one count of possession of methamphetamine with the intent to distribute.
According to documents filed in this case and statements made in court:
Jefferson was arrested in July 2017 after a 10-month investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Georgia, Alabama and New Jersey. He admitted that on various dates between May 7, 2017, and July 18, 2017, he possessed 28 firearms in New Jersey. All of those firearms were recovered by the ATF during the course of the investigation.
Jefferson also admitted that on May 24, 2017, a date on which he also possessed illegal firearms, he possessed 1,500 pills containing more than 50 grams of methamphetamine.
The counts of being a felon in possession of a firearm each carry a maximum potential penalty of 10 years in prison and a $250,000 fine. The count of possession of more than 50 grams of methamphetamine carries a maximum penalty of 40 years in prison and a $5 million fine. Sentencing is scheduled for Sept. 12, 2018.
U.S. Attorney Carpenito credited special agents of the ATF, under the direction of John Devito, Newark Field Division, and Special Agent in Charge Wayne L. Dixie, Atlanta Field Division, as well as the N.J. Department of Corrections, under the direction of Commissioner Gary M. Lanigan and the N.J. State Parole Board, under the direction of Chairman James Plousis, with the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel Robert Frazer of the U.S. Attorney’s Violent Crime Unit in Newark.
Defense counsel: Howard Brownstein Esq., Union City, New Jersey
Gary Man Sentenced to 41 Months in PrisonRead the Press Release
HAMMOND – Freddie Griffin, 33 years old, of Gary, Indiana, was sentenced by U.S. District Court Judge Philip P. Simon on his plea of guilty with intent to distribute crack cocaine, announced U.S. Attorney Thomas L. Kirsch II.
Griffin was sentenced to 41 months in prison followed by 2 years supervised release.
According to documents in this case, in December 2016, Griffin possessed with intent to distribute an amount of cocaine base, commonly called crack. In November 2016, law enforcement made three controlled buys from Griffin. Early in December, law enforcement conducted a traffic stop on Griffin and recovered crack cocaine from the vehicle. During that time, Griffin told officers about guns, crack and money inside his home in Gary, Indiana. Law enforcement executed a search warrant and located additional crack along with five firearms and various ammunition. They also recovered $2,880 and drug paraphernalia from the home.
This case is the result of the investigative efforts of the FBI and was handled by Assistant U.S. Attorney Jennifer Chang.
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Fresno Man Arraigned on Charges of Illegal Firearm PossessionRead the Press Release
FRESNO, Calif. — Elias Muhammad, 21, of Fresno, was arraigned today for a two-count indictment charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced. A federal grand jury returned the indictment against him on May 24, 2018.
According to court documents, Muhammad posted pictures of himself holding a firearm that was stamped “Detroit PD.” Investigators later recovered the firearm at a residence in Fresno where Muhammad had been staying. As a previously convicted felon, Muhammad is prohibited from possessing a firearm.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Fresno Police Department. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Muhammad faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Former Trucking Logistics Employee Pleads Guilty in Fake Advertising SchemeRead the Press Release
COLUMBUS, Ohio – John E. Kelly, 63, of Columbus, Ohio, pleaded guilty in U.S. District Court to one count each of mail fraud and tax evasion as part of a scheme to defraud his employers of approximately half a million dollars.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Angela L. Byers, Federal Bureau of Investigation (FBI), Cincinnati Division and Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division, announced the plea offered before U.S. Magistrate Judge Norah McCann King.
According to the Statement of Facts, in 2014 and 2015, Kelly was employed at two different trucking logistics companies – CEVA Logistics and Container Port Group, Inc.
During that time, Kelly defrauded the two companies by causing them to pay for bogus advertising expenditures from a pair of sham companies that Kelly set up for his own gain.
Kelly billed the trucking companies more than half a million dollars for advertising services that were never actually provided. Instead, he took the payments and used them to pay personal expenses. He caused an actual loss of $461,000 from CEVA and CPG.
For example, Kelly served as CEVA’s director of recruiting and was able to set up new advertising vendors for payment. He instructed a direct-report employee to add a nominee company (that he controlled) to CEVA’s approved-vendor list. Kelly then began submitting bogus advertising invoices to CEVA from his company. From approximately March 2014 through March 2015, Kelly caused the submission of at least 65 invoices to CEVA totaling $485,670. CEVA paid out $438,030 of the invoices via checks, which were mailed to a Post Office Box that Kelley controlled in Lewis Center, Ohio.
Kelly was terminated from CEVA in April 2015 and then hired by CPG. He renamed his vendor company and began the scheme again, billing CPG for fake advertising services in the amount of $29,461. Nearly $23,000 was actually paid.
The defendant created email accounts and used fake identities as well as phony corporate registrations and Taxpayer/Employer Identification Numbers when corresponding with CEVA and CPG to conceal his involvement with the nominee companies.
Kelly also failed to file an individual or business tax return for 2014 and 2015. As a result, he had a tax due and owing (representing both his wages and embezzlement income) of at least $70,500 for each year.
Mail fraud is a federal crime punishable by up to 20 years in prison and tax evasion carries a potential maximum sentence of five years imprisonment.
“John Kelly held very important positions in businesses that placed their trust in him, and he abused that trust, not once, but twice” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Not only did he line his own pockets with stolen advertising dollars, and he now owes the IRS for not reporting the stolen money.”
U.S. Attorney Glassman commended the investigation of this case by IRS Criminal Investigation, the FBI and USPIS, as well as Assistant United States Attorney Noah R. Litton, who is prosecuting the case.
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Former Auditor Pleads Guilty to Submitting Fraudulently Backdated Documents to the Securities and Exchange CommissionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the guilty plea of TERRY JOHNSON to falsifying records in an investigation within the jurisdiction of a federal agency. Specifically, JOHNSON, a former auditor and owner of a registered public accounting firm, pled guilty to knowingly submitting falsely backdated documents to the U.S. Securities and Exchange Commission (“SEC”) during an SEC investigation into his auditing practices. In response to SEC document requests, JOHNSON created and sent unsigned versions of the documents at issue to two of the companies he had audited and obtained backdated signatures on them. JOHNSON then submitted the backdated documents to the SEC as though they were authentic. JOHNSON then lied about his submission of these false documents during sworn SEC testimony.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Terry Johnson submitted false documents to the SEC in an attempt to obstruct its investigation of his auditing work. He then lied to cover it up. Regulators like the SEC play a key role in protecting the integrity of our markets, and efforts to interfere with agency investigations by means of fake documents and false testimony will not be tolerated.”
According to the Information, SEC public filings, and statements made during the plea proceeding:
At all relevant times, JOHNSON owned and ran an accounting firm that ostensibly audited the financial statements of publicly traded companies in order to ascertain whether the statements were accurate, truthful, and complete in accordance with Generally Accepted Accounting Principles (“GAAP”). JOHNSON did so under the oversight of the SEC and the Public Company Accounting Oversight Board (“PCAOB”), a non-profit corporation created by the Sarbanes-Oxley Act of 2002. JOHNSON was registered with the PCAOB.
Through his firm, JOHNSON audited several companies concerning their 2013 year-end financial statements, releasing audit reports for them in April 2014. In August 2014, the SEC’s Division of Enforcement sent a voluntary document request to JOHNSON, announcing that it was conducting a nonpublic fact finding inquiry and requesting that JOHNSON provide certain categories of backup documentation and work papers concerning his audits as part of that inquiry. In October 2014, the SEC issued a subpoena to JOHNSON, seeking substantially the same categories of documents, each of which was a critical part of the audit process.
JOHNSON provided documents responsive to the voluntary document request in September 2014 and additional documents responsive to both the voluntary request and the subpoena in November 2014. The documents were supposed to have been those generated or obtained in the course of producing the April 2014 audit reports. In truth, certain of the requested documentation did not exist. Rather than admit this to the SEC, upon receiving the SEC’s requests for documents, JOHNSON created certain of the requested documents, sent unsigned copies of the documents to officials at the relevant client companies, and requested that the documents be signed and backdated to a date consistent with JOHNSON having obtained the signed documents during the course of his relevant audit work. When JOHNSON received the signed and backdated documents, he submitted them to the SEC as though they were authentic.
In March 2015, JOHNSON, during sworn testimony before the SEC, lied repeatedly under oath concerning his submission of the backdated documents. Ultimately, the SEC inquiry resulted in an SEC order sanctioning JOHNSON for committing securities fraud and improper professional conduct. JOHNSON was assessed financial penalties and barred from appearing or practicing before the SEC as an accountant.
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JOHNSON, 60, of Casselberry, Florida, pled guilty to one count of submitting false records in an investigation of a matter within the jurisdiction of a federal agency. The charge carries a maximum term of 20 years in prison. The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman thanked the SEC and praised the investigative work of the SEC’s Office of the Inspector General and the Criminal Investigators of the United States Attorney’s Office.
This case is being handled by the Office’s Securities and Commodities Task Force. Assistant United States Attorney Martin S. Bell is in charge of the prosecution.
Five Men Indicted in Louisiana for Conspiracy to Smuggle BirdsRead the Press Release
Five men have been charged in New Orleans with crimes related to illegally exporting birds protected under the Convention on International Trade in Endangered Species (CITES) from the United States to Taiwan. William McGinness, 59, of Buena Park, California; Paul Tallman, 55, of Destreham, Louisiana; Rene Rizal, 62, of La Mirada, California; Wayne Andrews, 46, of Royal Oaks, California and Alex Madriaga, 76, of Buena Park, California; were each indicted in federal court in the eastern District of Louisiana today.
On May 31, 2018, a five-count indictment was returned charging McGinness, Tallman, Rizal, Andrews and Madriaga with conspiracy to smuggle CITES-protected birds from the United States to Taiwan. McGuinness was also charged with smuggling birds to Taiwan and three counts of making and submitting false records under the Lacey Act, and Tallman was charged with smuggling and one count of making and submitting false records under the Lacey Act.
The indictment alleges, among other things, that McGinness, a resident of California, and his co-conspirators created false statements and submitted them to the United States Fish and Wildlife Service (USFWS) in order to illegally export CITES-protected birds from the Port of New Orleans to Taiwan. The shipment included 90 CITES-protected birds, including parrots, macaws, cockatoos and corellas. Several of the birds were in crates that were falsely labeled. The USFWS seized 14 of the birds at the airport in Houston, Texas before they were exported.
The indictments were announced today by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, and Acting Assistant Director Edward Grace of the Office of Law Enforcement for the U.S. Fish and Wildlife Service.
“These indictments demonstrate our commitment, shared with the U.S. Fish and Wildlife Service, to investigate and prosecute those engaged in illegal trade of protected animals,” said Acting Assistant Attorney General Wood. “We will continue to collaborate with our partners at the federal, state and local levels to prosecute wildlife smuggling.”
"Today’s indictments were the result of a complex investigation into the wildlife trafficking of protected birds,” said Acting Assistant Director Grace. “Wildlife trafficking is a serious crime that is detrimental to species around the world. I am very proud of our special agents and wildlife inspectors who helped bring these defendants to justice."
The United States and approximately 182 other countries are signatories to CITES, which provides a mechanism for regulating international trade in species whose continued survival is threatened by such trade. Species are listed on “appendices,” based on the level of protection necessary to protect the species.
The case was investigated by the USFWS and the Justice Department’s Environmental Crimes Section. The government is represented by Environmental Crimes Section Trial Attorney Mary Dee Carraway.
Federal Grand Jury Files Superseding Indictment in Case Charging Mariah Ferry and Chase Smothermon that Adds Third Defendant and Kidnapping Resulting in Death ChargeRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Albuquerque, N.M., has filed a superseding indictment in the federal case charging Albuquerque residents Mariah Ferry, 20, and Chase Smothermon, 30, with conspiracy and kidnapping charges. The superseding indictment adds Albuquerque resident Jose Torrez, 46, as a third defendant and charges him with the conspiracy and kidnapping offenses in the original indictment. It also adds a new kidnapping resulting in the death charge against all three defendants.
The original two-count indictment, filed on March 28, 2018, charged Ferry and Smothermon with kidnapping and conspiracy to kidnap. The kidnapping count alleged that Ferry and Smothermon kidnapped a victim identified by the initials “M.T.” on Aug. 8, 2017, in Bernalillo County, N.M. The conspiracy count alleged that on Aug. 8, 2017, Smothermon invited the victim to his residence where Ferry bound the victim’s hands and feet, and Smothermon and others physically assaulted the victim.
The three-count superseding indictment, which was returned under seal on May 29, 2018 and unsealed earlier today, charges Ferry, Smothermon and Torrez with conspiracy to kidnap, kidnapping resulting in death, and kidnapping. The conspiracy count alleges that from Aug. 6, 2017 to Aug. 9, 2017, in Bernalillo County, N.M., Ferry, Smothermon and Torrez participated in a conspiracy to kidnap victims identified by the initials “J.S.” and “M.T.” The conspiracy count alleges the kidnapping of “J.S.” resulted in his death, and includes 16 overt acts allegedly committed by the defendants in furtherance of the conspiracy.
The second count of the superseding indictment charges Ferry, Smothermon and Torrez with kidnapping resulting in the death of “J.S.” on Aug. 8, 2017, in Bernalillo County. The third count charges the three defendants with kidnapping “M.T.” on Aug. 8, 2017, in Bernalillo County.
If convicted on the conspiracy to kidnap or the kidnapping resulting in death charge, the defendants each face a statutory maximum penalty of life imprisonment or death. If convicted on the kidnapping charge, the defendants each face a statutory maximum penalty of life imprisonment.
Arraignment hearings on the superseding indictment are scheduled for Monday, June 4, 2018 as to Ferry, and Tuesday, June 5, 2018 as to Smothermon. An arraignment hearing for Torrez has yet to be scheduled.
Ferry is in federal custody based on the original indictment. Smothermon and Torrez currently are in state custody, and will be transferred to federal custody to face the charges against them.
Charges in indictments are merely accusations and defendants are presumed innocent unless and until they are found guilty in a court of law.
The Albuquerque offices of the DEA and FBI are leading the ongoing investigation into this case with assistance from the Albuquerque Police Department and the 2nd Judicial District Attorney’s Office. The Narcotics Section of the U.S. Attorney’s Office for the District of New Mexico is prosecuting the case.
Duquesne Woman Sentenced to Probation, Ordered to Pay Restitution, for Passing Counterfeit CashRead the Press Release
PITSBURGH, Pa. – An Allegheny County resident has been sentenced in federal court to three years of probation and ordered to pay $9,570.00 in restitution on her conviction of conspiracy and passing and uttering counterfeit money, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Destiny S. Dayton, 21, of Duquesne, PA.
According to information presented to the court, Dayton conspired and passed counterfeit $100, $50, and $20 FRNs throughout the Western District of Pennsylvania..
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Secret Service for the investigation leading to the successful prosecution of Dayton.
Dubuque Man Sentenced to 30 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
A man who purchased and transported pounds of “ice” methamphetamine from Omaha, Nebraska, to Dubuque, Iowa, was sentenced May 30, 2018, to 30 years in federal prison.
Jason Michael Schumacher, age 37, from Dubuque, received the prison term after a February 6, 2018, guilty plea to conspiracy to distribute methamphetamine.
Evidence at the sentencing hearing showed that from July 2017 until November 30, 2017, Schumacher and his associates made at least 13 trips to Omaha to purchase pounds of “ice” methamphetamine. Schumacher brought the methamphetamine back and sold it throughout the Dubuque area.
On October 12, 2017, police investigators received a tip that Schumacher was traveling to Dubuque in a silver car and might be in possession of a large amount of methamphetamine. Investigators located Schumacher entering Dubuque eastbound on Highway 20. They approached Schumacher after he parked in a mobile home park. Schumacher then sped away from police, nearly striking an investigator’s vehicle. Schumacher fled through two construction zones at dangerously high speeds, coming close to hitting workers in the construction zones. Schumacher eventually lost control of his car near a busy intersection and crashed into a small utility building, knocking the building partially off its foundation. Schumacher then tried to flee on foot, but investigators caught and arrested him. Investigators transported a passenger in Schumacher’s car to the hospital, where she was treated for minor injuries.
Schumacher was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade to 360 months’ imprisonment. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
Schumacher is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Iowa Division of Narcotics Enforcement, Dubuque Police Department, Dubuque County Sheriff’s Office, Dubuque Drug Task Force, Waterloo Police Department, Black Hawk County Sheriff’s Office, Tri-County Drug Enforcement Task Force, Federal Bureau of Investigation, and Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1050-LRR.
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Detroit Man Pleaded Guilty to Stealing More than $250,000 in SSA BenefitsRead the Press Release
A Detroit man pleaded guilty yesterday to theft of government funds, U.S. Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Resident Agent in Charge Adam Lowder, Social Security Administration Office of the Inspector General, Office of Investigations, Detroit Field Division.
Pleading guilty was Claude Hopkins, 62.
According to court records, Hopkins’ father passed away in the summer of 1999. He was receiving Social Security retirement insurance benefits at the time and because SSA was never informed of his death, SSA continued to pay those benefits into a bank account in his name. The erroneous payments continued for approximately 17 years—$253,327.00 in total. Hopkins then unlawfully converted those benefit payments by forging his late father’s name on dozens of checks.
In 2016, as part of the Medicare Non-Utilization Project, an SSA initiative designed to fight fraud by contacting elderly beneficiaries who have not used their Medicare in three or more years, SSA made contact with Mr. Hopkins, who reported that his father was “out of town.” Subsequent attempts to reach Hopkins or his father were unsuccessful and a fraud referral was then made to the agency’s Office of the Inspector General. SSA-OIG ultimately confirmed that Hopkins’ father was deceased.
A sentencing hearing is set for September 5, 2018, at 2:00PM in front of U.S. District Judge David M. Lawson. Hopkins faces a statutory maximum of 10 years in prison and will be required to pay full restitution to the Social Security Administration.
This case was investigated by special agents of the Social Security Administration Office of the Inspector General and prosecuted by Special Assistant U.S. Attorney Ryan A. Particka.
Cuny Medgar Evers College Lecturer Pled Guilty to Wire Fraud for Selling Fake College CertificatesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MAMDOUH ABDEL-SAYED, a tenured lecturer at the City University of New York’s Medgar Evers College (“Medgar Evers College”), pled guilty yesterday in Manhattan federal court to wire fraud related to his selling of sham Medgar Evers College certificates that purported to represent the completion of health care courses at the College. ABDEL-SAYED pled guilty before U.S. District Judge Vernon S. Broderick.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted in court, Mamdouh Abdel-Sayed abused his position on the CUNY faculty to enrich himself by creating and selling fake health care program certificates. In so doing, Abdel-Sayed put public health at risk. I commend our partners at the New York State Inspector General and the Department of Education Office of Inspector General for their continued commitment to rooting out corruption at federally funded New York schools.”
According to the allegations contained in the Complaint, the Indictment, and statements made in court and publicly available documents:
MAMDOUH ABDEL-SAYED is a tenured lecturer in the Biology Department at Medgar Evers College. From at least 2013 through 2017, without authorization from Medgar Evers College, ABDEL-SAYED purported to teach health care courses at the College on topics such as Electrocardiograms, Phlebotomy, and Sonography, and provided students with sham certificates of completion for the courses, in exchange for which ABDEL-SAYED charged fees of up to $1,000 per certificate, which money he kept for himself. ABDEL-SAYED attempted to avoid scrutiny from the College’s security guards in conducting the unauthorized courses.
In addition to charging fees for the unauthorized courses and sham certificates, ABDEL-SAYED encouraged students to use the certificates in obtaining employment in the health care field, including at New York City-area hospitals. When asked by employment agencies to verify the authenticity of the certificates, ABDEL-SAYED falsely informed the agencies that the certificates were issued by Medgar Evers College. In fact, ABDEL-SAYED created the sham certificates himself, and provided them to students even if the students did not attend his unauthorized courses, so long as the students paid ABDEL-SAYED for the certificates. In addition, ABDEL-SAYED distributed copies of purported national certification examinations – which he informed students on a recorded conversation it was “illegal” for them to possess – in order to assist the students in passing licensing examinations supposedly administered by the State for certain medical techniques.
After ABDEL-SAYED became aware of the investigation, he instructed an undercover law enforcement investigator, who had posed as a student and purchased several unauthorized certificates from him, to provide false information to federal law enforcement agents and to conceal those certificates from the agents.
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ABDEL-SAYED, 68, of Kearny, New Jersey, pled guilty to one count of wire fraud, which carries a maximum penalty of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
ABDEL-SAYED is scheduled to be sentenced by Judge Broderick on September 7, 2018.
Mr. Berman praised the investigative work of the New York State Inspector General’s Office and ED-OIG.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution.
Coral Springs Resident Sentenced to 33 Months in Prison for Tax Preparation SchemeRead the Press Release
Chantale Baptiste, 33, of Coral Springs, Florida, was sentenced today to 33 months for conspiring with her husband and co-defendant, Weguel Legentus, to defraud the Internal Revenue Service (IRS) with respect to claims, and filing false claims with the IRS.
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dana Watson, Chief, Margate Police Department, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Drew J. Breakspear, Commissioner, Florida Department of Financial Regulations, made the announcement.
At sentencing, United States District Judge Darrin P. Gayles sentenced Baptiste to 33 months in prison. Baptiste agreed to pay restitution in the amount of $275,000. Baptiste will serve a three-year term of supervised release at the conclusion of her prison sentence.
According to publicly filed court documents, Baptiste and her husband, co-defendant Weguel Legentus, operated CMB Financial Group, Inc. (“CMB”), a tax preparation business, located primarily in Broward County. As tax preparers, Legentus and Baptiste would meet with their clients and prepare their clients’ tax returns. From at least as early as 2013 through 2016, Legentus and Baptiste prepared and filed false and fraudulent federal income tax returns on behalf of their clients. They did so by attaching to their clients’ tax returns false and fraudulent tax credit forms, and false and fraudulent IRS Schedule C forms reflecting profits or losses associated with businesses that their clients did not operate. These false and fraudulent credits and Schedule C profits or losses had the effect of increasing the refund owed by the IRS to the client. Legentus and Baptiste would then provide their clients with a copy of their prepared federal income tax return and represent that the information contained in the copy provided would be filed with the IRS on his clients’ behalf.
Baptiste and Legentus would then alter their clients’ tax returns without their clients’ knowledge and inflate the refund amount requested even further. Baptiste and Legentus would then file the false and fraudulent federal income tax returns with the inflated refund amount with the IRS. The IRS would then disburse the tax refunds to bank accounts controlled by Baptiste and Legentus, who would retain for their own use and benefit the amount of the inflated tax refund, as well as their fees. On occasion, Legentus and Baptiste would retain the entire tax refund amount for themselves. For example, one of their client’s refunds for approximately $12,000 was stolen in its entirety and deposited into an account controlled by Baptiste and Legentus. When clients would complain to Legentus and Baptiste, they would often be ignored, or lied to, about the status of their tax refund.
Baptiste had previously pled guilty to conspiracy to defraud the IRS with respect to claims, in violation of Title 18, United States Code, Section 286, and filing false claims with the IRS, in violation of Title 18, United States Code, Section 287. Legentus also pled guilty to conspiracy to defraud the IRS with respect to claims, in violation of Title 18, United States Code, Section 286, and filing false claims with the IRS, in violation of Title 18, United States Code, Section 287, and was previously sentenced to 33 months in prison.
Mr. Greenberg commended the investigative efforts of IRS-CI, the Margate Police Department, the Broward Sheriff’s Office, and the Florida Department of Financial Regulations. Mr. Greenberg also thanked the Ft. Lauderdale Police Department, the Coral Springs Police Department, and the Greenacres Police Department. The case was prosecuted by Assistant U.S. Attorneys J. Mackenzie Duane and Michael Berger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Convicted Felon Sentenced to Federal Prison for Possession of High-Capacity Semi Automatic FirearmRead the Press Release
Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger has sentenced Sheldon Tarence Wright (27, Savannah, GA) to 46 months in federal prison, followed by three years of supervised release, for possessing a firearm as a convicted felon. He pleaded guilty on February 21, 2018.
According to court documents, on March 3, 2011, Wright was convicted in Chatham County, Georgia, of the felony offenses of aggravated assault, robbery, and possession of a controlled substance. He was sentenced to ten years in prison, to be followed by ten years of probation. On July 10, 2017, he was released on parole after serving about eight and a half years of the sentence.
On October 22, 2017, officers with the Jacksonville Sheriff’s Office responded to a citizen complaint regarding suspected illegal activity in the area of a motel on Philips Highway. One of the officers approached a vehicle in the parking lot and spoke to the driver and Wright, who was in the front passenger seat. During this encounter, the officer saw the butt of a gun sticking out from under the front of the passenger seat.
After finding the gun, the officers detained both the driver and Wright. After being advised of his constitutional rights, Wright told the officers that the gun was his. The driver also told the officers that the gun belonged to Wright. The firearm was later determined to be a semi-automatic .22 caliber pistol with a high-capacity magazine loaded with 30 rounds of ammunition. As a previously convicted felon, Wright was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Controller of Small Business Charged with Stealing over $229,000Read the Press Release
BOSTON – A Boston woman was charged today in federal court in Boston with bank fraud in connection with the embezzlement of over $229,000 from a small business that employed her.
Kelly A. Lynch, 40, was charged by Information with one count of bank fraud. In February 2018, Lynch was arrested and charged by criminal complaint and was released on conditions.
According to court documents, Lynch was hired in April 2017 as the controller of a small company in a Boston suburb. Lynch’s duties included managing incoming invoices, paying bills by check and wire transfer, bookkeeping, and financial account maintenance. As a result, Lynch had access to the company’s checkbook, bookkeeping/accounting software (QuickBooks), and online bank accounts.
From April 2017 until her termination in January 2018, Lynch stole funds from the business for her personal use. Specifically, Lynch wrote unauthorized checks to herself using the company checkbook from the company’s bank account. Some of the checks were pre-signed, blank checks that one of the founders had signed with the intention that Lynch would later use them for business purposes. After she had used those checks, Lynch began signing the company checks herself, forging the signature. At times, Lynch also added an entry to the memo line to indicate that the funds were for “Consulting Fees,” but as a salaried employee, Lynch was not entitled to consulting fees. Lynch then endorsed the checks she wrote to herself and – without authorization and for no business purpose - deposited them in her personal bank account. In total, Lynch stole approximately $141,845 from the company’s bank account in this manner.
During approximately the same time period, Lynch repeatedly logged onto the company’s online bank account and directed that payments be made via ACH transfer to her personal credit cards. As a result, Lynch stole another $87,243 from the company’s bank account.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, three years of supervised release, a fine of up to $1 million, restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cybercrimes Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cedar Rapids Man Sentenced to More Than a Decade in Prison for Gun CrimesRead the Press Release
A convicted felon who unlawfully possessed guns and used those guns to further his distribution of marijuana was sentenced May 30, 2018, to more than 10 years in federal prison.
Danquel Antwain Faulkner, age 23, from Cedar Rapids, Iowa, received the prison term after a February 22, 2018, guilty plea to possession of a firearm by a felon and possession of a firearm during and in relation to a drug trafficking crime.
In a plea agreement, Faulkner admitted he possessed a gun on three separate occasions. He further admitted that on two of the times he possessed a gun, he used the gun to further a drug crime, namely his distribution of marijuana. One of the guns Faulkner possessed had been stolen from America’s 2nd Amendment Firearms on June 3, 2017. Faulkner has previous felony convictions for possessing a stolen vehicle, escape, and possession of a controlled substance.
Faulkner was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Faulkner was sentenced to 124 months’ imprisonment. He must also serve a 5-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.
Faulkner 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 was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hiawatha Police Department, the Cedar Rapids Police Department, and the Loves Park, Illinois, Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-00080.
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Canton man sentenced to more than a year in prison for money laundering and tax violationsRead the Press Release
A Canton man was sentenced to more than a year in prison after failing to report more than $1 million in income over seven years, law enforcement officials said.
Paul G.A. Kasapis, 48, was sentenced to 15 months in prison, ordered to pay $533,434 in restitution, and has forfeited a residence in Cape Coral, Florida, and a Marriott Vacation Club timeshare account as properties derived from the proceeds of an illegal gambling business in violation of federal law.
Kasapis pleaded guilty earlier this year to one count of income tax evasion, one count of the willful failure to collect and pay over employment taxes and two counts of money laundering.
Kasapis failed to pay over unreported personal income and unreported employee wages from PK Produce, Lucky Fox and El Dorado City of Gold resulted in a total criminal tax loss of approximately $533,434, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the Internal Revenue Service – Criminal Investigations, Ohio Bureau of Criminal Investigation, Stark County Sheriff’s Office and Jackson Township Police Department.
Camdenton Man Sentenced to 15 Years for Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – A Camdenton, Mo., man who molested a 10-year-old child was sentenced in federal court today for receiving child pornography over the Internet.
Duffy Dean Woodman, 52, of Camdenton, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole. The court also sentenced Woodman to a 10-year term of supervised release following incarceration.
Woodman pleaded guilty on Oct. 12, 2017. The investigation began in October 2015 when the Laclede County, Mo., Sheriff’s Department received a report that a 10-year-old child had been molested by Woodman at a residence in Laclede County, Mo., and at Woodman’s residence in Camdenton.Law enforcement officers executed a search warrant at Woodman’s residence on Nov. 9, 2015, and seized two laptop computers, two tablets, three cell phones and a 700MB CD-RW. One of the tablets contained 350 images of child pornography. The investigator also found 54 child erotica images and 12 bestiality images in unallocated space. An examination of one of the laptop computers revealed numerous search terms consistent with child pornography activity. Numerous images of child erotica and cartoon images depicting children engaged in sexual activity were found on the laptop.
On Jan. 29, 2016, the Camden County, Mo., Sheriff’s Department issued a statement seeking the public’s assistance in locating Woodman, who was considered a fugitive from justice. The next day, Woodman turned himself in to the Republic, Mo., Police Department.
Woodman is currently charged in Morgan County Circuit Court with molesting a 10-year-old victim and awaits sentencing on state charges of statutory sodomy and child molestation in the first degree.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, the Camden County, Mo., Sheriff’s Department and the Missouri State Technical Assistance Team.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Cairo Woman Sentenced for Possession of Items Intended for the Manufacture of MethamphetamineRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on May 31, 2018, Senior United States District Court Judge W. Louis Sands sentenced Yalanda Mills age 36, of Cairo, GA, to 98 months imprisonment for the offense of Possession of Items Intended for the Manufacture of Methamphetamine. Ms. Mills was also ordered to pay restitution related to the hazardous materials cleanup and for medical bills sustained when one of the officers responding to the scene was overcome by toxic fumes emitted from the meth lab.
Ms. Mills had earlier pled guilty and admitted that in 2015 she purchased and possessed lithium batteries and camp fuel which she provided to Cary Brandon Smith for his use in manufacturing methamphetamine in Grady County, Georgia.
“The manufacture of methamphetamine in our communities presents a special danger over and above that of the impact of its use on addicts. It creates toxic waste residue which is a hazard to all in the vicinity for years to come without the proper clean-up. It is my hope that this sentence demonstrates to everyone that doing anything to assist someone else in the commission of a crime such as this is a very bad decision. Here, Ms. Mills’ acquisition and possession of otherwise legal items was a crucial part of Smith’s ability to carry out his dangerous activity,” said United States Attorney Peeler.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms, Georgia Bureau of Investigation, Grady County Sheriff’s Office and Cairo Police Department. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Brazilian National Pleads Guilty to Unlawful ReentryRead the Press Release
BOSTON – A Brazilian national pleaded guilty today in federal court in Boston to unlawful reentry of a deported alien.
Willian Lacerda, 32, a Brazilian national formerly residing in Framingham, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for July 12, 2018.
On Feb. 20, 2018, Lacerda was encountered by law enforcement and determined to be illegally present in the United States. Lacerda was previously deported on Dec. 16, 2009.
Lacerda faces a sentence of no greater than 10 years in prison, up to three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Thomas P. Brophy, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
Bethlehem Man Charged with Making False StatementsRead the Press Release
PHILADELPHIA – Francisco Santos, also known as “F.S.S.,” “A.C.M.,” and “Luis Colon,” was charged by indictment May 29 with making a false statement in an application for a passport, and with making a false statement to a federal agent, announced United States Attorney William M. McSwain.
The indictment alleges that on May 16, 2017, Santos, of Bethlehem, applied for a passport in Northampton County, Pennsylvania, in the name of A.C.M. The indictment also alleges that on August 21, 2017, in Bethlehem, Pennsylvania, Santos made a false statement to a Special Agent of the Department of State.
If convicted, the defendant faces a maximum statutory sentence of 15 years’ imprisonment.
The case was investigated by the Department of State and is being prosecuted by Assistant United States Attorney Laurie Magid.
Amherst Man Pleads Guilty to Bank TheftRead 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 Steven Blumhagen, 67, of Amherst, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to bank theft. The charge carries a maximum penalty of one year in prison. The defendant must also pay restitution totaling $1,275,500 to 19 victims.
Assistant U.S. Attorney MaryEllen Kresse and Elizabeth Moellering, who are handling the case, stated that on June 13, 2003, the defendant stole money from JP Morgan Chase Bank. Blumhagen caused an individual identified as R.K. to wire transfer $1,000 to an account controlled by the defendant at JP Morgan Chase. Blumhagen falsely represented to R.K. that the funds would be used to pay “advance fees” in connection with a purported bond offering that would allegedly generate large sums of money for R.K. and others. Subsequently, the defendant withdrew the funds from the JP Morgan Chase account, and used them to pay personal expenses rather than to pay fees associated with the alleged bond offering.
In 2006, the defendant was convicted of conspiracy to commit mail fraud and sentenced to serve 57 months in federal prison, for his role in defrauding investors in Tee-to-Green Golf Parks, Inc. (Tee-to-Green), out of approximately $2,500,000. Blumhagen was the president of Tee to Green from 1993 through 2000. As president, he controlled the day to day operations and was intimately involved in the sale of Tee-to-Green promissory notes. Tee-to-Green marketed those notes to numerous investors falsely representing that the notes were bonded and insured, when in fact they were not.
The conduct which is the subject of the bank theft plea occurred after Blumhagen’s fraud relating to the Tee-to-Green promissory notes.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for September 12, 2018, before Judge Skretny.
Alexandria felon pleads guilty to possessing pistol discovered in opioid stingRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that an Alexandria man previously convicted of a felony pleaded guilty to possessing a semiautomatic handgun discovered during an opioid sting.
Eric Darnell Tison, 47, of Alexandria, Louisiana, pleaded guilty before U.S. District Judge Dee D. Drell to one count of felon in possession of a firearm. According to the guilty plea, a U.S. postal inspector contacted the Louisiana State Police Narcotics Unit on October 13, 2015 in Alexandria after intercepting a package with suspected narcotics destined for a home in Pineville, Louisiana. After obtaining a search warrant, law enforcement found approximately 1,000 pills of suspected methadone hydrochloride, a synthetic opioid, in the package. State police obtained a state search warrant on October 14, 2015 for the home in Pineville and executed a controlled delivery of the package, which Tison accepted at the front door. After Tison took it into the house, state police executed the warrant and found a Cobra .380 caliber semiautomatic pistol with five rounds of ammunition and some marijuana in the master bedroom along with the package of methadone pills. Tison, a convicted felon, was the only person home at the time of the search.
Tison faces five to 10 years in prison, three years of supervised release, forfeiture of the seized weapon and a $250,000 fine. The court set a sentencing date of August 30, 2018.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The ATF, U.S. Postal Inspection Service and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Mike O’Mara is prosecuting the case.
30 May 2018
Yuba City Man Charged with Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — On May 24, 2018, a federal grand jury indicted Scott Stephen Howard, 33, of Yuba City, charging him with receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Howard knowingly received visual depictions of minors engaged in explicit conduct between November 2014 and April 2016.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Amy Schuller Hitchcock and Matthew G. Morris are prosecuting the case.
If convicted, Howard faces a minimum statutory penalty of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Woman Sentenced to Prison for Bringing Methamphetamine into U.S.Read the Press Release
BROWNSVILLE, Texas – A 20-year-old U.S. citizen who was living in Matamoros, Mexico, has been ordered to federal prison following her conviction for possession with intent to distribute 2.96 kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick.
Neydie Yuribia Garcia-Perez pleaded guilty in March 2017. Today, U.S. District Judge Andrew S. Hanen ordered her to serve 130 months in federal prison to be immediately followed by four years of supervised release.
On Nov. 11, 2016, Garcia-Perez arrived at the Gateway Port of Entry located in Brownsville driving a Ford Expedition. She declared herself to be a U.S. citizen named Neydie Yuribia Garcia-Perez and possessed a Mexican-issued driver’s license, a copy of a U.S. birth certificate and a Social Security card bearing her name. During inspection of her vehicle, authorities found 2.96 kilograms (6.5 pounds) of methamphetamine concealed in a compartment beneath the glove box.
Later, she gave a statement saying her name was actually Ana Josefina Perez and that she used the false identity of Garcia-Perez for several years when given the documents with that name. She claimed that an unknown individual picked up her vehicle shortly before noon and had the Expedition until about 9 p.m. She said she was to receive between $500 and $1,000 for crossing her vehicle into Brownsville. Garcia-Perez further admitted she was aware of a compartment in the vehicle, knew there might be narcotics inside, that she planned to drive to Houston and that she was to smuggle bulk currency in the vehicle compartment from Houston to Mexico.
She was arrested and charged under the name of “Ana Josefina Perez.”
Following her indictment, she claimed her true name was Garcia-Perez as she had initially told agents, admitting that she had given the name of her sister to customs officials in an effort to avoid prosecution.
Cruz-Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Oscar Ponce prosecuted the case.
United States Obtains $114 Million Judgement Against Three Individuals for Paying Kickbacks for Laboratory Referrals and Causing Claims for Medically Unnecessary TestsRead the Press Release
WASHINGTON – On May 23, 2018, the United States District Court in the District of South Carolina entered judgment for the United States in the amounts of $111,109,655.30 against defendants LaTonya Mallory, Floyd Calhoun Dent III and Robert Bradford Johnson, and for an additional $3,039,006.56 against Johnson and Dent, the Department of Justice announced today. The judgment follows the January 31, 2018, jury verdict finding the three individuals liable for violating the False Claims Act (FCA) by paying remuneration to physicians in exchange for patient referrals, in violation of the Anti-Kickback Statute, and causing two laboratories to bill federal health care programs for medically unnecessary testing.
“Improper financial relationships between physicians and laboratories can distort a physicians’ best judgment for their patients, in addition to undermining patient health and trust,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad Readler. “Executives and other individuals who break the law will be held personally accountable for their actions.”
During a two-week jury trial held in Charleston, South Carolina, the government introduced evidence that the defendants paid physicians remuneration disguised as processing and handling fees of between $10 and $17 for each patient they referred to two blood testing laboratories: Health Diagnostics Laboratory Inc. (HDL), of Richmond, Virginia; and Singulex Inc., of Alameda, California. The government also introduced evidence that the kickback scheme resulted in physicians referring patients to HDL and Singulex for medically unnecessary tests, which were then billed to federal health care programs.
The jury found Mallory, HDL’s former CEO, and Johnson and Dent, who marketed and sold HDL’s and Singulex’s tests, jointly and severally liable for causing the submission of 35,074 false claims, worth $16,601,591, submitted to Medicare and TRICARE by HDL. The jury also found defendants Dent and Johnson jointly and severally liable for an additional 3,813 false claims, worth $467,935, submitted by Singulex. As provided by the FCA, the Court trebled those damage amounts, offset settlement payments received from HDL and Singulex for the same claims, and awarded $63.8 million in penalties requested by the United States, for a total judgment of $114,148,661.86.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“The Court’s damages award in this case recognizes the seriousness of what these defendants did,” said Sherri A. Lydon, U.S. Attorney for the District of South Carolina. “Paying kickbacks to cause unnecessary tests injures patients, the Medicare Program, and American taxpayers and the District of South Carolina will continue to pursue those who participate in such conduct.”
“This judgment affirms that individuals who cheat Medicare and TRICARE will not be allowed to enjoy their ill-gotten gains,” said U.S. Attorney for the District of Columbia Jessie K. Liu. “This office joins with its Department of Justice colleagues in our mutual commitment to investigate misconduct and recover funds unlawfully obtained from federal healthcare programs.”
“Laboratories that pay kickbacks to physicians in exchange for referrals of business exploit patients and taxpayer-funded health care programs,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services, Office of Inspector General. “Our agency is dedicated to investigating such corrosive kickback schemes, as they undermine the public’s trust in medical professionals, and the integrity of government health care programs.”
“The FBI will continue to aggressively investigate allegations of criminal misconduct between companies and individuals who engage in kickback schemes at the expense of the U.S. government,” said Acting Assistant Director of the Criminal Investigative Division Chris Hacker. “We recognize the importance of those who came forward and brought allegations to light and realize that we cannot do our work without the public’s help.”
The claims resolved by the court’s order were originally brought in three lawsuits filed by Dr. Michael Mayes, Scarlett Lutz, Kayla Webster, and Chris Reidel under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The Act permits the United States to intervene in and take over the whistleblower suit, as the United States did, in part, in the three consolidated actions against Mallory, Dent, Johnson and others in August 2015. The whistleblowers’ share of any recovery has yet to be determined.
The cases were litigated by the Civil Division’s Commercial Litigation Branch, and the U.S. Attorneys’ Offices for the District of South Carolina and the District of Columbia. The U.S. Attorney’s Office for the Middle District of North Carolina, HHS-OIG, the FBI’s Columbia Field Office and FBIHQ’s Major Provider Response Team, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service assisted with the investigation.
The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.); and United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.).
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United States Attorney’s Office partners with fifth and sixth grade boys from Daniel Webster Elementary School 46 for leadership league graduationRead the Press Release
Conflict resolution training pairs federal prosecutors, IMPD Southwest District officers and 19 boys from Westside school
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler and Daniel Webster Elementary School Principal Karen Linn announced today the graduation ceremony from the Leadership League for 19, fifth and sixth grade boys from Daniel Webster School 46. The boys collaborated with U.S. Attorney Minkler and seven of his assistant United States Attorneys/staff and two IMPD officers to build positive relationships, learn conflict resolution skills, and have some fun in the process.
“Mentoring these future leaders will benefit this school and the City of Indianapolis,” said Minkler. “Helping these young men develop conflict resolution skills that they can take back to their neighborhoods this summer makes our neighborhoods safer today and in the future.”
"Our partnership with the US Attorney's Office and IMPD has been incredible,” said Karen Linn, Daniel Webster Elementary Principal. “Our boys have benefited by learning many new ways to handle conflict, advocate for themselves in a positive way, and how to carry themselves with pride and a new sense of worth. We are so fortunate to have had such a wonderful group of caring adults who were willing to give of their time, expertise - and yes, patience! It was a great experience for our students and we are so grateful to our mentors for having given us this gift. Thank you!"
The U.S. Attorney’s Office working with Jayette Horan and her team at the Peace Learning Center mentored the boys (Brian, Tristen, Kaiden, Luis, Omar, Melvion, Ta’Marus, La-zavion, Nathanel, Jackson, Robert, Daniel, Brandon, Matthew, Antonio, Braxton, Ryan, Jeremiah, Donnavon and Ethan) during an after-school program designed to help create peace through meaningful learning opportunities and play. For six weeks, the adult male mentors worked with the youth through the STEP process: Staying cool, Telling your point of view, Exploring other perspectives and Problem solving. Guided by PLC Facilitator Francesa “Frankie” Keesee, the Leadership League examined these steps through small group connection and conversation and hands-on activities. The Leadership League memorialized their time together by creating a Peace Pole that celebrates the four steps of conflict resolution.
This marks the fourth time since 2015 that the United States Attorney’s Office has worked in partnership with students from Daniel Webster School 46. Past projects include the Pledge Against Gun Violence, the You Are Beautiful Project, and the Courage Project. Permanent displays of this four-year partnership are located at Daniel Webster and at IMPD Southwest District Headquarters.
2018 mentors for this project include: IMPD Southwest District Officers Jason Morment and William Young, U.S. Attorney Minkler, Assistant United States Attorneys Kelly Rota, Barry Glickman, Peter Blackett, Nick Linder, Jeff Preston, Bob Wood and public information officer Tim Horty.
This project demonstrates the office’s continued commitment to confront the District’s gun violence epidemic by tailoring community outreach programs in schools to prevent violent crime. (See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.7)
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United States Attorney Shores’ Statement Regarding Diverted Delta Flight 1162Read the Press Release
U.S. Attorney Shores stated, “Today, a Delta flight traveling from Portland to Atlanta was diverted to Tulsa due to the alleged conduct of an unruly passenger. Federal Air Marshals on the plane successfully deescalated and controlled the situation, and the flight landed in Tulsa without further incident. The passenger-at-issue has been taken into custody. Law enforcement officials with the Federal Bureau of Investigation will investigate this matter moving forward. The Transportation Security Administration, Homeland Security Investigations, and Tulsa International Airport authorities assisted in the response and initial investigation.
The United States Attorney’s Office will review whether the alleged unruly conduct violated federal law. I am thankful no one was hurt and that the other passengers may resume their travel to their intended destination. I commend the Federal Air Marshals who reacted decisively in this situation. Their efforts – combined with the resulting joint investigation – remind us all that our local, state, and federal law enforcement partners are working together to ensure the safety and security of the traveling public.”
U.S. Attorney Mike Hurst and Other Law Enforcement Officials to Hold Press Conference to Announce the Results of an Extensive Operation in East Central MississippiRead the Press Release
Jackson, Miss. – U.S. Attorney Mike Hurst and other federal, state and local law enforcement officials will hold a press conference on THURSDAY, MAY 31, 2018 at 10:00 a.m. to announce the results of an extensive multi-level law enforcement investigation dubbed “Operation Highlife” targeting illegal narcotics distribution in East Central Mississippi.
WHEN: THURSDAY, MAY 31, 2018
10:00 A.M.
WHERE: United States Attorney’s Office
Fourth Floor Conference Room
501 East Court Street
Jackson, MS 39201
Two Men Sentenced to Federal Prison for Firearm Theft and ConspiracyRead the Press Release
DENVER – Calvin Terrell Stafford, age 23, and Napoleon Williams, age 24, both from Missouri, were sentenced today to serve 27 months in federal prison, followed by 3 years on supervised release, for conspiring to steal firearms from a Colorado gun store, and theft of firearms from a Colorado gun store, U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debbie Livingston announced. The defendants, who appeared at the sentencing hearing in custody, were remanded at its conclusion.
Both defendants were indicted by a federal grand jury on September 13, 2017. They pled guilty before U.S. District Court Judge Christine M. Arguello on February 6, 2018. They were sentenced today.
At approximately 3:00 a.m. on August 11, 2017, Stafford and Williams broke into a gun store in Springfield, Colorado. Stafford and Williams first attached a heavy chain to the door of the gun store and then used a truck to attempt to pull the door open. When that failed, Stafford and Williams broke the front window of the gun store, which set off the alarm. They stole nineteen firearms, including five rifles. Stafford and Williams then fled to Missouri where they sold some of the stolen weapons in exchange for marijuana and money. The defendants were apprehended later that same day by law enforcement.
“Breaking into a gun store in Colorado is a great way to get yourself straight into federal prison,” said U.S. Attorney Bob Troyer. “Colorado is a national leader when it comes to solving gun crime, thanks to our exceptional prosecutors and partnerships with the ATF and Colorado police and sheriffs.”
“As this case demonstrates, ATF works seamlessly across state lines to aggressively pursue criminals such as Stafford and Williams,” Debbie Livingston, ATF Denver Special Agent in Charge, said. “The collaboration we have with our ATF counterparts in Kansas City and St. Louis, as well as with the Springfield Police Department and the Baca County Sheriff’s Office, made the apprehension of these individuals possible. Together, we will continue to pursue such criminal elements and remove them from our communities.”
This case was investigated by the ATF with support from Springfield Police Department and other area law enforcement. The defendants were prosecuted by Assistant U.S. Attorneys Colleen Covell and Hetal J. Doshi.
CASE NUMBER: 18-cr-325
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Two Individuals Plead Guilty for Involvement in Opa Locka City Contract Bribery SchemeRead the Press Release
The former manager of a Miami-based licensed towing company (“the Towing Company”), and his father, who had a pending agreement to buy the Towing Company, pled guilty today to participating in a conspiracy to pay bribes in order to obtain a contract with the City of Opa Locka.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Raul Sosa Sr. (“Sosa Sr.”) and Raul Sosa Jr. (“Sosa Jr.”) pled guilty before United States District Judge Jose E. Martinez to conspiring to commit Federal programs bribery, in violation of Title 18, United States Code, Sections 371 and 666(a)(2) (Count 1 of the Superseding Indictment). Both men are scheduled to be sentenced on August 6, 2018 before Judge Martinez.
According to the court record, Sosa Sr. and Sosa Jr. conspired with then-Opa Locka City Commissioner Luis Santiago and his associate, Dante Starks, to pay Santiago and Starks a $10,000 bribe so that Santiago and Starks would use their positions and influence to ensure that the Towing Company was selected to receive a city towing contract.
The illegal agreement was finalized at an April 19, 2015 meeting between Sosa Sr., Santiago, and Starks, during which Sosa Sr. paid the first installment of the bribe and designated his son, Sosa Jr., as the person who would work with Santiago and Starks to carry out the illegal arrangement. Over the next month, Sosa Jr. made additional bribe payments with cash provided by Sosa Sr., and Starks arranged for an Opa Locka city employee to assemble and prepare the Towing Company’s bid package. After this bid was submitted, Starks violated the City’s purchasing Cone of Silence by contacting a member of the City’s committee ranking the towing bids and directing that individual to rank the Towing Company as the number one company. To complete the illegal arrangement, Santiago used his position as a City Commissioner to move and vote in favor of the June 24, 2015 resolution authorizing the City Manager to enter into towing contracts with the Towing Company and three other companies. The next day, Sosa Jr. paid the final installment of the $10,000 bribe to Starks.
In related cases, arising from the Opa Locka corruption investigation, Santiago previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20971-CR-WILLIAMS) and was sentenced to 51 months in prison. Starks is pending trial on charges of conspiracy to commit Hobbs Act extortion under color of official right; conspiracy to commit Federal programs bribery; aiding and abetting Federal programs bribery; and failure to file income tax returns (Case No. 18-20313-CR-MARTINEZ).
Mr. Greenberg commended the investigative efforts of the FBI Miami Area Corruption Task Force and IRS-CI in this matter. Mr. Greenberg thanked the Miami-Dade Police Department and Hialeah Police Department for their assistance. This case is being prosecuted by Assistant United States Attorneys Edward N. Stamm and Maurice Johnson.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Indiana Latin King Members Convicted of Conspiracy to Participate in Racketeering Activity, Including the Murder of a 15-Year Old BoyRead the Press Release
Two Lake County, Indiana men, both members of the Chicago-based Latin Kings, were convicted by a federal jury in the Northern District of Indiana of conspiracy to participate in racketeering activity and conspiracy to possess with intent to distribute and distribute cocaine, marijuana and alprazolam, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana.
Darrick Vallodolid aka Deuce, 28, of Hobart, Indiana and Robert Nieto aka Cowboy, 44, of Gary, Indiana were convicted after an 11-day jury trial before District Court Judge Philip P. Simon. The jury found that, as part of the racketeering conspiracy, on Sunday, April 12, 2009, Victor Lusinski, 15, of Lansing, Illinois, was riding a bicycle near an elementary school in Hammond, Indiana, when Vallodolid shot and killed him with a .22 caliber firearm, believing him to be a rival gang member. The evidence at trial showed that on Dec. 2, 2013, Rolando Correa, 22, of Gary, Indiana, was killed in Gary when coming to the aid of his next door neighbors, who were victims of a home invasion robbery which Nieto assisted in setting up and listened to a police scanner to assist in the escape of the robbers. The jury also found that Vallodolid and Nieto each conspired to distribute or possess with intent to distribute five kilograms or more of cocaine as part of the racketeering conspiracy and drug conspiracy. The jury also found that Vallodolid and Nieto each conspired to distribute or possess with intent to distribute 100 kilograms or more of marijuana as part of the drug conspiracy.
“The defendants participated in unspeakable violence on behalf of their vicious Latin Kings gang, including the senseless murder of a 15-year-old boy who was riding his bicycle near an elementary school in Hammond,” said Acting Assistant Attorney General Cronan. “These convictions further demonstrate the Department of Justice’s ongoing and unwavering commitment to attacking the scourge of gang violence on the streets of Chicago, Hammond, Gary, and throughout our country.”
“Reducing violent crime in Northern Indiana is a top priority of my office,” said U.S. Attorney Kirsch. “Yesterday’s guilty verdict of two killers for the Latin Kings street gang, along with the convictions of dozens of other violent gang members, will take them off of our streets and put them behind bars. My office and our federal, state, and local law enforcement partners will continue to aggressively prosecute gang members like Vallodolid and Nieto and take them off our streets.”
According to evidence presented at trial and case documents, approximately 43 defendants have been charged with racketeering conspiracy as members of the Latin Kings in a criminal conspiracy that spanned a time period from 2003 until November 2017. The racketeering conspiracy charge alleges that gang members and associates were participants in a racketeering conspiracy that involved murder, attempted murder, aggravated assault, sex trafficking, and narcotics distribution.
This case is the result of the investigative efforts of the ATF/HIDTA FIRE Task Force; the East Chicago Police Department; the FBI Gang Response Investigative Team; the Gary Police Department; the Hammond Police Department; the Lake County, Indiana Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office also has provided assistance. This case is being prosecuted by Assistant U.S. Attorneys David J. Nozick and Dean Lanter of the Northern District of Indiana along with Trial Attorney Joseph Cooley of the Criminal Division’s Organized Crime and Gang Section.
Two Indiana Latin King Members Convicted of Conspiracy to Participate in Racketeering Activity, Including the Murder of A 15-Year Old BoyRead the Press Release
WASHINGTON – Two Lake County, Indiana men, both members of the Chicago-based Latin Kings,were convicted by a federal jury in the Northern District of Indiana of conspiracy to participate in racketeering activity and conspiracy to possess with intent to distribute and distribute cocaine, marijuana and alprazolam, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana.
Darrick Vallodolid aka Deuce, 28, of Hobart, Indiana and Robert Nieto aka Cowboy, 44, of Gary, Indiana were convicted after an 11-day jury trial before District Court Judge Philip P. Simon. The jury found that, as part of the racketeering conspiracy, on Sunday, April 12, 2009, Victor Lusinski, 15, of Lansing, Illinois, was riding a bicycle near an elementary school in Hammond, Indiana, when Vallodolid shot and killed him with a .22 caliber firearm, believing him to be a rival gang member. The evidence at trial showed that on Dec. 2, 2013, Rolando Correa, 22, of Gary, Indiana, was killed in Gary when coming to the aid of his next door neighbors, who were victims of a home invasion robbery which Nieto assisted in setting up and listened to a police scanner to assist in the escape of the robbers. The jury also found that Vallodolid and Nieto each conspired to distribute or possess with intent to distribute five kilograms or more of cocaine as part of the racketeering conspiracy and drug conspiracy. The jury also found that Vallodolid and Nieto each conspired to distribute or possess with intent to distribute 100 kilograms or more of marijuana as part of the drug conspiracy.
“The defendants participated in unspeakable violence on behalf of their vicious Latin Kings gang, including the senseless murder of a 15-year-old boy who was riding his bicycle near an elementary school in Hammond,” said Acting Assistant Attorney General Cronan. “These convictions further demonstrate the Department of Justice’s ongoing and unwavering commitment to attacking the scourge of gang violence on the streets of Chicago, Hammond, Gary, and throughout our country.”
“Reducing violent crime in Northern Indiana is a top priority of my office,” said U.S. Attorney Kirsch. “Yesterday’s guilty verdict of two killers for the Latin Kings street gang, along with the convictions of dozens of other violent gang members, will take them off of our streets and put them behind bars. My office and our federal, state, and local law enforcement partners will continue to aggressively prosecute gang members like Vallodolid and Nieto and take them off our streets.”
According to evidence presented at trial and case documents, approximately 43 defendants have been charged with racketeering conspiracy as members of the Latin Kings in a criminal conspiracy that spanned a time period from 2003 until November 2017. The racketeering conspiracy charge alleges that gang members and associates were participants in a racketeering conspiracy that involved murder, attempted murder, aggravated assault, sex trafficking, and narcotics distribution.
This case is the result of the investigative efforts of the ATF/HIDTA FIRE Task Force; the East Chicago Police Department; the FBI Gang Response Investigative Team; the Gary Police Department; the Hammond Police Department; the Lake County, Indiana Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office also has provided assistance. This case is being prosecuted by Assistant U.S. Attorneys David J. Nozick and Dean Lanter of the Northern District of Indiana along with Trial Attorney Joseph Cooley of the Criminal Division’s Organized Crime and Gang Section.
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18-706
Two Greenville Georgia Residents Plead GuiltyRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces the guilty plea to Possession with Intent to Distribute Methamphetamine entered by Kevin Alford, age 41 of Greenville, Georgia, before the Honorable Leslie J. Abrams, U.S. District Court Judge sitting in Albany, Georgia on May 16, 2018. This plea subjects Mr. Alford to a minimum mandatory term of imprisonment of ten (10) years and a maximum term of imprisonment for life, a fine of up to ten million dollars, or both.
In addition to the plea of Mr. Alford, Donna Parks, age 37 also of Greenville, Georgia, pled guilty to Possession of a Firearm by a Convicted Felon, which charge arose from the same incident as that leading to Mr. Alford’s indictment and plea. Her guilty plea subjects Ms. Parks to a sentence of not less than ten (10) years imprisonment a maximum fine of $250,000.00, or both.
According to court records, a cooperating witness, who had previously been provided methamphetamine by Mr. Alford, set up a meeting with Mr. Alford in Leesburg, Lee County, Georgia, at the FairFax Motel, to take delivery of more methamphetamine. DEA agents contacted Lee County Sheriff’s Office personnel to advise them of the anticipated arrival of Mr. Alford. The Lee County Deputies set up surveillance to await Mr. Alford’s arrival at the motel. As anticipated, Mr. Alford arrived in a rental vehicle accompanied by Donna Parks. A search of the vehicle uncovered methamphetamine, marijuana, multiple cell phones, and a loaded .38 caliber Smith and Wesson revolver.
Both Mr. Alford and Ms. Parks are convicted felons. After being advised of his Miranda rights and waiving the same, Alford acknowledged his multiple prior felony convictions and provided limited details into his drug distribution operation. Ms. Parks admits that she was in joint possession of the firearm along with Mr. Alford.
Search warrants were obtained for the cell phones recovered which contained numerous text messages between Mr. Alford and unknown persons regarding the acquisition and distribution of quantities of drugs. The methamphetamine was submitted for laboratory analysis and found to weigh 330 grams and be 95% pure d-methamphetamine hydrochloride.
“Convicted felons carrying guns and selling drugs are just the type of criminals that the Project Safe Neighborhoods initiative is designed to remove from our communities,” said United States Attorney Peeler. “My office shall prosecute all such cases with all appropriate vigor to help alleviate the dual scourges of gun violence and drug addiction afflicting our society.”
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 was investigated by the Drug Enforcement Administration and the Lee County Sheriff’s Office. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Three Additional Members of Heroin Drug Trafficking Organization Plead GuiltyRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that Harold Omar Vargas-Delgado (33, Kissimmee), Cary Mitchelle Vargas-Delgado (34, Orlando), and Angel Ruben Maldonado, Jr. (42, Orlando) today pleaded guilty to charges related to their involvement in multiple conspiracies to distribute heroin throughout central Florida. In addition, Harold Omar Vargas-Delgado pleaded guilty to possessing with the intent to distribute a kilogram or more of heroin, possessing a firearm as a convicted felon, and possessing a firearm in furtherance of a drug trafficking crime.
Harold Omar Vargas-Delgado faces a maximum penalty of life in federal prison. Cary Mitchelle Vargas-Delgado faces a maximum penalty of 40 years in federal prison, and Angel Ruben Maldonado, Jr. faces a maximum sentence of 20 years in federal prison.
Previously, two other members of the drug trafficking organization, Eliazer Cruz (52, Kissimmee) and Hector Pabellon Nunez (51, Kissimmee), pleaded guilty to conspiracy to distribute heroin. Cruz faces a maximum penalty of 20 years in federal prison, and Nunez faces a maximum penalty of 40 years in federal prison.
According to the defendants’ plea agreements, in March 2016, law enforcement received an anonymous tip about a heroin drug trafficking organization (“DTO”) operating in the central Florida area. On six occasions, between October 2016 and May 2017, an undercover officer (“UC”) purchased approximately 111 grams of heroin from Cary Mitchelle Vargas-Delgado, Harold Omar Vargas-Delgado’s sister. During one of those transactions, Cary Mitchelle Vargas-Delgado, speaking in Spanish, discussed with the UC the high quality of the heroin and that it was “uncut.” She said that since the heroin was “pure,” the UC would be able to “work it” and make more money.
Law enforcement also learned that the DTO distributed kilogram amounts of heroin weekly to other groups and individuals around Florida. Harold Omar Vargas-Delgado provided large, distribution amounts of heroin to his sister. She then distributed gram amounts of heroin to others, including Angel Maldonado, Cruz, and Nunez, who would then further aid in the distribution of that heroin to other users.
On October 20, 2017, law enforcement officers executed a search warrant at Harold Omar Vargas-Delgado’s home in Kissimmee and seized 2.8 kilograms of heroin laced with fentanyl, along with a brick/kilogram press; a heat sealer; approximately $16,000 in cash; men’s jewelry, including watches, valued at over $100,000; six cellphones; two 50-round ammunition magazine drums; two respirator masks; a hydraulic jack; and a money counter. They also seized eleven firearms, three of which had been reported stolen, and several additional magazines of ammunition. Some of the firearms were recovered from secret compartments that had been custom built into several of the vehicles parked at the home.
Also on October 20, 2017, law enforcement officers arrested Cary Mitchelle Vargas-Delgado and seized from inside her home $6,238 in cash, a .380 caliber firearm, a scale, several small baggies, and several cellphones.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Osceola County Bureau of Investigation, and the Kissimmee Police Department. It is being prosecuted by Assistant United States Attorney Sean P. Shecter.
Texas Man Pleads Guilty to Federal Cocaine Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Jonathan Morales, 24, of El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to cocaine trafficking charges arising from the seizure of 1.72 kilograms (3.8 pounds) of cocaine at the U.S. Border Patrol Checkpoint near Las Cruces.
The U.S. Border Patrol and HSI arrested Morales in Nov. 2017, on a criminal complaint charging him with possessing 1.72 kilograms of cocaine with intent to distribute. According to the complaint, U.S. Border Patrol agents seized the cocaine from Morales and a passenger who was in his vehicle when they entered the U.S. Border Patrol Checkpoint on I-25 near Las Cruces in Dona Ana County, N.M.
Morales subsequently was indicted on Feb. 21, 2018, and was charged with conspiracy and possession of cocaine with intent to distribute on Nov. 1, 2017 in Dona Ana County. During today’s proceedings, Morales entered a guilty plea to the indictment without the benefit of a plea agreement.
At sentencing, Morales faces an enhanced penalty of a statutory mandatory minimum term of imprisonment of ten years and a maximum of life, instead of the otherwise applicable five to 40 years of imprisonment, because of his prior felony drug trafficking conviction. Morales remains in federal custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Homeland Security Investigations and the U.S. Border Patrol, and is being prosecuted by Special Assistant U.S. Attorney Joni L. Autrey and Assistant U.S. Attorney Renee L. Camacho.
Stamford Man Sentenced to 5 Years in Federal Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RICHARD ROTANTE, 57, of Stamford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, on August 18, 2017, Stamford Police arrested ROTANTE on the basis of three sales of cocaine that ROTANTE had made to an individual cooperating with law enforcement. On that date, a search of ROTANTE’s person, residence and two of his vehicles revealed approximately 1.5 kilograms of cocaine, items used to process and package narcotics, and $68,923 in cash.
On December 5, 2017, ROTANTE pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine.
ROTANTE has a previous federal conviction for distributing cocaine. On April 25, 2007, he was sentenced in New Haven federal court to 12 months and one day of imprisonment, eight months of home confinement, and a fine of $3,500.
ROTANTE, who is released on a $150,000 bond, was ordered to report to prison on July 11, 2018.
This matter was investigated by the Stamford Police Department and the Federal Bureau of Investigation, with the assistance of the Stamford State’s Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Sarah Karwan.