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23 May 2018
One Federal Inmate Pleads Guilty, Another Indicted in Fort Dix Prison Child Pornography RingRead the Press Release
CAMDEN, N.J. – A Tennessee man became the seventh defendant to plead guilty while a Massachusetts man was indicted in connection to a child pornography ring at Federal Correctional Institution Fort Dix that was operated by inmates who were imprisoned for related offenses, U.S. Attorney Craig Carpenito announced.
Charles Wesley Bush, 38, of Knoxville, Tennessee, pleaded guilty today before Senior U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of possession of child pornography.
William H. Noble, 52, of Lowell, Massachusetts, was charged by indictment today with conspiracy to receive and distribute child pornography, receipt of child pornography, distribution of child pornography, possession of child pornography, and accessing child pornography with intent to view on federal property. He will be arraigned at a later date.
According to documents filed in this case and statements made in court:
Bush admitted that he possessed a micro SD Card containing 2,471 images and 95 videos of child pornography, including depictions of sexual abuse of pre-pubescent children, bestiality, and sadistic and masochistic conduct. In connection with his plea, Bush also admitted that he used a cellular telephone inside the prison to obtain and possess child pornography and that he knowingly engaged in the distribution of child pornography by agreeing to transfer the micro SD card to another inmate.
Noble allegedly transferred the same micro SD card to a government informant at FCI-Fort Dix on April 19, 2017. Noble allegedly downloaded the child pornography himself and with the assistance of another inmate in the prison. Noble previously pleaded guilty in the District of Massachusetts to transportation and distribution of child pornography and was serving an 81-month sentence with a scheduled release date of March 8, 2018 at the time the alleged offenses were committed. He is currently in custody pending trial on the charges in today’s indictment.
At sentencing, Bush faces a mandatory minimum term of 10 years in prison and a lifetime of supervised release. Bush’s sentencing is scheduled for Sept. 10, 2018.
If convicted, Noble faces mandatory minimum terms of 10 and 15 years in prison, a potential maximum of 40 years in prison, and a lifetime of supervised release. The pending charges and allegations against Noble are merely accusations, and he is presumed innocent unless and until proven guilty.
Bush, Noble, and six other inmates were arrested in April 2017 and February 2018 following an FBI investigation involving multiple covert recordings and several cooperating inmates. The investigation revealed that Bush, Noble, and other inmates utilized contraband cellphones, micro SD cards, and access to the internet to obtain, view, and distribute child pornography within the prison. A co-defendant organized and helped facilitate this criminal activity by maintaining cloud accounts that were used as repositories for child pornography.
Five other inmates – Anthony C. Jeffries, 32, of Orange, Virginia, Jordan T. Allen, 31, of Plain City, Ohio, Brian J. McKay, 47, of Brookhaven, Pennsylvania, Jacob S. Good, 26, of Fredericksburg, Virginia, and Christopher D. Roffler, 30, of Virginia Beach, Virginia – have also pleaded guilty to possession of child pornography and await sentencing.
A sixth inmate, Erik M. Smith, 36, of Iron Mountain, Michigan, pleaded guilty to the same charge and was sentenced on May 7, 2018 to an additional 151 months in prison.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officials of the Bureau of Prisons at Federal Correctional Institution Fort Dix for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel:
Bush: David Rudenstein Esq., Philadelphia
Noble: Martin Isenberg, Esq., Gibbsboro, New JerseyNigerian Man Using False Identification Convicted in Scheme to Commit Disaster FraudRead the Press Release
HOUSTON ‐ A man using a false identification has entered a guilty plea in a scheme to obtain a fraudulent government loan for damage sustained from Hurricane Irma, announced U.S. Attorney Ryan K. Patrick.
Oluseyi Jeremiah Olagoke Adebayo aka Jeremiah Adebayo Oluyesi, 44, a Nigerian man who illegally resided in Houston, pleaded guilty to fraud in connection with a major disaster. He admitted that from October 2017 to February 2018, he used the identification of an Orlando, Florida, resident in an attempt to obtain a fraudulent disaster home loan from the Small Business Administration (SBA) in connection to Hurricane Irma.
The SBA provides long-term low-interest loans to businesses and non-profit organizations in the aftermath of a declared disaster. Loan proceeds are to be used solely for the repair or replacement of real estate, inventory, supplies, machinery and equipment damaged during a declared disaster. Hurricane Irma impacted the Gulf Coast region, including the state of Florida, and was declared a disaster in September 2017.
Adebayo admitted he aided and abetted others in submitting an application to the SBA in October 2017 for a $118,900 home disaster loan which contained several potential fraud indicators. Further, Adebayo admitted he attempted to collect on the loan for the Florida property.
Adebayo appeared at a U.S. Post Office in Houston on Feb. 7, 2018, to obtain the fraudulent loan disbursement check. At that time, he used a counterfeit passport with the identification of the Florida resident to obtain the check. At that time, he was also found in possession of a counterfeit U.S. visa.
U.S. District Judge Gray Miller accepted the plea and set sentencing for Aug. 16, 2018, at which time Adebayo faces up to 30 years in prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
SBA-Office of Inspector General and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.
New York Woman Pleads Guilty to Trafficking over $3 Million in Counterfeit Footwear and Handbags Through Port of NewarkRead the Press Release
NEWARK, N.J. – A Flushing, New York, woman today admitted her plan to distribute counterfeit Nike sneakers, Louis Vuitton handbags, and other phony merchandise that was shipped into the Port of Newark, U.S. Attorney Craig Carpenito announced.
Xiao Xia Zhao, 41, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging her with one count of trafficking in counterfeit goods. Zhao was originally arrested and charged by complaint on June 23, 2017.
According to documents filed in this case and statements made in court:
From November 2013 through February 2017, Zhao received certain shipping container numbers from an individual overseas that identified at least three containers containing counterfeit merchandise. Zhao asked individuals working at the Port of Newark to remove the containers from the port before they could be examined by U.S. Customs and Border Protection. Once the containers were removed, Zhao directed that they be delivered to other individuals, who would then distribute the merchandise in New Jersey and elsewhere.
However, law enforcement intercepted the containers before Zhao could distribute the goods. At no time was Zhao authorized to import Nike footwear, Louis Vuitton handbags, or any of the other counterfeit merchandise in the containers.
In total, Zhao trafficked in thousands of pairs of fake Nike footwear, Louis Vuitton handbags, and other counterfeit items, with a total estimated retail value of over $3 million. Zhao also paid individuals over $75,000 in exchange for the delivery of the containers.
The trafficking in counterfeit goods charge carries a maximum potential penalty of 10 years in prison and a $2 million fine. Zhao’s sentencing is scheduled for Sept. 5, 2018.
U.S. Attorney Carpenito credited officers of U.S. Customs and Border Protection, under the direction of Leon Hayward, Acting Director, New York Field Operations; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark
New Hampshire Man Sentenced for Role in Lawrence-Based Opioid Trafficking ConspiracyRead the Press Release
BOSTON – A New Hampshire man was sentenced yesterday in federal court in Boston for his role in a widespread heroin and fentanyl trafficking conspiracy operating in Lawrence.
Melvin Weatherspoon, 58, of Rochester, N.H., was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to time served and three years of supervised release. In October 2017, Weatherspoon pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine and fentanyl.
On May 30, 2017, after a year-long investigation aimed at attacking the fentanyl and heroin crisis in Lawrence and surrounding areas, federal, state and local law enforcement officers executed a federal drug sweep to dismantle a Lawrence-based drug trafficking organization allegedly run by Juan Anibal Patrone. Weatherspoon was arrested and charged along with Patrone and dozens of co-conspirators.
Weatherspoon obtained heroin and fentanyl from Patrone and redistributed it to his own customers in New Hampshire.
Patrone has pleaded not guilty and is awaiting trial.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Lawrence Police Chief Roy P. Vasque made the announcement. The DEA Cross Border Initiative, comprised of the DEA and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments, conducted the investigation jointly with the Massachusetts State Police. Assistant U.S. Attorney Susan Winkler of Lelling’s Narcotics and Money Laundering Unit is prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Multi-Million-Dollar Gift-Card Fraud Leads to More Than Fifteen Years PrisonRead the Press Release
OKLAHOMA CITY – LEONARD RAY FOSTER, 48, of Oklahoma City, has been sentenced to 188 months in prison for fraud and money laundering in connection with a scheme to defraud retailers of millions of dollars through gift cards, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
According to charges filed on October 31, 2017, Foster owned and operated Acquisitions Unlimited, LLC, also known as A-to-Z Giftcards. This business bought unused or partially used retail gift cards, also known as store value cards, for a fraction of the cards’ face value. With Foster’s personal involvement, the business then sold the value on the cards to Giftcard Zen, an online retail gift card exchange based in Phoenix, Arizona.
According to the charges, from May 2015 to March 2017, individuals affiliated with Foster or his business shoplifted large quantities of high-dollar items from retail stores, including Walmart, Lowe’s, Target, and Home Depot. They then returned these stolen items, without a receipt, to the retailer for a store value card in the amount of the returned merchandise. Each day, Foster purchased multiple cards from these individuals for a small fraction of the cards’ face values. He knew the cards had been obtained through fraud. Indeed, Foster sometimes directed the shoplifters himself. Through A-to-Z Giftcards, he then sold the face value on the cards to Giftcard Zen, in violation of terms of service that prohibited selling store value cards obtained through fraud.
Foster was charged with wire fraud in connection with a $59,035.38 transfer on December 9, 2015, from Giftcard Zen’s out-of-state bank to an account of Acquisitions Unlimited at Bank of America in Oklahoma. He was also charged with money laundering, based on a December 10, 2015, withdrawal from Bank of America in the amount of $18,000.
Foster pleaded guilty to both wire fraud and money laundering on November 3, 2017. On November 22, 2017, the court revoked his bond based on a positive test for the use of methamphetamine. He has been in federal custody since that date.
Today U.S. District Judge David L. Russell sentenced Foster to 188 months in prison, to be followed by three years of supervised release. He must pay $7,025,681.29 in restitution to retailers. The court also ordered forfeiture of a 1969 Mustang and more than $20,000 in various bank accounts. Foster will also be subject to a forfeiture money judgment in the amount of $3,142,500.
This case is the result of an investigation by the Oklahoma City Police Department, the Internal Revenue Service–Criminal Investigations, and the United States Postal Inspection Service. It was prosecuted by Assistant U.S. Attorneys Julia E. Barry, Ashley L. Altshuler, and Wilson McGarry.
Reference is made to court records for further information.
Mingo County Woman Pleads Guilty for Role in Pharmacy TheftRead the Press Release
CHARLESTON, W.Va. - United States Attorney Mike Stuart announced that Marcia Evans, 60, of Gilbert, pled guilty in federal court to conspiracy to distribute the controlled substance Suboxone. Stuart praised the investigation conducted by the Drug Enforcement Administration with assistance from the West Virginia Board of Pharmacy.
“The largest pharmacy theft in West Virginia since records have been maintained,” said United States Attorney Mike Stuart. “Apparently, wisdom doesn’t always come with experience. The opiate crisis, including suboxone, comes in all shapes and sizes. Young and old. Rich and poor. Suboxone, like other opiates, has had a devastating effect on families all over West Virginia, and now this 60-year-old woman must may the price for her terrible judgment.”
As part of her plea, Evans admitted her role in what the West Virginia Board of Pharmacy has called the largest pharmacy theft in West Virginia since records have been maintained by the Board. Evans was previously employed as a pharmacy technician at Riverside Pharmacy in Gilbert. Evans admitted that from 2014 to September 2016, she conspired with others to take Suboxone and Xanax from the supply at the pharmacy. In order to conceal the shortage of controlled substances, Evans manipulated the controlled substance count in the pharmacy’s computers. An audit was performed comparing shipment records with distribution records at the pharmacy, and a shortage of over 23,000 dosage units of Suboxone and over 137,000 dosage units of Xanax was revealed. Evans further admitted that she sold some of the Suboxone she stole from the pharmacy. In a related prosecution, Evans’ coconspirator, Kimberly McCoy, also admitted to her role in stealing Suboxone and Xanax from Riverside Pharmacy. McCoy previously pled guilty to obtaining Suboxone by fraud.
When she is sentenced on October 2, 2018, Evans faces up to10 years in prison. McCoy faces up to 4 years in prison when she is sentenced on August 29, 2018.
United States District Court Judge David A. Faber is presiding over the cases which are being handled by Assistant United States Attorney Haley Bunn. These investigations are the result of the formation of the Opioid Fraud Abuse and Detection Unit (OFADU), a Department of Justice initiative that uses data to identify and prosecute individuals that are contributors to the national opioid crisis. The Southern District of West Virginia is one of 12 districts nationally to participate in the pilot program.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Mexican National Sentenced for Cocaine TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Mexican national, stopped en route from Arizona to Ohio, was sentenced in federal court today for possessing at least five kilograms of cocaine with the intent to distribute.
Adriana Gutierrez-Ramirez, also known as Adriana Peralta, 43, a citizen of Mexico residing in Phoenix, Ariz., was sentenced by U.S. District Judge M. Douglas Harpool to 10 years and one month in federal prison without parole.
Gutierrez-Ramirez was found guilty at trial on Dec. 5, 2017. Co-defendant Luis J. Duarte, 60, also a citizen of Mexico residing in Phoenix, pleaded guilty to possessing at least 500 grams of cocaine with the intent to distribute and was sentenced on Jan. 24, 2018, to 29 months in prison.
Duarte was driving a 2016 Ford F350 cargo utility truck, with Gutierrez-Ramirez in the passenger seat, when they were stopped by a state trooper on I-44 in Strafford, Mo., on Feb. 25, 2017. Duarte had rented the truck in Phoenix two days earlier for a one-way trip.
When the trooper searched the vehicle, he found a kilogram-sized package of cocaine inside a cardboard box containing clothing in the cargo area of the truck and placed Duarte and Gutierrez-Ramirez under arrest. Four more kilogram-sized packages of cocaine were found during a search of the vehicle after it was transported to headquarters.
Duarte admitted that he was solicited by an unidentified person to drive the truck to Ohio. That person gave Duarte $1,500 to rent the truck and for expenses during the trip. Duarte told investigators he was unsure how much he was being paid for the trip but expected to receive payment when he reached the destination. When Duarte picked up the truck, Gutierrez-Ramirez – whom he had never met – was already sitting inside.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Missouri State Highway Patrol.
Methuen Man and Dominican National Charged with Fentanyl ConspiracyRead the Press Release
BOSTON – A Methuen man and a Dominican national were indicted today in federal court in Boston in connection with a fentanyl trafficking conspiracy.
Carlos Torres, 26, of Methuen, was charged with one count of conspiracy to distribute 400 grams or more of fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime. Carlos Rodriguez, 19, a Dominican national, residing in Lawrence, was charged with one count of conspiracy to distribute 40 grams or more of fentanyl. Both men were arrested on April 19, 2018, and charged in a criminal complaint.
According to court documents, on April 19, 2018, investigators received information that Rodriguez would be delivering fentanyl in the Lawrence area. After stopping Rodriguez, investigators seized approximately 150 grams of fentanyl from him. Pursuant to a search warrant at Torres’ residence, investigators seized approximately 700 grams of fentanyl, a firearm and ammunition.
The charge of conspiracy to distribute 40 grams or more of fentanyl provides for a minimum mandatory sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. The charge of conspiracy to distribute 400 grams or more of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release, and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Andover Police Chief Patrick Keefe; Lawrence Police Chief Roy Vasque; and Methuen Police Chief Joe Solomon made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Meridian Man Pleads Guilty to Attempted Coercion and EnticementRead the Press Release
BOISE – Bruce Eugene Froman, 41, of Meridian, pleaded guilty yesterday in United States District Court to attempted coercion and enticement, U.S. Attorney Bart M. Davis announced. As part of his plea, Froman also agreed to forfeit the cell phone used in the commission of the charged offense.
According to the plea agreement, in March of 2018, detectives with the Idaho Internet Crimes Against Children (ICAC) Task Force posted an advertisement on Craigslist stating a mother and daughter were looking for a “mature man for play.” Froman responded to the advertisement. An ICAC detective represented himself to be a 35-year-old woman with a 15-year-old daughter “looking for a respectful man to come and teach her some stuff.” Froman stated his desire to have sexual contact with the 15-year-old. Froman made numerous statements to the purported mother and the 15-year-old daughter attempting to persuade, induce, and entice the 15-year-old to engage in sexual contact.
Froman agreed to come to the residence of the purported 15-year-old to engage in sexual contact with her. When he arrived at the residence, detectives arrested him. They seized a cell phone from his vehicle, and later discovered the text messages between Froman and the purported mother and daughter. Froman admitted he “gave into his deviant thoughts,” and admitted sending messages indicating his intent to engage in sexual contact with a 15-year-old.
Sentencing is set for August 14, 2018, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
Attempted coercion and enticement is punishable by not less than 10 years and up to life imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $5,100 special assessment.
This case was investigated as part of a joint operation conducted by the Department of Homeland Security, the Idaho Internet Crimes Against Children (ICAC) Task Force, the United States Attorney’s Office, the Ada County Prosecutor’s Office, the Ada County Sheriff’s Office, the Boise Police Department, the Bureau of Alcohol, Tobacco, and Firearms, the Canyon County Sheriff’s Office, the Canyon County Prosecutor’s Office, the Federal Bureau of Investigation, the Garden City Police Department, the United States Marshal’s Service, and the United States Postal Inspectors Service.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Medical Office Manager Sentenced to 14 Years in Federal Prison for Leading Oxycodone Distribution RingRead the Press Release
PHILADELPHIA – A Bucks County medical office manager was sentenced yesterday to 14 years in prison by U.S. District Judge Gerald Pappert for his role in a conspiracy to distribute oxycodone and for health care fraud, announced U.S. Attorney William M. McSwain.
Michael Milchin, 37, of Philadelphia, the manager of Central Bucks Health Associates, was charged in 2017 with conspiring with 13 other defendants to fill hundreds of fraudulent prescriptions for oxycodone at various pharmacies in and around Philadelphia. Milchin then sold the fraudulently obtained pills to others. While the fraudulent prescriptions purported to be written by a physician with Central Bucks Health Associates, the physician in question had no affiliation with Central Bucks Health Associates and never authorized any of the prescriptions
“It is crimes like this that are perpetuating the opioid epidemic,” said U.S. Attorney McSwain. “Opioid abuse is killing people. It’s tearing apart families and ruining lives. As the court found, the defendant was driven only by greed, without regard to the public health hazard he was creating. My office will continue to aggressively investigate and prosecute any criminal scheme that contributes to the opioid epidemic.”
Milchin also worked with a chiropractor to defraud private insurance companies, Independence Blue Cross and Aetna, by billing those insurers more than $700,000 for chiropractic services that were never provided.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
McClelland, Iowa Man Sentenced to Prison for Tax EvasionRead the Press Release
COUNCIL BLUFFS, Iowa-- On May 11, 2018, United States District Court Judge Stephanie M. Rose sentenced Michael Collins, age 49, of McClelland, to one year and one day of imprisonment for tax evasion, announced United States Attorney Marc Krickbaum. Collins was ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $70,274.14 and pay a fine of $34,770. Collins will serve a three year term of supervised release following his prison term.
Collins pleaded guilty to tax evasion on December 21, 2017. According to documents and information provided to the Court, Collins was part-owner of a real-estate development firm that earned significant income in 2006. As a result of his ownership in the company, Collins received approximately $289,000 in income that year, but did not report it on his individual income tax return. In 2008, the IRS contacted Collins regarding the unreported income and Collins filed an amended return reporting the income and reflecting a tax due of more than $100,000. However, Collins did not pay the tax liability.
From 2006 through the present, Collins also operated an excavating and trucking company that generated more than $5.5 million in gross receipts. To evade payment of his outstanding tax liability, Collins registered the business as well as its bank accounts in the name of nominees, used nominee entities to conceal over $5 million in gross receipts from the business, filed fraudulent corporate tax returns that listed nominees as the owners of the business and paid his personal expenses using the business’ unreported income. Collins also filed fraudulent documents with the IRS claiming to have no gross business receipts for the company and falsely told IRS employees that his only source of income was unemployment benefits. He admitted to causing a tax loss of more than $250,000.
This case was prosecuted by Department of Justice, Tax Division Trial Attorneys Matthew Hoffman and Lee Langston and was investigated by Special Agents of Internal Revenue Service Criminal Investigation.
May Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 22 indictments charging 25 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Nelson Jeovanny Chavez, age 33, is charged with illegal reentry after deportation following an aggravated felony conviction on or about May 10, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* William Daugherty, age 26, Lonnie Arthaloney, age 53, Ramon Ceballo Gaspar, and Omar Rodriguez Lopez, age 30 are charged in a four-count Indictment. Count I charges the defendants with conspiracy to distribute 500 grams, or more of a mixture or substance containing methamphetamine beginning on or about December 1, 2017, and continuing to on or about April 26, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count II charges Ceballo Gaspar with possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine on or about April 24, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count III charges Daugherty and Arthaloney with possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine on or about April 24, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count IV charges Rodriguez Lopez with possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine on or about April 26, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about April 26, 2018.
* Hernan Equiarte Salcido, age 55, is charged with illegal reentry after deportation following an aggravated felony conviction on or about May 6, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Robert S. Goldman, age 60, of Palm Desert, California is charged in a five-Count Indictment with Wire Fraud on or about January, 2016, and continuing through at least on or about August, 2017. The Indictment alleges Goldman defrauded financial institutions causing losses of $221,414. The maximum possible penalty if convicted is 20 years imprisonment for each count, a $250,000 fine for each count, a 5 year term of supervised release for each count, and a $100 special assessment for each count.
* Julio Cesar Gonzalez-Hernandez, age 42, is charged with illegal reentry after deportation on or about May 7, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose Guzman-Ramirez, age 26, of Omaha, is charged in a two-count Indictment. Count I charges the defendant with conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine beginning on or about April 1, 2018, and continuing to on or about April 26, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine on or about April 26, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about April 26, 2018.
* Brenda K. Harmon, age 35 is charged in a twelve-count Indictment. Count I charges the defendant with conspiracy to distribute 50 grams or more of methamphetamine beginning on or about January 27, 2018, and continuing to on or about April 27, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count II charges the defendant with distribution of a mixture or substance containing methamphetamine on or about January 12, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. Count III charges the defendant with distribution of a mixture or substance containing methamphetamine on or about January 23, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. Count IV charges the defendant with possession with intent to distribute a mixture or substance containing methamphetamine on or about February 1, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. Count V charges the defendant with possession with intent to distribute 5 grams or more of methamphetamine on or about February 8, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count VI charges the defendant with distribution of 5 grams or more of methamphetamine on or about February 16, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count VII charges the defendant with distribution of 5 grams or more of methamphetamine on or about March 2, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count VIII charges the defendant with distribution of 5 grams or more of methamphetamine on or about March 13, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count IX charges the defendant with distribution of 5 grams or more of methamphetamine on or about March 23, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count X charges the defendant with conspiracy to distribute 50 grams or more of methamphetamine on or about April 6, 2018. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, NLT 5 year term of supervised release, and a $100 special assessment. Count XI charges the defendant with possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine on or about April 27, 2018. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, NLT 4 year term of supervised release, and a $100 special assessment. Count XII of the Indictment charges the defendant with using, carrying, or possessing a firearm in connection with a drug trafficking crime on or about April 27, 2018. The maximum possible penalty if convicted is Life consecutive imprisonment, a $250,000 fine, up to a 5 year term of supervised release and $100 special assessment.
* Salvador Herrera-Vargas, age 40, of Lincoln is charged with illegal reentry after deportation on or about May 7, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Robert Eugene Huff, age 69, of Chico, California, is charged in a two-count Indictment. Count I charges the defendant with using any facility in interstate commerce to promote or to distribute the proceeds of a business enterprise involving the distribution of controlled substances beginning on or about January 1, 2016, and continuing to on or about December 19, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with conspiracy to distribute 50 kilograms or more of a mixture or substance containing marijuana beginning on or about January 1, 2016, and continuing to on or about December 19, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, NLT 3 year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency and a Ford F-350 truck seized on or about December 19, 2017.
* Kenneth S. Jones, age 37, is charged with Hobbs Act robbery taking jewelry by force from Pretty in Patina on or about February 17, 2018. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Luis Angel Lepes Chavez, age 28, is charged with illegal reentry after deportation on or about April 19, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Oscar Martinez Diaz, age 49, of Omaha, is charged with illegal reentry after deportation following a felony conviction on or about May 8, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Ernesto Morales-Martinez, age 40, is charged with illegal reentry after deportation on or about April 19, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose Manuel Ortega-Hernandez, age 26, of Lincoln is charged with illegal reentry after deportation on or about May 9, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Victor Palos Ortiz, age 37, of Lincoln is charged with illegal reentry after deportation on or about May 7, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ismael Pena Velazquez, age 40, of Omaha, is charged with illegal reentry after deportation following a felony conviction on or about May 15, 2018. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Ronald Pryor, age 53, is charged with felon in possession of a firearm on or about March 29, 2018. The maximum possible penalty if convicted is NMT 10 years imprisonment, a $250,000 fine, a NMT 3 year term of supervised release, and a $100 special assessment.
* Felipe Samuel-Gomez, age 31, of Grand Island, Nebraska is charged with illegal reentry after deportation on or about April 9, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose Manuel Uribe-Espino, age 26, is charged with illegal reentry after deportation on or about April 19, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Albino Velasquez Domingo, age 46, of Omaha is charged with illegal reentry after deportation on or about May 9, 2018. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Sebastian Velasquez-Ramos, age 43, is charged in a six-count Indictment. Count I charges the defendant with falsely representing a Social Security number on or about May 18, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraud and misuse of a Social Security number on or about May 18, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III charges the defendant with falsely claiming to be a United States citizen on or about May 18, 2017. The maximum possible penalty if convicted is 3 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV charges the defendant with aggravated identity theft on or about May 18, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count V charges the defendant with falsely claiming to be a United States citizen on or about November 17, 2017. The maximum possible penalty if convicted is 3 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count VI charges the defendant with aggravated identity theft on or about November 17, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Samuel Villalba, age 33, is charged in a three-count Indictment. Count I charges the defendant with falsely representing a Social Security number on or about February 2, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraud and misuse of a Social Security number on or about February 2, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III charges the defendant with falsely claiming to be a United States citizen on or about February 2, 2017. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Massachusetts Resident Detained for Allegedly Attempting to Entice a Minor and Attempting to Engage in Illicit SexRead the Press Release
PROVIDENCE, RI – A Massachusetts man has been ordered detained on a federal criminal complaint charging him with attempting to entice a minor, attempting to transfer obscene material to a minor, and traveling to Rhode Island with the intent to engage in illicit sexual conduct.
Cody J. Hansen, 34, of Orange, MA, was arrested on Tuesday by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force when he arrived at a designated location where he believed he would meet with a person who would assist him in meeting with and have sexual contact with a 12-year-old and an 8-year-old girl.
Hansen was ordered detained pending further proceedings by U.S. District Court Magistrate Judge Patricia A. Sullivan. A continuation of a detention hearing has been scheduled for May 30, 2018.
Hansen’s arrest and detention are announced by United States Attorney Stephen G. Dambruch, Rhode Island State Police Superintendent Colonel Ann C. Assumpico, and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
According to court documents, it is alleged that on April 20, 2018, a Rhode Island State Police trooper assigned to the ICAC Task Force discovered an online classified advertisement of an individual seeking to engage in illicit sexual activity. The trooper responded in an undercover capacity, first posing as the boyfriend of a woman with two minor children, age 8 and 12, then as the 12-year-old girl. It is alleged that the conversation turned sexually explicit, and, during one of many email exchanges, Hansen allegedly sent a sexually explicit picture to the person he thought to be the 12-year-old girl.
According to court documents, it is alleged that on Monday, Hansen and the Rhode Island State trooper, again posing as the boyfriend of the mother of the two children, spoke by telephone to confirm arraignments for Hansen to travel to Rhode Island to meet with and engage in illicit sexual contact with the two minor girls. The two men exchanged text messages on Tuesday to again confirm the details of the meeting. When Hansen arrived at the designated location on Tuesday, he allegedly entered the state police trooper’s undercover vehicle and discussed with the trooper his intent to have sexual contact with the 12 and 8-year-old girls. On the trooper’s signal, members of the ICAC Task Force surrounded the vehicle and took Hansen into custody.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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Manitowoc Man Indicted for Orchestrating $3,000,000 Ponzi SchemeRead the Press Release
United States Attorney Matthew D. Krueger announced today that a federal grand jury in the Eastern District of Wisconsin indicted James A. Nickels (age 67) of Manitowoc, Wisconsin, on eighteen counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of money laundering, in violation of 18 U.S.C. § 1957.
According to the indictment, from approximately September 2006 until August 2017, Nickels carried out a scheme to defraud by making materially false representations, omissions, and promises to induce people to invest in a business called The Fiscal Concierge. As part of the scheme, Nickels failed to inform potential investors that he was using money from new investors to pay interest and principal promised to previous investors, and to pay his personal expenses. Nickels obtained from investor victims more than $5 million in scheme proceeds, and the investors’ net loss was $3,193,616.
United States Attorney Krueger commented, “Investment schemes can destroy the dreams of victims whose hard-earned savings are stolen. We commend the excellent work of the IRS and the State of Wisconsin in joining forces to investigate this case.”
“Illegal activity involving the investment industry has brought financial ruin to many Americans. IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime,” said IRS Criminal Investigation, St. Paul Field Office Acting Special Agent in Charge David Talcott.
Each of the eighteen wire fraud charges carries a maximum possible penalty of up to twenty years in prison and a fine of up to $250,000. The money laundering charge carries a maximum possible penalty of up to ten years in prison and a fine of up to $250,000.
IRS Criminal Investigation and the Wisconsin Department of Financial Institutions investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Stephen A. Ingraham and Zachary J. Corey.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Man Sentenced to over Two Months in Prison after Illegally Reentering the U.S. and Committing Document FraudRead the Press Release
A Honduran man who had been deported, illegally returned to the United States, and then used false identification documents to obtain a job was sentenced today to more than two months in federal prison.
Edwin Melendez-Lopez, age 37, a citizen of Honduras illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a April 16, 2018, guilty plea to one count of unlawful use of an identification document and one count of illegal reentry into the United States.
At the guilty plea, Melendez-Lopez admitted he had previously been deported from the United States on April 27, 2007, and that he illegally reentered the United States without the permission of the United States government. Melendez-Lopez also admitted that on January 19, 2018, he used a social security card bearing an alias name when completing employment forms to obtain a job in Cedar Rapids, Iowa. The alias name and social security account number on the card used by Melendez-Lopez belonged to a United States citizen. On February 21, 2018, Melendez-Lopez was found by immigration officers during a traffic stop in Cedar Rapids, Iowa.
Melendez-Lopez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Melendez-Lopez was sentenced to 72 days’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Melendez-Lopez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 18-CR-11-LRR.
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Man Sentenced to 27 Months in Prison for Role in Identity Theft and Wire Fraud ConspiracyRead the Press Release
NEWARK N.J. – A Georgia man was sentenced today to 27 months in prison for using fake driver’s licenses in order to obtain checks issued in response to false statements and representations, U.S. Attorney Craig Carpenito announced.
Abdulrasheed Yusuf, 30, of Lilburn, Georgia, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of aggravated identity theft and one count of conspiracy to commit wire fraud. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Yusuf was a member of a conspiracy to obtain money fraudulently, including by committing identity theft, impersonating account holders and obtaining money from their accounts. On Aug. 8, 2017, a member of the conspiracy contacted an entity where an individual (Victim 1) had an account. The caller impersonated Victim 1 seeking to withdraw $34,636 from the victim’s account. The entity sent a check through a mail carrier to the account holder at caller’s address.
A member of the conspiracy caused the mail carrier to hold the packages containing the check for Victim 1 at one of its branch locations. On Aug. 14, 2017, Yusuf entered the branch and, using a driver’s license with Yusuf’s picture and Victim 1’s name and address, obtained a package he believed contained the check to Victim 1. Yusuf used a separate fake driver’s license in connection with obtaining a different check similarly issued in response to fraudulent statements.
In addition to the prison term, Judge Hayden sentenced Yusuf to three years of supervised release and ordered him to pay restitution of $46,425.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to today’s guilty plea. He also thanked the Unified Police Department of Greater Salt Lake, Utah, under the direction of Sheriff Rosie Rivera, for its role in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Man Pleads Guilty to Falsifying Water Testing in BranchvilleRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Caleb Elias Hartzog, Jr., age 59, of Orangeburg, pled guilty to Making a False Statement to a Government Agency, a violation of Title 18, United States Code, § 1001. Chief Judge Terry L. Wooten accepted the plea and will sentence Hartzog on September 11, 2018.
Evidence presented at the hearing established that Caleb Hartzog, a former drinking water operator for the town of Branchville, South Carolina, forged forms certifying that residents had collected drinking water samples from within their homes. Hartzog falsified forms for at least ten residential homes. Several residents claimed no one had been taking water samples from their homes for some time, and, in certain cases, ever. The samples were to be analyzed for potential lead and copper contamination. None of the ten residents had signed the forms in 2014, the year that is the basis for the criminal charges.
Testing performed after Hartzog was no longer the drinking water operator revealed no contamination of the Branchville water supply.
The maximum penalty faced by Hartzog is imprisonment for five years, with a potential fine up to $250,000.
The U.S. Environmental Protection Agency and South Carolina Department of Health and Environmental Control (DHEC) investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Long Island Doctor Convicted of Causing the Overdose Deaths of Two Patients and Illegally Distributing OxycodoneRead the Press Release
A federal jury in Central Islip today, following five weeks of trial, convicted Dr. Michael Belfiore of two counts of illegal distribution of oxycodone causing the deaths of two patients and 26 counts of illegal distribution of oxycodone. After the verdict, Dr. Belfiore was remanded to custody pending sentencing by United States District Judge Joseph F. Bianco. The defendant faces a mandatory minimum sentence of 20 years’ imprisonment, a $10 million fine and forfeiture in an amount to be determined by the Court.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the verdict.
“Dr. Belfiore was acting not as a healer, but as a drug dealer with a prescription pad,” stated United States Attorney Donoghue. “The defendant lined his pockets with cash from patients in exchange for illegally prescribing oxycodone, a particularly dangerous and addictive drug, with lethal results. The Department of Justice recognizes the importance of holding corrupt medical professionals like Dr. Belfiore accountable for their role in fueling the opioid epidemic.” The case was investigated by the DEA’s Long Island Tactical Diversion Squad comprising agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department, Suffolk County Police Department, Port Washington Police Department and Internal Revenue Service.
“From the time he was arrested, to today’s conviction, it was abundantly clear that Dr. Belfiore’s actions were not those of a medical doctor, but those of a drug dealer,” stated DEA Special Agent-in-Charge Hunt. “Lives were lost at the hands of Dr. Belfiore whose practice enabled addiction and overdose – both of which contribute to the current opioid crisis our nation is facing. I commend the diligent work of the DEA Tactical Diversion Squad in Long Island and the U.S. Attorney’s Office, Eastern District of New York, on this investigation and trial.”
“The conviction of defendant Dr. Michael Belfiore is a clear example of our zero tolerance approach toward dealing with the illegal prescribing of Oxycodone,” stated NCPD Commissioner Ryder. “We have seen all too often how these prescriptions have had serious and fatal effects on our communities and residents. I would like to congratulate all of the investigative agencies for their hard work and dedication during this investigation.”
The evidence at trial established that Dr. Belfiore, a doctor of osteopathic medicine who primarily operated out of an office in Merrick, illegally distributed oxycodone outside the usual course of professional practice and not for a legitimate medical purpose. Oxycodone is a powerful and highly addictive drug that is increasingly abused because of its potency when crushed into a powder and ingested. It is a scheduled controlled substance that may be dispensed by medical professionals only to patients suffering from significant pain that is documented through medical exams, diagnostic testing—such as x-rays and MRIs—and other objective proof. Although oxycodone is commonly prescribed in five milligram tablets, the trial evidence showed that Dr. Belfiore wrote thousands of 30 milligram prescriptions for oxycodone in quantities of up to 180 pills per month. Specifically, as proved at the trial:
On February 28, 2013, Dr. Belfiore gave an illegal prescription for 120 30 mg oxycodone pills to 42-year-old Edward Martin. On March 5, Mr. Martin overdosed and died in his bed after snorting the oxycodone obtained from Dr. Belfiore’s prescription.
On or about April 12, 2013, Dr. Belfiore gave an illegal prescription for 150 30 mg oxycodone to 32-year-old John Ubaghs, a veteran of the United States Marine Corps who served in the infantry during the war in Iraq. On April 13, 2013, Mr. Ubaghs was found unresponsive after overdosing on oxycodone prescribed by Dr. Belfiore, and was pronounced dead at the hospital.
Between March 2013 and August 2013, Dr. Belfiore intentionally dispensed six prescriptions of oxycodone without a legitimate medical purpose to an undercover detective with the NCPD’s Narcotics Vice Squad. Undercover surveillance videos demonstrated that Dr. Belfiore created fake medical charts to justify those prescriptions and that during office meetings with the detective, Dr. Belfiore’s “treatment” consisted of a discussion of the doctor’s $175,000 Porsche, a recent trip to San Diego and his interest in helicopters, yachts and cigarette boats.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles N. Rose and Bradley T. King are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor is in charge of the forfeiture.
The Defendant:
MICHAEL BELFIORE
Age: 52
Residence: Westbury, New YorkE.D.N.Y. Docket No. 15-CR-242 (JFB)
Lockhart Man Charged with Being a Convicted Felon in Possession of a FirearmRead the Press Release
Federal and state authorities arrested 54-year-old Robert Mikell Ussery in Lockhart, TX, today on a federal charge of convicted felon in possession of a firearm, announced United States Attorney John F. Bash and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred Milanowski, Houston Division.
A federal complaint unsealed today alleges that on March 5, 2018, Ussery was knowingly in possession of a silver and black semi-automatic pistol after being convicted of a felony offense.
According to the complaint, on March 5, 2018, Ussery (aka “Side Thorn”), accompanied by his girlfriend (aka “Conspiracy Granny”), entered the property of the First Baptist Church in Sutherland Springs, TX, and verbally harassed church members. The church was the scene of a mass shooting on November 5, 2017, where 26 people were killed. The defendant and his girlfriend claimed the incident was all a hoax, that no one died as a result of the shooting incident, and that “the people” will hang a member of the church for perpetrating the hoax.
Ussery and his girlfriend captured the confrontation on their personal video recording devices that they were holding or wearing. Those devices were seized by authorities.
Ussery’s criminal history includes a 1984 conviction for burglary of a vehicle in Brazoria County for which he received a four-year prison term in the Texas Department of Corrections.
This criminal complaint was the result of a joint investigation by ATF, Texas Department of Public Safety, Wilson County Sheriff’s Office, Caldwell County Sheriff’s Office and Homeland Security Investigations (HSI).
Ussery remains in federal custody following his arrest. He is scheduled to have his initial appearance in San Antonio at 1:30pm on Thursday before United States Magistrate Judge Henry Bemporad. Upon conviction, Ussery faces up to ten years in federal prison. Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Local Men Plead Guilty in Federal CourtRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that two area men entered guilty pleas to federal charges in Beckley.
James David Morris Jr., 39, of Beckley, pled guilty to being a felon in possession of a firearm. Morris admitted that on October 14, 2017, he was riding a motorcycle in Harper Heights when he was stopped by a Raleigh County Sheriff’s Deputy, who found that Morris had a revolver in the waistband of his pants. The firearm was stolen. Morris was prohibited from possessing a firearm by virtue of his 2013 federal conviction of being an unlawful drug user in possession of a firearm. Morris faces up to ten years in prison when he is sentenced on August 29, 2018. Stuart commended the investigation conducted by the Raleigh County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
In a separate case, Cody Reed Godfrey, 25, of White Sulphur Springs, pled guilty to distribution of a quantity of oxymorphone. Godfrey admitted that on June 13, 2017, he distributed oxymorphone pills to a confidential informant in Alderson. Godfrey also admitted that in June of 2017 he helped set up another hydromorphone sale, he sold a small quantity of methamphetamine, and he possessed several oxymorphone pills with the intent to distribute them. He faces up to 20 years in prison when he is sentenced on August 29, 2018. Stuart praised the work of the Greenbrier Valley Drug and Violent Crime Task Force in this case.
United States District Judge Irene C. Berger presided at the plea hearings. Assistant United States Attorney John File is handling the prosecutions.
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###Kalispell Man Sentenced to Federal Prison for Export and Firearm ViolationsRead the Press Release
MISSOULA – Eric Daniel Doyle, a 37-year-old former Kalispell resident, was sentenced today to 180 months in prison followed by 3 years supervised release after pleading guilty to illegal export, attempted illegal export, and felon in possession of firearms on February 7, 2018. U.S. District Judge Donald W. Molloy handed down the sentence.
Doyle admitted to supplying buyers from Europe, Australia, the United Kingdom, and Canada with firearms and magazines when he was interviewed by law enforcement in September 2014. In approximately February 2014, Doyle began selling firearms on a website to people in other countries. Doyle learned that there were a lot of people in the Kalispell area trying to sell firearms and, at the same time, a lot of people online that wanted to buy them. Doyle would check his email messages to see what types of firearms people were requesting, and then see what was available around town. Doyle also checked local gun websites or gun shows for the types of firearms sought in the email requests.
Doyle used associates to package and ship most of the firearms. He personally packaged 12 firearms. At the time of his interview, Doyle estimated that he and his associates shipped 25 to 35 firearms out of the Kalispell area. Doyle filled out all of the shipping paperwork and customs forms used to send the packages. When officers later searched his storage unit they found one of the packed firearms with its pre-filled customs and shipping form. In addition, officers found fifteen firearms, ten pistol magazines, and 150 rounds of ammunition as well as packing and shipping materials.
Doyle also acknowledged that he was a convicted felon and he knew that he was prohibited from possessing firearms. Doyle’s prior felony convictions include possession of cocaine, burglary, and unlawful deliver of a controlled substance (cocaine) from Illinois.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the United States Postal Service Office of Inspector General, Homeland Security Investigations, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
KC Man Sentenced for Contraband Smuggling at Jackson County Detention CenterRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to smuggle contraband cell phones and other items to inmates at the Jackson County Detention Center.
Marion Lorenzo Byers, also known as “Cuddy,” 36, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to two years and three months in federal prison without parole. The court also ordered the federal sentence be served consecutively to whatever revocation sentence may be imposed in state court as a result of Byers violating his probation for a DUI conviction in Buchanan County, Mo.
Byers, who pleaded guilty on Dec. 6, 2017, admitted that he conspired with others – including a corrections officer and an inmate at the Jackson County Detention Center – to smuggle contraband to inmates between May 2 and June 26, 2017. Byers also admitted that he delivered contraband to a co-conspirator, who in turn delivered the contraband to a corrections officer at the detention center, who was to deliver the contraband to an inmate.
Co-defendant Jalee Caprice Fuller, 30, of Independence, Mo., the former corrections officer, pleaded guilty to her role in the conspiracy and awaits sentencing. Co-defendants Carlos Laron Hughley, 33, an inmate at the Jackson County Detention Center, and Janikkia Lashay Carter, 37, both of Kansas City, Mo., have also pleaded guilty and await sentencing.
In a separate but related case, another former corrections officer at the Jackson County Detention Center, Andre Lamonte Dickerson, 27, of Kansas City, Mo., pleaded guilty to two counts of using a telephone in furtherance of the unlawful activity of acceding to corruption, related to a public servant taking a bribe in return for violating his legal duty. A sentencing hearing is scheduled for Aug. 31, 2018.
The Travel ActThe Travel Act makes it a crime to use a facility of interstate commerce (such as telephone calls) with the intent to further unlawful activity. The Travel Act’s definition of “unlawful activity” includes bribery in violation of the laws of a state. Missouri state law makes it a crime for a public servant to solicit or accept a bribe in return for violating a known legal duty. This crime is known under Missouri state law as acceding to corruption, and it is a companion or sister statute to the Missouri state statute that makes it a crime for someone to bribe a public servant. These two Missouri state statutes criminalize bribery conduct involving a public servant, both for the person paying the bribe and for the public servant taking the bribe.
Byers admitted that he conspired to violate the Travel Act by using a facility of interstate commerce (a telephone) to facilitate the promotion of an unlawful activity, that is, acceding to corruption.
This case is being prosecuted by Deputy U.S. Attorney Gene Porter and Assistant U.S. Attorney Brent Venneman. It was investigated by the FBI and the Jackson County, Mo., Sheriff’s Department with assistance from the Missouri Department of Corrections, the Kansas City, Mo., Police Department and the Jackson County Detention Center.
Justice Department Recognizes Maryland Detective for Capturing Pedophile, Identifying 42 VictimsRead the Press Release
The Department of Justice today honored Detective George R. Higgs of the Charles County Sheriff’s Office in La Plata, Maryland, for his investigation that resulted in the arrest of a sexual predator and the identification of 42 adolescent victims.
Acting Associate Attorney General Jesse Panuccio presented Higgs with the Missing Children’s Child Protection Award during the Justice Department’s National Missing Children’s Day ceremony. The award recognizes the extraordinary efforts of law enforcement officers who make a significant investigative or program contribution to protect children from abuse or victimization.
“Investigative and preventive law enforcement efforts are critical in the fight to stop child exploitation,” said Acting Assistant Attorney General Jesse Panuccio. “The Justice Department proudly commends Detective Higgs for his dedication to preventing child victimization and bringing this sex offender to justice.”
Higgs began to investigate in November 2016 after a 16-year-old student complained about receiving sexually suggestive text messages. Higgs determined the messages were coming from an employee for the Charles County Board of Education. A search of the suspect’s home led to the discovery of computers and cell phones containing photos and videos of the suspect sexually assaulting local children in both his residence and at local schools. Interviews with students identified 42 victims—including the original complainant—between the ages of 13 and 17. Higgs’ work with prosecutors resulted in 219 charges of sexual assault, production of child pornography and other charges against the suspect, who was sentenced in federal court in March and in the Circuit Court of Charles County, Maryland, in April.
In addition to Higgs, the Department also recognized other law enforcement officers for their investigative efforts in sexual exploitation of children cases and a private citizen who intervened to rescue an abducted baby. Panuccio also recognized Eden Hoffmann, a fifth grader at Huron Elementary School in Clinton Township, Michigan, as the 19th winner of the National Missing Children’s Day poster contest.
Additional information about National Missing Children’s Day is available online.
The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Justice Department Recognizes Investigative Efforts of Maryland Detective in Missing Girl CaseRead the Press Release
The Department of Justice today honored Detective John Witherspoon of the Montgomery County Police Department in Rockville, Maryland, for his investigation into the disappearance of a 15-year-old Gaithersburg girl and his support of Fairfax County, Virginia, police in their efforts to identify and arrest 10 gang members who were charged in the girl’s murder.
Acting Associate Attorney General Jesse Panuccio presented Witherspoon with the Missing Children’s Law Enforcement Award during the Justice Department’s National Missing Children’s Day ceremony. This award recognizes law enforcement officers’ efforts for significant investigative or program contributions to child safety.
Additionally, Witherspoon successfully recovered 166 missing children last year.
“Detective Witherspoon demonstrated unusual tenacity in tracking down the vicious murderers of a teenage girl, and also showed extraordinary compassion in supporting her family through the investigation,” said Acting Assistant Attorney General Jesse Panuccio. “The Department commends Detective Witherspoon for his remarkable combination of personal and professional commitment in this case.”
For eight weeks, Witherspoon searched throughout the Washington metropolitan region for sightings of the missing girl. He also combed social media sites and accounts and interviewed the girl’s friends and family members. The remains of the girl were found near an industrial area in Fairfax County, and the medical examiner ruled the case a homicide. Witherspoon worked with Fairfax County police to locate 10 members of a local gang who played a role in the girl’s murder. He then helped the victim’s mother arrange a community memorial service, and later coordinated her witness relocation after she received death threats from gang members.
In addition to Witherspoon, the Department also honored the efforts of law enforcement officers in other jurisdictions who investigated crimes against children and arrested the suspects and a private citizen who rescued a missing and abducted child. Panuccio also recognized Eden Hoffmann, a fifth grader at Huron Elementary School in Clinton Township, Michigan, as the 19th winner of the National Missing Children’s Day poster contest.
Additional information about National Missing Children’s Day is available online.
The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Justice Department Recognizes California Man for Role in Safe Recovery of Abducted BabyRead the Press Release
The Department of Justice today honored Colin Blevin, a Santa Clara, California, resident, for his actions that led to the recovery of an abducted one-year-old girl and the apprehension of the child’s kidnapper.
Acting Associate Attorney General Jesse Panuccio presented Blevin with the Missing Children’s Citizen Award during the Justice Department’s National Missing Children’s Day ceremony. This award recognizes private citizens for extraordinary acts that lead to the safe recovery of missing or abducted children.
Blevin received his award for preventing a suspect from escaping with a one-year-old girl in a stolen car and keeping the child safe until police arrived. The offender was sentenced to more than five years in prison for felony child abuse and theft of a vehicle.
“Blevin’s quick actions epitomize courage, selflessness, and vigilance, and brought an innocent child home to safety,” said Acting Assistant Attorney General Jesse Panuccio. “The Department of Justice commends Blevin for making his community safer, through his successful rescue of the child and assist to law enforcement.”
In addition to Blevin, the Department also honored several law enforcement officers for their investigative efforts in sexual exploitation cases involving children and youth. Panuccio also recognized Eden Hoffmann, a fifth grader at Huron Elementary School in Clinton Township, Michigan, as the 19th winner of the National Missing Children’s Day poster contest.
Additional information about National Missing Children’s Day is available online.
The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Justice Department Observes National Missing Children’s DayRead the Press Release
Department Honors Law Enforcement Officers, Citizen, for Efforts to Rescue Missing and Exploited Children; Poster Contest Winner Announced
The Department of Justice today recognized the Maryland Internet Crimes Against Children task force, Detective George R. Higgs of the Charles County Sheriff’s Office in La Plata, Maryland, Detective John Witherspoon of the Montgomery County Police Department in Rockville, Maryland, and Colin Blevin, a private citizen from Santa Clara, California, for their efforts to help children.
Acting Associate Attorney General Jesse Panuccio presented the awards during the Department’s National Missing Children’s Day ceremony. The annual awards ceremony is hosted by the Office of Juvenile Justice and Delinquency Prevention in the Office of Justice Programs (OJP).
“The exceptional individuals we recognize today remind us of our responsibility to be vigilant about the safety of our children and to hold accountable those who seek to harm them,” said Acting Assistant Attorney General Jesse Panuccio. “Because of the diligence, courageousness, and selflessness of the awardees, as well as their commitment to protect the most vulnerable among us, children all over the country are safer in their communities. The Department of Justice is proud to honor these heroes, and I am proud to stand with them today.”
The ceremony included recognition of Eden Hoffmann, a fifth grader at Huron Elementary School in Clinton Township, Michigan, whose poster illustrating the theme, “Bringing Our Missing Children Home,” was chosen as this year’s National Missing Children’s Day poster contest winner.
Acting Associate Attorney General Panuccio presented the following awards:
Attorney General’s Special Commendation: This commendation recognizes the extraordinary efforts of an Internet Crimes Against Children task force or affiliate agency for making significant investigative or program contributions.
Recipients: The Maryland Internet Crimes Against Children task force for their investigation resulting in the arrest of a sexual predator who assaulted at least 26 victims, some dating back to the 1970s, and recorded the sexual abuse. The suspect was charged with multiple sex offenses involving the abuse of a child.
Missing Children’s Law Enforcement Award: This award recognizes the extraordinary efforts of a law enforcement officer who made a significant investigative or program contribution to the safety of children.
Recipient: Detective John Witherspoon of the Montgomery County Police Department in Rockville, Maryland, who tirelessly investigated a runaway child case that ended with the discovery of the child’s murder. Witherspoon worked with local police in another jurisdiction to identify and arrest 10 gang members for their role in the murder. He then coordinated witness relocation for the victim’s mother after she received death threats from gang members.
Missing Children’s Child Protection Award: This award honors the extraordinary efforts of a law enforcement officer who made a significant investigative or program contribution on behalf of missing, abused or victimized children.
Recipient: Detective George R. Higgs of the Charles County Sheriff’s Office in La Plata, Maryland, who led an investigation that resulted in the arrest of a suspected sexual predator and the identification of 42 adolescent victims. He also helped prosecutors bring three indictments against the suspect, which led to 219 charges of sexual assault, production of child pornography, and other charges.
Missing Children’s Citizen Award: This award honors the extraordinary efforts of private citizens for their unselfish acts to safely recover missing or abducted children.
Recipient: Colin Blevin, a Santa Clara, California, resident, for his actions to recover an abducted infant and help police apprehend the child’s kidnapper. Blevin prevented the suspect from escaping with a one-year-old child in a stolen car and protected the child until police arrived. The offender was sentenced to more than five years in prison for felony child abuse and vehicle theft.
President Ronald Reagan proclaimed May 25, 1983, the first National Missing Children’s Day in memory of Etan Patz, a six-year-old boy who disappeared from a New York City street corner on May 25, 1979. Missing Children’s Day honors his memory and the memories of children still missing. Although Etan’s killer was convicted in February 2017 for the 1979 murder, his case remains active with the National Center for Missing & Exploited Children because his body was never found.
In 2017, there were 464,324 missing children entries in the FBI’s National Crime Information Center. Additional information about National Missing Children’s Day is available online.
The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Justice Department Honors Maryland Task Force for Investigation of Child Pornography CaseRead the Press Release
The Department of Justice today recognized the Maryland Internet Crimes Against Children task force for its investigation and subsequent arrest of a suspected sexual predator who abused local children since the 1970s and created child pornography from those encounters.
Acting Associate Attorney General Jesse Panuccio presented the Attorney General’s Special Commendation to representatives of the task force during the Department’s National Missing Children’s Day ceremony. The special commendation recognizes Internet Crimes Against Children task forces or affiliate agencies for making significant investigative or program contributions.
“The vigilance exhibited by this task force exemplifies the positive results that cooperation among federal, state, and local authorities can have in bringing perpetrators of these heinous crimes to justice,” said Acting Assistant Attorney General Jesse Panuccio. “The Department applauds their efforts and stands with them as we continue working to improve public safety for America’s children.”
The task force’s investigation also led to the identification of 26 of the suspect’s victims, some of whom were sexually abused as far back as the 1970s. The suspect was charged with multiple counts of sex offenses involving the abuse of a child. The investigation and subsequent warrant on the suspect’s residence was coordinated between the Maryland State Police, the Talbot County, Maryland, Sheriff’s Office and Homeland Security Investigations.
The Department also recognized two law enforcement officers for their investigations of sexual predators who sexually assaulted local children and youth and a private citizen who intervened to rescue an abducted baby. Panuccio also recognized Eden Hoffmann, a fifth grader at Huron Elementary School in Clinton Township, Michigan, as the 19th winner of the National Missing Children’s Day poster contest.
Additional information about National Missing Children’s Day is available online.
The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Justice Department Announces Actions to Disrupt Advanced Persistent Threat 28 Botnet of Infected Routers and Network Storage DevicesRead the Press Release
The Justice Department today announced an effort to disrupt a global botnet of hundreds of thousands of infected home and office (SOHO) routers and other networked devices under the control of a group of actors known as the “Sofacy Group” (also known as “apt28,” “sandworm,” “x-agent,” “pawn storm,” “fancy bear” and “sednit”). The group, which has been operating since at least in or about 2007, targets government, military, security organizations, and other targets of perceived intelligence value.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Scott W. Brady for the Western District of Pennsylvania, Assistant Director Scott Smith for the FBI’s Cyber Division, FBI Special Agent in Charge Robert Johnson of the Pittsburgh Division and FBI Special Agent in Charge David J. LeValley of the Atlanta Division made the announcement.
“The Department of Justice is committed to disrupting, not just watching, national security cyber threats using every tool at our disposal, and today’s effort is another example of our commitment to do that,” said Assistant Attorney General Demers. “This operation is the first step in the disruption of a botnet that provides the Sofacy actors with an array of capabilities that could be used for a variety of malicious purposes, including intelligence gathering, theft of valuable information, destructive or disruptive attacks, and the misattribution of such activities.”
“The United States Attorney’s Office will continue to aggressively fight against threats to our national security by criminals, no matter who they work for” said U.S. Attorney Brady. “This court-ordered seizure will assist in the identification of victim devices and disrupts the ability of these hackers to steal personal and other sensitive information and carry out disruptive cyber attacks. We will be relentless in protecting the people of Western Pennsylvania - from international corporations to local businesses to the elderly - from these threats.”
“Today's announcement highlights the FBI's ability to take swift action in the fight against cybercrime and our commitment to protecting the American people and their devices,” said Assistant Director Scott Smith. “By seizing a domain used by malicious cyber actors in their botnet campaign, the FBI has taken a critical step in minimizing the impact of the malware attack. While this is an important first step, the FBI's work is not done. The FBI, along with our domestic and international partners, will continue our efforts to identify and expose those responsible for this wave of malware.”
“The FBI will not allow malicious cyber actors, regardless of whether they are state-sponsored, to operate freely,” said FBI Special Agent in Charge Bob Johnson. “These hackers are exploiting vulnerabilities and putting every American’s privacy and network security at risk. Although there is still much to be learned about how this particular threat initially compromises infected routers and other devices, we encourage citizens and businesses to keep their network equipment updated and to change default passwords.”
“This action by the FBI, DOJ, and our partners should send a clear message to our adversaries that the U.S. Government will take action to mitigate the threats posed by them and to protect our citizens and our allies even when the possibility of arrest and prosecution may not be readily available,” said FBI Special Agent in Charge David J. LeValley. “As our adversaries’ technical capabilities evolve, the FBI and its partners will continue to rise to the challenge, placing themselves between the adversaries and their intended victims.”
The botnet, referred to by the FBI and cyber security researchers as “VPNFilter,” targets SOHO routers and network-access storage (NAS) devices, which are hardware devices made up of several hard drives used to store data in a single location that can be accessed by multiple users. The VPNFilter botnet uses several stages of malware. Although the second stage of malware, which has the malicious capabilities described above, can be cleared from a device by rebooting it, the first stage of malware persists through a reboot, making it difficult to prevent reinfection by the second stage.
In order to identify infected devices and facilitate their remediation, the U.S. Attorney’s Office for the Western District of Pennsylvania applied for and obtained court orders, authorizing the FBI to seize a domain that is part of the malware’s command-and-control infrastructure. This will redirect attempts by stage one of the malware to reinfect the device to an FBI-controlled server, which will capture the Internet Protocol (IP) address of infected devices, pursuant to legal process. A non-profit partner organization, The Shadowserver Foundation, will disseminate the IP addresses to those who can assist with remediating the VPNFilter botnet, including foreign CERTs and internet service providers (ISPs).
Owners of SOHO and NAS devices that may be infected should reboot their devices as soon as possible, temporarily eliminating the second stage malware and causing the first stage malware on their device to call out for instructions. Although devices will remain vulnerable to reinfection with the second stage malware while connected to the Internet, these efforts maximize opportunities to identify and remediate the infection worldwide in the time available before Sofacy actors learn of the vulnerability in their command-and-control infrastructure.
The FBI and the Department of Homeland Security have also jointly notified trusted ISPs. The Department and the FBI also encourage users and administrators to review the Cisco blog post on VPNFilter, available HERE, for recommendations and to ensure that their devices are updated with the latest patches.
The efforts to disrupt the VPNFilter botnet were led by the FBI’s Pittsburgh and Atlanta Offices; FBI Cyber Division; Trial Attorney Matthew Chang of the National Security Division’s Counterintelligence and Export Control Section; and Assistant U.S. Attorneys Charles Eberle and Soo C. Song of the Western District Pennsylvania. Critical assistance was also provided by Richard Green of the Criminal Division’s Computer Crime and Intellectual Property Section and The Shadowserver Foundation.
Note: The documents filed by the Government as well as the court orders entered in this case are available as attachments below.Joint EU-U.S. Statement Following the EU-U.S. Justice and Home Affairs Ministerial MeetingRead the Press Release
On May 22 and 23, 2018, the EU-U.S. Ministerial Meeting on Justice and Home Affairs was hosted by the Bulgarian Presidency of the EU Council in Sofia, Bulgaria. The meeting reaffirmed the long-standing, fruitful cooperation between the United States of America and the European Union in the areas of justice and home affairs, as well as the importance of jointly addressing common security threats.
The United States was represented by the U.S. Attorney General, Jeff Sessions, and the Acting Deputy Secretary for Homeland Security, Claire Grady.
The European Union, hosting the meeting, was represented by the Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos, the Commissioner for Justice, Consumers and Gender Equality Věra Jourová, the Commissioner for the Security Union Julian King, as well as Bulgarian Minister of Interior Valentin Radev and Minister of Justice Tsetska Tsacheva, together with Austrian Federal Minister for the Interior Herbert Kickl and Federal Minister for Constitutional Affairs, Reforms, Deregulation and Justice Josef Moser, on behalf of the current and incoming Presidencies of the Council of the European Union.
The European Union and the United States discussed their shared efforts to combat terrorism, focusing on effective information sharing, preventing radicalization, use of the internet for terrorist purposes, and vigilance with respect to aviation security, and chemical, biological, radiological and nuclear threats, and explosives, especially in relation to the evolving chemical threats to aviation and in public spaces. With regard to EU-U.S. information sharing on Passenger Name Records (PNR), participants of the meeting emphasized the importance of such sharing, and noted impending developments in the separate EU-Canada PNR discussions. The participants agreed to continue the discussion of PNR, at the next EU-U.S. Ministerial, which will take place in Washington, D.C., in the second half of 2018.
Participants also discussed security and law enforcement cooperation in cyber-space, affirming the importance of allowing swift access to electronic evidence by law enforcement and judicial authorities, while also protecting privacy and civil liberties. Similarly, they stressed the need to maintain a safe, open, and secure cyberspace for the promotion of economic and social development, and exchanged views on how to best address this growing challenge.
The European Union and the United States also exchanged information on developments in the area of migration, border management, and their respective visa policies. The European Union provided an update on migration trends in Europe and ongoing initiatives to enhance the management of its external borders; the European Union and the United States took stock of the continuing progress by the European Union and the United States, including that of the five concerned EU Member States, towards meeting the statutory requirements of the Visa Waiver Program, in order to be considered for designation. Both sides also acknowledged the need for strengthening operational cooperation to effectively prevent and eradicate migrant smuggling and trafficking in human beings, and also discussed the importance of secure and lawful immigration systems.
Finally, the United States and European Union discussed the importance of ensuring swift exchange of financial information and improving the effectiveness of financial investigations. The European Union and the United States discussed the latest developments in these areas and shared best practices in an effort to step up their common fight against anti-money laundering and terrorism financing.
Underlining the progress made in these vital areas of common interest, and re-emphasizing the fact that common solutions are necessary in order to address global security threats, the European Union and the United States committed to meet again in the second half of 2018 in Washington, D.C.
Investment Adviser Arrested for Stealing Millions from ClientsRead the Press Release
NEWARK, N.J. – A former broker and investment adviser was arrested today for allegedly stealing more than $2.1 million from two clients in order to pay for personal expenses, U.S. Attorney Craig Carpenito announced.
Gary Basralian, 70, of Springfield, New Jersey, is charged by complaint with two counts of wire fraud and one count of investment adviser fraud. Basralian was arrested earlier today at his home and is scheduled to appear this afternoon before U.S. Magistrate Judge U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
From 1989 through December 2017, Basralian was registered with an investment adviser and broker dealer referred to in the complaint as “Securities Firm A.”
From August 2007 through November 2017, Basralian, while serving in his capacity as an investment adviser, misappropriated at least $738,000 from a client identified in the complaint as “Victim 1” and at least $1.4 million from a client identified in the complaint as “Victim 2.”
Basralian said he would invest these funds in brokerage accounts at Securities Firm A or in real estate and high-interest loans, and manage them on behalf of the victims. However, Basralian used the victims’ money to fund his own personal expenditures, including BMW payments and tens of thousands of dollars in credit card bills.
Victim 1 routinely provided funds to investment accounts managed by Basralian at Securities Firm A. At Basralian’s direction, Victim 1 eventually began addressing checks to “Masters Financial” based on Basralian‘s representations that the checks would ultimately be deposited into her investment accounts at Securities Firm A. Instead, the funds were deposited into an account controlled by Basralian, which he used for personal expenses.
In 2009, Basralian began wiring funds from Victim 2’s investment account at Securities Firm A into various accounts that he controlled and used the proceeds for his own benefit. When Victim 2 asked why her account at Securities Firm A had diminished in value, Basralian sent her a phony spreadsheet showing that her money was being invested as loans to various companies that would be paid back with interest.
Each of the wire fraud counts carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The investment adviser fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense.
On May 22, 2018, the New Jersey Bureau of Securities, within the Office of the New Jersey Attorney General, issued a Summary Revocation Order against Basralian that revoked his agent and investment adviser representative registrations.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, and Special Agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s charges. He also thanked the New Jersey Bureau of Securities, under the direction of Bureau Chief Christopher Gerold, for its assistance.
The government is represented by Assistant U.S. Attorney Courtney Howard of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Investigation Targets Medicaid Transportation Fraud in the North CountryRead the Press Release
ALBANY, NEW YORK – Thirteen people were arrested this week as part of a federal and state investigation into Medicaid fraud allegedly committed by the owners and operators of medical transportation companies based in Essex County.
The announcement was made by:
- United States Attorney Grant C. Jaquith;
- New York State Police Superintendent George P. Beach II;
- Essex County District Attorney Kristy Sprague;
- New York State Inspector General Catherine Leahy Scott; and
- Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Criminal complaints were filed against the following people:
Name
Age
Residence
Charges
Khalid M. Chadder
48
Ticonderoga, New York
Federal charges -- Conspiracy to commit health care fraud; offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries
State charges -- Grand larceny in the third degree; falsifying business records in the first degree; offering a false instrument for filing in the first degree
Qaiser Gondal
46
Ticonderoga, New York
Federal charges -- Offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries
State charges – Grand larceny in the second degree; falsifying business records in the first degree; failure to secure compensation
Anthony Armstrong
29
Port Henry, New York
Federal charges – Offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries
State charges – Grand larceny in the third degree; falsifying business records in the first degree; offering a false instrument for filing in the first degree
Waqas Nauman
36
Queensbury, New York
Federal charges -- Conspiracy to commit health care fraud
State charges -- Grand larceny in the second degree; falsifying business records in the first degree; failure to secure compensation
Khurram Gondal, aka Khurram Choudhary
37
Ticonderoga, New York
Federal charges -- Conspiracy to commit health care fraud
State charges – Grand larceny in the first, second and third degrees; falsifying business records in the first degree; failure to secure compensation
Sana Ulla Chadder
55
Ticonderoga, New York
State charges – Grand larceny in the first degree; falsifying business records in the first degree; failure to secure compensation
Maryam Qaiser
41
Ticonderoga, New York
State charges – Grand larceny in the second degree; falsifying business records in the first degree; failure to secure compensation
Saleem Hayat
34
Port Henry, New York
State charges – Grand larceny in the second degree; falsifying business records in the first degree; failure to secure compensation
Muhammad Jahangir
23
Queensbury, New York
State charges – Grand larceny in the second degree; failure to secure compensation (misdemeanor)
Samone Marshall
27
Ticonderoga, New York
State charges – Grand larceny in the second degree; failure to secure compensation (misdemeanor)
Chaudary Khan
54
Keesville, New York
State charges – Grand larceny in the first degree; falsifying business records in the first degree; failure to secure compensation
Tukk Simpson
48
Crown Point, New York
State charges – grand larceny in the second degree; falsifying business records in the first degree
Arshad Nazir
53
Plattsburgh, New York
Federal charges – Conspiracy to commit health care fraud; offering and conspiring to pay bribes and kickbacks to Medicaid beneficiaries
State charges – Grand larceny in the first degree; falsifying records in the first degree; failure to secure compensation
The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
United States Attorney Grant C. Jaquith stated: “These charges allege the theft and waste of taxpayer dollars by the owners and operators of medical transportation companies. This week’s arrests should put all companies on notice that we will not tolerate the abuse of the public fisc through such schemes as false billing and kickbacks paid to beneficiaries, nor the corruption of medical transportation services on which many people legitimately rely to get to important appointments.”
Essex County District Attorney Kristy Sprague said: “Corrupt practices within the medical transportation business have been spreading for years like a cancer in our county and throughout the region. The arrests this week should make it crystal clear to any medical transport companies even thinking about breaking the law that my office and my law enforcement partners will be coming after them and will prosecute them to the fullest. These cases are the result of extraordinary teamwork by state and federal law enforcement partners and were made possible through the perseverance of the New York State Police and Inspector General Catherine Leahy Scott.”
New York State Police Superintendent George P. Beach II said: “These arrests are the culmination of a two-year long investigation into corruption involving Medicaid transportation providers, who were operating an elaborate scheme to defraud Medicaid and steal taxpayer dollars. I commend the efforts of State Police members and our federal, state and local partners for their diligence on this case. We simply will not stand for those who defraud taxpayers, and victimize customers and other legitimate providers, for their own personal gain.”
FBI Acting Special Agent in Charge Janelle M. Miller stated: “Individuals who defraud health care programs place additional burdens and costs on the health care system, which affects every American citizen. The FBI will continue to work closely with our law enforcement partners to identify any individuals who defraud the system for personal gain.”
New York State Inspector General Catherine Leahy Scott stated: “With these medical transport companies it was the New York taxpayers who were taken for a ride. For years, the Northway corridor has been plagued with corruption in the medical transport industry, and this week’s law enforcement actions send a clear message that those who abuse the Medicaid and Workers’ Compensation systems for illicit gains will be relentlessly pursued and prosecuted. I sincerely thank our state and federal law enforcement partners for their extraordinary efforts and cooperation, and particularly District Attorney Sprague for her tremendous dedication and focus on bringing these cases to fruition.”
The Medicaid program is a federal and state health care program that provides health care benefits to individuals and families who meet specified financial and other eligibility requirements, and certain other individuals who lack adequate resources to pay for medical care. In general, Medicaid can cover the cost of getting to and from a medical appointment when a beneficiary does not have other, suitable transportation.
The federal charges are being investigated by the FBI, and the New York State Police’s Special Investigations Unit and Troop B, and are being prosecuted by Assistant U.S. Attorney Michael Barnett.
The state charges are being investigated by the New York State Police’s Special Investigations Unit and Troop B, as well as the Office of the New York State Inspector General, and are being prosecuted by the Office of Essex County District Attorney Kristy Sprague.
Several additional agencies are assisting in this investigation, including the Office of the New York State Comptroller, Division of Investigations; New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU); Essex County Sheriff’s Office; Homeland Security Investigations (HSI); the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and the New York State Department of Labor.
Illegal alien sentenced to 20 years for trafficking guns and methamphetamineRead the Press Release
GAINESVILLE, Ga. - Eduardo Estrada Medina, a/k/a Miguel Angel Donis-Gonzalez was sentenced to 20 years in prison for trafficking firearms and methamphetamine. Medina, a citizen of Guatemala, illegally re-entered the U.S. after being deported, purchased several weapons and trafficked in methamphetamine.
“Medina was previously deported in 2013 as a result of his drug offenses, but returned to the U.S. to continue trafficking drugs and guns,” said U. S. Attorney Byung J. Pak. “The illegal drug business and guns are frequent companions in crime, but we will continue to relentlessly pursue criminals like Medina who blatantly disregard our laws and threaten our communities with these kind of criminal activities.”
“This sentence is a direct message to criminals that ATF will not allow egregious violations of our laws to go unpunished,” said Assistant Special Agent in Charge John Schmidt of the ATF Atlanta Field Division. “If you traffic guns and drugs, you will be targeted, and we will ensure that you are prosecuted and removed from our streets.”
According to U.S. Attorney Pak, the charges, and other information presented in court: On June 6, 2017, Medina was arrested at his residence when ATF agents observed him take possession of a firearm that was transferred to him by an individual the agents knew to be prohibited from possessing firearms. The agents obtained and executed a federal search warrant at Medina’s residence, finding 8.8 kilograms of methamphetamine, $160,000 cash, a heat sealer, a money counter, three ledgers, baggies, scales, phones, and eight guns in his bedroom. Medina was deported in January 2013 after he was convicted of drug trafficking. He then illegally re-entered the U.S.
Eduardo Estrada Medina, a/k/a Miguel Angel Donis-Gonzalez, 29, of Winder, Georgia was sentenced to 20 years in federal prison, to be followed by five years of supervised release on May 21, 2018. Medina pleaded guilty on February 28, 2018 to possession with intent to distribute methamphetamine and possession of a firearm in the furtherance of a drug trafficking crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Jennifer Keen and Stephanie Gabay-Smith prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends that parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Hartford Man Who Distributed Fentanyl is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MELVIN CORREA, 51, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to approximately five months of imprisonment, time already served, and five years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, between September 24 and October 9, 2016, overdose deaths in Southington, Montville, Manchester and East Hartford were connected to heroin/fentanyl being distributed in dose bags marked with a specific brand stamp. In late October 2016, law enforcement learned that CORREA was selling fentanyl in bags marked with the same brand stamp in Hartford.
On November 3, 2016, as part of a controlled purchase of heroin/fentanyl, CORREA told an undercover police officer that he had bags of the drug marked with the same brand stamp, but cautioned that it was “good stuff” and “real strong,” and that someone had died two days earlier by overdosing on it. Later that day, the undercover officer met CORREA at 109 Franklin Avenue and purchased 200 bags of “heroin” for $600. On November 7, 2016, the undercover officer purchased another 300 bags of the drug from CORREA for $900. The bags bore the same brand stamp on those recovered from the scenes of the identified overdose deaths.
Subsequent laboratory testing of the purchased drugs revealed that the bags contained only fentanyl
As investigators sought to identify CORREA’s source of supply, they made additional purchases of fentanyl from CORREA. During some of the transactions, CORREA was assisted by his associate, Jovii Valentin.
CORREA and Valentin were arrested on December 22, 2016.
CORREA was detained until his release on bond on May 25, 2017. On November 2, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, fentanyl.
Valentin pleaded guilty to the same charge on November 8, 2017, and awaits sentencing. He has been detained since his arrest.
This matter was investigated by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The FBI Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Guatemalan Man Pleads Guilty to Cocaine Distribution ConspiracyRead the Press Release
RICHMOND, Va. – A Guatemalan citizen pleaded guilty today to conspiring to distribute over five kilograms of cocaine knowing and intending that it would be unlawfully imported into the United States.
According to court documents, Paulo Cesar Montenegro Arevalo, 41, was a member of a large-scale international drug trafficking organization (DTO) based in Central America. Between June 2015 and June 2016, Montenegro assisted in the purchase and transportation of approximately 1,107 kilograms of cocaine on behalf of the DTO. Specifically, Montenegro managed a transportation team for the DTO that moved large amounts cocaine from parts of Guatemala to the Mexican border, with intent to import the drugs to the United States. In addition, Montenegro conducted purity tests on cocaine for the DTO prior to purchase from sources of supply. In May 2016, Montenegro, along with other co-conspirators, participated in a search and rescue recovery effort of approximately 500 kilograms of cocaine lost at sea by the DTO off the Pacific coast of Guatemala.
Montenegro Arevalo pleaded guilty to conspiracy to distribute five kilograms or more of cocaine and faces a mandatory minimum penalty of 10 years in prison when sentenced on September 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Go Explorers. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after U.S. Magistrate Judge David J. Novak accepted the plea. Assistant U.S. Attorneys Erik S. Siebert, Peter S. Duffey, and Heather H. Mansfield are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-67.
Greenwood Man Pleads Guilty to Securities FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Melvin Leonard Wimmer, Jr., age 53, of Greenwood, South Carolina has entered a guilty plea in federal court in Greenville, to Securities Fraud, a violation of 18 U.S.C. § 1348. Senior United States District Judge Henry M. Herlong, Jr., of Greenville, accepted the guilty plea and will sentence Wimmer at a later date after he has reviewed the presentence report prepared by the U.S. Probation Office.
Evidence presented at the guilty plea hearing established that in 2007, Wimmer started an investment firm in Greenwood called Cornerstone Capital. From 2010-2017, approximately twenty-five (25) individuals invested $3.6 million with Wimmer. Wimmer pooled the money into one bank account, and he traded primarily securities and stock futures and options. Wimmer invested in high-risk securities and futures contracts. Of the $3.6 million invested, Wimmer lost approximately $3 million.
Wimmer committed fraud by issuing fraudulent account statements to his investors. Soon after he started trading options and futures, Wimmer lost money, and he continued to lose money throughout the scheme. Instead of reporting the losses, Wimmer emailed his investors monthly account statements that falsely listed gains of 8-10 percent on an annualized basis. Wimmer manufactured and distributed false account statements from the outset, and he continued until the scheme collapsed. Wimmer also falsely represented the expected gains from trading, including the past performance of his trades, and he failed to inform the investors of the high risk of trading futures and options.
Ms. Drake stated that the maximum penalty for Securities Fraud is imprisonment for 25 years and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation (FBI) and the Securities and Exchange Commission (SEC). Assistant United States Attorney Rhett DeHart of the Charleston office is prosecuting the case.
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Glens Falls Felon Sentenced to 41 Months for Firearm and Ammunition PossessionRead the Press Release
ALBANY, NEW YORK – George M. Allen, age 39, of Glens Falls, New York, was sentenced today to 41 months in prison for unlawfully possessing a firearm and ammunition as a felon.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ashan M. Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Office; and New York State Police Superintendent George P. Beach II.
As part of his plea, Allen admitted possessing a loaded Mossberg shotgun in his vehicle during a traffic stop by New York State Police on August 1, 2016 in Queensbury. Allen also had 5 shotgun shells in his pocket. Allen is prohibited from possessing the firearm and ammunition because of prior felony convictions.
Senior United States District Judge Frederick J. Scullin, Jr. also imposed a 3-year term of supervised release, to begin after Allen is released from prison.
This case was investigated by ATF and the New York State Police, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Former Georgia medical examiner pleads guilty to opioid conspiracyRead the Press Release
ATLANTA – Dr. Joseph L. Burton, a former county medical examiner and forensic pathologist, pleaded guilty in federal court to conspiring to illegally distribute opioid painkillers in exchange for sexual favors. Dr. Burton was indicted federally along with seven other individuals in February 2018; five of those individuals have also pleaded guilty to similar charges. This case was presented as a part of Operation SCOPE, (Strategically Combatting Opioids through Prosecution and Enforcement), an initiative that targets individuals who illegally prescribe opioids and drug traffickers who also distribute these dangerous and addictive drugs.
“This defendant traded prescriptions for sex and is responsible for distributing thousands of doses of dangerous opioids within our community,” said U.S. Attorney Byung J. “BJay” Pak. “We are grateful for the dedicated work of our local and federal law enforcement partners who are equally committed to the arrest and prosecution of those who seek to profit from unlawfully distributing these drugs.”
“This guilty plea is a shining example of the great working relationship that DEA has with its law enforcement partners and the U.S. Attorney’s Office,” said Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the DEA. “In the wake of this country’s prescription opioid epidemic, DEA’s top priority is to investigate individuals like Dr. Burton who egregiously violate the law by illegally prescribing prescription opioids (66,000 oxycodone pills) in exchange for sexual favors. He prescribed these pills even though he was not regularly seeing patients or operating a medical facility. The community is now safer because of his prosecution.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: Dr. Burton, a licensed physician, operated as a consulting pathologist to determine the medical causes of diseases and death. Federal agents began investigating Dr. Burton after agents with the Georgia Drug & Narcotics Agency and the Georgia Composite Medical Board visited him in early 2017 and discovered that he was prescribing painkillers to a large number of patients without operating a medical clinic or regularly seeing patients. Beginning in July 2015, for an approximate two-year period, Dr. Burton issued over 1,100 opioid prescriptions, which amounted to over 108,000 individual doses, including over 66,000 30mg oxycodone pills. Dr. Burton prescribed opioids such as oxycodone, hydrocodone, and methadone, irrespective of any legitimate medical purpose and outside the normal course of professional practice, in exchange for sexual favors and romantic affection.
Dr. Burton prescribed opioids to individuals without conducting a thorough examination, and on occasion, without meeting them at all. Co-defendants Jennifer Hunter, Rhonda Haugland, and Tiffany Willis each engaged in a sexual relationship with Dr. Burton in exchange for prescriptions in their names, as well as the names of others. Hunter, Haugland, and Willis would fill their prescriptions and sell the pills, and then obtain more prescriptions from Burton for other people, who paid them for getting the prescriptions. Dr. Burton also supplied the co-defendants with blank prescriptions and instructed them on how to fill them out.
Joseph Lawson Burton, 73, of Milton, Georgia, pleaded guilty to the offense of conspiracy to unlawfully distribute and dispense controlled substances outside of the normal course of professional practice and without a legitimate medical purpose on May 22, 2018. Burton’s sentencing is scheduled for August 29, 2018.
These following co-defendants have also pleaded guilty:
●Jennifer Hunter, 29, of Acworth, Georgia, pleaded guilty to conspiracy to unlawfully distribute and dispense controlled substances on May 2, 2018. Hunter’s sentencing is scheduled for August 7, 2018.
●Tiffany Willis, 26, of Cartersville, Georgia, pleaded guilty to conspiracy to unlawfully distribute and dispense controlled substances on May 2, 2018. Willis’s sentencing is scheduled for August 7, 2018.
●Michelle Danner, 45, of Acworth, Georgia, pleaded guilty to conspiracy to unlawfully distribute and dispense controlled substances on May 15, 2018. Danner’s sentencing is scheduled for August 9, 2018.
●Jerry Stephens, Jr., 30, of Cartersville, Georgia, pleaded guilty to one count of conspiracy to unlawfully distribute and dispense controlled substances and one count of distribution and dispensation of a controlled substance on May 8, 2018. Stephens’s sentencing is scheduled for August 9, 2018.
●Rodney Kennedy, 63, of Cartersville, Georgia pleaded guilty to conspiracy to unlawfully distribute and dispense controlled substances on May 10, 2018. Kennedy’s sentencing is scheduled for August 9, 2018.
This case is being investigated by the DEA. The case is a coordinated effort with the Acworth Police Department, Barrow County Sheriff’s Office, Bartow County District Attorney’s Office, Bartow County Sheriff’s Office, Cartersville Police Department, Cherokee County Sheriff’s Office, Cherokee County District Attorney’s Office, Clayton County Police Department, Cobb County Sheriff’s Office, Cobb County District Attorney’s Office, Cobb County Police Department, Fayette County Sheriff’s Office, Floyd County District Attorney’s Office, Floyd County Sheriff’s Office, Georgia Department of Community Supervision, Georgia Composite Medical Board, Georgia Drugs and Narcotics Agency, Gwinnett County Sheriff’s Office, Hall County Sheriff’s Office, Jonesboro Police Department, Oakwood Police Department, Paulding County Sheriff’s Office, and the Rome Police Department.
Assistant U.S. Attorney John T. DeGenova and C. Brock Brockington, Deputy Chief of Narcotics and Dangerous Drugs Section are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Gang Member Sentenced for Cocaine DistributionRead the Press Release
BOSTON – A former member of the Orchard Park Trailblazers was sentenced yesterday in federal court in Boston for selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.
Keon Smith, 38, of Boston, was sentenced by U.S. District Court Judge Denise J. Casper to four years in prison and six years of supervised release, during which time Smith will be precluded from entering the Orchard Gardens Housing Development and from being in contact or associating with approximately 20 individuals from the same area. In December 2017, Smith pleaded guilty to one count of distribution of cocaine base within 1,000 feet of a school.
On Sept. 13, 2016, Smith sold crack cocaine to a cooperating witness near a school in Roxbury while on state court probation for another drug offense. According to court documents, Smith was convicted in 2001 of voluntary manslaughter and firearms possession and, since being released from state prison has been convicted of possessing an illegal substance with intent to distribute.
Smith is one of 12 defendants arrested and charged in June 2017 following a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to area schools and Dudley Square. According to court documents, the crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers, who allegedly have active feuds with rival gangs throughout the city. Smith is the 11th defendant to be sentenced in this case.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today.
Former FCI Aliceville Corrections Officer Sentenced to 1 ½ Years in Prison for Abusive Sexual Contact with InmateRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced a former corrections officer at the federal prison for women in Alabama to 1½ years in prison for committing a sexual act with an inmate and lying about his contact with her while he worked at the facility. U.S. Attorney Jay E. Town and Department of Justice Office of the Inspector General, Miami Field Office, Special Agent in Charge Robert A. Bourbon announced the sentence.
U.S. District Judge Virginia E. Hopkins sentenced JESSE BAILEY, 28, of Carrolton, Ala., on one count each of abusive sexual contact and making false statements to the government. Bailey pleaded guilty to the charges in December.
“This defendant now enters the prison system as an inmate rather than a guard and will learn how critically important it is that corrections officers honor their responsibility to supervise and protect inmates,” Town said. “The Department of Justice is committed to protecting the safety of inmates and my office continues to work with the Office of Inspector General to investigate incidents of alleged abuse by correctional staff.”
“Bailey abused the trust of inmates, staff and the public, and when confronted, he lied to cover up his actions,” stated Bourbon. “Today’s sentence serves as a reminder that no correctional officer is above the law. The DOJ OIG thanks the U.S. Attorney’s Office for its diligent efforts to help bring this case to a successful conclusion.”
Bailey worked as a corrections officer at the Federal Correctional Institution at Aliceville, a low-security prison for women, from January 2015 to August 2016. He had direct custodial, supervisory and disciplinary authority over inmates, including the victim.
In January 2016, Bailey was assigned to the prison dorm unit where the victim was housed and soon began a flirtation with her that resulted in the sexual act that took place in a staff bathroom near the dorm unit. Over the course of the flirtation that lasted several weeks, Bailey began communicating with the woman, even when he was not assigned to her dorm, including by email and telephone, according to his plea. Such communication between corrections officers and inmates is strictly prohibited.
Agents from the FBI and the DOJ OIG interviewed Bailey at FCI Aliceville in August 2016 about allegations of improper communications and sexual contact with the inmate. Bailey falsely denied the sexual contact and told the agents he had never communicated with the victim or other inmates by phone or email outside of his assigned role as a corrections officer, according to his plea.
DOJ OIG investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. prosecuted.
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Former Chief Financial Officer of New Jersey Orthopedic Care Provider Sentenced to Two Years in Prison for Embezzling More Than $1 MillionRead the Press Release
NEWARK, N.J. – The former chief financial officer of a New Jersey orthopedic care provider was sentenced today to 24 months in prison for stealing more than $1 million from the company for his personal use, U.S. Attorney Craig Carpenito announced.
Harry Wolfmuller, 70, formerly of Belmar, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of wire fraud. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2007 through 2015, Wolfmuller was employed as the chief financial officer for “Company A,” an orthopedic care provider with offices in Ocean and Monmouth Counties. As such, Wolfmuller controlled Company A’s bank accounts and financial records.
Wolfmuller cashed checks from Company A’s business accounts to pay for unapproved personal expenses, including meals at restaurants, golf, gambling and lottery tickets. Wolfmuller then misrepresented the nature of these transactions in Company A’s accounting records to make them appear as legitimate business expenses. Altogether Company A lost approximately $1,175,720 as a result of Wolfmuller’s conduct.
In addition to the prison term, Judge Cecchi sentenced Wolfmuller to three years of supervised release and ordered him to pay restitution of $1,175,720.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorneys Nicholas P. Grippo of the Economic Crimes Unit and Christopher Amore of the Asset Recovery and Money Laundering Unit in Newark.
Defense counsel: Salvatore T. Alfano Esq., Bloomfield, New Jersey, and Louis Esposito Esq., Cedar Grove, New Jersey
Former Chairman of Boston-Based Biomedical Company Pleads Guilty to Making False StatementsRead the Press Release
BOSTON – The former chairman of a Boston-based biomedical company, previously called Endeavor Power Corp., pleaded guilty today to making false statements to the U.S. Securities and Exchange Commission (“SEC”) in connection with the SEC’s investigation into a scheme to defraud the market for Endeavor’s publicly traded stock.
Edward Withrow III, 53, of Malibu, Calif., pleaded guilty to one count of making false statements. In October 2015, Withrow and Marco Babini, 57, who is believed to reside in Vancouver, Canada, were charged in an indictment. Babini remains at large as a fugitive and is charged with one count of conspiracy, one count of securities fraud and two counts of wire fraud.
By March 2013, the SEC had suspended trading in the securities of Endeavor, but they continued to investigate through at least August 2013. Withrow provided sworn testimony to the SEC relating to questions about who owned approximately 40 million unrestricted shares of Endeavor’s stock (i.e., shares that can be freely bought and sold in the securities market), and whether Withrow ever tried to determine who owned those shares. During today’s plea hearing, Withrow admitted that he misled the SEC about his knowledge of these Endeavor shares—most of which had been stashed in Switzerland—and Babini’s association with those shares.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The criminal case is being prosecuted by SEC Attorney Eric A. Forni, who was appointed as a Special Assistant U.S. Attorney.
The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Defendants Charged with Defrauding Banks of over $2.5 Million with Credit Card ‘Bust Out’ SchemeRead the Press Release
NEWARK, N.J. – Five individuals were charged today with allegedly using stolen and altered identities to fraudulently obtain credit cards and make over $2.5 million in charges that were never repaid, U.S. Attorney Craig Carpenito announced.
Talat Ali Maan, 44, of Germantown, Maryland, Syed Rehman, 51, of Jersey City, New Jersey, Kashif Idrees, 36, of Germantown, Jaheed Wahed Ahmed, 54, of Jersey City, and Fatou Djambo, 37, of Philadelphia, are each charged by complaint with one count of conspiring to defraud financial institutions.
Rehman and Djambo were arrested this morning and are scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Maan was arrested in Maryland and will appear before a U.S. Magistrate Judge in the District of Maryland. Ahmed and Idrees remain at large.
According to the complaint:
The defendants engaged in a fraudulent scheme to use stolen and fraudulently altered identities to obtain credit cards from banks and then use those credit cards to make purchases that they had no intention to repay, leaving the banks to bear the losses of the scheme.
Specifically, the defendants stole the identities of actual people and then, in many cases, created “synthetic identities” by pairing the name and social security number for an actual person with a fictitious birth date. When creating the synthetic identities, the defendants often used the name and social security number of an actual minor and combined them with a fictitious birth date that made the identity appear to be that of an adult.
The defendants then used the stolen and synthetic identities to obtain lines of credit, primarily through opening credit card accounts at banks. These cards were maintained in good standing with the banks long enough to establish the creditworthiness of the stolen and synthetic identities. The defendants then “busted out” the cards by making large purchases and never repaying the debts associated with those purchases.
The defendants also incorporated and registered in various states numerous purported companies that did little or no legitimate business. The defendants obtained credit card processing equipment by opening merchant processing accounts in the names of these sham companies, and then used that equipment to make the charges on the fraudulent credit cards.
In addition, Rehman maintained a Jersey City convenience store located at the same address as a gas station. From time to time, the defendants used that business to make charges to the fraudulent cards. The defendants also used the fraudulent cards to purchase merchandise from a Secaucus, New Jersey, warehouse store that they then sold for a profit at the convenience store.
The defendants routinely used “drop addresses” in New Jersey, New York, Pennsylvania, and Maryland as the purported mailing addresses for the phony cards and the sham companies.
The charge of conspiring to defraud financial institutions carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth Mendonca, with the investigation leading to today’s arrests.
The charge and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The government is represented by First Assistant U.S. Attorney Rachael A. Honig.
Felon Arrested and Charged with Possessing A GunRead 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 Titus Thompson, Jr., 33, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Emmanuel O. Ulubiyo and Timothy C. Lynch, who are handling the case, stated that according to the complaint, on May 18, 2018, the Bureau of Alcohol, Tobacco and Firearms and Explosives and the Buffalo Police Department executed a search warrant at 89 Parkridge Avenue in Buffalo in the upper and lower apartments which are utilized by the defendant. During the search, agents recovered a .40 caliber pistol and a 9mm pistol in the upper apartment as well as several firearms in the lower apartment.Thompson has two previous felony convictions. As a result, the defendant is legally prohibited from possessing firearms.
This arrest is the result of an ongoing investigation into the trafficking of firearms from the State of Ohio to Buffalo.
The defendant made an initial appearance before U.S Magistrate Judge H. Kenneth Schroeder and is being detained.
The complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Federal Racketeering Indictment Targets Mexican Mafia Control of Inmates and Drug Trafficking Inside Los Angeles County Jail SystemRead the Press Release
LOS ANGELES – More than 500 law enforcement personnel executed a major operation this morning, taking into custody 32 defendants who are charged in two federal racketeering indictments, one of which outlines how members of the Mexican Mafia were able to control drug smuggling, narcotics sales and the extortion of prisoners inside the Los Angeles County jail system (LACJ).
The defendants arrested this morning are among 83 defendants who were charged by a federal grand jury in the two indictments unsealed today. A total of 35 defendants are already in custody in state prison or county jail facilities and are expected to be brought to federal court in the near future. Authorities continue to search for 16 fugitive who are expected to be arrested in the near future.
The indictments – which allege a host of criminal violations, including conspiracies to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) – detail the power structure of the Mexican Mafia and its violent exercise of authority over Latino street gangs in Southern California and inside the sprawling LACJ.
According to the indictment that focuses on the LACJ, a criminal enterprise led by members of the Mexican Mafia allegedly engaged in five broad areas of criminal activities that collectively served to enrich members of the enterprise and to maintain control and authority over LACJ, which includes the Men’s Central Jail and the Twin Towers Correctional Facility in downtown Los Angeles. The criminal offenses carried out by this enterprise fall generally into five categories:
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the Mexican Mafia-sanctioned smuggling of drugs into LACJ, narcotics that were sold to inmates to generate profits for the enterprise;
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the “taxing” of other drugs smuggled into LACJ in what the indictment labels “widespread extortion”;
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another LACJ extortion scheme in which all Latino inmates were required to contribute a percentage of their commissary spending on food and hygiene items into a “kitty” that generated additional income for the Mexican Mafia member when the kitty was sold to an inmate;
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the disciplining and extortion – through assaults and fines – of Mexican Mafia associates who ran afoul of the rules imposed by the organization; and
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money laundering of the criminal proceeds from these activities.
“These cases have delivered a major blow to the Mexican Mafia and leaders of many of the street gangs under the control of the organization,” said United States Attorney Nick Hanna. “By taking out the gang members who control the jails, and by disrupting their communications network, we undermined the Mexican Mafia’s ability to coordinate street gang activity.”
Today’s takedown is the result of an investigation done under the auspices of the FBI’s San Gabriel Valley Safe Streets Task Force, which is made up of agents and officers with the Federal Bureau of Investigation, the Los Angeles County Sheriff’s Department, the Pomona Police Department, the Drug Enforcement Administration and the California Department of Corrections and Rehabilitation (CDCR).
“Gang violence in the jails also spills over to the streets and adversely affects our communities,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This three-year investigation focused on players at all levels for their role in the conspiracy – from the shot-caller, to the secretary, to the dealer, to the smuggler. Today’s successful operation is a direct result of law enforcement partners working cooperatively at all levels of government.”
The jails indictment focuses on a period when Mexican Mafia member Jose Landa-Rodriguez and two now-deceased members of the prison gang allegedly controlled the criminal enterprise in LACJ. The indictment explains how Landa-Rodriguez, who was incarcerated in LACJ at the time, and other leaders of the enterprise exercised power with the help of trusted “shot-callers,” facilitators and associates. “These Mexican Mafia members and associates, working together to control criminal activity within LACJ, have become their own entity or enterprise and effectively function as an illegal government within LACJ custody facilities,” the indictment states.
Landa-Rodriquez, 55, orchestrated a host of criminal activities, according to the indictment, which alleges that he sanctioned murders, a series of assaults, and the kidnapping and planned murder of the relative of a gang member who had defied him.
A second Mexican Mafia member, Luis Vega, 33, is named as the number 2 defendant in the LACJ indictment. Vega allegedly ordered a murder and directed assaults against those who showed disrespect or failed to follow Mexican Mafia rules.
“Operation Dirty Thirds lifts the veil on only one aspect of the complicated factors behind inmate-on-inmate assaults and the dangers to our custody staff,” said Sheriff Jim McDonnell. “Many assaults have been directed, and carried out, by the Mexican Mafia and are documented in this investigation that took more than four years.”
One of the key facilitators for Landa-Rodriguez allegedly was attorney Gabriel Zendejas-Chavez, who was arrested this morning. The indictment, which notes that attorneys are particularly valued members of the operation because attorney-client privilege can serve as a shield to conceal criminal activity from law enforcement, accuses Zendejas-Chavez of conveying messages and orders related to the criminal enterprise. According to the indictment, Zendejas-Chavez travelled to state and federal prisons to convey messages to Mexican Mafia members, including those incarcerated at ADX Florence; conveyed information, including the names of people potentially cooperating with law enforcement, to members of the LACJ racketeering enterprise; and facilitated a plot to extort $100,000 from the Mongols outlaw motorcycle gang.
Inside the jails, drug trafficking generated revenues for leaders of the criminal enterprise in two ways, according to the indictment. Once narcotics were smuggled into jail facilities at the direction of the Mexican Mafia members and their shot-callers, the narcotics were sold to inmates – and those who possessed other narcotics were not allowed to sell their drugs until the Mexican Mafia member’s drugs were sold. Second, the Mexican Mafia collected a “thirds” tax on all other drugs smuggled into LACJ. This meant that one-third of all narcotics smuggled into LACJ had to be “broken-off” and given to the Mexican Mafia member or his shot-caller in control of the facility. If the Mexican Mafia member decided to sell the “thirds-tax” portion of the drugs, others in the facility were prohibited from selling drugs until the Mexican Mafia member had sold his “thirds.” This rule led to the name of the investigation: Operation “Dirty Thirds.”
“The Mexican Mafia prison gang is a key component of the illicit drug supply chain, largely controlling narcotics distribution perpetrated by violent street gangs,” said DEA Special Agent in Charge David J. Downing. “Extinguishing La eMe’s ability to facilitate organized rackets, drug crimes, and associated violence is a top priority for DEA, and we’re embedded with countless law enforcement partners in this ongoing effort.”
“CDCR and the Office of Correctional Safety would like to thank our partners in the San Gabriel Valley Safe Streets Gang Task Force,” said John Prelip, CDCR Special Service Unit Special Agent-In-Charge. “We know the Mexican Mafia operates within state prisons to conduct criminal activities on the outside through very sophisticated networks. Our hope is that investigations such as these send a message to these gangs that law enforcement – both inside and outside prisons or jails – will continue to work together to dismantle their operations, and protect the community.”
The second RICO indictment unsealed today focuses on a second criminal enterprise that allegedly was run by another incarcerated member of the Mexican Mafia, Michael Lerma, 61, also known as “Pomona Mike.” Lerma exercised control over, and extorted drug proceeds from, Latino street gangs in and around Pomona, as well as from incarcerated Latinos in Calipatria State Prison in Imperial County. Members of Lerma’s criminal enterprise also allegedly engaged in robberies, identity theft and fraud, drug trafficking, kidnapping, and other acts of violence. Lerma profited from these criminal activities when top-level female associates known as “señoras” deposited proceeds into his prison account, according to the indictment.
In one incident alleged in the indictment, members of Lerna’s criminal enterprise attempted to steal a Mercedes-Benz automobile that was owned by a LACJ inmate. When the caretaker of the car refused to turn over the vehicle, one of the defendants named in the indictment shot him. In another incident allegedly involving members of Lerma’s organization, a woman was kidnapped, held for several days while being extorted for money, and was going to be murdered before the plot was disrupted by law enforcement.
“The Pomona community certainly suffered from the criminal acts of those indicted,” said Pomona Police Chief Michael Olivieri. “I am very pleased with the success of this long-term investigation, and I am looking forward to more collaboration with our law enforcement partners in future investigations.”
The two indictments unsealed today charge a host of criminal offenses, including conspiracy to engage in racketeering activity; violent crimes in aid of racketeering activity; carjacking; conspiracy to distribute and possess with intent to distribute methamphetamine, heroin, cocaine, and marijuana; distribution of and possession with intent to distribute controlled substances; money laundering; possession of at least 15 access devices (credit card numbers); aggravated identity theft; and use, possession or discharge of a firearm in furtherance of a crime of violence or drug trafficking crime. If convicted, most of the defendants could be sentenced to decades in federal prison, and some could face life without parole.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Most of the defendants arrested this morning are expected to be arraigned on the indictments this afternoon in United States District Court in downtown Los Angeles.
Operation Dirty Thirds was conducted by the FBI’s San Gabriel Valley Safe Streets Task Force. The Pomona Police Department is the sponsoring agency of the Task Force and has been the headquarters for the task force since its inception in 2008.
A number of law enforcement agencies provided substantial assistance during this morning’s takedown, including U.S. Immigration and Customs Enforcement’s Homeland Security Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Ontario Police Department; IRS Criminal Investigation and other agencies.
The RICO cases are being prosecuted by Assistant United States Attorneys Max B. Shiner and Shawn J. Nelson.
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Federal Inmate at USP Canaan Charged with Assaulting Two Correctional Officers and Possession of ContrabandRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Johnny Fletcher, age 40, an inmate at the United States Penitentiary at Canaan (USP Canaan), located in Waymart, Pennsylvania, was indicted on May 22, 2018, by a federal grand jury for assaulting two federal correctional officers and possession of contraband in prison.
According to United States Attorney David J. Freed, the indictment alleges that on February 5, 2018, Fletcher assaulted two correctional officers and possessed three sharpened pieces of metal commonly known as “shanks.”
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty which can be imposed under federal law is eight 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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Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictments against the following:
North Carolina Couple Indicted on Hobbs Act Robbery and Federal Gun Charges. Jeremy Lamar Hayes, age 29, and Kenney Mariah Boggs, age 25, both of Asheboro, North Carolina, were charged in a ten-count indictment with conspiracy to obstruct commerce by robbery, a violation of Title 18, United States Code, Section1951(a); obstruction of commerce by robbery, a violation of Title 18, United States Code, Section1951(a); and the use, carry, and possession of a firearm and aiding and abetting the brandishing of the firearm during a crime of violence, a violation of Title 18, United States Code, Section 924(c)(1)(A), Hayes was also charged with felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Hayes and Boggs could face is a fine of $250,000.00 and/or life imprisonment. This case was investigated by the Myrtle Beach Police Department, the Horry County Police Department, the Surfside Police Department, and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office.
Conway Man Indicted for Illegal Reentry into the United States After Deportation. Carmelino Bersain Bravo-Roblero of Conway, South Carolina, was charged in a single-count indictment with illegal reentry into the United States after deportation, a violation of Title 8, United States Code, Section 1326(a). The maximum penalty Bravo-Roblero could receive is two years imprisonment and a fine of $250,000.00.
The case was investigated by Immigration and Customs Enforcement-Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Myrtle Beach Man Indicted for Illegally Producing and Transferring False Identification Documents and for Possession of a Firearm by an Illegal Alien. Gullermo Palma-Rodriguez of Myrtle Beach, South Carolina, was charged in a 4-count indictment with illegally producing and transferring false identification documents, a violation of Title 18, United States Code, Sections 1028(a)(1) and 1028(a)(2) and for possession of a firearm by an illegal alien, a violation of Title 18, United States Code, Section 922(g)(5)(A). The maximum penalty Palma-Rodriguez could receive is 15 years imprisonment and a fine of $250,000.00.
The case was investigated by Homeland Security Investigations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Charges Filed in Deadly Wichita Swatting CaseRead the Press Release
WICHITA, KAN. – A federal indictment unsealed here today charges three men in a “swatting” incident where false reports to police and emergency services set off a chain of events that led to a Wichita man being shot and killed, U.S. Attorney Stephen McAllister said.
The indictment alleges the defendants are responsible for hoax calls to Wichita police on Dec. 28, 2017, that ultimately led to the death of Andrew Finch. The following men are charged:
Tyler Barriss, 25, Los Angeles, Calif., making false/hoax reports to emergency services (count 1), cyberstalking (count 2), making interstate threats (count 3), making interstate threats to harm by fire (count 4), wire fraud (counts 5 through 11) and conspiracy to make false/hoax reports (count 12).
Casey Viner, 18, North College Hill, Ohio, wire fraud (counts 5 through 11), conspiracy to make false/hoax reports (count 12), obstruction of justice (count 13), and conspiracy to obstruct justice (count 16).
Shane Gaskill, 19, Wichita, Kan., obstruction of justice (count 13, 14 and 15), conspiracy to obstruct justice (count 16), and wire fraud (count 17).
The indictment alleges the incident began when Viner in Ohio and Gaskill in Wichita, Kansas were playing a Call of Duty game online as teammates and got into an argument.
Viner later asked Barriss to “swat” Gaskill at an address provided by Gaskill. Viner did not know that the address Gaskill provided – 1033 W. McCormick in Wichita – was an old address where Gaskill no longer lived, but Gaskill did and Gaskill also kept giving the old address to Barriss.
Barriss made and received a series of calls from California in which he talked to the Wichita Police Department’s Security Desk in City Hall and the 911 emergency dispatcher for Sedgwick County. Barriss disguised his phone number to make it appear he was calling from the 316 Wichita area code.
Barriss falsely claimed there was an emergency at 1033 W. McCormick in which he (Barriss) had shot and killed his father, that he (Barriss) was holding his mother and little brother at gunpoint in a closet, that he (Barriss) was considering suicide, and that he (Barriss) has poured gasoline all over the house and was considering lighting it on fire. Wichita police thus responded to the address believing they were dealing with a shooting, a hostage situation, a suicidal gunman, and the possibility of arson.
The indictment further alleges that, after Mr. Finch was shot and the defendants realized the result of the “swatting,” they talked about (in online conversations and direct messages) deleting their electronic messages and communications to protect themselves from prosecution. Defendant Viner wiped and factory reset his iPhone.
If convicted, the defendants face the following penalties:
- Making a false/hoax report to emergency services resulting in death of another: Up to life in federal prison and a fine up to $250,000.
- Cyberstalking resulting in death of another: Up to life and a fine up to $250,000.
- Threatening to kill a person or damage property by fire: Up to 10 years and a fine up to $250,000.
- Making a threat in interstate communications: Up to five years and a fine up to $250,000.
- Wire fraud: Up to 20 years and a fine up to $250,000.
- Conspiracy to make a false report: Up to five years and a fine up to $250,000.
- Obstruction of justice: Up to 20 years and a fine up to $250,000.
- Conspiracy to obstruct justice: Up to 20 years and a fine up to $250,000.
The FBI, the Sedgwick County Sheriff’s Office and the Wichita Police Department investigated. U.S. Attorney Stephen McAllister will prosecute along with Assistant U.S. Attorney Debra Barnett.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Former President of Sapulpa /oklahoma City Oil Distributor Company Sentenced in $10 Million Dollar Tax Refund and Mail Fraud SchemeRead the Press Release
U.S. Attorney R. Trent Shores announced today that the former president of Clark Oil Distributors, Inc. located in both Sapulpa and Oklahoma City, was sentenced today by U.S. District Judge Claire V. Eagan to five years in federal prison for filing over $10,000,000 in false excise tax refund claims with the Internal Revenue Service, and causing the United States Treasury Department to mail the fraudulent excise tax refund checks to Jack Jim Clark in Sapulpa, Oklahoma. Clark pleaded guilty on August 25, 2017 to one count of False Claims against the United States – Fuel Excise Tax Refunds and one count of Mail Fraud.
Jack Jim Clark, 44, of Oklahoma City and Sapulpa, filed 21 separate fraudulent claims for refunds of gasoline excise tax paid on gasoline purportedly later sold to tax exempt organizations such as local government, school districts and universities from July 6, 2010 through February 27, 2012, totaling approximately $10,042,098.42. Clark had agreed to be held accountable for the entire $10,000,000 loss as if he had pled guilty to all charges.
“White-collar crime undermines the rule of law and disrupts the marketplace. It destroys lives and livelihoods. Our goals are to hold accountable perpetrators like Jack Jim Clark, who break the law to enrich themselves, and to seek restitution for victims of financial crimes. I am proud of the excellent work done by Assistant United States Attorneys Charles McLoughlin, Dennis Fries, and Catherine Depew, as well as Special Agent John Darin Weiwel, Internal Revenue Service/Criminal Investigations and Trial Attorney, William F. Caster Internal Revenue Service/Office of Chief Counsel,” said United States Attorney Shores.
Clark would prepare, on approximately a monthly basis, false and fraudulent claims that contained wildly inflated amounts of gasoline sold to tax exempt customers. Clark claimed to have sold 56,780,936 gallons of gasoline to tax exempt customers when in fact only 1,035,332 gallons of a gasoline were sold to those customers. Most of the listed customers had never purchased gasoline from Clark’s company. Of the claims submitted to the IRS, over 98% were fraudulent.
Most of the approximately $10,000,000 in fraudulent refunds were used by Clark to fuel an extravagant life style. This included the construction of an 11,513 square foot home in 2012 valued at approximately $4,000,000 at 11600 Mill Hollow Court, Oklahoma City, Oklahoma. As part of Clark’s sentence, this home was forfeited to the United States to be sold with the proceeds to be paid to the IRS as restitution.
In addition to the prison sentence, U.S.District Judge Claire V. Eagan ordered Clark to pay restitution to the IRS of $10,042,098.42, forfeited the home in Oklahoma City and placed Clark under supervised release for 5 years after finishing his prison sentence.
The case was a joint investigation by the U.S. Department of Treasury, Internal Revenue Service/Criminal Investigations, U.S. Department of Treasury, Internal Revenue Service/Office of Chief Counsel, Oklahoma Tax Commission and the U.S. Attorney’s Office. Assistant United States Attorneys Charles M. McLoughlin, Dennis Fries and Catherine Depew prosecuted the case on behalf of the United States.
Esteban Santiago-Ruiz Pled Guilty to Federal Charges in Connection with Shooting at Fort Lauderdale-Hollywood International AirportRead the Press Release
Esteban Santiago-Ruiz (Santiago) appeared today before United States District Judge Beth Bloom, and pled guilty to charges of committing acts of violence at an international airport resulting in five deaths and serious injuries, in connection with the mass-shooting at Fort Lauderdale-Hollywood International Airport on January 6, 2017.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
“Today the man responsible for the horrific, devastating, and tragic attack on numerous innocent people at the Ft. Lauderdale Airport was held accountable for his crimes,” stated Benjamin G. Greenberg. “Although this conviction cannot restore the lives lost or forever changed by his egregious acts of violence, it shows our unwavering and united commitment to seeking justice for the victims. The U.S. Attorney’s Office and our law enforcement partners are resolute in our dedication to combatting all forms of violent crime and protecting all residents and visitors of our South Florida community.”
“On January 6, 2017, Esteban Santiago-Ruiz committed a mass-shooting when he pulled out a handgun and started shooting inside the terminal of Fort Lauderdale-Hollywood International Airport, killing five people and seriously wounding six more,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “Santiago is now being held accountable for this senseless and cowardly act of violence.”
“When the active killer fired indiscriminately in the baggage claim area on that fateful day, lives were lost and other lives were forever changed by his heartless, violent actions,” Sheriff Scott Israel said. “I commend the work of our law enforcement partners and the U.S. Department of Justice that led to today’s outcome. I can only hope that the resolution of this case brings some peace to the affected families.”
Santiago pled guilty to five counts of committing acts of violence at an international airport causing death (Counts 1-5) and six counts of committing acts of violence at an international airport causing serious bodily injury (Counts 6-11), all in violation of Title 18, United States Code, Section 37(a)(1).
According to court documents, shortly before 1 p.m. on January 6, 2017, Santiago carried out an armed attack on newly-arrived passengers retrieving their luggage in the Terminal 2 baggage claim area of the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida. Santiago pulled out a handgun and started shooting at numerous victims, aiming at the victims’ heads and bodies until he was out of ammunition. Santiago killed five people and seriously wounded six more. Moments later, Santiago was confronted by a BSO deputy. He dropped his handgun on the ground and was arrested by BSO deputies. The FBI investigated the case along with the U.S. Attorney’s Office.
Santiago is scheduled to be sentenced by Judge Bloom in Miami on August 17, 2018 at 9:30 a.m. Santiago faces a sentence of up to life in prison on each of Counts 1-5, and up to twenty years in prison on each of Counts 6-11.
Mr. Greenberg commended the investigative assistance of FBI and BSO in this matter. This case is being prosecuted by Assistant United States Attorneys Ricardo A. Del Toro and Lawrence D. LaVecchio.
Court documents and information related to this case 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.
English Avenue drug dealer sentenced for selling heroin to minors and young adults and distributing fentanylRead the Press Release
ATLANTA - Derrick Douglas, a/k/a “Dre”, has been sentenced for conspiring to sell heroin to minors and young adults who traveled from North Georgia to the English Avenue community to purchase drugs. Douglas also sold fentanyl, a particularly deadly narcotic, to an undercover officer.
“Douglas sold heroin to high school students and young adults who traveled from North Georgia to English Avenue specifically to purchase drugs,” said U.S. Attorney Byung J. “BJay” Pak. “We are committed to working with our federal, state and local law enforcement partners to aggressively target and dismantle drug trafficking operations and to combating the devastation drug activity brings to our communities.”
“Today’s sentence demonstrates ATF’s continued dedication to identify and arrest the individuals who commit crimes that threaten the quality of life in our neighborhoods,” said ATF Special Agent in Charge Arthur Peralta. “ATF and our law enforcement partners will continue to reduce violent crime by arresting criminals, such as Douglas, who have no regard for the future of our children or for the safety of the communities in which they live.”
“This conviction demonstrates the great work of law enforcement at all levels in the fight against Georgia’s opioid epidemic,” said Georgia Bureau of Investigation Director Vernon Keenan. “The GBI is committed to working with our local and federal partners in drug enforcement no matter where the crimes occur.”
“The Union County Sheriff’s Office was fortunate to be able to have played a small part of this successful operation.” said Sheriff Mason. “It saddens me to see the negative affects this drug has on the young people today. I appreciate the working relations shared between the U.S. Attorney’s Office and numerous other agencies in order to achieve a successful outcome.”
According to U.S. Attorney Pak, the charges and other information presented in court: As part of an ongoing heroin trafficking investigation in North Georgia, the Union County Sheriff’s Office learned that high school students and young adults from Union County, Georgia, were traveling from four to six hours a week to the English Avenue neighborhood of Atlanta to purchase heroin from an individual known as “Dre” – later identified as Derrick Douglas. Investigators confirmed that Douglas was selling between one half to a gram of heroin to each of his young customers at a cost of $100-$150 dollars. Investigators determined that most of Douglas’s identified customers were younger than 21 years old, and at least one of them was a minor.
Douglas knew that many of these young people returned to Union County to distribute the heroin. Douglas was arrested on June 23, 2017. In or around September 2016 through June 23, 2017, he distributed more than 80 grams of heroin to these young people. On January 25, 2017, he also sold fentanyl to an undercover officer employed by the Georgia Bureau of Investigation.
Derrick Douglas, a/k/a “Dre”, age 31, of Atlanta, Georgia, has been sentenced to five years in prison to be followed by six years of supervised release. Douglas pleaded guilty on November 29, 2017, to conspiracy to sell heroin to individuals under 21 years old.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Atlanta Police Department, Georgia Bureau of Investigation, and Union County, Georgia, Sheriff’s Office.
Assistant U.S. Attorney Laurel R. Boatright prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.