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22 May 2018
MS-13 Member Admits Responsibility for Murder of 16-Year-Old East Boston Boy and Pleads Guilty to RICO Conspiracy Involving MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty today in federal court in Boston to racketeering conspiracy involving the murder of a 16-year-old boy in East Boston.
Jairo Perez, a/k/a “Seco,” 27, a Salvadoran national, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy. Perez admitted that his racketeering activity involved the Jan. 10, 2016, murder of a 16-year-old boy in East Boston.
Under the terms of the proposed plea agreement, Perez will be sentenced to 35 years in prison. At today’s hearing, the Court accepted the defendant’s guilty plea but deferred acceptance of the plea agreement until the sentencing hearing. Perez will be subject to deportation proceedings upon completion of his sentence. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Sept. 11, 2018.
The investigation revealed that Perez was a member of MS-13’s Trece Loco Salvatrucha (TLS) clique. Evidence showed that on Jan. 10, 2016, Perez and other MS-13 members murdered a 16-year-old boy whom they believed to be a member of the rival 18th Street gang. The victim was stabbed and shot multiple times. A few days after the murder, Perez was caught on tape admitting to stabbing the victim multiple times, and he was arrested soon thereafter. Perez was also recorded burying the knives used to murder the victim in a park on Deer Island in Winthrop.
After a multi-year investigation, Perez was one of dozens of alleged leaders, members, and associates of MS-13 named in a superseding indictment unsealed in January 2016 that targeted MS-13’s criminal activities in Massachusetts. Perez is the 48th defendant to be convicted as part of that ongoing prosecution by the U.S. Attorney’s Office in Massachusetts. To date, all eight defendants who have gone to trial have been convicted, and 40 other defendants have pleaded guilty.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Luling Man Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
JONATHAN WHIPPLE, age 33, a resident of Luling, pled guilty today before United States District Judge Susie Morgan to an indictment charging him with being a felon in possession of a firearm, in violation of the Federal Gun Control Act announced U.S. Attorney Duane A. Evans.
WHIPPLE was indicted by a Federal Grand Jury on November 3, 2017 in a one count indictment for possessing a Smith & Wesson, Model 22LR semi-automatic rifle after having been convicted of two different felony drug offenses. WHIPPLE faces up to 10 years imprisonment, a fine of up to $250,000 and up to three years of supervised release following any term of imprisonment. The sentencing is set for August 21, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime-reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U. S. Attorney Duane Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant United States Attorney David Haller.
Lower Brule Man Sentenced on Firearms ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on May 14, 2018, by U.S. District Judge Roberto A. Lange.
Lyle Wade Whitney, age 45, was sentenced to 15 months in custody, followed by 2 years of supervised release, forfeiture of firearms and ammunition, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Whitney was indicted by a federal grand jury on April 16, 2017. He pleaded guilty on February 5, 2018.
On May 16 and May 17, 2017, law enforcement executed search warrants on Whitney’s residence and property in Lower Brule, and seized 17 firearms, two of which had been stolen, a large amount of ammunition, and drug paraphernalia testing positive for methamphetamine, a Schedule II controlled substance. A urine sample taken from Whitney tested positive for marijuana and methamphetamine, and Whitney admitted to using methamphetamine on more than one occasion. Defendant agreed to forfeit his interest in all of the firearms and ammunition seized by law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Indian Affairs Crow Creek Agency, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Whitney was immediately turned over to the custody of the U.S. Marshals Service.
Leader of Rochester-Based Drug Trafficking Organization Sentenced to Twenty-Six Years in PrisonRead the Press Release
United States Attorney Gregory G. Brooker announced the sentencing of MARCO ANTONIO AVILA, 30, to 26 years in prison for his leadership role in a Rochester-based methamphetamine and cocaine distribution organization. AVILA, who pleaded guilty on May 30, 2017, was sentenced on May 21, 2018, by Judge Donovan W. Frank in United States District Court in Saint Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from December 2015 through June 2017, AVILA was the leader and facilitator of the Avila Drug Trafficking Organization (DTO), an extensive Rochester-based methamphetamine and cocaine distribution organization. AVILA’S connections served as the source of the supply of drugs, while AVILA managed the distribution and the profits. During this same time, AVILA’S DTO was also involved in an ongoing and violent shooting war with a rival drug trafficking organization in the Rochester area.
According to documents filed in court, on January 9, 2017, AVILA was indicted for his drug trafficking activities, and on May 28, 2017, he pleaded guilty to one count of conspiracy to distribute methamphetamine and cocaine. Following his guilty plea, while awaiting sentencing, AVILA was held in the Anoka County Adult Detention Facility. While in custody, between June 2017 and September 2017, AVILA continued to facilitate the supply and distribution of methamphetamine from inside the jail walls. AVILA was again charged on October 18, 2017, and on January 22, 2018, he pleaded guilty to a second count of conspiracy to distribute methamphetamine.
The separate prosecutions were the result of investigative efforts by the Bureau of Criminal Apprehension, the Southeast Minnesota Violent Crime Enforcement Team (SEMVCET), the Drug Enforcement Administration (DEA), the Anoka-Hennepin Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Rochester Police Department, the St. Paul Police Department, the Worthington Police Department, the Southeast Minnesota Narcotics & Gang Task Force (S.E.T.F.), and the Minnesota State Patrol.
Assistant U.S. Attorney Allen A. Slaughter is prosecuting the case.
Defendant Information:
MARCO ANTONIO AVILA, 30
San Jose, California
Convicted:
- Conspiracy to distribute methamphetamine and cocaine, 1 count
- Conspiracy to distribute methamphetamine, 1 count
Sentenced:
- 312 months in prison
- 10 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Kansas City Man Sentenced for Bank Robbery in Overland ParkRead the Press Release
KANSAS CITY, KAN. – A Kansas City man who used his smart phone to pass a note to a teller was sentenced Tuesday to 37 months in federal prison for robbing a bank, U.S. Attorney Stephen McAllister said.
Ryan Michael Cothern, 41, Kansas City, Mo., pleaded guilty to committing a robbery Oct. 3, 2017, at US Bank at 9900 W. 87th Street in Overland Park, Kan. Prosecutors said Cothern handed a teller his cell phone with a message that read, “Put the 100s, 50s and 20s in the bag.” When the teller hesitated, Cothern said, “Don’t do anything you shouldn’t do.” The teller put cash and a GPS monitoring device in the bag before pulling the alarm. Cothern was arrested near the 8300 block of Melrose Street.
McAllister commended the Overland Park Police Department, the FBI and Assistant U.S. Attorney Sheri Catania for their work on the case.
KC Woman Sentenced to 27 Years for Leading Meth, Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman was sentenced in federal court today for leading a conspiracy to distribute methamphetamine and heroin.
Evelyn L. Cooper, 46, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 27 years and six months in federal prison without parole.
On Dec. 21, 2017, Cooper pleaded guilty to leading a conspiracy to distribute more than 500 grams of methamphetamine and some amount of heroin from October 2015 until her arrest on Sept. 28, 2016.
Undercover officers from the Kansas City, Mo., Police Department and confidential informants working at the direction of law enforcement purchased methamphetamine and heroin from Cooper, as well as her co-defendant and boyfriend, Theodis D. Johnson, 42, of Kansas City, Mo., on several occasions in 2015 and 2016.
Law enforcement officers executed a search warrant at Cooper’s residence on Aug. 1, 2016, and recovered approximately 76.5 grams of methamphetamine and approximately 17 grams of heroin. On Sept. 14, 2016, law enforcement applied for and obtained a search warrant for Cooper’s Facebook account. Officers were able to estimate, conservatively, that 200 grams of methamphetamine was trafficked through Cooper’s account.
When Cooper and Johnson were arrested, Johnson was in possession of a loaded Taurus .380-caliber semi-automatic pistol.
Johnson pleaded guilty to his role in the conspiracy and was sentenced on May 1, 2018, to 20 years in federal prison without parole. Co-defendant Erin R. Markley, 36, of Kansas City, Mo., pleaded guilty to her role in the conspiracy and was sentenced on Jan. 16, 2018, to six years in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Kansas City, Mo., Police Department.
Jury Finds Kalamazoo Man Guilty of Methamphetamine TraffickingRead the Press Release
Eight coconspirators pled guilty before trial.
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced today that, after four days of trial, a federal jury convicted Michael Donnell Neeley, age 39, of Kalamazoo, Michigan, of conspiring to distribute methamphetamine. Neeley, Noel Francisco Saldana, Jesus Manuel Ramirez-Luna, Thomas Lee Cowley, Sheryl Lynn Ayad, Thomas Lewillan Cowley, Jr., Justin Owen Smith, Robert Eugene Nichols, and David Leroy Strickler were charged in December 2017 with conspiracy to distribute and to possess with intent to distribute methamphetamine, and various other drug and firearm charges. All charged defendants have been convicted.
The conspiracy began in or around July 2016 when Noel Saldana, the conspiracy’s leader, and Thomas Lee Cowley met Phoenix-based methamphetamine supplier Jesus Ramirez-Luna. Thereafter, Ramirez-Luna supplied Saldana with pounds of methamphetamine on a monthly basis for further redistribution throughout Kalamazoo and Van Buren counties. Ramirez-Luna used the U.S. Postal Service and the United Parcel Service to ship methamphetamine to Saldana and his coconspirators in west Michigan. Saldana coordinated receipt of the methamphetamine deliveries with Thomas Lee Cowley and Sheryl Ayad. After receiving the methamphetamine, Saldana distributed it among Thomas Lee Cowley, Michael Donnell Neeley, Justin Owen Smith, and others for further distribution in west Michigan. The conspiracy ended in December 2017 when federal law enforcement arrested eight of the nine coconspirators on a criminal complaint and executed search warrants at eight locations tied to the conspiracy. Over the course of its investigation, law enforcement intercepted over 11 pounds of crystal methamphetamine from the mail.
In addition to the methamphetamine conspiracy charge, the jury also found Neeley guilty of possession with intent to distribute marijuana and possession of a firearm after a previous felony conviction. These latter two charges stemmed from over two pounds of marijuana and a firearm found inside Neeley’s residence during a search on December 4, 2017. The methamphetamine conspiracy charge carries a mandatory minimum term of 10 years’ imprisonment up to a maximum term of life imprisonment. Neeley will be sentenced on September 24, 2018.
His coconspirators, Noel Franscisco Saldana, Jesus Manuel Ramirez-Luna, Thomas Lee Cowley, Sheryl Lynn Ayad, Thomas Lewillan Cowley, Jr., Justin Owen Smith, and David Leroy Strickler, each pled guilty prior to trail to the conspiracy charge and also face a minimum of ten years and up to life in prison. Robert Eugene Nichols pled guilty to lesser charges and faces up to 96 months in prison. These coconspirators are scheduled to be sentenced in July and August.
The investigation was led by the Drug Enforcement Administration and assisted by the U.S. Postal Inspection Service and the Kalamazoo Valley Enforcement Team and the Southwest Enforcement Team, two state-based multijurisdictional narcotics task forces. Dubbed "Operation Crystal Misery," the investigation was part of the U.S. Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program. Established in 1982, the OCDETF Program is designed to disrupt and dismantle major drug trafficking and money laundering organizations and related criminal enterprises by leveraging the resources and unique expertise of numerous federal agencies in a coordinated attack.
Assistant United States Attorneys Joel S. Fauson and Stephen P. Baker are handling the prosecution.
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Joplin Man Sentenced to 25 Years for Large-Scale Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of methamphetamine in southwest Missouri.
Santiago Soto-Garcia, 25, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to 25 years in federal prison without parole.
On Nov. 2, 2017, Soto-Garcia was found guilty at trial of one count of participating in a conspiracy to distribute methamphetamine, one count of possessing methamphetamine with the intent to distribute, and one count of possessing firearms in furtherance of a drug-trafficking crime. Soto-Garcia was also convicted of a forfeiture allegation that requires him to forfeit to the government $7,000 that was seized by law enforcement officers and was derived from the proceeds of the conspiracy.
Co-defendants Destiny O’Brien, also known as “Destiny Smith,” 21, of Joplin, and Michael L. Gonzalez, also known as “Chavez,” 25, of Texas, have pleaded guilty and been sentenced for their roles in the drug-trafficking conspiracy and for possessing firearms in furtherance of the conspiracy.
Evidence introduced during the trial proved to the jury that Soto-Garcia and O’Brien, assisted by Gonzalez, were multiple-pound distributors of methamphetamine in the Joplin area from late 2014 to August 2015.
After an investigation that began in February of 2015, Soto-Garcia, O’Brien, and Gonzalez were arrested on Aug. 11, 2015, following a traffic stop by a Joplin police officer. Soto-Garcia was the driver of a silver 2006 BMW, with O’Brien a passenger in the front seat and Gonzalez in the rear driver’s side passenger seat. When Gonzalez rolled down his window, the officer saw two pistols on the floorboard by Gonzalez’s feet and all three defendants were instructed to get out of the vehicle. The Hi-Point .40-caliber firearm and the Kel-Tec .223-caliber firearm, along with loaded magazines, were removed from the vehicle.
After the occupants and the firearms were removed from the vehicle, a K-9 alerted to the presence of narcotics inside the BMW from outside of the vehicle. When the officer attempted to open the door of the vehicle to conduct an interior search, he found the doors were locked.
The officer determined that Soto-Garcia had locked the doors with the key fob for the BMW and asked Soto-Garcia for the key fob. Instead of handing the fob to the officer, Soto-Garcia took the fob out of his pocket and threw it under the patrol vehicle. As Soto-Garcia began struggling with the officers, O’Brien ran over to the patrol vehicle and obtained the key fob. O’Brien then resisted officers as well. After obtaining the fob and arresting O’Brien and Soto-Garcia, officers searched the vehicle. Joplin police officers found a package that contained approximately a pound of methamphetamine and then arrested Gonzalez as well.
That same day, investigators searched Soto-Garcia’s residence and found a Smith & Wesson .40-caliber handgun, a Tanfoglio .40-caliber handgun, a Sig Sauer 9mm handgun, a North American Arms 22-caliber magnum revolver, ammunition, a bullet-proof vest, a money counter, and approximately five grams of methamphetamine. Investigators then searched another residence being used as a stash house by Soto-Garcia and found a Phoenix Arms .22-caliber handgun and approximately 852.3 grams of methamphetamine hidden in an air vent.
This case was prosecuted by U.S. Attorney Timothy A. Garrison, Supervisory Assistant U.S. Attorney Randall C. Eggert and Special Assistant U.S. Attorney Jody Larison. It was investigated by the Drug Enforcement Administration, the FBI, ATF, the Missouri State Highway Patrol, the Joplin Police Department, and the Ozark Drug Enforcement Team.
Jasper Family Sentenced in DETCOG ConspiracyRead the Press Release
LUFKIN, Texas — A Jasper, Texas couple and their daughter have been sentenced to federal prison for conspiracy violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Walter Diggles, 66, his wife, Rosie Diggles, 64, both of Jasper, and their daughter, Anita Diggles, 42, of Houston, were convicted on Aug. 3, 2017, of conspiracy to commit wire fraud, wire fraud. Additionally, Walter Diggles was convicted of 11 counts of wire fraud, three counts of theft concerning programs receiving federal funds, and three counts of money laundering (engaging in monetary transactions in property derived from specified unlawful activity, here, wire fraud). Rosie Diggles was also convicted of ten counts of wire fraud and one count of money laundering (engaging in monetary transactions in property derived from specified unlawful activity, here, wire fraud).
Today, Walter Diggles was sentenced to 108 months in federal prison by U.S. District Judge Ron Clark, along with restitution to be paid to the government in the amount of $1,326,049.91. Rosie Diggles and Anita Diggles were each sentenced to 54 months in federal prison and were ordered to pay restitution jointly to the government in the amount of $971,143.57.
According to information presented in court, the defendants devised a scheme to obtain and make personal use of federal block grant funds that Congress appropriated following Hurricanes Rita, Katrina, Ike, and Dolly. These funds were made available to the State of Texas, which in turn contracted with several councils of governments within the state to assist in administering and distributing the funds. Walter Diggles was the Executive Director of the Deep East Texas Council of Governments during this time and used his position to approve inflated billing rates and requests for reimbursement of federal block grant funds while Rosie Diggles and Anita Diggles prepared many of the requests. Additionally, Walter Diggles engaged in activities and approved requests for block grant funds that were fraudulent in nature and all the defendants spent significant amounts of the excess funds on personal expenses. The Diggles were indicted by a federal grand jury on Dec. 2, 2015.
“The defendants stole from the taxpayers, and these kinds of frauds take money away from real people – disaster victims,” said Joseph Brown, U.S. Attorney for the Eastern District of Texas. “This was an appropriate sentence, and hopefully it will help deter some of this type of behavior the next time.”
“Offenders who abuse the public trust inherently are more culpable. The defendants made a conscious decision to deceive and benefit personally at the expense of the citizens of the State of Texas,” said Tamera Cantu, IRS Special Agent In Charge of the Dallas Field Office. “Today’s sentences underscore our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who violate the public’s trust.”
"Today's sentencing is the result of an outstanding collaborative effort between the U.S. Attorney's Office, Eastern District of Texas (Lufkin Division), the Federal Bureau of Investigation, the Internal Revenue Services-Criminal Investigation Division, Homeland Security Investigations, the U.S. Department of Housing and Urban Development, and the Texas State Auditor's Office," said HSI Houston Special Agent in Charge Mark B. Dawson. "By working together as a team, we were able to bring justice to the hurricane victims to whom the funds were intended to aid."
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the U.S. Department of Homeland Security / Homeland Security Investigations, the U.S. Department of Housing and Urban Development, and the Texas State Auditor’s Office. This case was prosecuted by Assistant U.S. Attorneys Tom Gibson and James Noble.
Jamaican Citizen Charged with Violating Federal Firearms LawsRead the Press Release
PITTSBURGH, Pa. – A Jamaican man has been indicted by a federal grand jury in Pittsburgh on charges of violating various federal firearm laws, United States Attorney Scott W. Brady announced today.
The three-count indictment named Kevin Ruddock, 34, of a citizen of Jamaica residing in Penn Hills, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Ruddock knowingly gave false information on an application to purchase a Ruger Model 9E, 9 millimeter handgun, in violation of federal law. Federal law prohibits anyone who is illegally or unlawfully in the United States, or who is an alien admitted to the United States under a non-immigrant visa, from possessing a firearm. The indictment alleges that on March 13, 2017, Ruddock falsely claimed that he was a United States citizen on the form submitted to Dick’s Sporting Goods when he purchased the Ruger. The indictment further alleges that on March 16, 2018, Ruddock possessed the Ruger, along with 123 rounds of ammunition, and that the possession was illegal both because Ruddock was admitted into the United States on a non-immigrant visa and because he was in the United States at the time of his possession illegally and unlawfully having overstayed his visa.
The law provides for a maximum total sentence of 30 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The United States Immigration and Customs Enforcement/Homeland Security Investigations, United States Postal Inspection Service, and the Pennsylvania State Police conducted the investigation leading to the indictment in this case. The Bureau of Alcohol, Tobacco, Firearms and Explosives also provided assistance to the investigators.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien Sentenced to More Than Four Years for Illegal Reentry and Firearm OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Aniceto Aguirre-Cardenas (57) to four years and three months in federal prison for possessing a firearm as a convicted felon, for possessing a firearm as an illegal alien, and for illegally reentering the United States following deportation. He pleaded guilty on March 8, 2018.
According to court documents, Aguirre-Cardenas was convicted in 1993 for conspiracy to distribute marijuana, distribution of marijuana, and using/carrying a firearm during a drug trafficking crime. He was sentenced to 12 years and 6 months’ imprisonment and was removed from the United States in 2003. On June 25, 2017, Aguirre-Cardenas was found to be back in the United States without permission after the Volusia County Sheriff’s Office conducted a traffic stop of a vehicle in which he was a passenger. Law enforcement officers recovered a revolver from underneath Aguirre-Cardenas’s seat. Numerous rounds of ammunition, baggies containing more than 24 grams of cocaine, and drug trafficking paraphernalia were also recovered from the vehicle.
“This criminal alien thought he could ignore the laws of our nation,” said HSI Tampa Special Agent In Charge James C. Spero. “Our HSI special agents, along with our Volusia County Sheriff’s Office partners, have made our communities a safer place with this criminal behind bars.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Volusia County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorneys Christina Downes and Brandon Bayliss.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Hinesville Career Criminal Sentenced to 151 Months for Dealing Heroin, Opioids and Other NarcoticsRead the Press Release
SAVANNAH, GA: Juan Carlos Negron, 34, of Hinesville, Georgia, was sentenced today by United States District Court Judge William T. Moore, Jr., to 151 months in prison for conspiring to possess with intent to distribute and to distribute quantities of heroin, cocaine, ecstasy, methamphetamine, Xanax, marijuana, and opioids such as OxyContin and oxycodone. There is no parole in the federal system.
Evidence presented during Negron’s guilty plea and sentencing hearings revealed that Negron began dealing drugs in 2001 and is a career criminal, having been convicted twice before for dealing narcotics in Liberty County. Negron’s drug trafficking history began with Negron dealing marijuana, graduated to Negron dealing prescription pain medications, and culminated in the current case with Negron dealing heroin and other drugs out of his residence in Hinesville, Georgia. Through its investigation, law enforcement identified Negron as the most prolific heroin dealer in the Liberty and Chatham County areas, between 2015 and 2016. Negron, unemployed since 2012, supplied other local dealers and served individual customers from his home. Negron occasionally sent his young son outside while users injected heroin in the kitchen; the child waited in a rocking chair as a stream of addicts passed him by.
United States Attorney Bobby L. Christine said, “To all those who seek to profit illegally from the addiction of others, let the prosecution of Juan Carlos Negron serve as a stark reminder that the office of the United States Attorney will labor tirelessly to see that you are held accountable.”
"The GBI-SRDEO and its partners are committed to investigating and holding those persons involved in the illegal distribution of narcotics accountable,” Assistant Special Agent in Charge Lindsey Smith, of the Georgia Bureau of Investigation, stated. “Today's sentencing of Negron was the culmination of hard work and dedication by law enforcement officers who seek to improve the communities they serve.”
Negron’s case was investigated by the Georgia Bureau of Investigation and the Liberty County Sheriff’s Office. Assistant United States Attorney Jennifer G. Solari prosecuted the case on behalf of the United States. For additional information, please contact (912) 652-4422.
Hebron Man Sentenced to 78 Months in PrisonRead the Press Release
HAMMOND – Daniel Bender, 52 years old, of Hebron, Indiana, was sentenced by U.S. District Court Judge Joseph S. Van Bokkelen on his plea of guilty to receipt of child pornography, announced U.S. Attorney Thomas L. Kirsch II.
Bender was sentenced to 78 months in prison followed by 5 years supervised release, along with $35,000 restitution.
According to documents in this case, in April 2016, a Task Force Officer (TFO) with the FBI Indianapolis Division reported activity on a file-sharing network. The activity on this network was monitored with the TFO using specialized law enforcement software. The TFO downloaded and observed videos containing child pornography, specifically of prepubescent girls and boys engaged in sex acts with adults. The IP address related to these downloads was tracked to Bender’s home address. A search warrant was executed, recovering over 5500 images and 1900 videos of children and infants being sexually exploited, abused, tortured and raped.
This case is the result of the investigative efforts of the FBI and was handled by Assistant U.S. Attorney Maria N. Lerner.
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Hartford Man Guilty of Sex Trafficking of MinorsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal jury in New Haven today found TONEY KELSEY, also known as “Blaze,” 26, of Hartford, guilty of sex trafficking of minors. The trial before Chief U.S. District Judge Janet C. Hall began on May 15.
According to the evidence at trial, in late May 2015, KELSEY recruited a 17-year-old female to work in prostitution with the profits to be split evenly between them. On the day they met, KELSEY engaged in sexual activity with the minor victim. KELSEY posted advertisements on the Backpage and Cityvibe websites soliciting customers for the minor victim, and the minor victim saw prostitution clients at hotels in the greater Hartford area in May and June 2015. The minor victim was then recovered by law enforcement.
In November 2016, KELSEY used his Facebook account to contact a second minor victim, who was 15 years old at the time. KELSEY asked the minor victim if she wanted to earn “fast money” giving “sexual favors” to clients and promised the minor victim $300 per hour. The minor victim represented that she was 17 years old and KELSEY responded “Cool u old enough.” KELSEY picked up the minor victim at her house and took her to his Hartford residence. From there, KELSEY arranged “missions,” or prostitution appointments, for the minor victim, and KELSEY drove her to the appointments. During this time, KELSEY, the minor victim and two other individuals were involved in a car accident. The next day, KELSEY had arranged prostitution appointments for the minor victim at the Cityside Inn on the Berlin Turnpike in Wethersfield. At the motel, one prospective client arranged by KELSEY decided not to engage in sexual activity with the minor victim because of the scars on her face sustained during the car accident.
On the morning of November 18, 2016, KELSEY left the minor victim and another female at the Cityside Inn. Wethersfield Police recovered the minor victim near the motel.
The jury found KELSEY guilty of one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of minors.
During the trial, the jury also heard evidence of a third minor victim, a 17-year-old girl that KELSEY contacted through a social media application in May 2016. KELSEY posted a photograph of the minor victim on Backpage, where he solicited prostitution clients for her. He then drove the minor victim to two prostitution appointments.
KELSEY has been detained since his arrest by Wethersfield Police on related state charges on November 30, 2016.
Chief Judge Hall scheduled sentencing for August 14, 2018, at which time KELSEY faces a minimum term of imprisonment of 10 years and a maximum term of life imprisonment.
This investigation has been conducted by the Federal Bureau of Investigation, Connecticut State Police, Homeland Security Investigations, Wethersfield Police Department and Hartford Police Department, through the Connecticut Human Trafficking Task Force. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Marc H. Silverman.
Harrison County residents admit to roles in heroin distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia, woman and a Bridgeport, West Virginia man have admitted to their roles in a heroin distribution operation, United States Attorney Bill Powell announced.
Alexandra D. Coffman Mitchell, also known as “Ali,” age 25, pled guilty today to one count of “Maintaining Drug-Involved Premises – Aiding and Abetting.” Mitchell admitted to leasing or renting a place in Clarksburg to distribute heroin in March 2016.
David W. Lipscomb, age 35, pled guilty today to one count of “Aiding and Abetting the Distribution of Heroin.” Lipscomb admitted to selling heroin in Harrison County on March 15, 2016.
Mitchell is facing up to 20 years incarceration and a fine of up to $500,000. Lipscomb is facing up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the cases on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan Man Sentenced to Prison for Illegally Returning to the United States Following Prior DeportationRead the Press Release
A Guatemalan man who illegally returned to the United States was sentenced May 21, 2018, to almost three months in federal prison.
Juan Bernal-Brito, age 27, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a April 5, 2018 guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Bernal-Brito admitted he had previously been deported from the United States on February 8, 2013, and that he illegally reentered the United States without the permission of the United States government. On February 14, 2018, Bernal-Brito was found by immigration officers during a traffic stop in Cedar Rapids, Iowa. Bernal-Brito claimed to have illegally reentered the United States on December 10, 2017.
Bernal-Brito was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Bernal-Brito was sentenced to 84 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Bernal-Brito 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-09-LRR.
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Guatemalan Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Felix Oliverio Chacaj Lucas, age 44, and a citizen of Guatemala, was sentenced today to time served (22 days in jail), for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Chacaj Lucas admitted that he was removed from the United States to Guatemala on May 17, 2012. On May 1, 2018, ICE Officers arrested Chacaj Lucas in Catskill, Greene County, New York.
Following his sentencing, Chacaj Lucas was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Grosse Pointe Park Man Sentenced on Fraud Scheme Involving Distribution of Infectious Human RemainsRead the Press Release
A Grosse Pointe Park resident was sentenced today to 108 months in federal prison after having been convicted earlier this year by a jury on charges of wire fraud, transportation of hazardous material, and false statements in a scheme involving the distribution of body parts, some that tested positive for diseases, including HIV and hepatitis, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Timothy R. Slater, Federal Bureau of Investigation, Detroit Division; Regional Special Agent-in-Charge Thomas J. Ullom, U.S. Department of Transportation - Office of Inspector General; Officer in Charge Elizabeth Harton of the Centers for Disease Control and Prevention, Division of Global Migration & Quarantine and Arizona Attorney General Mark Brnovich.
Sentenced was Arthur Rathburn, 63. Rathburn was convicted on 7 of the 9 wire fraud counts and the count alleging illegal transportation of hazardous material. He was acquitted of the false statement count.
“We hope this sentence brings closure to the victims of Arthur Rathburn,” stated United States Attorney Matthew Schneider. “Rathburn’s disgraceful conduct not only put the health of innocent people at risk, he showed a complete lack of regard for the donors and their families, who are all victims.”
“Arthur Rathburn carried out a long term, complex scheme to increase his personal profits, showing little respect to the donors and risking the welfare of those in the medical and dental community relying on human remains free from hepatitis, HIV, and other dangerous diseases,” said Timothy R. Slater, Special Agent in Charge of the Detroit FBI. “His sentence represents the FBI’s commitment to partner with our federal and state colleagues in the U.S. Department of Transportation, the Centers for Disease Control and Prevention, and the Arizona Attorney General, to ensure the community is protected from fraudulent actions, regardless of how they are undertaken and irrespective of the sophistication of the fraud. The FBI continues to work collectively across the country to find and bring those profiteering in the anatomical donation industry to justice.”
According to evidence presented during the two-week trial, Arthur Rathburn was the owner and operator of International Biological, Inc. (“IBI”). IBI’s primary function was renting human body parts, such as heads and torsos, to customers who used the remains for medical or dental training. Rathburn engineered a scheme to defraud in which IBI obtained donated bodies and body parts from suppliers, which IBI would then typically dismember and rent out to customers for medical or dental training. Rathburn knew that the donors of a number of these bodies had died of an infectious disease, or that the bodies had tested positive for an infectious disease. IBI sometimes obtained diseased remains from their suppliers at a reduced cost, due to the fact that end users of human remains generally reject infectious bodies and body parts for use in medical or dental training.
It was part of the scheme that Rathburn would provide human remains to IBI’s customers, falsely representing to those customers that the remains were free of certain infectious diseases. Rathburn was aware that IBI’s customers would not accept remains infected with certain diseases. The scheme included directly profiting from infectious remains supplied to unwitting customers in violation of contractual agreements and failing to disclose to customers that IBI ignored industry standard precautions to prevent potential cross-contamination between infectious and non-infectious remains.
Evidence further demonstrated that Arthur Rathburn willfully caused to be delivered hazardous material regulated by the Department of Transportation, namely a human head of an individual known to have died from bacterial sepsis and aspiration pneumonia, to Delta Cargo, an air carrier, for transportation in air commerce in violation of federal regulations. In violation of these regulations, the human head was packaged in a trash bag placed within a camping cooler. Seven other human heads were also part of the shipment and packed in the same manner. Large quantities of liquid blood were found within the coolers.
The investigation in this case was handled by the Federal Bureau of Investigation, the Centers for Disease Control and Prevention, the Arizona Attorney General’s Office, and the U.S. Department of Transportation, Office of Inspector General with support from U.S. Customs and Border Protection and Homeland Security Investigations. Special thanks are also due to the Wayne County Medical Examiner’s Office for their critical assistance. The case is being prosecuted by Assistant U.S. Attorneys John K. Neal and Timothy J. Wyse.
Greenbelt Man Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On May 21, 2018, Aldrin Fon Fomukong, a/k/a “Albanky,” a/k/a “A.L.,” age 24, of Greenbelt, Maryland, pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Andre Watson of Homeland Security Investigations; and Special Agent in Charge Brian Ebert of the United States Secret Service, Washington Field Office.
According to his plea agreement, between February 2016 and in or about July 2017, Fomukong and his co-conspirators gained access to email accounts associated with the victims and sent false wiring instructions, causing the victims’ financial institutions to wire millions of dollars into drop accounts set up by the defendants. Drop accounts were bank accounts opened or controlled by Fomukong and his co-conspirators that were used to receive fraudulently obtained money from victims. Fomukong then disbursed the money received from the victims’ bank accounts into the drop accounts by, among other transactions, using wires to transfer money to other accounts, by initiating account transfers to other accounts at the same bank, by withdrawing sums of money, by obtaining cashier’s checks, and by writing checks to other individuals or entities.
Over the course of the conspiracy, Fomukong and his co-conspirators stole or attempted to steal over $8.7 million from at least 11 victims. The following co-conspirators have also been charged:
Nkeng Amin, a/k/a “Rapone,” a/k/a “Arnold,” age 30, of Beltsville, Maryland; Carlson Cho, a/k/a “Uncle Tiga2,” age 23, of Braintree, Massachusetts; Izou Ere Digifa, a/k/a “Lzuo Digifa,” a/k/a “Mimi VA,” age 22, of Lynchburg, Virginia; Yanick Eyong, age 26, of Bowie, Maryland; and Ishmail Ganda, a/k/a “Banker TD,” age 31, of College Park, Maryland.
Fomukong, Amin, Cho, Digifa, and Eyong remain detained. Ganda is released under the supervision of pretrial services.
Fomukong faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud, and a maximum sentence of 20 years in prison for conspiracy to commit money laundering. U.S. District Judge Paul W. Grimm has scheduled sentencing for October 3, 2018 at 2:30 p.m. in U.S. District Court in Greenbelt.
United States Attorney Robert K. Hur praised Homeland Security Investigations and the United States Secret Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Kelly O’Connell Hayes, who is prosecuting the case.
Grand Blanc Man and Flint Woman Indicted for Involvement in Fraudulent Investment SchemeRead the Press Release
An indictment was unsealed earlier today charging Larry A. Holley, 61, of Grand Blanc and Patricia Enright, a.k.a. Patricia Gray, 57, of Flint, with conspiracy to commit wire and mail fraud, wire fraud, mail fraud, and money laundering, United States Attorney Matthew Schneider announced today.
Joining Schneider in the announcement was Manny Murial, Special Agent in Charge, Internal Revenue Service – Criminal Investigation Division.
According to the indictment, Enright and Holley, who is a pastor at Abundant Life Ministries in Flint, operated Treasure Enterprise, LLC, which fraudulently purported to provide financial planning and asset management services to investors. Holley and Enright solicited many of the victim investors at financial seminars held at churches throughout Michigan and other states.
The indictment alleges that in order to lure the potential investors, many of whom took their money out of legitimate investments–such as individual retirement accounts (IRAs) and 401Ks–Holley and Enright promised high, guaranteed returns, and the safe return of an investor’s entire principal at the end of the investment period. The money, however, was not invested and did not earn the profits to pay the guaranteed interest payments. Instead, Holley and Enright, and others directed by them, simply deposited the victim investor funds into Treasure’s bank accounts and then used the money for their personal benefit, for the benefit of Abundant Life Ministries, to make interest and principal payments to earlier investors, and to pay other Treasure employees.
The two defendants made their initial appearances in federal court in Flint on Monday.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorneys Ann Nee and Anthony Vance.
Four Defendants Indicted in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 62-count indictment charging Frank Giacobbe, 43, of East Amherst, NY; Patrick Ogiony, 34, of Buffalo, NY; Kevin Morgan, 42, of Pittsford, NY; and Todd Morgan, 29, of Rochester, NY, with conspiracy to commit wire fraud and bank fraud, and substantive wire fraud and bank fraud charges. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys John D. Fabian and Aaron J. Mango, who are handling the case, stated that according to the indictment, between March 2011 and June 2017, the defendants conspired to defraud financial institutions, such as Arbor Commercial Mortgage, LLC and Berkadia Commericial Mortgage, LLC, and government sponsored enterprises, including Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal National Mortgage Association (Fannie Mae). The indictment alleges that the defendants conspired to engage in a variety of conduct to induce mortgage lenders to issue loans for residential apartment complexes (1) for greater amounts than they would have issued had they known the truth; and (2) that the lenders would not have issued at the time of issuance had they known the truth.
The defendants are accused of: • Conspiring to provide lending institutions with false rent rolls suggesting that properties had more occupied units, at higher rental rates, and generated more income than they, in fact, did; • Conspiring to provide false information about other income received at the complexes. On one occasion, when one defendant asked another where storage space income figures came from, another defendant replied, “Magic;”
• Conspiring to provide lenders with fraudulently altered leases; and
• Conspiring to prevent inspectors touring the properties from discovering vacant units by, among other things, turning on radios inside vacant units, placing mats and shoes outside apartment doors, and, on at least one occasion, hiring someone to stage an apartment as lived in and pretend to be a tenant of an inspected unit.
The indictment alleges fraud at seven different properties, not all of which involved all charged defendants, but which resulted in total loans issued of $167,591,000. The properties are Morgan Ellicott Apartments and Amherst Garden, both in Buffalo, NY; Rugby Square in Syracuse, NY; Avon Commons, in Avon, NY; Rochester Village, Southpointe, and Eden Square, all in the Pittsburgh, PA area.
“The defendants are charged with fraudulently obtaining over $167.5 million worth of loans relating to seven residential apartment complexes located here in New York and in Pennsylvania,” noted U.S. Attorney Kennedy. “Most of those loans were in turn sold to Fannie Mae or Freddie Mac, entities which were created by Congress to perform and an important role in our country’s housing finance system. As a result of the fraudulent conduct alleged in this indictment, defendants’ conduct not only unjustly enriched them but threatened to undercut the very foundations upon which our mortgage banking and investment systems are based.”
“We must protect the tens of thousands of investors who own mortgage backed securities,” said Gary Loeffert, Special Agent-in-Charge of the Buffalo Division. “This investigation is focused on stopping people from undermining the residential and commercial financing industry. Fraud for profit aims to misuse the mortgage lending process to steal cash.”
Some of the defendants are scheduled to be arraigned on May 23, 2018, at 2:00 p.m. before U.S Magistrate Judge H. Kenneth Schroeder.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Mark P. Higgins.
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.Four Defendants Indicted in Multi-Million Dollar Mortgage Fraud SchemeRead 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 a federal grand jury has returned a 62-count indictment charging Frank Giacobbe, 43, of East Amherst, NY; Patrick Ogiony, 34, of Buffalo, NY; Kevin Morgan, 42, of Pittsford, NY; and Todd Morgan, 29, of Rochester, NY, with conspiracy to commit wire fraud and bank fraud, and substantive wire fraud and bank fraud charges. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys John D. Fabian and Aaron J. Mango, who are handling the case, stated that according to the indictment, between March 2011 and June 2017, the defendants conspired to defraud financial institutions, such as Arbor Commercial Mortgage, LLC and Berkadia Commericial Mortgage, LLC, and government sponsored enterprises, including Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal National Mortgage Association (Fannie Mae). The indictment alleges that the defendants conspired to engage in a variety of conduct to induce mortgage lenders to issue loans for residential apartment complexes (1) for greater amounts than they would have issued had they known the truth; and (2) that the lenders would not have issued at the time of issuance had they known the truth.
The defendants are accused of:
• Conspiring to provide lending institutions with false rent rolls suggesting that properties had more occupied units, at higher rental rates, and generated more income than they, in fact, did; • Conspiring to provide false information about other income received at the complexes. On one occasion, when one defendant asked another where storage space income figures came from, another defendant replied, “Magic;”
• Conspiring to provide lenders with fraudulently altered leases; and
• Conspiring to prevent inspectors touring the properties from discovering vacant units by, among other things, turning on radios inside vacant units, placing mats and shoes outside apartment doors, and, on at least one occasion, hiring someone to stage an apartment as lived in and pretend to be a tenant of an inspected unit.
The indictment alleges fraud at seven different properties, not all of which involved all charged defendants, but which resulted in total loans issued of $167,591,000. The properties are Morgan Ellicott Apartments and Amherst Garden, both in Buffalo, NY; Rugby Square in Syracuse, NY; Avon Commons, in Avon, NY; Rochester Village, Southpointe, and Eden Square, all in the Pittsburgh, PA area.“The defendants are charged with fraudulently obtaining over $167.5 million worth of loans relating to seven residential apartment complexes located here in New York and in Pennsylvania,” noted U.S. Attorney Kennedy. “Most of those loans were in turn sold to Fannie Mae or Freddie Mac, entities which were created by Congress to perform and an important role in our country’s housing finance system. As a result of the fraudulent conduct alleged in this indictment, defendants’ conduct not only unjustly enriched them but threatened to undercut the very foundations upon which our mortgage banking and investment systems are based.”
“We must protect the tens of thousands of investors who own mortgage backed securities,” said Gary Loeffert, Special Agent-in-Charge of the Buffalo Division. “This investigation is focused on stopping people from undermining the residential and commercial financing industry. Fraud for profit aims to misuse the mortgage lending process to steal cash.”
Some of the defendants are scheduled to be arraigned on May 23, 2018, at 2:00 p.m. before U.S Magistrate Judge H. Kenneth Schroeder.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Mark P. Higgins.
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.
Former Valeant Executive and Former Philidor Ceo Convicted for Illegal Kickback SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the convictions of GARY TANNER, a former executive at Valeant Pharmaceuticals International, Inc. (“Valeant”), and ANDREW DAVENPORT, the former chief executive officer (“CEO”) of Philidor Rx Services LLC (“Philidor”), for engaging in a multimillion-dollar kickback scheme. TANNER and DAVENPORT were convicted on all counts of the Indictment today after a four-week trial before Senior United States District Judge Loretta A. Preska.
U.S. Attorney Geoffrey S. Berman said: “As a unanimous jury has found, Gary Tanner sold his loyalty to Andrew Davenport in exchange for $9.7 million. Tanner was entrusted by his employer to manage Valeant’s relationship with Davenport’s company. Davenport exploited that trust by promising a massive kickback in exchange for betrayal. Unbeknownst to his employer, Tanner became the fox guarding the henhouse. Our commitment to this prosecution shows that corruption of publicly traded companies will be rooted out and met with justice.”
According to the allegations in the charging documents and statements made in court proceedings:
Valeant is a publicly traded pharmaceutical manufacturer headquartered in Canada, with its principal place of business in New Jersey. Philidor was a specialty mail order pharmacy that was formed in or about January 2013 with the assistance of Valeant. During the course of Philidor’s existence, at least 90 percent of the drugs dispensed by Philidor were Valeant-branded drugs.
TANNER was the Valeant executive primarily responsible for managing Valeant’s relationship with Philidor. TANNER was also responsible more broadly for Valeant’s alternative fulfillment (“AF”) program. Through its AF program, Valeant sought to increase doctor prescriptions and patient purchases of Valeant pharmaceuticals instead of generic substitutes or alternatives by helping obtain insurance coverage for those drugs or providing other incentives for prescription and purchase of Valeant drugs. As part of his work at Valeant, TANNER interacted directly with Philidor’s executives, including DAVENPORT, and senior Valeant executives.
Valeant and Philidor began negotiations for Valeant to purchase Philidor, and Valeant ultimately purchased an option to buy Philidor (the “Option”) in exchange for $133 million in payments to Philidor’s owners, and the promise of $100 million in additional milestone payments if Philidor were to meet certain sales targets. Despite the duty of loyalty owed by TANNER to Valeant, during negotiations relating to the Option, TANNER and DAVENPORT secretly made preparations for TANNER to receive a multimillion-dollar kickback out of the money that Valeant was going to pay Philidor’s owners for the Option. Among other things, TANNER and DAVENPORT set up shell company bank accounts in order to launder the kickbacks to TANNER. While these preparations were underway, TANNER secretly advised DAVENPORT on his negotiations with Valeant. TANNER did this in contravention of his duties to Valeant and despite the fact that he was also internally advising Valeant in its negotiations with DAVENPORT about the Option.
In addition to secretly helping DAVENPORT negotiate against Valeant in exchange for the promise of a kickback from DAVENPORT, TANNER took other actions to benefit Philidor and DAVENPORT personally, and against the direction of his supervisors at Valeant. For example, TANNER’s supervisors directed him to identify other pharmacies that Valeant could use to distribute its drugs, in order to minimize the risks of overreliance on Philidor. TANNER deceived his supervisors into believing that he was pursuing their direction in good faith when, in fact, he lied about participating in meetings and doing due diligence on potential competitors to Philidor. In addition, TANNER helped Philidor and DAVENPORT secure favorable payment terms.
In order to keep their scheme hidden from Valeant, TANNER often used a Philidor email account that TANNER maintained in the name of “Brian Wilson” to communicate with DAVENPORT. TANNER also pretended to be Brian Wilson in at least one meeting that he and DAVENPORT participated in on behalf of Philidor.
In December 2014, Valeant acquired the Option. DAVENPORT, through two different entities that he controlled, received approximately $50 million of the $133 million received from Valeant. DAVENPORT transferred $9.7 million of that amount to TANNER through a shell company he controlled, and then to a shell company controlled by TANNER, an entity called Befrielse Consolidated, LLC (“Befrielse”). TANNER concealed his receipt of this money from Valeant, in violation of his fiduciary duties to Valeant, and in violation of Valeant’s conflict of interest policies. Prior to receiving the funds, TANNER had repeatedly certified to Valeant that he was in full compliance with Valeant’s Standards of Business Conduct, which prohibited any conflicts of interest without full disclosure and approval by company management.
After the Option purchase was completed, TANNER continued to use his position at Valeant to advance the interests of Philidor and DAVENPORT, including by resisting Valeant’s efforts to collect payments from Philidor owed to Valeant and pursuing milestone payments under the terms of the Option in which he secretly expected to share. In communications concerning the scheme, using TANNER’s secret Brian Wilson email account, DAVENPORT discussed with TANNER how TANNER would secretly continue to promote DAVENPORT’s interests, even while he purported to represent Valeant’s interests as the Valeant executive responsible for Philidor. Among other things, DAVENPORT stated that he pictured his and TANNER’s “butch and sundance ride into the sunset (or off the cliff as in the flick),” to which TANNER responded, using the secret Brian Wilson account: “[G]ave me a good chuckle when I just saw it. Will have to keep playing the game :).”
* * *
TANNER, 40, of Gilbert, Arizona, and DAVENPORT, 50, of Haverford, Pennsylvania, were convicted of four counts: (1) one count of conspiracy to commit honest services wire fraud, which carries a maximum potential penalty of 20 years in prison; (2) one count of honest services wire fraud, which carries a maximum potential penalty of 20 years in prison; (3) one count of conspiracy to violate the Travel Act, which carries a maximum potential penalty of five years in prison; and (4) one count of conspiracy to commit money laundering, which carries a maximum potential penalty of 20 years in prison.
Mr. Berman praised the work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its cooperation and assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and its Complex Frauds and Cyber Crime Unit. Assistant U.S. Attorneys Robert W. Allen, Richard Cooper, and Amanda Kramer are in charge of the prosecution.
Former U.S. Air Force Staff Sergeant Pleads Guilty to Accepting Bribe While Serving in AfghanistanRead the Press Release
A former U.S. Air Force staff sergeant pleaded guilty today to seeking and receiving a bribe from an Afghan contractor while serving in Afghanistan. The sergeant worked at the Humanitarian Aid Yard (HA Yard) at Bagram Airfield in Afghanistan and was involved in the issuance of contracts to replenish supplies at the HA Yard under the Commander’s Emergency Response Program (CERP). The sergeant is the eighth defendant to plead guilty in the investigation of this matter.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney McGregor W. Scott of the Eastern District of California, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) and Colonel Kirk B. Stabler, Commander of the Air Force Office of Special Investigations (OSI) made the announcement.
David A. Turcios, 41, currently of San Jose, California, was charged in an indictment filed in July 2017 in the Eastern District of California with two counts of seeking and receiving bribes. The indictment charges him with seeking and receiving $8,500 in bribes from two Afghan contractors who sought contracts for companies with which they were associated. Turcios pleaded guilty to count two of the indictment before U.S. District Court Judge John A. Mendez of the Eastern District of California, in Sacramento. Turcios is scheduled to be sentenced by Judge Mendez on Aug. 28.
Turcios admitted at the time of the guilty plea that, from November 2010 until November 2011, he worked as a U.S. Air Force staff sergeant at the HA Yard. He was the yard supervisor responsible for replenishing supplies such as rice, beans and clothing at the HA Yard and overseeing the loading of trucks that took the supplies off the base. During Turcios’s tenure, approximately nine contracts in which Turcios was involved were awarded to Afghan vendors with a value of over $2 million.
Turcios admitted that as part of his duties at the HA Yard, Turcios worked closely with, among others, an Afghan vendor (the Vendor) who sought to obtain contracts to replenish supplies in the HA Yard for companies with which he was associated. In September 2011, Turcios agreed to allow the Vendor to provide the names of the three companies to be selected on each of the replenishment contracts he oversaw, effectively allowing the Vendor to select the company awarded the respective contract. Because Turcios was nearing the end of his deployment in Afghanistan, he only had time to prepare approximately two contracts with the Vendor and, in October 2011, two contracts in which Turcios was involved were awarded to companies owned by individuals associated with the Vendor.
In late October or early November 2011, just prior to Turcios’s re-deployment to the United States, the Vendor offered Turcios $3,500 in return for Turcios’s actions on behalf of the Vendor as to HA Yard replenishment contracts, Turcios admitted. Turcios thereafter sent several emails urging U.S. Army officials to approve payments to the Vendor in connection with the Vendor’s HA Yard contracts and obtained from the U.S. Army a voucher authorizing payment to the Vendor. In February 2013, the Vendor wire transferred to Turcios’ wife’s bank account $500 of the $3,500 promised.
This matter was investigated by the FBI, SIGAR, DCIS, Army CID-MPFU and Air Force OSI. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section is prosecuting the case, with assistance from Assistant U.S. Attorney Matthew Yelovich of the Eastern District of California.
Former Santa Rosa Rancheria Director of Education Charged with Theft of Education FundsRead the Press Release
FRESNO, Calif. — A federal grand jury returned an eight-count indictment against Aurora Cuara, 38, of Lemoore, last Thursday, charging her with theft from an Indian tribal organization, U.S. Attorney McGregor W. Scott announced.
According to court documents, Cuara was the director of the Santa Rosa Rancheria Department of Education in Lemoore, which belongs to the Tachi Yokut tribe. The Rancheria operated a higher education program through its Department of Education that allowed Tachi Yokut tribal members to apply to have their higher education tuition and other costs of school attendance, such as child care and books, paid by Santa Rosa Rancheria.
According to the indictment, while overseeing the reimbursement program, Cuara submitted false documentation in order to receive reimbursement for tuition, childcare, mileage and other costs of attending college between 2012 and 2016, even though she was not a student. To support her reimbursement requests, Cuara submitted falsified documents, including fabricated schedules, grade reports, and receipts.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Richards is prosecuting the case.
If convicted, Cuara faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Michigan Health Care Consultant Charged with Tax CrimesRead the Press Release
A grand jury sitting in the Eastern District of Michigan returned an indictment yesterday charging a former healthcare consultant with wire fraud, mail fraud, corruptly endeavoring to obstruct the internal revenue laws, and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, from 2011 through August 2014, Sonja Emery falsely represented her professional status, educational background, and work experience to secure and maintain highly paid consulting positions in the health-care industry. Emery allegedly falsely represented to her employers that she was a registered nurse, had worked in health-care management positions, and had various degrees, including a bachelor of science in nursing, master’s degrees in health administration, and a doctor of philosophy degree. The indictment further alleges that, from 2011 to 2014, Emery earned six-figure salaries, failed to file timely tax returns and failed to pay the substantial income tax due and owing on her income.
If convicted, Emery faces a statutory maximum sentence of 20 years in prison for each mail and wire fraud count, five years in prison for each tax evasion count, and three years in prison for corruptly endeavoring to obstruct the Internal Revenue Service. Emery also faces a period of supervised release, restitution and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation, and Trial Attorneys Jeff McLellan and Jack Morgan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Medical Assistant Pleads Guilty to Distributing OxycodoneRead the Press Release
ALEXANDRIA, Va. – A Woodbridge woman pleaded guilty today to conspiring with others to distribute oxycodone.
According to court documents, Tatiana Bailey, 31, was employed as a medical assistant at INOVA Bariatric Surgery Medical Practice from at least February 2015 to October 2015, where she had access to blank prescriptions. On multiple occasions, Bailey stole blank oxycodone prescriptions and forged some of them using an INOVA doctor’s name and registration number. She then sold blank and forged prescriptions to others who would fill them and use or distribute the oxycodone. Through the course of the conspiracy, Bailey facilitated the fraudulent filling of over 90 prescriptions, totaling approximately 6,520 oxycodone pills.
Bailey pleaded guilty to conspiracy to distribute controlled substances and faces a maximum penalty of 20 years in prison when sentenced on September 28. 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.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Special Assistant U.S. Attorneys Allison Garnett and Troy A. Edwards, Jr. are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-222.
Former Loan Officer Sentenced to 18 Months in Prison for Role in $6 Million Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Jackson, New Jersey, man was sentenced today to 18 months in prison for his role in a large-scale mortgage fraud scheme that used phony documents and straw buyers to acquire more than $6 million in loans, U.S. Attorney Craig Carpenito announced.
Joseph DiValli previously pleaded guilty before U.S. District Judge Susan D. Wigenton to a superseding information charging him with one count of conspiracy to commit wire fraud, one count of wire fraud and one count of tax evasion. Judge Wigenton imposed the sentence today in Newark federal court.According to documents filed in this case and statements made in court:
From March 2011 through November 2012, DiValli and other conspirators agreed to fraudulently obtain mortgage loans for properties located in North Jersey. After recruiting “straw buyers” to purchase the properties, DiValli and others submitted false and fraudulent loan applications and supporting documents so the straw buyers could qualify for the loans. DiValli and others also used another conspirator, who worked at a bank, to create misleading certifications showing certain bank accounts held more money than they actually had. DiValli and other conspirators also submitted false appraisal reports, backdated deeds and used unlicensed title agents to close transactions and disburse the mortgage proceeds.
As a loan officer for a North Jersey mortgage lender, DiValli facilitated some of these fraudulent transactions, including a $244,855.26 mortgage on a property located on Smith Street in Elizabeth, New Jersey. Overall, the scheme induced lenders to issue more than $6 million in loans, resulting in several defaults and exposing lenders and the Federal Housing Administration (FHA) to more than $2 million in potential losses.
DiValli also admitted using a separate scheme to modify the mortgage on his personal residence. From March 2011 through June 2012, Divalli used false payroll ledgers and earnings statements to deceive a loan officer into believing that his net earnings were lower than his actual income level.
DiValli also admitted receiving income of more than $450,000 in 2012. In order to avoid taxes of $79,000, DiValli failed to file taxes for 2012 and cashed his paychecks at a check-cashing facility to conceal his income.
In addition to the prison term, Judge Wigenton sentenced DiValli to three years of supervised release and ordered to pay restitution of $2,322,045.
U .S. Attorney Carpenito credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Goldsmith Romero; special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman of the National Security Unit, Andrew Kogan of the Cyber Unit, and Senior Litigation Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit.
Defense counsel: Michael A. Koribanics Esq. Clifton, New Jersey
Five Individuals, Including One-Time Fraud Investigator, Arrested in Health Care Fraud Scheme that Allegedly Sought $20 MillionRead the Press Release
LOS ANGELES – Five people linked to two San Fernando Valley clinics were arrested this morning on federal health care fraud charges for allegedly participating in a scheme that submitted fraudulent claims to health insurance companies and used some of the fraud proceeds to provide patients with “free” cosmetic procedures.
A federal grand jury indictment unsealed this morning alleges that the five defendants – including a former fraud investigator at Anthem Blue Cross – engaged in a multi-year conspiracy to commit health care fraud against at least eight health insurance companies.
Those arrested this morning include the owner and operator of the clinics, Roshanak Khadem, also known as “Roxanne” and “Roxy” Khadem, 50, of Sherman Oaks. Khadem owned and operated the two clinics at the center of the alleged scheme – R&R Med Spa, which was located in Valley Village until early 2016, and its successor company, Nu-Me Aesthetic and Anti-Aging Center, which operated in Woodland Hills.
The indictment alleges that Khadem and others induced patients to visit the clinics to receive free cosmetic procedures – including facials, laser hair removal and Botox injections – which were not covered by insurance. The conspirators obtained the insurance information from the patients and fraudulently billed insurance companies for unnecessary medical services or for services that were never provided. Using the fraudulent proceeds from the insurance companies, Khadem and other conspirators calculated a “credit” that patients could use to receive “free” or discounted cosmetic procedures.
During the course of the conspiracy, Khadem and her conspirators submitted at least $20 million in claims to the insurance companies, which paid approximately $8 million on those claims, according to the indictment.
The other four defendants arrested this morning are:
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Dr. Roberto Mariano, 59, of Rancho Cucamonga, a physician who helped operate the clinics;
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Marina Sarkisyan, 49, of Panorama City, who was the office manager at the clinics;
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Lucine Ilangezyan, 38, of North Hills, an employee and insurance biller for the clinics; and
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Gary Jizmejian, 44, of Santa Clarita, a former senior investigator at the Anthem Special Investigations Unit, the anti-fraud unit within Anthem that is responsible for investigating health care fraud committed against the insurance company.
All five defendants are expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
The indictment alleges that, in return for cash payments, Jizmejian assisted Khadem and others by providing them with confidential Anthem information that helped them submit fraudulent bills to Anthem. In September 2012, Jizmejian gave Khadem insurance billing codes – CPT Codes – that Jizmejian knew could be used to submit fraudulent claims to Anthem without Anthem detecting the fraudulent claims. Jizmejian gave Khadem the billing code for an allergy-related lab test and instructed her to submit to Anthem large numbers of bills with this CPT code. Khadem and other members of the conspiracy used this billing code to submit approximately $1 million in fraudulent claims to Anthem, according to the indictment.
The indictment further alleges that Jizmejian worked to prevent the insurance companies from detecting the fraud at the clinics, which included helping Khadem to avoid responding to inquiries from fraud investigators, diverting attention of other Anthem SIU investigators away from the clinics, and closing Anthem investigations into fraud that was being committed at the clinics.
In September 2015, based on confidential information obtained from Anthem, Jizmejian tipped Khadem off about a federal criminal investigation into the clinics, according to the indictment.
The scheme involving the two clinics allegedly defrauded the International Longshore and Warehouse Union, Pacific Maritime Association Benefit Plan, which is the health benefit plan that covers longshore workers in Southern California and their dependents, according to the indictment. Another victim was the Federal Employees Health Benefits Program, which provides health insurance for federal employees.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
All five defendants are charged with one count of conspiracy to commit health care fraud and 13 counts of health care fraud. The indictment contains criminal forfeiture allegations that seek forfeiture of the ill-gotten gains derived from the offense.
Each count charged in the indictment carries a statutory maximum sentence of 10 years in prison.
This case was investigated by the United States Department of Labor, Office of Inspector General; the United States Department of Labor, Employee Benefits Security Administration; and the Office of Personnel Management, Office of Inspector General. The United States Marshals Service is providing assistance relating to the asset forfeiture investigation. Anthem Blue Cross has been cooperating with the investigation involving its former employee.
The case is being prosecuted by Assistant United States Attorney Alexander F. Porter of the Major Frauds Section.
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Felon in Possession of Stolen Firearm Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced LAKEITHDRICK HARRIS, a 25-year-old resident of Baton Rouge, to 46 months in federal prison as a result of his conviction for possessing a firearm while a convicted felon and possessing a stolen firearm. The Court further sentenced HARRIS to three years of supervised release following his term of imprisonment.
On April 21, 2017, a Baton Rouge City Police Department Officer conducted a traffic stop of a vehicle operated by HARRIS near Ardenwood Drive in Baton Rouge. After observing an unrestrained infant on the back seat of the vehicle and marijuana inside of the vehicle, the officer conducted a search of the vehicle and recovered a .40 caliber semiautomatic handgun between the driver’s seat and center console of the vehicle. An investigation of the firearm revealed that it had been reported stolen from a private residence in Ascension Parish. HARRIS admitted to purchasing the weapon knowing that it was stolen. Prior to the traffic stop, HARRIS had been convicted of illegal use of a weapon and aggravated assault with a firearm, both felony offenses. On February 8, 2018, HARRIS pled guilty to one count of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1); and one count of possession of a stolen firearm, in violation of Title 18, United States Code, Section 922(j).
U.S. Attorney Fremin stated, “This case is yet another example of our unrelenting effort to aggressively pursue convicted felons who possess firearms. In striving for a peaceful community, we must and will directly address those who present the greatest dangers to such peace. Armed convicted felons certainly fall into that category. I commend those in my office, the ATF, and the BRPD who worked together on this important matter.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated, “The Bureau of Alcohol, Tobacco, Firearms, and Explosives will continue to work closely with our federal, state, and local partners to provide a safe environment for everyone to live. ATF is proud to work with the United States Attorney’s Office to take a potentially violent offender from our streets and neighborhoods.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Baton Rouge Police Department. It was prosecuted by Assistant United States Attorney Paul L. Pugliese.
Felon from Laguna Pueblo Sentenced to Prison for Unlawfully Possessing FirearmRead the Press Release
ALBUQUERQUE – Michael Shane Riley, 45, an enrolled member and resident of Laguna Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 37 months in prison for violating the federal firearms laws by unlawfully possessing a firearm. Riley will be on supervised release for three years after completing his prison sentence.
Riley was arrested on Jan. 23, 2017, on an indictment charging him with being a felon in possession of a firearm on May 30, 2016, in Cibola County, N.M. According to the indictment, Riley was prohibited from possessing firearms or ammunition because he previously had been convicted of assault and battery with a dangerous weapon.
On Oct. 27, 2017, Riley pled guilty to the indictment and admitted that on May 30, 2016, he possessed a firearm while on the Pueblo of Laguna in Cibola County. Riley acknowledged that he was prohibited from possessing a firearm because he previously had been convicted of assault and battery with a dangerous weapon in 2002.
This case was investigated by the Laguna/Acoma Agency of the BIA Office of Justice Services, the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laguna Pueblo Tribal Police Department. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
Fairbanks Man Indicted on Federal Gun ChargesRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced today that a Fairbanks man has been indicted on federal gun charges in connection with the October 2016 shooting of Fairbanks Police Officer Sergeant Allen Brandt.
Anthony Jenkins-Alexie, 30, of Fairbanks, was named in the indictment charging him with using a firearm during a crime of violence, stealing a firearm, and for being a felon in possession of a firearm. Jenkins-Alexie was arraigned on the federal charges earlier today before U.S. Magistrate Judge Scott Oravec.
According to the indictment, on Oct. 16, 2016, in Fairbanks, Jenkins-Alexie allegedly used and brandished firearms while forcefully stealing Sgt. Brandt’s police vehicle. It is further alleged that Jenkins-Alexie had forcibly taken one of these firearms from Sgt. Brandt, as well as stealing his vehicle. Jenkins-Alexie has a previous felony conviction with the State of Alaska, and was therefore prohibited from possessing firearms.
Currently, Jenkins-Alexie is also under indictment by the State of Alaska on murder charges arising out of the October 2016 shooting.
The Fairbanks Police Department, the North Pole Police Department, the Alaska State Troopers (AST), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Stephen Cooper.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
District Court Permanently Enjoins Two Individuals and One Company Responsible for a Florida-Based Mail Fraud SchemeRead the Press Release
A federal court in Florida entered a consent decree of permanent injunction against two individuals and one corporation preventing them from operating an alleged mail-fraud scheme, the Department of Justice, including the U.S. Attorney’s Office for the South District of Florida, announced today.
The permanent injunction signed by United States District Court Judge Jose E. Martinez of the Southern District of Florida arises from a complaint filed in February 2018. That complaint alleged that Art Masters LLC, which does business as Palm Beach Liquidation Gallery, and its principal Eugene Marotta, of Fort Lauderdale, Florida, and William Clutter, who does business as Edge Graphics, of North Las Vegas, Nevada, mailed fraudulent solicitations styled as personalized notifications that the recipient won a large package of cash and prizes worth more than $350,000, but needed to pay a fee of $161.25 to claim the package.
According to the complaint, victims who sent the fee received no prize. Instead, defendants mailed them a list of publicly-advertised sweepstakes and an ink-jet printed reproduction of an artwork. The United States alleged that in the eighteen months the scheme operated, defendants mailed more than 150,000 fraudulent solicitations and victims lost more than one million dollars.
“Individuals who prey upon the most vulnerable members of our society, including the elderly, will be held accountable,” said United States Attorney Benjamin G. Greenberg for the Southern District of Florida. “Fraud schemes will not be tolerated. Our Office will continue to protect consumers through both civil and criminal prosecutions. We remind everyone to be wary and exercise extreme caution when they receive a call or notification of an award offer that is just ‘too good to be true.’ Legitimate operators will not demand payment for prizes.”
“The Department of Justice will pursue those who defraud Americans through false promises and fraudulent schemes,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “Schemes like this often target the elderly and vulnerable, and shutting them down remains a top priority for the Department.”
"The Postal Inspection Service is dedicated to protecting our customers and their hard-earned money from fraudsters,” said Assistant Inspector in Charge Nicole Davis for the US Postal Inspection Service, Criminal Investigations Group. “We strongly urge people to do their research before responding to solicitations like the ones in this case and remember "if it looks too good to be true, it probably is.”
The consent decree permanently enjoins the defendants from mailing solicitations promising delivery of a prize, offering for sale information on sweepstakes or lotteries, or making other deceptive representations. Defendants are also precluded from creating, renting, or selling lists of victims who responded to defendants’ mailings. Finally, the consent decree authorizes the U.S. Postal Inspection Service to return any victim money or personal checks sent to the defendants and detained by the Postal Inspection Service.
This matter was handled by Assistant U.S. Attorney James A. Weinkle of the U.S. Attorney’s Office for the Southern District of Florida and Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch, in connection with the United States Postal Inspection Service.
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.
District Court Permanently Enjoins Two Individuals and One Company Responsible for a Florida-Based Mail Fraud SchemeRead the Press Release
A federal court in Florida entered a consent decree of permanent injunction against two individuals and one corporation preventing them from operating an alleged mail-fraud scheme, the Department of Justice announced today.
The permanent injunction signed by United States District Court Judge Jose E. Martinez of the Southern District of Florida arises from a complaint filed in February 2018. That complaint alleged that Art Masters LLC, which does business as Palm Beach Liquidation Gallery, and its principal Eugene Marotta, of Fort Lauderdale, Florida, and William Clutter, who does business as Edge Graphics, of North Las Vegas, Nevada, mailed fraudulent solicitations styled as personalized notifications that the recipient won a large package of cash and prizes worth more than $350,000, but needed to pay a fee of $161.25 to claim the package.
According to the complaint, victims who sent the fee received no prize. Instead, defendants mailed them a list of publicly-advertised sweepstakes and an ink-jet printed reproduction of an artwork. The United States alleged that in the eighteen months the scheme operated, defendants mailed more than 150,000 fraudulent solicitations and victims lost more than one million dollars.
“The Department of Justice will pursue those who defraud Americans through false promises and fraudulent schemes,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “Schemes like this often target the elderly and vulnerable, and shutting them down remains a top priority for the Department.”
“Individuals who prey upon the most vulnerable members of our society, including the elderly, will be held accountable,” said United States Attorney Benjamin G. Greenberg for the Southern District of Florida. “Fraud schemes will not be tolerated. Our Office will continue to protect consumers through both civil and criminal prosecutions. We remind everyone to be wary and exercise extreme caution when they receive a call or notification of an award offer that is just ‘too good to be true.’ Legitimate operators will not demand payment for prizes.”
"The Postal Inspection Service is dedicated to protecting our customers and their hard-earned money from fraudsters,” said Assistant Inspector in Charge Nicole Davis for the US Postal Inspection Service, Criminal Investigations Group. “We strongly urge people to do their research before responding to solicitations like the ones in this case and remember "if it looks too good to be true, it probably is.”
The consent decree permanently enjoins the defendants from mailing solicitations promising delivery of a prize, offering for sale information on sweepstakes or lotteries, or making other deceptive representations. Defendants are also precluded from creating, renting, or selling lists of victims who responded to defendants’ mailings. Finally, the consent decree authorizes the U.S. Postal Inspection Service to return any victim money or personal checks sent to the defendants and detained by the Postal Inspection Service.
This matter was handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James A. Weinkle of the U.S. Attorney’s Office for the Southern District of Florida, in connection with the United States Postal Inspection Service.
Defendant sentenced for attempted child enticement and possession of child pornographyRead the Press Release
ATLANTA – Jeffrey E. Roberts was sentenced to 10 years in federal prison for attempted enticement of a minor and possession of child pornography.
“Through their constant vigilance, our federal and state law enforcement partners have stopped yet another individual who attempted to prey on a minor through the internet,” said U.S. Attorney Byung J. “BJay” Pak. “Those who target children should know they will be exposed and prosecuted.”
“It is fortunate that Roberts’s predatory efforts connected him to an undercover agent and not an innocent child,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The lengthy prison sentence he received reflects the seriousness of his crimes and the threat he posed to the community.”
“This conviction illustrates the great work of law enforcement to investigate and prosecute crimes against children,” said Director Vernon Keenan of the Georgia Bureau of Investigation. “The GBI is committed to working with our local, state, and federal partners in pursuing those who use the internet to prey upon and exploit child victims.”
According to U.S. Attorney Pak, the charges and other information presented in court: On May 4, 2017, Roberts was arrested after he corresponded with an undercover agent regarding a planned sexual encounter with an adolescent female. The investigation began on April 20, 2017 when Roberts responded to an ad posted on Craigslist.
In subsequent communications, Roberts claimed he had experience with sexual encounters with children and made plans to meet the fictitious adolescent. On May 4, 2017, Roberts travelled to meet the minor child for the planned sexual encounter. A laptop computer, which Roberts brought with him to the encounter, was seized at the time of his arrest and later found to contain child pornography.
Jeffrey E. Roberts, 48, of Woodstock, Georgia was sentenced to 10 years in prison to be followed by 10 years of supervised release on May 16, 2018, by U.S. District Judge Mark H. Cohen. Roberts was convicted on these charges on February 14, 2018, after he entered a guilty plea.
This case was investigated by the Federal Bureau of Investigation and Georgia Bureau of Investigation.
Assistant U.S. Attorney Jessica Morris prosecuted the case.
To report information regarding child sexual exploitation, including child pornography or online enticement of children for sex acts, please contact the CybertipLine at www.cybertipline.com or by calling 1-800-843-5678.
This case was brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.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.
Davenport Man Sentenced to Prison for Firearm OffenseRead the Press Release
DAVENPORT, Iowa-- On May 21, 2018, United States District Court Judge Stephanie M. Rose sentenced Detavion Marques Levi, age 21, of Davenport, to 37 months in prison for a drug user in possession of a firearm charge, announced United States Attorney Marc Krickbaum. Levi was ordered to serve three years of supervised release following his term of imprisonment and pay $100 to the Crime Victims’ Fund. Additionally, Levi was ordered to forfeit the two firearms involved in the offense.
On May 2, 2017, Davenport Police officers conducted a traffic stop on a vehicle in which Levi was the front passenger. Levi fled, but was eventually apprehended by police after a short foot pursuit. Officers found a Rohm RG10 .22 caliber revolver containing one spent casing and an ISSC M22 handgun with a laser sight, loaded with ten rounds, under the front passenger seat of the vehicle. Officers also recovered a bag belonging to Levi that contained marijuana, a digital scale, 32 .22 caliber rounds, alprazolam and ecstasy. At the time Levi possessed the two firearms, he was a drug user.
This matter was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Davenport Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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.
Columbia Heights Restaurant Owner Pleads Guilty to Visa Fraud and Harboring an Illegal WorkerRead the Press Release
United States Attorney Gregory G. Brooker today announced the guilty plea of PISANU SUKHTIPYAROGE, a/k/a “Pat,” 71, owner of the Royal Orchid Restaurant, to one count of visa fraud and one count of alien harboring. SUKHTIPYAROGE entered his guilty plea earlier today before Judge Wilhelmina M. Wright in United States District Court in St. Paul, Minnesota.
“Pisanu Sukhtipyaroge has pleaded guilty to visa fraud and alien harboring and will now face sentencing,” said Special Agent in Charge Tracy J. Cormier, of HSI St. Paul. “HSI is proud of the work we’ve accomplished with the Anoka County Sheriff’s Office in this case and will continue to leverage our law enforcement partnerships to investigate and prosecute those who seek to exploit the most vulnerable in our communities.”
According to the defendant’s guilty plea and documents filed in court, in July 2015, SUKHTIPYAROGE assisted in the procurement of an F-1 student visa for an individual identified as A.M., a citizen of the Dominican Republic whom the defendant met and befriended. At the time, SUKHTIPYAROGE was very familiar with the F-1 student visa process and knew that an F-1 student visa is a temporary, non-immigrant visa that does not permit employment in the United States. SUKHTIPYAROGE used false statements in preparing the visa application and instructed A.M. as to what he should and should not say during the visa interview.
According to the defendant’s guilty plea and documents filed in court, October 15, 2015, upon arrival in the United States, A.M. lived with the defendant and the defendant’s family in Maplewood and attended Edison High School until May 2016. At some point during this time, A.M. began living and working at the Royal Orchid Restaurant in Columbia Heights. At the restaurant, A.M. was subjected to poor living and working conditions. SUKHTIPYAROGE told A.M. he would be paid $500 per month in cash for his labor; however, A.M. did not receive the promised pay each month, as SUKHTIPYAROGE deducted the costs incurred in bringing A.M. to the United States. A.M. also worked at SUKHTIPYAROGE’S home in Maplewood without pay. SUKHTIPYAROGE admitted to engaging in a sexual relationship with A.M. shortly after he brought A.M. to the United States.
SUKHTIPYAROGE has also been charged in Anoka County with one felony count of third degree criminal sexual conduct and one felony count of labor trafficking.
This case is the result of an investigation conducted by Homeland Security Investigations, the Anoka County Sheriff’s Office, U.S. Department of State Diplomatic Security Service, and U.S. Department of Labor Wage and Hour Division.
The District of Minnesota is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino are prosecuting the case.
Defendant Information:
PISANU SUKHTIPYAROGE, a/k/a “Pat,” 71
Maplewood, Minn.
Convicted:
- Visa fraud, 1 count
- Alien harboring, 1 count
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Colorado Springs Man Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – Michael Lyle Blair, age 64, of Colorado Springs, Colorado, was sentenced late last week by U.S. District Court Judge Christine M. Arguello to serve 120 months (10 years) in federal prison for possession of child pornography, U.S. Attorney Bob Troyer and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Denver Division Special Agent in Charge Steven W. Cagen announced. Following his prison sentence, Blair was ordered to serve 7 years on supervised release and pay restitution totaling $21,000. The defendant, who appeared at the sentencing on bond, was remanded into custody immediately after the hearing.
Blair was indicted by a federal grand jury in Denver on March 16, 2017. He pled guilty before Judge Arguello on November 3, 2017. He was sentenced on May 17, 2018.
The testimony given during the sentencing hearing, as well as court documents filed in this case, demonstrated the defendant collected more than 700,000 images of child pornography and was involved in a decades-long pattern of sexual abuse against minors. Blair came to law enforcement attention when his wife, Sona Blair, was the target of a Homeland Security Investigations (HSI) money-laundering investigation. HSI had reason to believe she was deriving money from the international trafficking of Asian females and their prostitution. A state search warrant was executed at the Blair residence in December, 2013. During the search warrant execution, agents seized an external hard drive. A later forensic review of the drive showed it stored images of child pornography. Two additional state search warrants were obtained for evidence of child pornography. One was for the hard drive and the second was for the residence. The residence was searched again in January 2014 and a second computer was seized. A forensic review of the hard drive revealed that the defendant had downloaded approximately 700,000 images of child pornography including images of prepubescent children being bound or sexually abused. The images were stored in multiple folders with names containing descriptions such as “Hardcore Childporn”. The hard drive also contained hundreds of pages of stories that described the abduction or sexual abuse of children.
"Blair stole more than innocence with the 700,000 images he obtained. For years he left a trail of silent victims," said U.S. Attorney Bob Troyer. "With this sentence, those victims are finally heard. And Blair will pay every day for the next ten years in federal prison."
“Considering the traumatic impacts on victims of child pornography, the resulting federal prison sentences following a conviction are justifiably significant,” said Steve Cagen, special agent in charge of HSI Denver. “The 700,000 child pornography images that Blair collected involved numerous young and innocent traumatized victims. HSI and the U.S. Attorney’s Office worked together to provide justice to these victims, while protecting other potential victims by removing Blair from the community and from cyberspace.”
This case was investigated by Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Alecia Riewerts, the office’s Project Safe Childhood Coordinator. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the Department of Justice’s Criminal Division, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Colombian Cocaine Trafficker Pleads Guilty for Role in 490-Kilogram SeizureRead the Press Release
ALEXANDRIA, Va. – A Colombian national pleaded guilty today to his involvement in trafficking 490 kilograms of cocaine bound for the United States from Colombia.
According to court documents, Marco Antonio Robayo Barbosa, 64, was a cocaine trafficker who worked with brokers to coordinate multi-hundred kilogram shipments of cocaine from sources in Colombia to destinations around the world. Robayo Barbosa’s sources of supply included cocaine “laboratories” controlled by members of the Fuerzas Armadas Revolucionarias de Colombia (also known as the “FARC”), a group designated by the United States as a Foreign Terrorist Organization. Robayo Barbosa was personally involved in the distribution of approximately 490 kilograms of cocaine, which the DEA seized in Costa Rica in October 2013, and which Robayo Barbosa intended to be smuggled into the United States.
Robayo Barbosa pleaded guilty to conspiracy to distribute cocaine for the purpose of importation into the United States and faces a mandatory minimum of ten years in prison when sentenced on August 24. 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.
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 Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorney Katherine E. Rumbaugh and Trial Attorney Michael Waits of the Narcotic & Dangerous Drug Section are prosecuting the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Perdition. 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-168.
Camp Verde Man Sentenced to 36 Months in Prison for Assault with a Dangerous WeaponRead the Press Release
PHOENIX – Yesterday, Jose Manuel Lara, Jr., 20, of Camp Verde, Ariz., was sentenced by U.S. District Judge David G. Campbell to 36 months in federal prison, followed by three years of supervised release. The original sentence of 45 months was reduced by nine months to reflect credit for time Lara Jr., served in tribal custody for the same offense. Lara, Jr. had previously pleaded guilty to one count of assault with a dangerous weapon.
On June 25, 2017, Lara, Jr., an enrolled member of the Yavapai-Apache Nation, assaulted the victim, also a member of the Yavapai-Apache Nation, by running him over with a vehicle. The victim suffered serious bodily injury and required multiple surgeries.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai-Apache Nation Police Department. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8203-PCT-DGC
RELEASE NUMBER: 2017-069_Lara
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
California Resident Receives 33 Months in ID Theft CaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that United States District Judge William H. Steele sentenced Eddie Garcia, 33, a resident of Kern County, California, to 33 months imprisonment in an identification theft case. The judge ordered that Garcia undergo three years of supervised release after finishing his term of imprisonment, receive substance abuse treatment, and pay a $200 mandatory special assessment. Garcia has an extensive criminal history, which includes offenses involving theft, burglary, and narcotics.
On March 31, 2016, K.Q. tried to buy items using a payment card. When the card was denied, K.Q. called The First, a Mississippi-based bank, to determine why the card was not working. The bank said that someone (later determined to be Garcia) had used a card issued to K.Q. at the Cougar Oil gas station in Foley, Alabama and had also bought something from Google. Both charges occurred on March 31, 2016 and were successful. Moreover, the bank told K.Q. that someone had tried (unsuccessfully) to use the card at Wendy’s in Foley and had also tried (unsuccessfully) to use the card at the Magnolia Springs Speedway gas station. K.Q. had never received the card in question in the mail and suspected it was taken from K.Q.’s mailbox and unlawfully activated. The First issued the payment card to K.Q. on March 23. Since the card contained a chip, whomever called to activate the card presumably knew K.Q.’s social security number.
Investigators determined that from around March 2016 through around April 2016, Garcia schemed to defraud K.Q. for his own personal gain. Garcia fraudulently obtained and opened mail not belonging to him, including a letter sent by Capitol One to K.Q. dated March 25, 2016. As part of his scheme, Garcia fraudulently possessed and used K.Q.’s payment card without K.Q.’s knowledge or authorization. For example, around April 1, 2016 Garcia used the card to engage in a financial transaction for around $50.80 at Walmart in Foley, Alabama. Video surveillance obtained from Walmart showed Garcia swiping the stolen card in an attempt to purchase a pre-paid telephone card. The charge was eventually declined.
On October 26, 2017, a federal grand jury for the Southern District of Alabama indicted Garcia on three counts of wire fraud, three counts of aggravated identity theft, and two counts of postal theft. On February 15, 2018, Garcia pleaded guilty before Judge Steele to one count of wire fraud and one count of aggravated identity theft.
The Federal Bureau of Investigation and the Baldwin County Sheriff’s Office investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Bronx Man Pleads Guilty to Facilitation of Sex Trafficking, Drug Trafficking, Firearms, and Identity Theft ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that KEVIN PINNOCK, a/k/a “Kev Savage,” a/k/a “Sav,” pled guilty before U.S. District Judge Deborah A. Batts to using the internet to facilitate sex trafficking, possessing crack cocaine with intent to distribute, possessing a firearm in furtherance of drug trafficking, and possessing stolen identification documents.
U.S. Attorney Geoffrey S. Berman said: “Kevin Pinnock used violence and coercion to force women to engage in commercial sex for his own profit. With Kevin Pinnock’s guilty plea today, we seek to deliver justice to victims of sex trafficking and other forms of commercial exploitation and to deter others from engaging in this profoundly harmful criminal conduct. Protecting the public from sex trafficking crimes remains a top priority for us and our law enforcement partners.”
ATF Special Agent-in-Charge Ashan M. Benedict said: “Kevin Pinnock was allegedly involved in a multitude of criminal activities, which included using a firearm to protect his position on the street as a dealer in narcotics. Through the efforts of the Agents and Detectives of the ATF/ NYPD Joint Firearms Task Force (JFTF) working alongside Agents of HSI, Kevin Pinnock will be forced to contemplate his alleged crimes while serving a substantial sentence in prison. I would like to thank all of the law enforcement agencies that worked collaboratively to further this case. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”
HSI Special Agent-in-Charge Angel M. Melendez said: “This man admitted his guilt in forcing women to perform sexual acts by threatening violence and abuse. Pinnock was in for making a profit any way he can, with his crimes becoming more brazen; from robbery and ID theft to drug dealing and sex trafficking. The plea today is only the beginning for Pinnock, who will now need to face the consequences of this actions.”
According to the Complaint, Indictment, Superseding Indictment, and other documents filed in the case, as well as statements made during PINNOCK’s plea proceedings:
In 2015 and 2016, PINNOCK posted online advertisements to solicit customers to engage in commercial sex with women PINNOCK forced into prostitution by violence, abuse, and coercion. PINNOCK retained virtually all of the profits from his sex trafficking business.
In at least November 2016, PINNOCK sold crack cocaine and possessed a loaded firearm, which had been stolen, in order to protect his drug dealing business. He also possessed dozens of stolen identification cards – including driver’s licenses and Social Security cards – which he sold to other individuals who were engaged in identity theft and fraud. Many of the identification cards had been obtained through the commission of robberies.
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PINNOCK, 22, of the Bronx, New York, was arrested on January 5, 2017, in the Bronx, and has been in federal custody since. PINNOCK pled guilty to one count of possession with intent to distribute cocaine base, which carries a maximum sentence of 10 years in prison; one count of possession of a firearm in furtherance of drug trafficking, which carries a mandatory minimum sentence of five years in prison to be imposed consecutively to any other sentence and a maximum sentence of life in prison; possession with intent to use or transfer five or more identification documents or authentication features, which carries a maximum sentence of 15 years in prison; aggravated identity theft, which requires a two-year prison term to be imposed consecutively to any other sentence; and use of interstate commerce to promote unlawful activity, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PINNOCK is scheduled to be sentenced by Judge Batts on September 23, 2018.
Mr. Berman praised the outstanding investigative work of the ATF and HSI, and thanked the United States Secret Service, the Social Security Administration’s Office of the Inspector General, the New York City Police Department, and the Bronx County District Attorney’s Office for their assistance.
This case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Robert B. Sobelman is in charge of the prosecution.
Biotech Company CEO and Associate Indicted on Securities Fraud ChargesRead the Press Release
BOSTON –The chief executive officer of PixarBio Corp., a Boston-based biotech company, and an associate, were indicted today on securities fraud charges in connection with a scheme to defraud investors and engage in trade manipulation of the company’s shares.
Frank Reynolds, 55, of Newton, and M. Jay Herod, 51, of Cambridge, were indicted on two counts each of securities fraud and manipulative trading. They were previously charged by criminal complaint and arrested on April 24, 2018.
As alleged in the charging document, beginning in approximately August 2013, Reynolds and Herod engaged in a scheme to defraud PixarBio investors by making false and misleading statements about the company - its prospects, its financing, and the background and track record of Reynolds - and by engaging in manipulative trading of its shares.
For example, the indictment alleges that in a December 2015 email and memorandum to potential investors, Reynolds promised investors “a HUGE return on investment (ROI) for any investors in PixarBio’s NeuroRelease.” He told investors: “The value of our portfolio on Wall Street is soaring with excitement around our sales partnership. At only $1,000,000,000 right now, as we prepare to replace morphine in the clinic in late 2017 or early 2018, and we expect our valuation to long-term trend UP.” In reality, the government alleges, PixarBio did not have a market value of $1 billion, or a product to end “thousands of years of morphine and opiate addiction.” Rather, the indictment alleges, the prospective drug, carbamazepine, is not a treatment for opiate addiction at all, but an existing drug for which PixarBio purported to have developed an additional means of delivery, via injection, in a time-release form.
The indictment further alleges that, beginning in or about December 2016, Herod engaged in manipulative trades in PixarBio stock that simulated market interest in the stock and artificially pushed up the trading price. These trades included overlapping orders to buy and sell PixarBio stock at the same price per share (a manipulative technique known as “matched trading”), small purchases to boost the trading price submitted shortly before trading closed at 4:00 p.m. (a technique known as “marking the close”), and orders to buy at a price much higher than the price of the preceding market transaction. Herod allegedly shared the proceeds of his trading with Reynolds and PixarBio itself.
The charges of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission Office of Inspector General, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Baltimore County Tax Preparer Found Guilty of Filing False Tax Returns and Identity TheftRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On May 22, 2018, a federal jury has convicted Dawn Chapelle Cottman, age 45, of Owings Mills, Maryland of fourteen counts of filing false tax returns, wire fraud and aggravated identity theft. Cottman owned a tax preparation business called 40 AM Tax Service, which she operated from her residence in Owings Mills.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service – Criminal Investigation; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
Evidence presented at trial showed that from January 2009 until March 2013, Cottman electronically filed hundreds of tax returns, then had the tax refunds for those returns directly deposited into her bank account instead of having the refunds sent to the taxpayers. Many of the returns she filed contained materially false information to increase the size of the tax refunds. The false information included fictitious personal income amounts and dependent information that qualified taxpayers for the Earned Income Tax Credit and American Opportunity Education Credit.
Cottman also prepared and filed income tax returns using the personal identifiers of other people without their knowledge and consent in order to fraudulently obtain a tax refund to which she was not entitled. Cottman paid money to various individuals to obtain the identities of other people in whose names she filed the false returns. Cottman had the resulting tax refunds directly deposited into her bank account.
Cottman was also convicted of filing a false personal tax return for 2011. Cottman falsely claimed in her tax return that her tax preparation business had gross receipts of $152,100 when, in fact, more than $1 million of other people’s tax refunds were wired into her bank account. Cottman also falsely claimed to have earned a net income of approximately $17,000 when, in fact, she spent more than $250,000 that year on personal expenses, including trips to Disneyland, Las Vegas, Busch Gardens and Atlantic City.
Cottman faces a maximum sentence of twenty years in prison for wire fraud, five years for filing false claims, three years for filing a false tax return, and a two-year consecutive sentence for aggravated identity theft. U.S. District Judge George L. Russell, III, has scheduled sentencing for August 10, 2018, at 2:00 p.m. in Baltimore.
United States Attorney Hur commended the Internal Revenue Service – Criminal Investigation and the FBI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Martin Clarke and Sean Delaney, who prosecuted this case.
Attorney General Sessions Meets with Prime Minister of BulgariaRead the Press Release
A Department of Justice official released the following statement at the conclusion of Attorney General Jeff Sessions' meeting with Bulgarian Prime Minister Boyko Borissov:
"On Tuesday, May 22, 2018, Attorney General Jeff Sessions met with Bulgarian Prime Minister Boyko Borissov at the Prime Minister's office at the Council of Ministers in Sofia, Bulgaria. The dialogue focused on the nations' shared commitment to fighting international terrorism, cybersecurity, drug trafficking, and human trafficking. The Attorney General and Prime Minister also discussed other areas of law enforcement cooperation between the two countries, including extradition and mutual legal assistance.”
Atlanta man sentenced for shooting U.S. Marshals Service task force officerRead the Press Release
ATLANTA – Titus Bates has been sentenced to 30 years in prison for assaulting a federal officer, discharging a firearm during a crime of violence, possession with intent to distribute marijuana, and being a felon in possession of a firearm after he shot a member of the U.S. Marshals Services’ Southeast Regional Fugitive Task Force (“SERFTF”) who was attempting to execute search and arrest warrants at his residence.
“Titus Bates has no regard for the law or life. He is a seven-time convicted felon who nearly killed officers attempting to arrest him and search his residence,” said U.S. Attorney Byung J. “BJay” Pak. “We are thankful that the Marshals Service Task Force Officer survived the shooting and we are reminded of the dangers our law enforcement partners encounter every day.”
“We appreciate the efforts of the U.S. Attorney’s Office and the ATF in obtaining this conviction for Bates, who is a career offender with gang affiliations. This event reemphasizes the danger all law enforcement personnel face every day in an effort to keep communities safe from violent criminals. Violence against those who swear an oath to protect the public will not be tolerated” said Chief Inspector Keith Booker with the U.S. Marshals.
“Titus Bates is a very violent individual who displays a total lack of concern for the lives of others. This sentence represents the seriousness of his crime,” said Special Agent in Charge Arthur Peralta. “This sentence also ensures that Bates will not be able to hurt or terrorize anyone else for a very long time.”
According to U.S. Attorney Pak, the charges, and evidence presented at trial: On November 21, 2013, members of the U.S. Marshals Services’ SERFTF attempted to execute arrest and search warrants issued by Fulton County for Bates’s residence in Atlanta. An entry team knocked and announced their presence, but Bates did not answer. As Marshals attempted to make entry into the residence, Bates shot twice through the closed door. One of the shots hit a neighbor’s house, and the other shot struck a U.S. Marshal Task Force Officer in the leg. The law enforcement team at the residence did not return fire. Instead they focused on removing the task force officer from the scene and rushing him to the hospital. They also continued with their mission to apprehend Bates.
Inside the house, Bates tossed a .45 caliber pistol with an extended clip, which he used to shoot the task force officer, down a vent in the living room. ATF agents searched Bates’s home, and found over seven pounds of marijuana, scales, cash, and other drug-related items.
Titus Bates, 43, of Atlanta, Georgia was sentenced to 30 years in prison to be followed by 3 years of supervised release on May 17, 2018. A jury convicted Bates of assaulting a federal officer with a deadly weapon and discharging a firearm during a crime of violence on December 14, 2017. Prior to trial, Bates pleaded guilty to being a felon in possession of a firearm and possession with intent to distribute marijuana on November 9, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorneys Phyllis Clerk and Ryan K. Buchanan prosecuted the case.
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.
21 May 2018
“Winter Hat” Robber Convicted of Seven Bank RobberiesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal jury has convicted Harrison Lewis, III, age 54, of Catonsville, Maryland of six counts of bank robbery and one count of attempted bank robbery.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
The federal jury convicted Lewis of robberies that occurred on December 28, 2016, January 5, 2017, January 6, 2017, January 11, 2017 in Catonsville; a robbery and an attempted robbery that were both committed on January 19, 2017 in Ellicott City; and a robbery that was committed on January 30, 2017 in Phoenix, Maryland. The jury was unable to reach a verdict on charges relating to robberies that took place on December 31, 2016 in Sykesville and January 10, 2017 in Ellicott City.
According to evidence presented at trial, between December 28, 2016 and January 30, 2017, Lewis entered each bank wearing a hat and sunglasses, approached the teller, passed the teller a note that demanded U.S. currency, and then fled the bank after the teller complied and handed over cash. The notes referenced an armed partner outside the bank, and instructed the tellers to not use any security measures such as alarms, dye packs, bait money, or tracking devices. Lewis also demanded the notes back from the tellers.
Moreover, as to the January 19, 2017 attempted robbery, Lewis, entered a bank wearing a disguise, including a hat and sunglasses, passed a note, and then fled the bank after the teller told him that she could not read it. Minutes later, while wearing the same disguise, Lewis walked less than 100 yards down the street to another bank, again passed a note demanding United States currency, and fled after the teller complied and handed over cash.
In 2002, Lewis was convicted of federal bank robbery, and was sentenced to 150 months in prison on that charge. As part of his guilty plea in 2002, Lewis admitted to robbing 19 banks over the course of three months in 2001, using a demand note.
Lewis faces a maximum sentence of 20 years in prison per count.
United States District Judge Marvin J. Garbis has scheduled sentencing for Lewis on August 20, 2018 at 10 a.m.
United States Attorney Hur commended the FBI, the Baltimore County Police Department, the Howard County Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul Budlow and Paul Riley, who prosecuted this case.
Woman Involved in Meth Conspiracy Sentenced to PrisonRead the Press Release
A woman who hid in locations in Florida, Texas, California and Arizona to avoid prosecution before being found and arrested in California was sentenced May 21, 2018, to nearly 4 years in federal prison.
Angela Suzanne Nichols, 43, from Sioux City, Iowa, received the prison term after a February 15, 2018, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Nichols admitted her involvement in a conspiracy that distributed more than 5 grams of actual (pure) methamphetamine from January through June 2016. Nichols further admitted she aided and abetted Andre Brown in the distribution of more than 40 grams of ice methamphetamine to individuals cooperating with law enforcement in January 2016.
Nichols was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Nichols was sentenced to 45 months’ imprisonment. She must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Nichols is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Mikala M. Steenholdt and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4041. Follow us on Twitter @USAO_NDIA.
Windsor Locks Man Pleads Guilty to Federal Drug Trafficking and Money Laundering OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OSCAR MONTOYA, 62, of Windsor Locks, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to drug trafficking and money laundering offenses related to the distribution of heroin and various prescription medications.
According to court documents and statements made in court, beginning in approximately 1998, MONTOYA’s wife, Christina Miles, who is a retired nurse, illegally possessed, dispensed and sold prescription medication and other controlled substances. MONTOYA knew of Miles’ illegal activity and, at Miles’ direction, dispensed pills to at least one of Miles’ drug customers. MONTOYA also was aware that family members outside of Connecticut were mailing pills to Miles at their Windsor Locks residence, and that his wife was selling the pills for profit.
On August 4, 2016, members of the North Central Narcotics Task Force and the DEA conducted a court-authorized search of Miles and MONTOYA’s residence at 350 North Street in Windsor Locks and seized a large quantity of various prescription medications, approximately two pounds of marijuana, $10,093 in cash and more than $13,000 in gift cards. Miles and MONTOYA were arrested on state charges after the search.
The investigation revealed that, through this drug trafficking conspiracy, Miles and MONTOYA amassed more than $700,000 in a number of individual and jointly held bank accounts. The investigation also revealed that, in April 2017, Miles and MONTOYA used $17,359 of drug proceeds to purchase 11 U.S. Postal Service money orders and a bank cashier’s check payable to a New Jersey-based moving company for a planned move from Connecticut to New Mexico.
Miles and MONTOYA were arrested on federal charges on November 16, 2017. On February 2, 2018, another court-authorized search of their North Street residence revealed additional drug evidence and $41,904 in cash.
MONTOYA pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam, an offense that carries a maximum term of imprisonment of 20 years, and one count of engaging and attempting to engage in a monetary transaction affecting interstate commerce, involving criminally derived property of a value greater than $10,000, an offense that carries a maximum term of imprisonment of 10 years.
In pleading guilty, MONTOYA agreed to forfeit his interest in the Windsor Locks residence and $767,056.74 seized from the residence and multiple bank accounts.
Judge Meyer scheduled sentencing for September 4, 2018. MONTOYA has been detained since his federal arrest.
Miles pleaded guilty to the same charges on May 15, 2018, and is detained while awaiting sentencing. She also has agreed to forfeit her interest in the Windsor Locks residence and the seized money.
This matter is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the U.S. Marshals Service with the valuable assistance of the North Central Narcotics Task Force and the Windsor Locks, Enfield, Vernon, East Windsor, Manchester and Suffield Police Departments. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Patrick F. Caruso.
Wernersville Man Convicted of Bank Robberies in York, Lebanon, and Berks CountiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Derek Pelker, age 28, of Wernersville, Pennsylvania, was convicted on May 18, 2018, by a jury on four counts of armed bank robbery, four counts of conspiracy to commit armed bank robbery, two counts of brandishing a firearm in relation to a crime of violence; and, two counts of possession of a firearm by a felon. Pelker represented himself during the five-day trial held before United States District Court Judge Yvette Kane.
According to U.S. Attorney David J. Freed, the jury returned a verdict of guilty after approximately two-days of deliberations and convicted Pelker of robbing the Susquehanna Bank in East Prospect, Pennsylvania on April 24, 2015; the BB&T Bank in Valley View, Pennsylvania on November 17, 2015; the Gratz Bank in Valley View, Pennsylvania on January 14, 2016; and, the M&T Bank in Lebanon, Pennsylvania on April 5, 2016.
Pelker’s co-defendants pled guilty in relation to these robberies and are awaiting sentencing:
- Andrew Ishman, age 31, Wrightsville, pled guilty to the East Prospect bank robbery on October 3, 2016;
- Ryan Miller, a/k/a “Otis,” age 25, Robinson Township, pled guilty to the East Prospect robbery and a separate bank robbery on December 6, 2016;
- Keith Pelker, age 28, Wernersville, pled guilty to the Lebanon bank robbery on October 3, 2016;
- Shannon Gadzouris, age 24, Shillington, pled guilty to the Lebanon bank robbery on October 3, 2016;
- Ryan Martin, age 27, of Reading pled guilty to the two Valley View bank robberies on December 1, 2017; and
- Kelsie Bair, age 28, and Lindsey School, age 27, both of Lebanon, pled guilty to accessory after the fact after they disposed of the weapon used in the Lebanon bank robbery off a pier in Ocean City, New Jersey. The weapon was ultimately recovered by the FBI scuba diving team.
One co-defendant was sentenced:
- William Papoutsis, Pelker’s uncle, age 35, of Reading, pled guilty to obstruction of justice in relation to these robberies and was sentenced to six months’ imprisonment;
The investigation was conducted by the Federal Bureau of Investigation Capital City Violent Crimes Task Force, the Pennsylvania State Police, the South Lebanon Township Police Department, the U.S. Marshals Fugitive Task Force, and the Lebanon and York County District Attorney’s Offices. The Capital City Violent Crimes Task Force consists of representatives from the FBI’s Harrisburg Field Office and the Harrisburg Police Department. Assistant U.S. Attorneys Scott R. Ford and Chelsea Schinnour prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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 for the offenses is life imprisonment, a term of supervised release following imprisonment, and a $1,250,000 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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