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18 May 2018
Former Mobile Phone Industry Manager Sentenced in Manhattan Federal Court to 30 Months in Prison for Role in Multimillion-Dollar Consumer Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that CHRISTOPHER GOFF was sentenced today to 30 months in prison for his participation in a fraudulent scheme to charge mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages without the customers’ knowledge or consent – a practice known as “auto-subscribing.” The fraud committed by GOFF and his co-conspirators resulted in the theft of over $50 million from consumers throughout the United States. In January 2018, GOFF pled guilty to one count of participating in a conspiracy to commit wire fraud. GOFF was sentenced today in Manhattan federal court by the U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Christopher Goff conspired with others in an auto-subscribing scam that stole $50 million from unwitting consumers. In return for lists of mobile phone users to victimize, Goff netted more than $350,000 in short-term gain – and a substantial term in prison.”
According to the Superseding Information filed in Manhattan federal court, trials in related proceedings, and statements made in connection with GOFF’s sentencing:
GOFF was an account manager for Mobile Messenger, a U.S. aggregation company in the mobile phone industry. In the relevant time period, mobile aggregators like Mobile Messenger compiled, or “aggregated,” charges for premium text messaging services – such as monthly horoscopes, celebrity gossip, and trivia facts – on consumers’ mobile phone bills. Between 2011 and 2013, GOFF and others engaged in a massive scheme to defraud ordinary consumers by placing unauthorized charges for premium text messaging services on their cell phone bills, through a practice known as auto-subscribing.
The auto-subscribing scheme involved two main players in the mobile phone industry: mobile aggregators, such as Mobile Messenger, and content providers, which sent consumers the unwanted text messages that ultimately resulted in them being billed for services they had not authorized. Mobile Messenger worked with four different content providers in the scheme, each of which was essential to the scheme’s success. GOFF participated in auto-subscribing through one of those content providers, Tatto, which was operated by co-conspirator Lin Miao.
In or about 2010, Miao, who was the CEO of Tatto, decided to begin auto-subscribing mobile phone users to Tatto’s premium text messaging services in order to boost Tatto’s sagging revenues. Miao and others built a computer program that could spoof the required consumer authorizations for premium text messaging services – i.e., a program that could generate the text message correspondence that one would ordinarily see if a consumer were genuinely signing up to receive the services, which was operational by in or about the middle of 2011. In or about July 2011, Miao met with GOFF and asked him to provide large batches of phone numbers from Mobile Messenger’s databases in exchange for payment. GOFF agreed to assist Miao and knew that Miao intended to subscribe consumers without their permission. GOFF provided hundreds of thousands of mobile phone numbers to Miao by email from mid-2011 to mid-2012. When sending the stolen phone numbers to Miao, GOFF hid his involvement in the scheme by using email addresses other than his work email address at Mobile Messenger. Ultimately, Miao and other co-conspirators used the phone numbers that GOFF provided to auto-subscribe consumers. In total, Miao and Tatto took more than $50 million from consumers via the scheme.
GOFF received more than $350,000 from Miao for the phone numbers he provided. GOFF used a shell company called 5 Tool Services and sent false invoices for consulting services that he never provided to Miao to hide his receipt of the money and role in the scheme.
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In addition to the 30-month prison term, GOFF was sentenced to two years of supervised release and ordered to forfeit $352,799.56.
To date, seven defendants other than GOFF – Andrew Bachman, Miao, Michael Pajaczkowski, Erdolo Eromo, Jonathan Murad, Francis Assifuah, and Jason Lee – have pleaded guilty in connection with their participation in the fraud. Two additional defendants, Fraser Thompson and Darcy Wedd, were convicted following three-week jury trials.
Mr. Berman praised the investigative work of the IRS-CI and the FBI, and expressed his sincere gratitude to the Federal Trade Commission for their support and assistance with the investigation.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to:
http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sarah E. Paul, Richard Cooper, Jennifer L. Beidel, and Jilan Kamal are in charge of the prosecution.
Former Maryland State Delegate and County Councilman Sentenced to More Than Four Years in Prison for Participation in Bribery SchemeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paula Xinis sentenced William Alberto Campos-Escobar (a/k/a “Will Campos”), age 43, of Hyattsville, Maryland, to 54 months in prison, followed by three years of supervised release, for conspiracy and bribery in relation to a scheme to use County funds to obtain bribe payments. In addition, Judge Xinis ordered Campos to pay $340,000 in restitution.
In a related matter, Judge Xinis sentenced Young Jung Paig, age 63, of Capitol Heights, Maryland, to 41 months in prison, followed by three years of supervised release. Judge Xinis also ordered Paig to forfeit $265,000.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Henry Stawinski III of the Prince George’s County Police Department.
Campos held the elected position of Prince George’s County Councilman, representing District 2, from November 2004 through approximately November 2014. As an elected County Councilman, Campos was authorized to act on behalf of, and serve as the representative to, the County government. In November 2014, Campos was elected as a Delegate to the Maryland General Assembly, representing District 47B.
Paig was the resident agent of Weeping Willow, Inc. and the owner of Central Avenue Restaurant & Liquor Store, located in Seat Pleasant, Maryland.
As described in his plea agreement and other court records, then-County Councilman Campos accepted bribes from business owners and others, often but not always facilitated by David Dae Sok Son, a Commissioner on the Prince George’s County Board of License Commissioners.
For example, during a meeting on April 4, 2014, Son informed an FBI Confidential Human Source (“CHS”) that Campos needed $10,000 to pay an expense related to Campos’s campaign for Maryland State Delegate. Son told the CHS that Son had spoken with Campos about the CHS giving cash to Campos in exchange for Campos arranging for another County grant to be awarded to a non-profit organization selected by the CHS.
On or about April 9, 2014, Son told the CHS that Son had told Campos to “hook [the CHS] up” with the developer of a new business in the County, so that the developer would retain the CHS’s business services. Son explained to the CHS that the business owed Campos, because Campos had obtained a tax benefit for the business. Son and the CHS then walked to the coffee shop’s parking lot, where the CHS’s vehicle was located. The CHS then retrieved $3,000 in U.S. currency from the CHS’s vehicle. The same day, Son gave Campos the $3,000 in U.S. currency that Son had received from the CHS. And later that day, Campos sent a text message to the CHS that stated, “I owe you big time my man.”
In a related matter, Paig made repeated bribe payments to Campos and Maryland State Delegate Michael Vaughn, in relation to a successful attempt to pass legislation permitting certain liquor stores in Prince George’s County to sell alcohol on Sundays. These bribe payments from Paig also were facilitated by Son. Other convicted individuals in this related matter include Shin Ja Lee, a liquor store owner, and Matthew Gorman, an attorney and lobbyist.
Delegate Vaughn was convicted of bribery and conspiracy at a trial that concluded in March 2018, and is pending sentencing. Son, Lee, and Gorman have all pleaded guilty and also are pending sentencing.
United States Attorney Robert K. Hur commended the FBI, IRS-CI, and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Thomas P. Windom and James A. Crowell IV, who prosecuted Campos and Paig.
Former DPD Officer Sentenced to 20 Months in Prison for ExtortionRead the Press Release
Former Detroit Police Department Officer Jamil Martin was sentenced yesterday to 20 months’ imprisonment for accepting a bribe from an owner of an automobile collision shop in exchange for referring stolen and abandoned vehicles recovered in the City of Detroit to that shop, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Timothy Slater, Special Agent in Charge, Federal Bureau of Investigation, Patricia Armstrong, U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division and Chief James Craig, Detroit Police Department. The defendant was actively employed with the Detroit Police Department at the time of the offense.
Jamil Martin, age 47, was sentenced by U.S. District Judge Robert Cleland. Martin previously pleaded guilty to one count of extortion.
According to the facts alleged in the indictment and further developed at the plea hearing and in sentencing briefing, Martin accepted cash payments from the owner/operator of a Detroit collision shop in exchange for referring abandoned vehicles to that shop for repairs.
This is the fourth defendant to have been sentenced as a result of this investigation. The others awaiting sentencing or a trial are:
- Charles Wills, age 52, pleaded guilty to two counts of Extortion charged in a Superseding Indictment.
- Deonne Dotson, age 45, is awaiting trial.
All of the Officers were charged with engaging in extortion for using their official positions as Police Officers to refer cars to certain collision shops in exchange for cash payments.
“The vast majority of Detroit Police Officers are courageous, dedicated public servants and should not be overshadowed by the acts of the few officers who accepted these bribes,” U.S. Attorney Schneider said.
"Certainly we appreciate the partnership of the Federal Bureau of Investigations, U.S. Postal Inspection Service, and the United States Attorney’s Office. While the actions of this officer are troubling, we are relieved that this sentencing has brought some closure to a long standing issue that has plague this department." said Chief Craig.
“The actions of former DPD Officer Martin are disheartening to the many men and women in law enforcement, who work hard every day with integrity and commitment,” said Timothy R. Slater, Special Agent in Charge of FBI Detroit. “The FBI will continue to dedicate significant resources to the Detroit Police Department and all law enforcement partners toward investigating anyone who tarnishes their reputation by straying from his or her oath.”
The investigation was conducted by the FBI, the U.S. Postal Inspection Service, Detroit Police Department and the following agencies from the FBI Detroit Area Corruption Task Force: Michigan State Police and U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operation Division.
The FBI Detroit Area Corruption Task Force is comprised of personnel from the Detroit Division of the FBI; Michigan State Police; Michigan Department of Attorney General; Detroit Police Department; U.S. Internal Revenue Service, Criminal Investigation Division; U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operations Division; U.S. Postal Inspection Service; U.S. Department of Labor, Office of the Inspector General, Office of Labor Racketeering and
Fraud Investigations; U.S. Department of Housing and Urban Development, Office of the Inspector General; U.S. Department of Transportation, Office of the Inspector General; U.S. Department of Homeland Security, Office of the Inspector General; U.S. Department of Education, Office of the Inspector General; and U.S. Environmental Protection Agency, Office of the Inspector General.
The case is being prosecuted by Assistant United States Attorneys Sarah Resnick Cohen and Craig A. Weier.
Federal Jury Finds Illinois Motor Vehicle Employee Guilty on Conspiracy to Defraud and Mail Fraud ChargesRead the Press Release
St. Louis, MO – After a five-day trial, a federal jury returned five guilty verdicts for the United States finding that Melvin Harmon conspired to defraud the United States by assisting Missouri residents in registering their cars in Illinois.
According to evidence at trial, between January 1, 2015 and December 20, 2016, Melvin Harmon was employed at a Granite City, Illinois office registering vehicles for the State of Illinois Secretary of State. He used his employment to obtain fraudulent motor vehicle registrations for others in exchange for a fee. In March 2016, investigators with the Illinois Secretary of State discovered that Harmon had been charging Missouri residents $350.00 to $700.00 in order to fraudulently register their cars in Illinois. Doing so enabled the Missouri residents to evade payment of Missouri taxes. In addition, Harmon altered the price of the vehicles in order to reduce any payments that would be owed to the State of Illinois as a result of his fraudulent conduct. However, throughout the course of the investigation, officials determined that Harmon registered more than 380 vehicles for residents of Missouri and other states using assumed Illinois addresses. The State of Missouri estimated a loss of tax revenue in excess of $300,000.00 for vehicles associated with Missouri residents.
Harmon, 40, Belleville, IL, was indicted on September 13, 2017 in a superseding indictment charging him with six felony counts, including: conspiracy to defraud the United States; mail fraud; and interstate transportation of falsely made motor vehicle titles.
He faces up to 20-years of imprisonment for the convictions, and a potential fine of $250,000 per count. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provides recommended sentencing ranges.
Sentencing has been set for August 14, 2018 before the Honorable Henry E. Autrey.
The case was investigated by the Missouri Department of Revenue-Compliance and Investigation Bureau. This case was handled by Assistant United States Attorneys Tracy Berry and Dianna Collins.
Elmira Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced that Taylor T. Sullivan, 21, of Elmira, NY, pleaded guilty to receipt of child pornography before U.S. District Judge David G. Larimer. The charge carries a minimum penalty of five years in prison, a maximum of 20 years, and a fine of $250,000.
Assistant U.S. Attorney John J. Field who is handling the case, stated that on April 4, 2017, Sullivan used the instant messaging app Kik to pose a 13 year-old minor female during online chats. The defendant solicited and received images and videos of child pornography. During this activity, commonly referred to as “catfishing,” Sullivan obtained a video from another individual that depicted the rape of a four-year-old girl. In addition to the video, the defendant received more than 600 other images and videos of child pornography, some of which involved prepubescent minors and depictions of violence.
The plea is the result of an investigation by the New York State Police, under the direction of Major Richard Allen, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for August 16, 2018, at 11:00 a.m. before Judge Larimer.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man charged with Simple Assault pled guilty and was sentenced on May 17, 2018, by U.S. Magistrate Judge Mark A. Moreno.
Sven Dyda, age 38, was sentenced to time served (30 days) in custody, and ordered to pay $10 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on September 2, 2017, when an officer with the Cheyenne River Sioux Tribe Law Enforcement Services was dispatched to a possible domestic violence situation in Eagle Butte. The officer responded and observed three individuals standing outside the residence. One was a white male, later identified as Dyda. The other two were Native American females, including the victim, standing away from Dyda.
The officer approached the residence and spoke with the victim, who advised she had been hit and shoved to the ground by Dyda when attempting to intervene between Dyda and the other female as they were arguing, and Dyda committed simple assault in the process.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Dupree Man Charged with Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Waylon Young Bird, age 49, was indicted on May 15, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 17, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $11,000,000 fine, 8 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on or about January 1, 2016, Young Bird knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute and possess with the intent to distribute 500 grams or more of methamphetamine, which is a Schedule II controlled substance. The Indictment also alleged that on or about March 9, 2018, Young Bird knowingly and intentionally possessed with the intent to distribute a detectable amount of methamphetamine.
The charges are merely accusations and Young Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Young Bird was released on bond pending trial which has not been set.
District Man Sentenced to 33 Years in Prison for Slayings of Two Housemates in Northeast WashingtonRead the Press Release
WASHINGTON – David Bright, 31, of Washington, D.C., was sentenced today to 33 years in prison for the slayings of two of his housemates at their rooming house in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Bright pled guilty in February 2018, in the Superior Court of the District of Columbia, to two counts of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 33 years in prison. The Honorable Ronna L. Beck accepted the plea and sentenced the defendant accordingly. Following his prison term, Bright will be placed on five years of supervised release.
According to a proffer of facts submitted at the plea hearing, on Feb. 18, 2016, Bright was staying in a rooming house in the 500 block of 58th Street NE. The victims, Clifton Francis and David Watkins, were Bright’s housemates. Two other individuals were also staying in the home at the time, one permanently and one temporarily.
At approximately 12:55 p.m., Bright entered the house, where Mr. Francis and Mr. Watkins were sitting in the living room watching television; one of the other housemates was in the kitchen. Bright went upstairs, where his bedroom was located, and then came running down the stairs. He pointed a gun in the direction of Mr. Francis and began firing at close range.
Mr. Francis, who received multiple gunshot wounds to the chest and head, immediately slumped over the arm of the couch and fell to the floor. Mr. Watkins started yelling words to the effect of “what are doing, are you crazy?” Bright then turned the gun towards Mr. Watkins and began firing, hitting him in the chest. Mr. Watkins managed to crawl to his bedroom, and yelled for the remaining housemate to call the police. Bright ran into the kitchen and came face-to-face with this housemate. He pointed the gun at his face, but the housemate was able to run into a bedroom and closed the door. Bright then fled the house.
The next day, Feb. 19, 2016, at approximately 10:40 a.m., Bright was arrested by the Capital Area Regional Fugitive Task Force as he walked out of a barbershop in Seat Pleasant, Maryland. Bright was exiting the barbershop after having shaved off his dreadlocks. He has remained in custody since his arrest.
Bright had driven a Mitsubishi Galant to the barber shop. Officers searched the car and recovered the murder weapon, a Glock 22 .40 caliber firearm, as well as 91 rounds of ammunition and three firearm magazines (two full, one empty).
Mr. Watkins, 45, and Mr. Francis, 51, both died as a result of the gunshot wounds.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Capital Area Regional Fugitive Task Force and the District of Columbia Department of Forensic Sciences. They acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Magdalena Acevedo, Victim/Witness Advocate Jim Brennan, Victim/Witness Services Coordinator Katina Adams-Washington, and former Paralegal Specialist Kendra Johnson. Finally, they commended the work of Assistant U.S. Attorney Kimberley C. Nielsen, who investigated and prosecuted the matter.
District Man Sentenced to 15 Years in Prison for Carjacking and Robbery at Towing Company LotRead the Press Release
WASHINGTON – Warren Stevenson, 25, of Washington, D.C., was sentenced today to a 15-year prison term for taking part in a robbery and carjacking at a towing company parking lot in Northeast Washington, as well as an additional four months of incarceration for later assaulting a corrections officer at the District of Columbia Jail, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Stevenson pled guilty in March 2018, in the Superior Court of the District of Columbia, to one count each of carjacking, armed robbery, and simple assault. The plea, which was contingent upon the Court’s approval, called for a sentence between 15 and 18 years. The Honorable Judith Bartnoff accepted the plea and sentenced the defendant accordingly. Following his prison term, Stevenson will be placed on five years of supervised release.
According to the government’s evidence, on Nov. 12, 2015, at approximately 1 a.m., Stevenson and three co-conspirators ambushed four victims at District Towing, a business in the 900 block of Franklin Street NE. One victim was at the premises with his son to pick up his son’s car, which a tow truck driver had towed earlier that evening. Also on the premises were two District Towing employees who were awaiting service calls in a tow truck.
Stevenson and his accomplices rushed into the tow lot brandishing handguns and began their assault on the four victims. As Stevenson pointed a gun at the father and demanded the money on his person and any money in the car, another accomplice robbed the tow truck driver of his cell phone and money at gunpoint. The father offered Stevenson the keys to his Jaguar and then, fearing for his life, began to grapple with Stevenson for control of the gun.
In the midst of the robberies, the other two assailants approached the tow truck and began banging on the truck’s windows with the butts of their firearms, demanding that the District Towing employees open the doors. Frightened, one of the employees slammed on the gas and attempted to drive out of the lot. As the truck pulled away, the assailants began shooting at the truck. One employee was shot in his left arm and chest and the other was hit in the right cheek. The assailants, including Stevenson, then escaped in the carjacked Jaguar.
Stevenson was identified as being at the scene via GPS, and escaped from the Metropolitan Police Department (MPD) when officers tracked him to a house in Northeast Washington later that morning. He was ultimately arrested on the evening of Dec. 9, 2015, at an acquaintance’s house in the 1400 block of Oglethorpe Road NW. The arrest followed a seven-hour barricade and stand-off with members of MPD. While watching the news broadcast of the barricade, the owner of the carjacked Jaguar recognized Stevenson as the carjacker. Stevenson has remained in custody since his arrest. No other arrests have been made to date in the case.
The carjacking and robbery charges stemmed from the incident at the towing company lot. Additionally, the simple assault charge stemmed from an incident on Feb. 10, 2018 at the District of Columbia Jail. During a fight between two other inmates at the jail, Stevenson pulled pepper spray away from a corrections officer who responded to the trouble. Stevenson discharged it, with some of the spray hitting the officer.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department (MPD). They also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Nicholas Coleman; Information Technology Specialist Leif Hickling; Paralegal Specialist Lashaune Briggs, and Intern Natasha Harnwell-Davis.
Finally, they commended the work of Assistant U.S. Attorneys Seth M. Gilmore, Kamil E. Shields, and Melissa Price, who investigated and prosecuted the case.
Dallas Man Sentenced to 235 Months in Federal Prison for His Role in a Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS —Juan Mauricio Araujo, Jr., aka “Pelon”, 35, was sentenced on Monday, May 14, 2018, before U.S. District Judge David C. Godbey for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Araujo was sentenced to 235 months in federal prison following his guilty plea in April 2017 to one count of conspiracy to possess with intent to distribute and to distribute a controlled substance, said substance being 500 grams or more of methamphetamine. Araujo has been in custody since his arrest in September 2016.
Araujo was charged along with twenty-one others with various offenses related to a methamphetamine distribution conspiracy. Of the twenty-one charged, two are awaiting trial.
According to documents filed in the case, between January 1, 2015 through March 18, 2016, Araujo and his coconspirators conspired to distribute methamphetamine and on several occasions, discussed pick up and drop off plans.
Specifically, Araujo used coded language to purchase multiple kilograms of methamphetamine so that he could distribute the methamphetamine to other people. Araujo, not being happy about the quality of a kilogram of methamphetamine, provided instruction to have the bad kilogram of methamphetamine swapped out for a better quality.
The Federal Bureau of Investigation investigated, with assistance from the Dallas Police Department and the Internal Revenue Service Criminal Investigations Division. Assistant U.S. Attorney George Leal prosecuted.
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Crips Gang Member Pleads Guilty to a Murder in BrooklynRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Tyvon Bannister, also known as “Turtle,” a member of the Crips-affiliated Cypress Gangsta Crips (CGC) street gang, pleaded guilty to a firearms-related murder charge in connection with his July 2014 fatal shooting of Rayvon Henriques. The guilty plea was entered before United States District Judge Brian M. Cogan.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
As set forth in prior court filings and statements in court, Bannister is a member of the CGC, which is comprised of individuals residing in and around the Cypress Hills Houses (“Cypress”), a large New York City Housing Authority complex in East New York, Brooklyn. Cypress has been plagued by gang and drug-related violence arising largely from a long-standing feud between the CGC, who hail from the “Backside” (buildings on Linden Boulevard) and “Teamside” (buildings on the western end of Sutter Avenue and the northern end of Fountain Avenue), and the Bloods-affiliated gang members who reside in the “Frontside” (buildings on the eastern end of Sutter Avenue). This feud dates to at least 2010, when a person from the Frontside was believed to have killed a member of the Backside.
On July 8, 2014, Bannister and another gang member shot and killed Henriques in front of a nightclub in East New York. Henriques, who was 26-years-old at the time of his death, was targeted because of his association with the CGC’s chief rivals, the Bloods-affiliated gang members from the “Frontside” section of Cypress.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret E. Gandy and Andrey Spektor are in charge of the prosecution.
The Defendant:
TYVON BANNISTER
Age: 25
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-116 (BMC)
Council Bluffs Man Sentenced to Prison for Child Pornography ChargeRead the Press Release
COUNCIL BLUFFS, Iowa – On May 11, 2018, Robert W. Bennett, age 51, of Council Bluffs, appeared before United States District Court Judge Stephanie M. Rose and was sentenced to 121 months in prison for receipt of child pornography announced United States Attorney Marc Krickbaum. Bennett was ordered to serve five years of supervised release to follow his prison term.
Bennett pleaded guilty to the charge on January 2, 2018. The plea was the result of an investigation that began with a tip received by the Council Bluffs Police Department from the National Center for Missing and Exploited Children that Bennett’s cloud storage system contained child pornography. A search warrant served on Bennett’s residence located a computer, cell phones, tablets and numerous storage devices that contained images of child pornography.
This investigation was conducted by the Council Bluffs Police Department and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Colombian Man Sentenced to More Than 17 Years for Transporting CocaineRead the Press Release
Tampa, FL – U.S. District Judge Steven Merryday has sentenced Luis Moreno-Valencia (45, Colombia, South America) to 17 years and 6 months in federal prison for conspiring with others to distribute five kilograms or more of cocaine on vessels subject to the jurisdiction of the United States, and for conspiring with others to distribute five kilograms or more of cocaine intending that it be unlawfully imported into the United States. He pleaded guilty on February 15, 2018.
According to court documents, Moreno-Valencia was the organizational head of a Colombian-based drug trafficking organization. He was responsible for arranging the transportation of several maritime smuggling ventures in international waters of the Eastern Pacific Ocean. In November 2014 and December 2015, the U.S. Coast Guard interdicted over 800 kilograms of cocaine aboard vessels commonly referred to as “go fast boats.”
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the U.S. Coast Guard Investigative Service, the Drug Enforcement Administration, the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command’s Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Thomas Palermo.
Cairo Convicted Felon Cary Brandon Smith Sentenced for Narcotics and Gun Charges Under Project Safe NeighborhoodsRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on May 17, 2018, Senior United States District Court Judge W. Louis Sands sitting in Albany, Georgia, sentenced Cary Brandon Smith, age 33, of Cairo, GA, to 360 months imprisonment as the result of his plea of guilty earlier this year to 31 of 32 counts in an indictment charging him multiple counts of Conspiracy to Manufacture and Possess with Intent to Distribute Methamphetamine and Other Controlled Substances, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, Possession of a Stolen Firearm, Use of a Communications Facility in Furtherance of a Drug Trafficking Crime and Possession of a Firearm by a Convicted Felon.
Court records reveal that on March 19, 2015, deputies with the Grady County Sheriff’s Office travelled to Cairo, Georgia, in search of a wanted person. Upon arrival, the officers observed Cary Brandon Smith running away from the residence and into a wooded area nearby. After obtaining a search warrant, agents found a methamphetamine lab with methamphetamine, ingredients for manufacture of the drug and evidence of prior manufacturing of the substance.
Arrest warrants were sworn out for Mr. Smith and he remained at large until September 2, 2015, when Grady County deputies travelled to a location on Old Egg Road in Cairo and arrested him following a foot chase. A search of the premises pursuant to a warrant revealed another methamphetamine lab, along with the drug itself and two firearms: a Ruger .357 Magnum revolver and an SKS high capacity semi-automatic rifle, which had been stolen in an earlier burglary.
Mr. Smith admitted to police at the time of this arrest that he manufactured and sold methamphetamine. He also admitted that he knew that the SKS rifle was stolen. Due to prior convictions in Georgia for Criminal Attempt to Manufacture Methamphetamine, Possession of Marijuana with the Intent to Distribute, and Burglary, it was a violation of federal law for Mr. Smith to possess any firearm, a fact he admitted he knew.
While awaiting trial for his crimes on the charges stemming from the March, 2015 and September, 2015 incidents described earlier, Mr. Smith continued dealing in methamphetamine and other illegal drugs, as well as possessing guns. On June 21, 2017, agents executed a search warrant at a Humble Road address in Cairo, where they discovered two handguns, methamphetamine, other illegal drugs and documents identifying Mr. Smith.
On June 23, 2017, officers arrested Mr. Smith during a traffic stop and discovered marijuana and components for manufacturing methamphetamine. Mr. Smith admitted that the marijuana was his. He also described obtaining large quantities of methamphetamine in Moultrie and having travelled to Atlanta to meet with the sources of supply.
“Cary Smith has been a one-man crime wave in South Georgia for several years, manufacturing and selling methamphetamine and other drugs despite numerous arrests and convictions for doing so. In addition, he committed these crimes while armed, knowing that he was prohibited from possessing firearms because of these previous convictions. Mr. Smith earned and deserves the harsh sentence he received, as he has proven beyond any doubt that incarceration is the only way to stop him from ravaging our community through the illegal manufacture and sale of methamphetamine and other highly addictive and destructive drugs,” said United States Attorney Peeler.
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 case was investigated by the Bureau of Alcohol, Tobacco and Firearms; Georgia Bureau of Investigation; the Grady County Sheriff’s Office and the Cairo Police Department. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Buffalo Man Pleads Guilty to Threatening to Kill Police Officers on Social MediaRead 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 Arthur Jordan, 24, of Buffalo, NY, pleaded guilty to interstate communication of threat to injure before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on July 6, 2016, the defendant used social media to threaten police officers. Specifically, using Facebook and the screenname “MacBmw Jordan” posted, “Let’s Start Killin Police Lets See How Dey Like It.” On July 14, 2016, the defendant possessed a loaded firearm while walking in the City of Buffalo.On May 3, 2018, Jordan was sentenced to two-and-a-half years in prison in Erie County Court following his plea to Attempted Criminal Possession of a Weapon in the Second Degree.
“It is fitting that this plea was entered during National Police Week,” said U.S. Attorney Kennedy. “The courageous and professional men and women of state and local law enforcement need to know that they have the support and thanks of the United States Attorney’s Office and the entire Department of Justice. A threat to any one of them is a threat to our system of justice.”
Today’s plea is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for August 9, 2018, at 12:00 p.m. before Judge Geraci.
Buffalo Man Pleads Guilty to Operating A Cocaine Conspiracy Near A Buffalo SchoolRead 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 Aaron Hill, 31, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $5,000,000 fine, or both.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that the defendant conspired with Stevie Alejandro who operated the Barberians Barber Shop at 1132 East Lovejoy Street, which is located directly across from Buffalo Public School #43, the Lovejoy Discovery School. Between May 2017 and October 18, 2017, the defendant participated in the cocaine conspiracy with co-defendants Alejandro, Cleophus Dentmond, Gilbert Guzman, Catherine Ramos, and others, to distribute cocaine in the Lovejoy District.
During the conspiracy, Alejandro conducted negotiations with an undercover law enforcement officer regarding the sale, cost, amount, and delivery of cocaine. Then, Hill, or one of his co-conspirators, would conduct the drug transaction with the undercover officer. All proceeds went back to Alejandro. The defendant was involved in a total of 14 cocaine sales, either direct hand to hand sales, or by facilitating the distribution via other co-conspirators.
Defendants Alejandro and Dentmond were previously convicted. Charges are pending against defendants Guzman and Ramos. 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.
Today’s plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Cheektowaga Police Department, under the direction of Chief David Zak; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard
Sentencing is scheduled for August 27, 2018, at 12:30 p.m. before Judge Arcara.
Buffalo Man Arrested and Charged with Firearms TraffickingRead 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 Robert L. Williams, Jr., 36, of Buffalo, NY, was arrested and charged by criminal complaint with illegal transportation of a firearm purchased outside of New York, and being a felon in possession of a firearm. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Emmanuel O. Ulubiyo and Timothy C. Lynch, who are handling the case, stated that according to the complaint, between November 2017, and May 2018, the defendant traveled from Buffalo, NY to the State of Ohio where he utilized multiple straw purchasers to acquire approximately 80 firearms. The straw purchasers bought the firearms, mainly pistols, at gun shows or from federal firearms licensees. Williams then returned to Buffalo and sold the firearms to multiple buyers.Law enforcement officers believe that at least two of the firearms have been used in acts of violence in Buffalo.
The defendant made an initial appearance this afternoon before U.S Magistrate Judge H. Kenneth Schroeder and is being held pending a detention hearing on May 22, 2018 at 10:00 a.m.
The defendant was previously convicted in New York State Court of a gun felony and two drug felonies and is legally prohibited from possessing firearms. Williams is currently on parole for the gun conviction.
The complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Couple Arrested, Charged with Cocaine ConspiracyRead 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 Kayode Yard, a/k/a Eric Thomas, 44, and Arlynda Ray, 46, both of Buffalo , NY, were arrested and charged by criminal complaint with conspiracy to possess with the intent to distribute, and to distribute, 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that according to the complaint, Kayode Yard sold a quantity of suspected heroin to an individual working with the Drug Enforcement Administration.
Subsequently, on May 07, 2018, the New York State Police, while conducting routine patrol, stopped a 2018 Chevrolet Impala for vehicle and traffic violations on Interstate 90 in the Town of Glen, NY. This vehicle was being driven by defendant Ray and Yard was a passenger. During the traffic stop, the NYSP Trooper, a K9 handler, noticed the odor of marijuana coming from the vehicle and subsequently conducted an exterior search of the vehicle with his K9. The K9 alerted to the presence of a controlled substance emanating from the vehicle. A subsequent search of the vehicle led to the discovery of two kilogram-sized bricks containing a white powder substance in the trunk. Ray and Yard were immediately arrested. A field test of the substances seized from the vehicle indicated the presence of cocaine.
Yard and Ray made initial appearances before U.S Magistrate Judge H. Kenneth Schroeder. Yard is being detained. Ray was released on conditions.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Robert Patnaude; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
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.
Buena Vista Man Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
LYNCHBURG, VIRGINIA – A 32-year-old Buena Vista man, who was studying to become a youth pastor, pleaded guilty earlier this week to a pair of federal charges related to the possession and distribution of child pornography, United States Attorney Thomas T. Cullen announced.
Christopher Collins, 32, of Buena Vista, Va., pleaded guilty on Wednesday, May 16, 2018 in U.S. District Court in Lynchburg without a plea agreement to one count of possession of child pornography and one count of attempting to send obscene matter to a minor under the age of 16 years.
“Working with our federal, state, and local partners, the United States Attorney’s Office will aggressively prosecute individuals who possess and share materials that exploit children,” U.S. Attorney Cullen stated today. “Children are exploited each and every time these images are shared online, and those who engage in this abhorrent activity will be held accountable.”
According to a summary of evidence presented at Wednesday’s guilty plea hearing by Assistant United States Attorney Nancy S. Healey, the investigation into Collins’ online activity began in November 2016 when an undercover law enforcement officer posing as a 13-year-old girl was contacted in a chat room by a user posing as “NavyGuy4Yng” (later identified as the defendant). During chats with the undercover officer, Collins sent pictures of his erect penis and a video of a male masturbating and claimed to be a youth pastor in Virginia.
In February 2017, investigators with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Rockbridge County Sheriff’s Office and the Office of the Virginia Attorney General, executed a federal search warrant at Collins’ Rockbridge County residence. During the on-scene investigation, investigators seized digital devices and interviewed Collins. During the interview, Collins made various admissions, including the fact that he liked to role-play with minor girls on Kik and other online forums, that he communicated with girls who claimed they were between 13 and 15 years old, and that he transmitted videos and photographs of himself nude. In addition, investigators found child pornography images on digital devices seized from Collins’ residence.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Rockbridge County Sheriff’s Office and the Office of the Virginia Attorney General. Assistant United States Attorney Nancy S. Healey is prosecuting the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Bay Area Doctors Agree to Pay $260,000 to Settle Department of Justice Claims That They Failed to Maintain Adequate Records Regarding Controlled SubstancesRead the Press Release
SAN FRANCISO – Drs. William Longton, Ruben Kalra, and Richard Shinaman have agreed to collectively pay $260,000 to settle allegations by the U.S. Department of Justice that they failed to keep and maintain adequate records and other allegations pertaining to controlled substances at their Novato, Pleasant Hill, and Pleasanton offices, announced Acting United States Attorney Alex G. Tse and Drug Enforcement Administration (DEA), Special Agent in Charge, San Francisco Field Division, Christopher D. Nielsen.
The settlement agreement resolves allegations by the government that a January 2014 DEA inspection uncovered multiple violations by Longton, Kalra, and Shinaman of the Controlled Substances Act, 21 U.S.C. § 801. The physicians operate under the name Pain Medicine Consultants, Inc., with offices in multiple Bay Area locations. In the agreement, the physicians acknowledge that they each, at the relevant time, were registered with the DEA as Practitioners, providing them with authorizations to handle Schedules II through V controlled substances. They also acknowledge they had an obligation to “keep and maintain” records related to their receipt and distribution of controlled substances in connection with their practices. According to the agreement, following the DEA’s inspection, the government concluded that between January 10, 2012, through January 17, 2014, Shinaman, Longton, and Kalra failed to keep and maintain adequate records pertaining to controlled substances, as required by 21 C.F.R. § 1304, et seq.; failed to include the address of the patient on controlled substance prescriptions that they each issued as required by 21 C.F.R. § 1306.05(a); and exceeded the authority of their registrations by filling a prescription for a controlled substance, in violation of 21 C.F.R. § 1306.06.
According to the terms of the agreement, Longton, Kalra, and Shinaman will collectively pay the government $260,000 to resolve all civil claims related to the violations identified in the investigation.
Assistant U.S. Attorney Rebecca A. Falk is handling the matter on behalf of the U.S. Attorney’s Office for the Northern District of California, with assistance from the DEA San Francisco Field Division, Oakland Resident Office Diversion Group.
Bank Sentenced for Obstructing Regulators, Forfeits $368 Million for Concealing Anti-Money Laundering FailuresRead the Press Release
Assistant U.S. Attorneys Daniel C. Silva (619) 546-9713, Mark W. Pletcher (619) 546-9714, and David J. Rawls (619) 546-7966
NEWS RELEASE SUMMARY – May 18, 2018
SAN DIEGO – Rabobank, National Association, a California subsidiary of the Netherlands-based Coöperatieve Rabobank U.A., was sentenced today before U.S. District Judge Jeffrey T. Miller for conspiring to impair, impede, and obstruct its primary regulator, the Department of the Treasury’s Office of the Comptroller of the Currency (OCC), by concealing deficiencies in its anti-money laundering program.
Judge Miller sentenced Rabobank to pay the statutory maximum fine of $500,000 after taking account of Rabobank’s forfeiture of $368,701,259 as well as a two-year term of probation. Today’s half million dollar criminal fine coupled with Rabobank’s forfeiture of $368,701,259 stands as the largest monetary penalty paid by a criminal defendant in the history of the Southern District of California.
In imposing sentence, Judge Miller noted that Rabobank’s conduct essentially amounted to “stiff-arming the OCC, and completely failing in its responsibility to its customers and the nation.”
“The U.S. Attorney’s Office is intent on securing the border and preventing the laundering of narco-dollars through financial institutions like Rabobank,” said U.S. Attorney Adam L. Braverman. “In doing so we will safeguard our communities and protect our citizens from drug traffickers and corporate criminals alike.”
“Rabobank’s branches on the Mexican border processed hundreds of millions of dollars in suspicious transactions likely tied to international narcotics trafficking, organized crime, and money laundering,” said Acting Assistant Attorney General John P. Cronan. “Instead of filing reports that would have alerted law enforcement to the suspicious activity, as required by law, the bank looked the other way and then compounded its misconduct by conspiring to cover-up its failures and deceiving its regulator. Today’s sentence and the related forfeiture demonstrate that the Department of Justice will use all the tools at our disposal to combat drug trafficking and transnational crime—including prosecuting financial institutions that turn a blind eye to illicit proceeds moving through their customers’ accounts.”
“It is the responsibility of Homeland Security Investigations (“HSI”) to monitor and investigate activity which exploits the global infrastructure, to include financial systems. This complex investigation revealed, and Rabobank admits, that Rabobank was aware of the extreme risk that it was processing hundreds of millions of dollars related to transnational crime and international money laundering – activity which plagues the Southwest Border,” said Dave Shaw, Special Agent in Charge for HSI in San Diego. “This plea and significant forfeiture sends a strong message to financial institutions that this activity will not be tolerated.”
“Rabobank’s sentencing today is a victory for all Americans and sends a strong message about the need for transparency in banking and ultimately contributes to the fight against money laundering,” stated IRS Criminal Investigation’s Special Agent in Charge, Los Angeles Field Office, R. Damon Rowe. “IRS-Criminal Investigation works diligently with our law enforcement partners to ensure funds obtained through illegal means do not find their way into our financial institutions."
Today’s sentence follows Rabobank’s February 7, 2018, guilty plea for conspiring with several former executives to defraud the United States by unlawfully impairing and impeding the OCC’s ability to regulate the bank and obstructing its examination of Rabobank’s Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance program. In connection with that guilty plea, Rabobank admitted that between 2009 and 2012 it implemented BSA/AML policies and procedures that precluded and suppressed legally-mandated investigations into potentially suspicious account activity, much of which was conducted by cross-border customers and through accounts that Rabobank had previously designated “High-Risk.”
As a result of its BSA/AML failures, Rabobank admitted that certain customer accounts were involved in not less than $368,701,259 in suspicious transactions that were either unreported or untimely reported to the Financial Crimes Enforcement Network (FinCEN), as required by the BSA. These transactions along the southwest border included high-volume cash deposits and withdrawals, check transactions, electronic transfers, and wire transfers that were consistent with illegal activity such as trade-based money laundering, bulk cash smuggling, structuring, and the black market peso exchange.
Rabobank’s branches in Imperial County were heavily dependent on cash sourced from Mexico – cash the bank knew was likely tied to narcotics trafficking and organized crime. In particular, Rabobank’s Calexico, California branch, located approximately two blocks from the U.S.-Mexico border, was the highest performing branch in the Imperial Valley region due to its receipt of cash from Mexico. Rabobank continued soliciting cash-intensive customers from Mexico, while failing to employ appropriate BSA/AML policies and procedures to address the heightened risk, until approximately May 2013, when Rabobank placed a moratorium on originating new account relationships for Mexico-based businesses entities.
Rabobank also admitted that the bank and its executives corruptly obstructed the OCC’s 2012 examination by responding to the OCC’s February 2013 initial report of examination with false and misleading information about the state of Rabobank’s BSA/AML program and by making false and misleading statements to the OCC regarding the existence of reports developed by a third-party consultant that described the deficiencies and resulting ineffectiveness of Rabobank’s BSA/AML program. Rabobank also demoted or terminated two of its employees who provided information to the OCC.
The case is being prosecuted by Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher, and David J. Rawls from the Southern District of California, and Trial Attorneys Kevin G. Mosley and Maria Vento of the Criminal Division’s Money Laundering and Asset Recovery Section. The investigation team included HSI, IRS, and the Financial Investigations and Border Crimes Task Force (the “FIBC”), a multiagency Task Force based in San Diego and Imperial Counties, and funded by the Treasury Executive Office of Asset Forfeiture (“TEOAF”). The investigation occurred in parallel with regulatory investigations by the OCC, Office of General Counsel, and FinCEN, Enforcement Division
DEFENDANT
RABOBANK, NATIONAL ASSOCIATION
Roseville, California
SUMMARY OF CHARGES
Conspiracy to Defraud the United States and (2) To Corruptly Obstruct an Examination of a Financial Institution – Title 18, United States Code, Section 371
Maximum penalties: $500,000 fine; a mandatory special assessment of $400; and a term of probation of at least one year, but not more than five years.
AGENCIES
Homeland Security Investigations
Internal Revenue Service – Criminal Investigation
TEOAF’s Financial Investigations and Border Crimes Task Force
BGF Gang Member Sentenced to 15 Years in Prison for Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge James K. Bredar sentenced Kenneth Faison, age 28, of Baltimore, Maryland today to 15 years in prison, followed by five years of supervised release, for racketeering conspiracy. The Court found at sentencing that a total prison term of 20 years was appropriate, but it adjusted the sentence downward to account for the fact that Faison served five years in prison in connection with two related state cases.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Matthew Varisco of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Commissioner Gary Tuggle of the Baltimore Police Department; Maryland Attorney General Brian E. Frosh; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Faison was a member of an organization known today as the Black Guerilla Family (BGF) Greenmount Regime, a violent set, or “bubble,” of BGF. During the early years in which it operated, the gang called itself the Young Guerilla Family, or YGF, and consisted mostly of younger people who lived in the 2200, 2300, and 2400 blocks of Barclay Street and Guilford Avenue. YGF members sold drugs throughout the Greenmount Avenue corridor and committed murders, shootings, and armed robberies.
According to the plea agreement, Faison admitted that on January 7, 2010, in the 2100 block of Barclay Street, he conducted three separate robberies of three victims. Faison brandished a firearm during all three robberies.
In addition, the Court found at sentencing that in the fall of 2012, Faison and other BGF members participated in an unsuccessful plot to murder a neighborhood drug dealer who had been distributing cocaine and other narcotics inside the gang’s territory.
Faison also admitted in his plea agreement that between 2007 and 2012, Faison conspired with members of the BGF Greenmount Regime to distribute cocaine, cocaine base, and marijuana in furtherance of the gang, and that it was reasonably foreseeable to him that between 280 and 840 grams of cocaine base would be trafficked by members of the gang.
United States Attorney Robert K. Hur commended the ATF, the FBI, the Baltimore City Police Department, the Maryland Attorney General’s Office, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Peter J. Martinez and Christina Hoffman, who prosecuted the case.
Authorities Arrest Longtime Fugitive Charged with Attempted Murder of Undercover Officer in Federal Racketeering CaseRead the Press Release
LOS ANGELES – Early Thursday morning, law enforcement authorities arrested an alleged gang member who had been a fugitive for nearly two years after the unsealing of a federal racketeering indictment that charges him in the attempted murder of an undercover Whittier Police Officer.
Frankie Vasquez, 39, of Carson, was arrested in connection with an indictment that charges him and 50 other members and associates of the Canta Ranas organization, a wide-ranging criminal enterprise which operates primarily in Santa Fe Springs and Whittier under the control of a member of the Mexican Mafia.
The arrest of Vasquez was the result of efforts by agents and officers with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the United States Marshals Service, the Whittier Police Department, the Montebello Police Department, and the Los Angeles County Sheriff’s Department. HSI’s Special Response Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives provided assistance.
The racketeering indictment, which was unsealed in June 2016 and superseded in October 2017 to add additional charges, alleges that an incarcerated member of the Mexican Mafia prison gang exerts control over the Canta Ranas street gang and other gangs, and that he received compensation in the form of “rent” or “taxes” generated by drug trafficking and other offenses committed in gang territory.
The first superseding indictment also alleges that Vasquez, a member of the Varrio Keystone street gang and a key supplier of narcotics to the Canta Ranas organization, along with another defendant who was part of the Canta Ranas organization, attempted to murder a detective with the Whittier Police Department when they shot at him in his unmarked vehicle while he was conducting undercover surveillance as part of a narcotics investigation.
For his role in the criminal enterprise, Vasquez is charged with conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO), conspiring to commit a violent crime in aid of racketeering (VICAR), possessing a firearm in furtherance of a crime of violence and drug trafficking, as well as conspiring to distribute narcotics and commit money laundering. When law enforcement apprehended Vasquez on Thursday, they found in his possession a copy of the indictment, with certain sections highlighted.
“We will be relentless in tracking down dangerous fugitives and bringing them to justice,” said United States Attorney Nicola T. Hanna. “The criminal organization charged in this indictment is responsible for myriad crimes of violence and drug trafficking. Apprehending fugitives linked to dangerous organizations is part of our overall commitment to making our communities safer.”
At his arraignment Thursday afternoon, Vazquez was ordered held without bond.
The first superseding indictment specifically charges a conspiracy to violate RICO and a second conspiracy to distribute narcotics, which includes allegations of smuggling controlled substances, including heroin, into county jails. All 51 defendants were charged in both of these conspiracy counts.
The first superseding indictment includes nine VICAR counts, including one count alleging the alleged attack on the Whittier Police officer. Various defendants are additionally charged in 11 drug trafficking charges, 18 firearms offenses and a conspiracy to commit money laundering.
Most of the 51 defendants charged in the RICO indictment have been broken into five groups for purposes of trial. The first trial is scheduled to begin on August 7.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The RICO conspiracy count carries a statutory maximum penalty of life in federal prison. The VICAR charges carry varying penalties, with Vasquez facing a statutory maximum penalty of 10 years for his specific VICAR charge, and the narcotics charges all carry mandatory minimum sentences of either five or 10 years in prison.
The three-year investigation into the Canta Ranas organization was called Operation “Frog Legs” and resulted in the seizure of narcotics and 51 firearms. Operation Frog Legs was conducted by the Southern California Drug Task Force, which is led by the Drug Enforcement Administration as part of the High Intensity Drug Trafficking Area (HIDTA) initiative. Participants on the Task Force include personnel from HSI, the Whittier Police Department, the Los Angeles County Sheriff’s Department, IRS Criminal Investigation and the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit.
The RICO case resulting from Operation Frog Legs is being prosecuted by Assistant United States Attorneys Carol Alexis Chen, Victoria A. Degtyareva and Jamie A. Lang of the Organized Crime Drug Enforcement Task Force.
Attorney General Sessions Announces Hugh Hurwitz as the Acting Director of the Federal Bureau of PrisonsRead the Press Release
Attorney General Jeff Sessions today announced that Hugh Hurwitz will begin serving as the Acting Director of the Federal Bureau of Prisons on May 19, 2018, following Former Director Mark Inch’s resignation.
“I am pleased to announce Hugh Hurwitz as the Acting Director of the Federal Bureau of Prisons. Hugh has honorably served the Department of Justice, the Federal Bureau of Prisons and the American people throughout his distinguished career of federal service.” said Attorney General Jeff Sessions. “I would also like to thank Mark Inch for proudly serving the Department of Justice as the Director of the Federal Bureau of Prisons and wish him luck in his future endeavors.”
Mr. Hurwitz began his career with the Bureau of Prisons as a law clerk in the Office of General Counsel in 1988. In 2003, Mr. Hurwitz was selected as the Chief of Acquisitions and Grants Services at the Food and Drug Administration (FDA), later becoming the FDA's Chief of Information Technology Shared Services. In 2007, he was appointed Senior Procurement Executive for the U.S. Department of Education (ED) before being promoted to Deputy Chief Financial Officer. Mr. Hurwitz joined NASA's Office of Inspector General in 2012 as the Assistant Inspector General for Management. In 2015, he returned to the Bureau of Prisons as the Senior Deputy Assistant Director of the Information, Policy and Public Affairs Division. In 2017, Mr. Hurwitz was named Assistant Director for the Reentry Services Division.
As Assistant Director, Mr. Hurwitz oversaw a wide variety of areas, including mental health and drug treatment, community placement, and the education, vocational and recreation training programs for federal inmates nationwide. Mr. Hurwitz was responsible for coordinating efforts with other disciplines, agencies, and organizations to facilitate the successful reintegration of inmates back to their communities upon release.
In 1987, Mr. Hurwitz received his Bachelor of Arts degree in Political Science from the University of Rochester. In 1990, he received his Juris Doctor degree from American University, Washington College of Law.Arizona Man Pleads Guilty to Federal Drug Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Scott Richard Lange, 55, of Phoenix, Ariz., pled guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Officers of the Las Cruces Police Department arrested Lange and co-defendant Amy R. Bailey, 42, also of Phoenix, Ariz., in Sept. 2017, on methamphetamine trafficking offenses. According to the criminal complaint, the officers executed the arrests after finding approximately 1,885.5 grams (4.16 pounds) of methamphetamine in a vehicle driven by Lange during a routine traffic stop.
Lange and Bailey subsequently were indicted on Dec. 13, 2017, and were charged with conspiracy and possession of methamphetamine with intent to distribute. The indictment alleged that Lange and Bailey committed the crimes on Sept. 11, 2017, in Dona Ana County, N.M.
During today’s proceedings, Lange pled guilty to the two-count indictment and admitted that on Sept. 11, 2017, he agreed to deliver approximately four pounds methamphetamine to individuals in Las Cruces in exchange for payment. At sentencing, Lange faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
Bailey has entered a plea of not guilty and is currently scheduled for trial in June 2018. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of the FBI, the Las Cruces Police Department, and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. Special Assistant U.S. Attorney Joni L. Autrey of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Albany Woman Pleads Guilty to Cocaine and Crack ConspiracyRead the Press Release
ALBANY, NEW YORK – Shenika D. Boyd, aka “Misses,” age 38, of Albany, pled guilty today to her involvement in a drug trafficking ring that operated in Schenectady and Albany.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Boyd admitted that between August 1, 2016 and May, 2017, she worked with others to distribute cocaine base (a/k/a crack cocaine) and cocaine in Albany and Schenectady Counties.
The following defendants have also pled guilty in connection with the conspiracy:
Name
Age
Residence
Jose Gilberto Harris
58
Manhattan
Lashaunda Tarver, aka “Shaunda”
38
Schenectady
Bobby R. Graham
51
Albany
Marty Humphrey
65
Schenectady
Jalessa Scott
27
Schenectady
Willie C. Hayes, aka “Man”
45
Schenectady
Kimberly Petties, aka “Shorty”
49
Schenectady
Manuel Clemente
62
Manhattan
As part of this investigation, Scott also pled guilty in Schenectady County Court to criminal possession of a firearm.
The following defendants still face charges in this case:
Name
Age
Residence
Darren Clay Robinson, aka “Mountain”
54
Schenectady and Teaneck, New Jersey
Yusef Boothman, aka “Rocket”
38
Schenectady
The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Additionally, Robinson; Corey White, Jr., aka “Stacks,” age 34, of Schenectady; and Kristy L. Smith, age 39, of Schenectady, are charged separately with conspiring to distribute heroin, and possession of heroin. The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty.
These cases are being investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department, Schenectady County District Attorney’s Office, the U.S. Drug Enforcement Administration, Albany County Sheriff’s Office, New York State Police, and the New York Department of Corrections and Community Supervision. These cases are being prosecuted by Assistant U.S. Attorney Michael Barnett.
17 May 2018
Wisconsin Man Sentenced for Sexual Abuse of MinorsRead the Press Release
United States Attorney Ron Parsons announced that a Milwaukee, Wisconsin, man convicted of Aggravated Sexual Abuse of a Child and Abusive Sexual Contact of a Child, was sentenced on May 14, 2018, by U.S. District Judge Charles B. Kornmann.
Dashown Raymond Keys, age 26, was sentenced to 540 months (45 years) in custody, lifetime of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $600, resulting from a jury trial conviction on December 7, 2017.
Keys was indicted by a federal grand jury on April 13, 2016.
Following a 3-day federal jury trial held December 5, 2017, through December 7, 2017, in Aberdeen, South Dakota, Keys was found guilty of four counts of Aggravated Sexual Abuse of a Child, and two counts of Abusive Sexual Contact of a Child.
The convictions stem from incidents between November 1, 2013, and January 1, 2016. Keys repeatedly sexually abused two young girls, both under the age of 12 at the time of the assaults, while Keys was staying at the home of one of the victims. Keys moved to South Dakota from Wisconsin to stay with extended family. While Keys was primarily and repeatedly sexually abusing the daughter of the family he was staying with, he also sexually abused another child. The two victims were friends who would have sleep overs from time to time. During these sleep overs, Keys would sexually abuse his primary victim’s friend. The sexual abuse ended when Keys moved back to Wisconsin. Three days after his departure, the primary victim of his abuse came forward and reported the abuse to her mother. The primary victim indicated that Keys had threatened to harm members of the family if the sexual abuse was disclosed.
“The United States Attorney’s Office remains committed to protecting these most vulnerable victims of society,” said U.S. Attorney Ron Parsons. “I applaud the bravery displayed by these two young victims in coming forward and facing their abuser in a court of law. This was not an easy process for them, and I hope this significant sentence imposed against this vicious criminal helps them in their healing process going forward.”
This case was investigated by the Federal Bureau of Investigation and the Sisseton-Wahpeton Tribal Police Department. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Keys was immediately turned over to the custody of the U.S. Marshals Service.
West Hartford Healthcare Facility Agrees to Increase Accessibility in Order to Comply with ADARead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached settlement agreements with ProHealth Physicians, Inc. (“ProHealth”) and Udolf 631, LLC (“Udolf Properties”) to resolve allegations that a ProHealth office in West Hartford was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreements resolve an ADA complaint filed by an individual with disabilities alleging that the ProHealth office, located at 631 Quaker Lane South in West Hartford, was not accessible to individuals with physical disabilities. ProHealth leases the premises from Udolf Properties.
ProHealth and Udolf Properties are in the process of making the changes to the Quaker Lane office required by the settlement agreements, which include improving the accessibility of the facility’s entrances and access routes, increasing the number of accessible parking spaces and adding a van accessible parking space, adding accessible features to restrooms, reducing barriers for patients to access check-in and check-out areas, ensuring access to all patient areas of the facility, and adding an accessible exam table and method for ensuring access to diagnostic testing facilities for individuals with disabilities. Udolf Properties will make improvements over the next six months and ProHealth will continue to make improvements over the next two years.
Under federal law, professional offices of health care providers and their landlords are considered “public accommodations” and are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham noted that the leadership of both ProHealth and Udolf Properties have worked cooperatively and collaboratively with the U.S. Attorney’s Office to expeditiously address the ADA issues without litigation and to make comprehensive changes to the Quaker Lane office facility to improve accessibility.
“The Americans with Disabilities Act ensures that individuals are able to access the offices of health care providers and other public accommodations,” said U.S. Attorney Durham. “We appreciate the willingness of ProHealth and Udolf Properties to greatly increase the accessibility and usability of the Quaker Lane office for individuals with disabilities.”
Any member of the public who wishes to file a complaint alleging that the office of a health care provider or any other place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Waterloo Felon Pleads Guilty to Illegally Possessing GunRead the Press Release
A convicted burglar who illegally possessed a handgun pled guilty on May 16, 2018, in federal court in Cedar Rapids.
Allan James Arceo, age 24, from Waterloo, Iowa, was convicted of one count of possessing a firearm as a felon. At the plea hearing, Arceo admitted he possessed the loaded firearm in Waterloo on January 1, 2018. Arceo had previously been convicted in 2014 of burglary in the third degree in Black Hawk County, Iowa.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Arceo remains in custody of the United States Marshal pending sentencing. Arceo faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together 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 case was investigated by the Waterloo Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Dan Chatham. Court file information at https://ecf.iand.uscourts.gov/. The case file number is 18-CR-02003-LRR.
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US Department of Health & Human Services, Office of Inspector General Honors US Attorney’s Office- District of PR with Two Achievement AwardsRead the Press Release
SAN JUAN, P.R. –The United States Department of Health and Human Services, Office of Inspector General has honored the US Attorney’s Office, District of Puerto Rico with two distinguished awards, the Inspector General Cooperative Achievement Award, and the Inspector General’s Award for Fighting Fraud, Waste, and Abuse, announced US Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
This year’s Inspector General Cooperative Achievement Award recognizes a group of individuals from different federal and state agencies in Puerto Rico whose leadership, commitment, hard work, dedication, and cooperative achievements in the relief efforts following the Hurricane María’s aftermath, also known as the Puerto Rico Quality of Care and Patient Relief Effort/Elderly Task Force.
The USAO-PR recipients are US Attorney Rosa Emilia Rodríguez-Vélez, Executive Assistant US Attorney Jacqueline D. Novas, AUSA Olga Castellón-Miranda, and Paralegal Specialist Cristzayda Matos.
On September 20 2017, Hurricane Maria crossed directly over the island of Puerto Rico, which was still in the process of recovering from the effects of the previous Hurricane, Irma. The entire island was without power, water, and there was almost no cell service. There was severe flooding, buildings had sustained structural damage, and the roads were impassible due to downed electrical power lines and trees.
The United States Attorney’s Office for the District of Puerto Rico partnered with HHS-OIG, the Puerto Rico Department of Justice, other state and federal agencies and took a lead role on a quality of care initiative, conducting site surveys at elderly homes throughout the island, investigating potential quality of care issues while providing assistance and resources such as food, water, and hygiene products to those elderly homes residents. As a result of this initiative, a total of 839 elderly homes were visited and approximately 16,330 elderly patients were assisted as of December 2017. This initiative also led to the prosecution of an elderly homeowner who physically abuse of elderly patients.
During the initiative, these volunteers worked under challenging conditions in areas that had substantial debris and had no electrical power. Despite these obstacles, they made great contributions to the health and welfare of the sick and elderly citizens of Puerto Rico.
The Inspector General’s Award for Fighting Fraud, Waste, and Abuse, was granted to an outstanding team that investigated and prosecuted a group of government employees from the Puerto Rico Department of Health who conspired to defraud the Medicaid Program in PR. The recipients are: Assistant US Attorney and Criminal Division Chief José Capó-Iriarte, AUSAs Luke Cass, Seth Erbe, Rafael López, Chief of the Civil Division Héctor Ramírez-Carbó and Special AUSA Amanda Soto.
On February 24, 2016, a Federal Grand Jury in the District of Puerto Rico returned a fourteen-count indictment against eight individuals for bribery, health care fraud, conspiracy to commit health care fraud, conspiracy to commit an offense against the United States, mail fraud, false statements related to health care matters and aggravated identity theft.
The collaboration in this case marked the first time in which health care fraud violations related to the Medicaid program were charged in an Office of Investigation lead investigation in Puerto Rico. The collaboration also marked the first time criminal and civil actions were pursued against Medicaid participants. Furthermore, this collaboration also resulted in the administrative disenrollment of hundreds of Medicaid participants suspected of providing false statements during their enrollment process.
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U.S. Attorney Letter to the Editor -- National Police Week and Peace Officers Memorial DayRead the Press Release
United States Attorney Grant C. Jaquith sent the following letter to area newspapers in commemoration of National Police Week and Peace Officers Memorial Day:
To the Editor:
This is National Police Week, as first designated by Congress for 1962 in recognition of “the contribution the police officers of America have made to our civilization through their dedicated and selfless efforts in enforcing the laws of our cities, counties, and States and of the United States, regardless of the peril or hazard to themselves.” Today is Peace Officers Memorial Day, honoring those who lost their lives in the line of duty. Sadly, the first such loss in the United States reportedly occurred in what is now the Northern District of New York in 1791, when Constable Darius Quimby was shot and killed in Albany County while attempting to arrest a man on a warrant. Since then, heroic officers murdered in the Northern District have included some whose assailants were convicted in federal court, such as Syracuse Police Detective and federal Task Force Officer Wallie Howard, Jr., killed while working undercover in a drug investigation in 1990, and New Hartford Police Officer Joseph Corr, killed in 2006 while pursuing men who had robbed a jewelry store.
The annual FBI report released last week reflected a national total of 93 officers killed in the line of duty last year, including New York State Police Trooper Joel Davis, killed in Jefferson County last July. Next year’s report will include Whitesboro Police Officer Kevin Crossley, killed in Oneida County last month while responding to a call. Each name emphasizes that one death is too many, and that point has been underscored by the Presidential Executive Order on “Preventing Violence Against Federal, State, Tribal, and Local Law Enforcement Officers” and Attorney General Sessions’ focus on enhancing law enforcement safety and reducing violent crime. With reverence for all those who have made the ultimate sacrifice, the United States Attorney’s Office is committed to combating crimes of violence, and the drug, gun, and gang offenses that fuel them, and preserving public and police safety.
The rule of law is the cornerstone of our republic. It is how our constitutional rights and freedoms are guaranteed, and how we resolve disputes, preserve public safety, and secure justice based on fairness and reason. Our system works because of the dedication, courage, and integrity of law enforcement officers who risk their lives to help people – all people – and confront danger so the rest of us can stay safe. Night and day, on weekends and holidays, in good weather and bad, throughout the 30,000 square miles of the Northern District, there are local, state, tribal, and federal law enforcement officers on the job protecting our families, friends, communities, and countryside.
As law enforcement at all levels collaborates to curtail violent crime, the cooperation of the public is a key component of community resilience and neighborhood safety. On this Peace Officers Memorial Day, that is a fitting tribute to our fallen heroes and an effective expression of gratitude for those who continue to protect and serve.
Grant C. Jaquith
United States Attorney
Northern District of New York
U.S. Attorney Launches Birmingham Safe Neighborhoods Task ForceRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office today launched the Birmingham Safe Neighborhoods Task Force to offer prevention and community outreach programs within the city. This task force will complement the law enforcement work of the Birmingham Public Safety Task Force, which was announced last month, in combined efforts to reduce violent crime in the Birmingham area, announced U.S. Attorney Jay E. Town.
The Birmingham Safe Neighborhoods Task Force will engage law enforcement, government agencies, nonprofit organizations, and corporate citizens in a coordinated and collaborative process to ensure parity in prevention, enforcement, and reentry efforts. Building and restoring relationships between communities and law enforcement is a primary function of the task force.
“This task force will endeavor to meaningfully engage citizens of Birmingham with regard to how we can improve the station of the entire city,” Town said. “It is no longer enough just to prosecute our worst offenders. Prevention and outreach programs that decrease criminal activity and increase opportunity must accompany our overall crime reduction initiative,” he said. “I appreciate the leadership of our mayor, our sheriff, and all of our task force members for their willingness to engage in this worthy challenge.”
“As stated before, we are here for as long as it takes,” said Jefferson County Sheriff Mike Hale. “I have no doubt this multifaceted initiative is going to have a very positive impact on crime in general, but most especially violent crime. Taking violent criminals out of these neighborhoods and locking them up for 15 or more years will return these neighborhoods back to the good folks and improve their quality of life dramatically. That is the goal. It will be met.”
Members of the Birmingham Safe Neighborhoods Task Force will collaborate to develop and conduct community programs aimed at education, community-police relations and building opportunities that will benefit the entire community.
Building and improving trust and communication between the community and members of law enforcement will be a critical function of the BSNTF, Town said. That will include encouraging patrol officers, deputies and agents to increase general and positive interactions in the community, whether that be helping to spruce up a community park or passing out free ice-cream coupons to neighborhood kids.
The two Birmingham task forces incorporate principles of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy, and the National Public Safety Partnership. PSN is a nationwide Justice Department program committed to reducing gun and gang crime by networking existing local programs that target gun crime and supporting those efforts with training and funding.
U.S. Attorney General Jeff Sessions announced PSP last year as a training and technical assistance program designed to enhance the capacity of local jurisdictions to address violent crime in their communities. He selected Birmingham as one of the initial 12 locations to participate in the program. The PSP and PSN programs both reinforce the federal, state and local task force model as one of the most effective ways to reduce violent crime.
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Two Michigan Men Plead Guilty on Federal Charges in Connection with Jared the Galleria of Jewelry RobberyRead the Press Release
St. Louis, MO – Robert Scott and Xavier Grove pled guilty on Wednesday for their part in the robbery of Jared the Galleria of Jewelry on Monday, December 4, 2017.
According to court records, on December 4, 2017, at approximately 8:21 p.m., Robert Scott and Xavier Grove and two co-defendants, dressed in clothing intended to disguise their identities, entered the jewelry store, Jared the Galleria of Jewelry, in Richmond Heights, Missouri. While a co-defendant held the door, Scott, Grove and one other co-defendant, armed with hammers, yelled for the store employees to get down. Using the hammers to smash the glass display cases that showcased jewelry, the defendants grabbed loose diamonds and watches. Scott and Grove, along with the two others, then fled. However, due to the presence of police officers in the area on an unrelated incident, the four robbers were not able to reach their getaway driver and were quickly apprehended. Grove was arrested at a nearby business and Scott was arrested near I-170, behind the Boulevard St. Louis parking garage. The diamonds and watches were recovered from a backpack carried by one of the co-defendants which were valued at approximately $60,000.
Robert Scott, 29, pled guilty to one felony count each of robbery which interfered with interstate commerce. U.S. District Judge Audrey Fleissig accepted his plea and set sentencing for September 6th.
Xavier Grove, 34, pled guilty to one felony count each of robbery which interfered with interstate commerce. U.S. District Judge Audrey Fleissig accepted his plea and set sentencing for September 6th.
Co-defendants Tyran Gray and Darrell Lee both pled guilty in February 2018 and are awaiting sentence – June 20th and May 29th, respectively.
The robbery charge carries a maximum penalty of 20 years in prison and/or fines up $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Richmond Heights Police Department and Federal Bureau of Investigation. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney’s Office.
Two Members of Syrian Electronic Army Indicted for ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an 11-count indictment today charging two Syrian men with offenses relating to their participation in a conspiracy to engage in computer hacking as members of the “Syrian Electronic Army” or “SEA.”
Ahmad ‘Umar Agha, who is known online as the “The Pro,” and Firas Dardar, who uses the nickname “The Shadow,” were indicted on conspiracy charges and multiple counts of aggravated identity theft.
According to allegations in the indictment, under the name “Syrian Electronic Army,” the conspirators focused on spearphishing U.S. government, military, international organizations, and private-sector entities, including the Executive Office of the President, the U.S. Marine Corps, the National Aeronautics and Space Administration, National Public Radio, the Associated Press, Reuters, The Washington Post, The New York Times, CNN, The Onion, USA Today, The New York Post, Time, Human Rights Watch, and scores of other entities and individuals. Agha and Dardar would research targets and then engage in dedicated spearphishing attacks on victim organizations. When the conspiracy’s spearphishing efforts were successful, Agha and Dardar allegedly would use stolen usernames and passwords to deface websites, redirect domains to sites controlled or utilized by the conspiracy, steal electronic mail, and hijack social media accounts.
The alleged offenses of conspiracy and conspiracy to commit wire fraud carry maximum prison terms of 5 and 20 years in prison, respectively, and the alleged aggravated identity theft charges carry a collective mandatory prison term of 2 years in prison and a maximum 18 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the indictment was returned.
The case was investigated by the FBI’s Washington Field Office with assistance from other law enforcement agencies including the NASA Office of the Inspector General. Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song, and Trial Attorneys Scott McCulloch, Nathan Charles, and Brandon Van Grack of the Justice Department’s National Security Division 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-221.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Three Louisiana Residents Convicted of Insider Trading in Connection with Shaw Group AcquisitionRead the Press Release
United States Attorney Brandon J. Fremin announced today that a federal jury has unanimously convicted three Louisiana residents of insider trading in connection with the acquisition of the Shaw Group, after a three-week jury trial before United States District Judge John W. deGravelles in the Middle District of Louisiana.
KELLY LIU, age 32, SALVADOR RUSSO, III, age 35, both of Baton Rouge, Louisiana, and VICTORY HO, age 38, of Morgan City, Louisiana, have been convicted of conspiracy to commit securities fraud (insider trading), in violation of Title 18, United States Code, Section 371, and securities fraud (insider trading), in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. Each faces a significant term of incarceration, fines, restitution, and supervised release following imprisonment. The defendants’ sentencing dates have not been set.
According to the evidence presented at trial in mid-2012, The Shaw Group (“Shaw”) was considering a potential merger opportunity. At the time, LIU was a Shaw employee working in the Financial Planning and Analysis Department. In late July 2012, Shaw and Chicago Bridge and Iron Company (“CB&I”) came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose substantially.
As the evidence established, prior to the public announcement and through her job at Shaw, LIU obtained inside information that Shaw was being acquired by another company and passed the inside information to HO, through another individual, and to RUSSO, for their use in trading Shaw securities. Thereafter, HO and RUSSO allegedly purchased Shaw securities before the public announcement. HO sold his Shaw securities after the public announcement had caused Shaw’s stock price to rise, while RUSSO held his Shaw securities, all at the expense of Shaw shareholders and potential Shaw shareholders who were not privy to the inside information. HO made approximately $300,000 from their illegal insider trading activities.
United States Attorney Fremin stated, “The unanimous guilty verdicts returned by the jury today should send a strong message that corporate and securities fraud by insiders and others will not be tolerated and will be aggressively pursued by my office, together with our partners. LIU had inside information that she knew was incredibly valuable, and she violated her corporate duties—and federal securities law—by sharing that inside information with HO and RUSSO, knowing that they would all benefit from the unfair advantage they had over the rest of the market. I truly appreciate the efforts of our partners with the FBI, IRS-Criminal Investigations, the U.S. Secret Service, the Securities and Exchange Commission, and the Financial Industry Regulatory Authority, and the prosecutors and staff within this office, who worked tirelessly to uncover, investigate, and present the defendants’ sophisticated scheme to the jury. I thank the jury for their thoughtful consideration and hard work throughout this lengthy and complex trial.”
FBI Special Agent-in-Charge Eric J. Rommal stated, "Motivated by greed and self-enrichment, the defendants in today's court case utilized material, non-public information and dishonest tactics in order to manipulate the securities market. The jury's decision should send a clear message that anyone who uses insider information for profit will not be tolerated. The FBI New Orleans Field Office will continue to use all available resources to end this behavior. The FBI, in conjunction with the U.S. Attorney's Office, and our federal, state, and local partners, will investigate and prosecute all forms of white-collar crime in Louisiana."
U.S. Secret Service spokesperson Mason Brayman stated, “This case demonstrates the investigative capabilities of the U.S. Secret Service and the collaborative efforts of our law enforcement partners, specifically the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, and the Criminal Investigative Division of the Internal Revenue Service."
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chris Dippel, Patricia Jones, and Adam Ptashkin.
Three Indicted in Immigration Fraud Scheme that Exploited Immigrant Farmworkers by Charging Prohibited Fees for Visas, Living ExpensesRead the Press Release
LOS ANGELES – Three Southern California men were arrested today pursuant to a federal grand jury indictment alleging they participated in an immigration fraud scheme that, among other things, illegally charged Mexican nationals thousands of dollars to obtain H-2A work visas and additional money for expenses once they arrived in the United States.
The indictment alleges that Mexican farmworkers were charged illegal fees for transportation, room and board after the company arranging for the workers’ visas promised the United States Department of Labor and U.S. Citizenship and Immigration Services that the workers had not paid and would not have to pay for these expenses. In addition, the indictment alleges that the farmworkers were made to pay fees to obtain their visas, which is prohibited under the H-2A visa program.
The defendants arrested this morning are:
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Jorge Vasquez, 58, of Fontana, the owner of H-2A Placement Services, a farm labor recruiting company based in Rancho Cucamonga;
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Melquiades Jacinto Lara, 62, of Santa Paula, the owner of J&D Harvesting, which contracted workers to farms in Ventura County; and
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Ricardo Mendoza Oseguera, 39, of Santa Paula, the owner of Discoteca Mi Pueblito, a music and convenience store in Santa Paula, which redeemed vouchers given to workers for J&D Harvesting after deducting fees from the workers’ pay.
The H-2A visa program allows employers to hire foreign, short-term agricultural workers when the employer cannot find suitable workers in the United States. H-2A labor contractors provide foreign workers to farms and generally are responsible for recruiting, transporting and housing the foreign workers. Before the foreign workers can receive visas, several government agencies must certify the need for foreign workers and determine that foreign workers would not adversely impact workers already in the United States.
In addition to provisions designed to protect domestic workers, the H-2A program has rules designed to protect foreign workers from exploitation, including prohibitions from charging the foreign workers for government approvals, equipment needed to perform their jobs, transportation to and from the fields, and costs associated with housing.
As part of the scheme alleged in the indictment, Vasquez travelled to Mexico to recruit farmworkers, who were charged as much as $3,000 to obtain their H-2A visas.
In addition to illegally charging the foreign workers, Vasquez also allegedly made false promises to the workers about how long the visas would be valid and failed to tell the workers that they would be charged for housing, food and transportation. Vasquez is also alleged to have promised an H-2A visa to an undercover agent with the Labor Department’s Office of Inspector General who Vasquez believed was an undocumented individual working in the construction industry in Las Vegas and had no interest in working in the agricultural industry, in exchange for $3,500 to $4,000.
In relation to the costs being borne by the foreign workers, Vasquez and Jacinto allegedly filed documents with federal authorities that contained false statements in connection with their application for visas for 75 workers to harvest lemons, avocados and oranges. Investigators have reviewed USCIS records that indicate that Vasquez and Jacinto have filed petitions for more than 350 farmworkers since 2012.
The indictment charges Vasquez and Jacinto with conspiracy, three counts of mail fraud, one count of visa fraud, and one count of fraud in foreign labor contracting for allegedly telling foreign workers in 2013 that the H-2A visas would be valid for three years, when they knew the visas would expire later that year.
Jacinto and Mendoza are charged with one count of operating an unlicensed money transmitting business. Mendoza’s business served as a check-cashing and wire transfer service where the farmworkers would redeem vouchers or checks paid to them by Jacinto and send money internationally.
The three defendants named in the indictment are expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The mail fraud charges carry a statutory maximum sentence of 20 years in federal prison. The visa fraud count has a maximum sentence of 10 years in prison. The charges of conspiracy, fraud in foreign labor contracting and operating an unlicensed money transmitting business each carry maximum sentences of five years in prison.
The investigation into this immigration fraud scheme is being conducted by the United States Department of Labor - Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Diplomatic Security Services.
The case is being prosecuted by Special Assistant United States Attorney Stacey R. Fernandez of the Violent and Organized Crime Section.
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Tangipahoa Man Pleads Guilty to Conspiracy to File False Tax Returns Using Stolen IdentitiesRead the Press Release
A Tangipahoa Parish man pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service, U.S. Attorney Duane A. Evans of the Eastern District of Louisiana and Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division announced today.
According to the indictment, AARON DANIELS conspired with others to defraud the United States by submitting false tax returns that requested refunds. DANIELS obtained the names and social security numbers of people he was incarcerated with in the East Carroll Detention Center and provided that information to his co-conspirators to use to file false tax returns. In exchange for providing names and Social Security Numbers, DANIELS was paid by his co-conspirators.
DANIELS is scheduled to be sentenced on August 22, 2018, before United States District Court Judge Martin L.C. Feldman. He faces a statutory maximum sentence of five years in prison. He also could receive a period of supervised release, restitution, and monetary penalties at sentencing.
U.S. Attorney Evans and Principal Deputy Assistant Attorney Richard E. Zuckerman commended special agents of IRS Criminal Investigation and the United States Postal Inspection Service, who investigated the case and Assistant U.S. Attorney Hayden Brockett of the Eastern District of Louisiana and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting the case.
Thank You to Our Heroes in BlueRead the Press Release
When I was sworn in as U.S. Attorney, the first order I was given by U.S. Attorney General Jeff Sessions was to back our women and men in blue. The Department of Justice is committed to supporting law enforcement officers and celebrating the noble, essential, and challenging work they do.
One of the Attorney General’s favorite topics is a recent survey about what kids want to be when they grow up. According to the survey, “police officer” used to be the number 10 dream job for kids under the age of 12. Now, it is number three overall – and for boys it is number one.
That’s probably the best possible news we could have: more and more of our young people want to wear the badge.
The most important thing that any government does is protect the safety and rights of its citizens. Everything else depends on that.
That is the daily calling of police officers. Whenever something goes wrong or anyone is in distress, they are the ones who answer the call. They are the thin blue line standing in the breach between safety and lawlessness. They keep the peace, protect us from danger, and uphold the rule of law. We must never forget how fortunate we are that there are men and women who willingly dedicate their lives to this mission.
In 1962, President Kennedy proclaimed May 15 as National Peace Officers Memorial Day and the surrounding week as National Police Week. Each year at this time, we pay special recognition to those officers who have lost their lives in the line of duty for the safety and protection of others.
Since 1791, more than 22,000 law enforcement officers have made the ultimate sacrifice. At least 69 line of duty deaths have happened here in South Dakota since Territorial days. In terms of loss of life, no law enforcement entity in the State has sacrificed more than the Rapid City Police Department. Eight Rapid City officers have been killed in the line of duty.
The first occurred in 1885, when Rapid City Town Marshal Billy Wilson was shot and killed by three cowboys who had come to town. Rapid City had an ordinance prohibiting the carrying of weapons inside city limits. When Marshal Wilson attempted to disarm the men inside the Horse Market Saloon, they opened fire, leaving him dead for simply upholding his duty to enforce the law.
Our most recent tragedy, one that still resonates throughout the community, occurred on the afternoon of August 2, 2011. Officers Nick Armstrong and Ryan McCandless were responding to a call about four suspects on the corner of East Anamosa and Greenbriar Streets. One of the suspects pulled out a concealed handgun and opened fire. Tragically, Officers Armstrong and McCandless received fatal wounds. A third, Officer Tim Doyle, also was shot but thankfully survived and is still on the beat today.
It is fitting and right that we join together to honor our fallen heroes and pay our respect to their loved ones. Any loss of life is one too many. But it is encouraging that the number of officers killed in the line of duty nationally declined last year to its second lowest level in more than half a century.
We celebrate the contributions of police officers, recognizing their hard work and dedication in keeping our communities safe. The women and men of law enforcement – whether federal, state, local, or tribal – should never doubt that they have our deepest admiration and gratitude.
This week, and every week, let us remember to thank the Blue.
Sugar Land Nurse Convicted in $3.5 Million Healthcare Fraud SchemeRead the Press Release
HOUSTON – A federal jury has convicted a 51-year old Sugar Land nurse of conspiracy to commit health care fraud, six counts of health care fraud and conspiracy to violate the anti-kickback statute, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than six hours following a three-day trial before convicting John Dubor.
Dubor owned and operated Care Committers Health Services home health agency in Richmond. During the three-day trial, the jury heard evidence that Dubor paid marketers and group home owners for Medicare beneficiary information and subsequently billed Medicare and Medicaid for home health services for which the beneficiaries did not qualify and/or did not receive.
Additionally, Dubor personally falsified home health patient assessment forms documents to make the beneficiaries appear sicker on paper to receive higher reimbursement rates from Medicare. Dubor also instructed his employees to falsify home health certifications and forge physician signatures. The beneficiaries, who all resided in Nacogdoches, had no recollection of ever being treated by the Houston physicians listed on their home health orders. Medicare paid Dubor approximately $3.5 million.
Dubor’s co-conspirator, Lorine Whitaker, 59, of Nacaogdoches, had previously pleaded to conspiracy to violate the anti-kickback statute and is awaiting sentencing.
Dubor faces up 10 years in federal prison for each count of health care fraud and up to five years for conspiracy to violate the anti-kickback statute. Previously released on bond, Dubor was immediately taken into custody following the trial pending that hearing, set for Sept. 7, 2018, before U.S. District Judge Melinda Harmon.
The Department of Health and Human Services – Office of Inspector General’s Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Special Assistant U.S. Attorney (AUSA) Justin Blan and AUSA Attorney Tina Ansari are prosecuting the case.
Suburban Man Sentenced to 16 Years in Prison for Leading Chicago-Area Cell of International Drug Trafficking OrganizationRead the Press Release
CHICAGO — A federal judge in Chicago has sentenced a suburban man to 16 years in prison for leading a Chicago-area cell of an international drug trafficking organization.
JESUS SALGADO ran a stash house in Bensenville where heroin and cash from drug sales were stored. He also sold drugs in the Chicago area. Before meeting with customers, Jesus Salgado would often pick up the heroin from the stash house, and then drop off the proceeds at the house after the sales.
Jesus Salgado was charged as part of “Operation Over the Top,” a federal probe that spanned more than two years and disrupted a Mexico-to-Chicago drug pipeline. Authorities seized four kilograms of heroin from the Bensenville stash house and shut it down as part of the investigation. The probe was led by the U.S. Drug Enforcement Administration and conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).
Jesus Salgado, 25, of Bensenville, pleaded guilty last year to a drug conspiracy charge. U.S. District Judge John Robert Blakey imposed the 16-year sentence Wednesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian M. McKnight, Special Agent-in-Charge of the Chicago Field Division of the DEA; and James M. Gibbons, Special Agent-in-Charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
“The streets of this city are made immeasurably more dangerous because of the drug trade,” Assistant U.S. Attorneys Kelly M. Greening, Misty Wright and John Cooke argued in the government’s sentencing memorandum. “People like defendant, who regularly supplied kilogram quantities of heroin and cocaine to wholesale buyers, perpetuate the drug trafficking crisis in Chicago and all that goes with it, including addiction, crime, and violence.”
Jesus Salgado’s drug-dealing operation was allegedly overseen by his father, LORENZO SALGADO, who resides in Mexico but communicated with his son via phone, according to the indictment filed against both men. Lorenzo Salgado allegedly directed the narcotics sales and the subsequent transportation of the proceeds to Mexico. Lorenzo Salgado is charged with drug conspiracy and is considered a fugitive.
In his written plea agreement, Jesus Salgado stated that he operated the Bensenville stash house with his girlfriend, RUBY JOY BUENAVENTURA, 27, of Chicago, and that he and Buenaventura delivered drugs to customers in the Chicago area. One of the deals occurred in a grocery store parking lot in Bensenville on May 3, 2016, when Jesus Salgado delivered two kilograms of heroin to SERGIO AREVALO-GOMEZ, 23, of Chicago.
Arevalo-Gomez pleaded guilty to a drug distribution charge and was sentenced last year to four years in prison. Buenaventura also pleaded guilty to a drug charge and was sentenced last year to three years in prison.
Springfield Man Sentenced for Enticing a Minor for SexRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has been sentenced in federal court for attempting to entice a minor to engage in illicit sexual activity.
Mark Damon Dunn, 32, of Springfield, was sentenced by U.S. District Judge Beth Phillips on Wednesday, May 16, 2018, to 12 years in federal prison without parole. The court also sentenced Dunn to 10 years of supervised release following incarceration.
Dunn, who pleaded guilty on Dec. 28, 2017, admitted that he used the Internet and a cell phone to attempt to entice a minor victim to engage in illicit sexual activity from June 1, 2016, to July 13, 2016.
According to court documents, Dunn attempted to coerce a 15-year-old victim to engage in sexually explicit activity on multiple occasions. He repeatedly asked the victim to engage in sexually explicit conduct and to send him videos and/or images of herself engaged in sexually explicit conduct. Dunn also sent the victim nude images of himself.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, Southwest Missouri Cyber Crimes Task Force, and the Springfield Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Sioux City Man Sentenced to Prison for Possession of MethRead the Press Release
A man who fled from law enforcement, damaging crops and a fence, was sentenced May 17, 2018, to six years in federal prison.
Daniel Lester Frye, 45, from Sioux City, Iowa, received the prison term after a January 17, 2018, guilty plea to possession with intent to distribute methamphetamine. Frye was previously convicted of possessing with intent to distribute methamphetamine in the Iowa District Court for Woodbury County in 1996.
Evidence at the sentencing hearing showed that on August 11, 2017, law enforcement was dispatched to the Winnavegas Inn after receiving a report from hotel staff of found property in a hotel room. Hotel staff informed law enforcement that the cleaning staff found drugs and drug-related items the morning after Frye, who had rented the room, checked out. While securing the evidence, which included four individual baggies of methamphetamine, one individual baggie of cocaine, and drug paraphernalia, Frye walked into the hotel. After seeing law enforcement, Frye took off running and got in his car and left. Law enforcement pursued Frye’s car in a high speed chase. Frye did not stop at a stop sign and drove through two fields of crops. Frye admitted to possessing over five grams of actual (pure) methamphetamine with the intent to distribute some or all of it to another person or persons.
Frye was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Frye was sentenced to 72 months’ imprisonment. He was ordered to make $2,300 in restitution to the victims of the crops he damaged while fleeing from law enforcement. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
Frye is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney 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 17-4073.
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Schenectady Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
ALBANY, NEW YORK – William Hale, a/k/a “Man,” age 44, of Schenectady, New York, pled guilty today to distributing crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Hale admitted that he distributed more than 28 grams of cocaine base (a/k/a crack cocaine) on November 18, 2016.
Hale faces at least 10 years and up to life in prison, as well as a term of post-imprisonment supervised release of at least 8 years and up to life, when he is sentenced by Senior United States District Judge Gary L. Sharpe on September 10, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department. This case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Red Scaffold Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Red Scaffold, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner was sentenced on May 14, 2018, by U.S. District Judge Roberto A. Lange.
Tyrell Chasing Hawk, age 32, was sentenced to 7 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Chasing Hawk was indicted by a federal grand jury on August 16, 2017. He pled guilty on February 5, 2018.
The conviction stemmed from an incident on May 9, 2017, when Chasing Hawk assaulted his intimate partner by pulling on her hair and repeatedly punching her in the face.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Chasing Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Red Lake Man Sentenced to 236 Months in Prison for MurderRead the Press Release
United States Attorney Gregory G. Brooker announced the sentencing of JOSHUA FRANCIS HILL, 20, to 236 months in prison for the murder of a minor victim on the Red Lake Indian Reservation. HILL, who pleaded guilty on January 19, 2018, was sentenced on May 15, 2018, before Senior Judge Paul A. Magnuson in U.S. District Court in Saint Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on June 25, 2017, law enforcement officers responded to a call reporting a deceased male subject at a private residence on the Red Lake Indian Reservation. When law enforcement officers arrived on the scene, they found the body of a deceased juvenile male who was the apparent victim of a fatal gunshot wound.
According to the defendant’s guilty plea and documents filed in court, on the day of the shooting, HILL was feuding with the victim over a stolen Playstation 3. HILL shot and killed the victim with a .308 rifle that HILL had in his possession leading up to the shooting. Following the shooting, on June 27, 2017, HILL asked two individuals to dispose of the rifle for him. Law enforcement agents recovered the rifle, which was consistent with a witness description of the rifle HILL was seen handling the day of the shooting.
This case was the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Clifford B. Wardlaw prosecuted this case.
Defendant Information:
JOSHUA FRANCIS HILL, 20
Red Lake, Minn.
Convicted:
- Murder in the second degree, 1 count
Sentenced:
- 236 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Raleigh County Teenager Pleads Guilty to Federal Firearm Theft ChargeRead the Press Release
BECKLEY, W.Va. – A Raleigh County teenager who stole twenty-four firearms from a federally licensed dealer pled guilty today to a federal gun charge, announced United States Attorney Mike Stuart. Dillon Jackson, 18, entered his guilty plea to stealing firearms from the premises of a person licensed to engage in the business of dealing in firearms. U.S. Attorney Stuart commended the investigative efforts of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Raleigh County Sheriff’s Department, and the Beckley Police Department.
“Stealing firearms to trade them for drugs guarantees the guns are being put in the wrong hands for the purpose of criminal activity,” said United States Attorney Mike Stuart. “We are aggressively prosecuting these cases to the fullest extent of the law.”
Jackson admitted that in the early morning hours of July 11, 2017, he and an accomplice, used a crow bar to break the glass door of a federally licensed firearm dealer near Fairdale, West Virginia. Jackson admitted to entering the store with the accomplice and stealing pistols and rifles that were in the inventory of the licensed dealer. In total, Jackson and the accomplice stole twenty-four guns. Jackson further admitted to trading the stolen guns for money and drugs. At least one of the firearms stolen was capable of receiving a high capacity magazine.
Jackson faces up to 10 years in federal prison when he is sentenced on August 22, 2018. Assistant United States Attorneys Timothy D. Boggess and Clint Carte are responsible for the prosecution. The plea hearing was held before United States District Judge Irene Berger.
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.
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Pittsburgh Man Conspired to Distribute Crack CocaineRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Jerome Sowell, 31, pleaded guilty before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the Court was advised that from November 2015 to May 2016, Sowell conspired with others to distribute and possess with intent to distribute crack cocaine.
The law provides for a maximum total sentence of up to 20 years’ imprisonment, a $1,000,000 fine, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy K. Chung and Shanicka L. Kennedy are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the successful prosecution of Sowell. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Pennsylvania Office of the Attorney General, Ambridge Police Department, New Brighton Police Department, Beaver Police Department, Aliquippa Police Department, Moon Township Police Department, Wilkinsburg Police Department, West Mifflin Police Department, Allegheny County Police Department, Duquesne Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Physician Sentenced of Conspiracy to Pay and Receive Illegal KickbacksRead the Press Release
JOBIE CREAR, M.D., (CREAR), age 67, of New Orleans, Louisiana, was sentenced in federal court today before U.S. District Judge Sarah S. Vance, announced U. S. Attorney Duane A. Evans.
U.S. District Judge Sarah S. Vance sentenced CREAR to eight (8) months imprisonment, followed by ten (10) months of home confinement, three (3) years of supervised release, and restitution in the amount of $810,556.00 to be paid to Medicare.
On December 12, 2016, CREAR, who operated Comprehensive Nursing and Home Health Service, Inc., (Comprehensive) was charged in a Bill of Information for illegally paying recruiters to bring Medicare beneficiaries to Comprehensive causing a loss to Medicare in the amount of $810,556.
On April 7, 2017, CREAR plead guilty to conspiracy to pay and receive illegal kickbacks in violation of Title 18, United States Code, Section 371.
The investigation was conducted by Special Agents of the Federal Bureau of Investigation. The case is being prosecuted by Criminal Division Chief Patrice Harris Sullivan.
North Carolina Man Sentenced to 121 Months -- More than 10 Years -- in Federal Prison for Attempted Enticement of a MinorRead the Press Release
CHARLESTON, W.Va. – A North Carolina man was sentenced today to spend 121 months – more than 10 years -- in federal prison for a federal sex crime involving a minor, announced United States Attorney Mike Stuart. Timothy Sean Coogle, 46, of Lexington, previously pled guilty to attempted enticement of a minor to engage in sexual activity. U.S. Attorney Stuart commended the investigative efforts of the Federal Bureau of Investigation Violent Crimes Against Children Task Force, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the FBI in North Carolina.
“These heinous crimes warrant significant penalties,” said United States Attorney Mike Stuart. “Sexual predators like Coogle that prey on our children need to be behind bars for a long time.”
Coogle admitted that from August 12, 2017, through September 22, 2017, he used his cell phone and the Internet to attempt to persuade, induce, and entice a minor residing in the Southern District of West Virginia to engage in sexual activity. Specifically, Coogle admitted that he sent messages to a 13-year-old minor female, commenting on a photo of her. The minor’s mother discovered messages from Coogle and contacted law enforcement. Soon after, Coogle began engaging in sexually explicit conversation with a person he believed to be the minor, but was actually an undercover officer. He additionally requested that the person he believed to be the minor send him sexually explicit photos and video footage, and he also sent a sexually explicit video. Coogle admitted that he engaged in all of this communication in order to persuade the person he believed to be the minor to engage in sexual activity when she visited North Carolina.
Following release from prison, Coogle will be on federal supervised release for a period of 25 years and will be required to register as a sex offender.
Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution. The sentencing hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Nigerian National Charged in Phishing Scheme that Victimized Groton School EmployeesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that a federal grand jury in New Haven returned an indictment today charging OLUKAYODE IBRAHIM LAWAL, 35, a citizen of Nigeria residing in Smyrna, Georgia, with fraud and identity theft offenses stemming from a scheme to obtain the personal identifying information of school employees in Connecticut and elsewhere.
On May 9, 2018, LAWAL was arrested on a federal criminal complaint at his residence. He appeared before a U.S. magistrate judge in Atlanta and was ordered detained pending his transfer to the District of Connecticut.
As alleged in the charging documents, special agents from the FBI’s cybercrime squad in New Haven and the IRS have been investigating “phishing” emails that were sent to various school districts in Connecticut last year. In March 2017, an employee of the Groton Public Schools received an email that appeared to be sent by another Groton school system employee. The email contained a request to send W-2 tax information for all employees of the school system. The recipient of the email responded by sending copies of the W-2 information for approximately 1,300 Groton Public Schools employees. After the W-2 information was emailed, approximately 100 suspicious Forms 1040 were filed electronically with the IRS in the names of victims of the Groton phishing scheme. The 100 tax returns claimed tax refunds totaling $491,737. Approximately three of the returns were processed, and $23,543 in fraudulently-obtained funds were electronically deposited into various bank accounts.
It is alleged that LAWAL controlled or used certain email accounts involved in this phishing scheme, and that he participated in the scheme to obtain the Groton school system employees’ personal identifying information and use it for personal gain.
The indictment charges LAWAL with one count of conspiracy to commit wire fraud and one count of wire fraud, offenses that carry a maximum term of imprisonment of 20 years. The indictment also charges LAWAL with one count of aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of at least two years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
It is alleged that LAWAL entered the U.S. on a visitor’s visa on November 24, 2016, and failed to depart on his scheduled departure date of December 1, 2016.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Stephen B. Reynolds.
U.S. Attorney Durham thanked the FBI and IRS in Atlanta, and the U.S. Attorney’s Office for the Northern District of Georgia, for their valuable assistance in this matter.