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17 May 2018
New Orleans Men Sentenced on Gun and Carjacking ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced today that RODNEY BROWN, age 23, and MICHAEL PORTIS, 27, both of New Orleans, were sentenced today after previously pleading guilty to carjacking-related charges. Previously, BROWN pled guilty to carjacking and PORTIS pled guilty to brandishing a firearm during and in relation to a carjacking.
U.S. District Judge Carl J. Barbier sentenced BROWN to 78 months of incarceration, to be followed by three years of supervised release. Judge Barbier sentenced PORTIS to 120 months of incarceration, to be followed by five years of supervised release.
According to court documents, on April 24, 2016, at approximately 2:29 a.m., two females were carjacked in the driveway of a house located on N. Derbigny Street. The victims stated that they exited the house and entered a vehicle that was parked in the driveway of that location. PORTIS and BROWN, dressed in black and brandishing guns, approached from opposite sides of the vehicle. BROWN tapped on the window of the vehicle with a gun and stated, “You move I’ll shoot.” A third suspect stood nearby and acted as a lookout. The two females exited the car and the suspects entered and drove away. A short time later, the car was returned and left in the driveway.
One of the victims told the police officers that one of the suspects had facial tattoos. Officers canvassed the area, set up a perimeter and searched the block. Officers located PORTIS and two other subjects hiding in high bush nearby. PORTIS had facial tattoos and was wearing dark pants and a dark, hooded sweatshirt, consistent with the description given by the victims. The victim positively identified PORTIS as one of the gunmen. BROWN was not apprehended on the date of the incident, but was later identified and implicated on jail phone call recordings.
U.S. Attorney Evans praised the work of the ATF New Orleans Division Office, New Orleans Police Department and Louisiana State Police in investigating this matter. Assistant United States Attorneys Nolan D. Paige and Shirin Hakimzadeh were in charge of the prosecution.
New Mexico Man Sentenced to 15 Years in Prison for Directing Computer Attacks Against Websites of Dozens of Victims and Felon-In-Possession ChargesRead the Press Release
A New Mexico man was sentenced today in St. Paul, Minnesota, for directing computer attacks against the websites of his prior employers, business competitors and public services, and felon-in-possession of a firearm charges. Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division; United States Attorney Gregory G. Brooker of the District of Minnesota; and Special Agent in Charge Jill Sanborn of the Federal Bureau of Investigation-Minneapolis Field Office made the announcement.
John Kelsey Gammell was sentenced to serve 180 months in prison by U.S. District Judge Wilhelmina M. Wright of the District of Minnesota. Restitution to the victims of his computer attacks will be determined at a later date. Gammell pleaded guilty on Jan. 17, to one count of conspiracy to cause intentional damage to a protected computer and two counts of being a felon-in-possession of a firearm.
According to admissions made in connection with his plea, from at least in or about July 2015 through in or about March 2017, Gammell engaged in a campaign of distributed denial of service (DDoS) attacks on websites throughout the United States. A DDoS attack is a malicious attempt to disable or interrupt service to a computer or website, usually by causing large amounts of Internet traffic to be directed to the computer or website. Gammell directed DDoS attacks at a number of victims’ websites, including websites operated by companies he used to work for, companies that declined to hire him, competitors of his business, and websites for law enforcement agencies and courts, among others.
Gammell admitted that he caused DDoS attacks by using computer programs on his own computers, as well as by directing “DDoS-for-hire” companies from which he purchased services to launch the DDoS attacks. Gammell purchased subscriptions to multiple DDoS-for-hire companies, including VDoS, CStress, Inboot, Booter.xyz, and IPStresser. He initiated attacks using these DDoS-for-hire companies against dozens of victims, including but not limited to Washburn Computer Group, the Minnesota State Courts, Dakota County Technical College, Minneapolis Community and Technical College, the Hennepin County Sheriff’s Office, and others. Gammell took a variety of steps to avoid detection and circumvent his victims’ DDoS attack mitigation efforts, such as using IP address anonymization services to mask his identity and location, using cryptocurrency in payment for DDoS-for-hire services, using multiple DDoS-for-hire services at once to amplify his attacks, using spoofed emails to conceal his conduct, and using encryption and drive-cleaning tools to conceal digital evidence of his conduct on his computers.
Gammell, who is a convicted felon, also admitted that he possessed parts for use in the building of AR-15 assault rifles, upper and lower receivers, a pistol grip, a trigger guard, 15 high-capacity magazines, a buttstock, a buffer tube, and 420 rounds of 5.56 x 45mm full metal jacket rifle ammunition in Colorado, where he worked. He further admitted that he possessed a Heckler & Koch P2000 handgun, and a Springfield Armory model 1911-A1, .45 caliber handgun, as well as hundreds of rounds of ammunition in New Mexico, where he resided.
This case was investigated by the FBI’s Minneapolis Field Office. Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota are prosecuting the case. The U.S. Attorney’s Offices for the District of Colorado and the District of New Mexico also provided substantial assistance in this matter.
New Jersey Man Sentenced to 54 Months Imprisonment for Conspiracy to Distribute Heroin and Crack Cocaine in Rutland CountyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Richard Torruellas (a.k.a. “Scoob”), 23, of Jersey City, New Jersey, was sentenced today to 54 months imprisonment by United States District Court Chief Judge Geoffrey W. Crawford sitting in U.S. District Court in Rutland, Vermont. Chief Judge Crawford also sentenced Torruellas to a three-year period of supervised release by the U.S. Probation Office, which will begin when Torruellas is released from prison. Finally, the Court ordered the forfeiture of $3,349 of drug proceeds seized from Torruellas at the time of his arrest. Torruellas previously pled guilty to conspiracy to distribute heroin and cocaine base and agreed to a 54-month sentence. The maximum sentence for this crime is 20 years imprisonment.
According to court records, Torruellas distributed a significant amount of heroin and crack cocaine in Rutland County from October 2016 to March 16, 2017, when he was arrested. Torruellas distributed these drugs with codefendant Francesco Escribano (a.k.a. “Brisco”), 35, also from New Jersey. Torruellas and Escribano were known in Rutland County drug circles as the “Jersey Boys.” Escribano also pled guilty to the conspiracy but has not yet been sentenced.
According to the government, Torruellas and Escribano dealt some of their drugs while staying with codefendant Wayne Oddo who lived at Morse Hollow Road in Poultney. In exchange for Oddo letting them stay there, Torruellas and Escribano would give Oddo small, personal use amounts of drugs. When Oddo was arrested on March 15, 2017, he admitted that he moved the body of Alexandra Rooker, 26, who had overdosed a week earlier, to his shed and had not called anyone about her death.
According to the government, Torruellas and Escribano also periodically used the residence of Richard Webster on Harrison Avenue in West Rutland as a base station from which to deal heroin and cocaine base. Both Oddo and Webster previously pled guilty to violating the federal law, commonly referred to as the “crack-house statute,” which prohibits making available a place, such as a residence, for the purpose of manufacturing, storing, distributing, or using any controlled substance. This statute imposes a maximum sentence of twenty years imprisonment, up to a $500,000 fine, and up to three years of supervised release to begin after any term of imprisonment is served. Oddo and Webster are awaiting sentencing. Webster is participating in the Federal Drug Court program in Rutland.
These cases were investigated by the Vermont State Police Drug Task Force, the Rutland City Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Joseph Perella is prosecuting these cases on behalf of the United States. Richard Torruellas is represented by Robert Behrens, Esq. of Burlington. Wayne Oddo is represented by Steven Barth, Esq., of the Federal Public Defenders Office. Richard Webster is represented by David Williams, Esq. of Burlington.
More Sentences Imposed in Robstown-Based Heroin ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - Two more members of a massive heroin and money laundering conspiracy have been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. Louie Molina, 36, and Jesus Leal Jr., 34, both of Robstown, previously pleaded guilty to possession with intent to distribute more than one kilogram of heroin.
Today, U.S. District Judge Nelva Gonzales Ramos ordered each man to serve 20 years in federal prison to be followed by 10 years of supervised release. In handing down the sentences, the court noted the large amount of heroin distributed in this conspiracy and its devastating impact on the community and families.
The court learned during the pleas of guilty in this case that the defendants had been part of a significant, long-term heroin distribution ring operating in Robstown. Evidence also showed that on Oct. 4, 2017, authorities seized approximately a kilogram of heroin and almost $100,000 during the arrests related to this investigation. The overall scope of the conspiracy was estimated to be between at least 10-30 kilograms of heroin. The conspiracy operated, according to the evidence presented, between April 2016 and October 2017.
Three others were sentences last week. Enrique Gutierrez Jr., 31, of Sandia, received 13 years for the same heroin conspiracy as well as conspiracy to launder money. Sakhone Chanrattana, 35, of Jarrell, and Tim Molina, 34, of Robstown, had each pleaded guilty to possession with the intent to distribute heroin and received 97 and 18 months, respectively.
Sentencings for Jesus Gutierrez, 46, and Renee Gutierrez, 37, both of Corpus Christi, are set for Aug. 8, 2018.
The Drug Enforcement Administration and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jon Muschenheim is prosecuting the case.
Monroe Township, New Jersey, Man Admits Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Sam Cynamon, 67, of Monroe Township, New Jersey, and formerly of Springfield, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an indictment charging him with one count of possession of child pornography.
According to documents filed in the case and statements made in court:
On July 10, 2017, law enforcement officers lawfully obtained multiple computers and electronic storage media belonging to Cynamon from his residence. The computers and electronic storage media contained multiple images and videos of child pornography, including images of prepubescent children being sexually abused.
In March 2005, Cynamon pleaded guilty in the District of New Jersey to possession of child pornography and was sentenced to 27 months in prison. Because of his prior conviction, the count of possession of child pornography to which Cynamon pleaded guilty today carries a mandatory minimum potential penalty of 10 years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Sept. 19. 2018.
U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office’s Public Protection Unit in Newark.
Defense counsel: Robert Degroot Esq., Newark
Missouri Man Lands 15-Year Prison Sentence for Southern Illinois Methamphetamine OffenseRead the Press Release
On May 17, 2018, Derek L. Sumpter, a/k/a "Doucher," 31, of Oak Ridge, Missouri, was sentenced to federal prison for his role in a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Sumpter, who had previously pled guilty to a one-count second superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine, was sentenced to 188 months of imprisonment to be followed by four years on supervised release. He was also fined $400.00. The indictment alleged that the offense occurred between 2015 and April 2017, in Perry, Randolph, Monroe, and St. Clair Counties.
Evidence at the plea and sentencing hearings established that Sumpter was involved with numerous other persons in the distribution of ice. Ice is methamphetamine which has a purity level of at least 80%. At sentencing, the district court found that Sumpter was responsible for the distribution of over 423 grams of ice. Five co-defendants have already been sentenced to prison for their roles in the methamphetamine conspiracy. Four additional co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Monroe County Sheriff’s Office, St. Clair County Sheriff’s Office Drug Tactical Unit, Metropolitan Enforcement Group of Southern Illinois, Chester Police Department, Coulterville Police Department, Belleville Police Department, Lenzburg Police Department, Perry County (Missouri) Sheriff’s Office, and Drug Enforcement Administration. The Randolph County States Attorney’s Office and the Monroe County States Attorney’s Office also assisted in the investigation.
Midlands Reentry Job Fair & ExpoRead the Press Release
Columbia, South Carolina ----– The United States Attorney’s Office, the South Carolina Department of Probation, Parole and Pardon Services; SC Department of Employment and Workforce; SC Works; SC Vocational Rehabilitation; SC Department of Social Services; and the US Probation Office are continuing their statewide partnership to help individuals with prior criminal backgrounds secure employment.
The Second Annual Central Reentry Job Fair & Expo will be held Wednesday, May 23, 2018, from 10:00 am to 1:00 pm at the Dutch Square Mall, located at 421 Bush River Road, Columbia, SC 29210.
This fair, which supports job seekers in the Midlands, is one in a series of fairs held annually, including in Florence, the Upstate, and the Lowcountry. These job fairs are specifically designed for South Carolinians with a criminal history. The aim is to assist these South Carolinians with obstacles they face when they return home after incarceration, including employment, transportation, certifications needed for skilled labor, and other keys to living a law-abiding life.
“We are excited to work with our federal and state partners on this second year of reentry fairs,” said U.S. Attorney Beth Drake. “Last year, we welcomed hundreds of job seekers and enthusiastic employers, many of whom were able to offer employment opportunities on site.”
The fair and expo will include area employers and other organizations who support, and provide resources for, returning citizens. Any interested employers or vendors should inquire with Diana Goldwire at (864) 315-9751 or [email protected].
U.S. Attorney Drake added, “Supporting the formerly incarcerated in their search for stable jobs and lives is key to crime prevention and community safety. Rehabilitation is one of the key goals of criminal justice. As President Trump said, ‘We’ll be very tough on crime, but we will provide a ladder of opportunity to the future...[We are] committed to helping former inmates become productive, law-abiding members of society.’”
For more from President Trump on the importance of helping inmates get jobs upon release and thereby giving those with a criminal record a second chance, please see the below links.
https://www.whitehouse.gov/presidential-actions/president-donald-j-trump-proclaims-april-2018-second-chance-month/
https://www.whitehouse.gov/briefings-statements/remarks-president-trump-meeting-prison-reform/
Professional dress is required. Job seekers should inquire with Robbie Carroll of the US Probation Office at [email protected] or George Whitehead at (803) 734-9143, (803) 667-1258 or [email protected] if they have any questions about the event.
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Michigan Home Health Agency Owner Pleads Guilty to Health Care Fraud Charges for Role in $8 Million Medicare Fraud SchemeRead the Press Release
The owner of a Michigan home health agency pleaded guilty today to fraud charges for his role in a scheme involving approximately $8 million in fraudulent Medicare claims for home health services that were procured through the payment of illegal kickbacks.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy Slater of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Zahir Shah, 48, of West Bloomfield, Michigan, pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to pay and receive kickbacks in connection with Medicare beneficiaries before U.S. District Judge Avern Cohn of the Eastern District of Michigan. Sentencing will be scheduled before Judge Cohn.
As part of his guilty plea, Shah admitted that he submitted false certifications to enroll and stay enrolled as a Medicare provider. Shah further admitted that he paid illegal kickbacks to recruiters in exchange for Medicare beneficiary referrals and billed Medicare for claims procured through these illegal kickbacks. According to court documents, Shah caused a loss of approximately $8 million to the Medicare program by submitting false and fraudulent claims to Medicare from 2007 through 2017.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorneys Rebecca Szucs and Howard Locker of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Mexican National Found Guilty of Drug Trafficking and Illegal ReentryRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Eulalio Martinez, age 38, a citizen of Mexico residing in Alma, Georgia, has been found guilty of Possession with Intent to Distribute Methamphetamine 4,923 grams of pure methamphetamine (Count 1) and Illegal Reentry (Count 2), following a four-day jury trial before Senior District Court Judge Hugh Lawson in Macon. Mr. Martinez was indicted on the charges on June 14, 2017.
Evidence presented at trial proved that, on May 1, 2016, a confidential source (CS) in Coffee County, Georgia, informed law enforcement agents that she had been approached by Martinez to drive him to Atlanta to pick up a quantity of crystal methamphetamine.
On May 2, 2016, using a tracking device, agents monitored the vehicle as it traveled hours north to Atlanta where it stopped for a 90 minutes at a convenience store. The CS indicated a young Hispanic male met Martinez at the store and directed them to an apartment complex near I-85 and Shallowford Road. Shortly after pulling into a parking space, the young male got out of the van and retrieved a cardboard box from a vehicle that pulled in next to the van. The young male placed the box into the CS’s vehicle and the CS drove off. During the drive back to South Georgia, the CS overheard phone conversations Mr. Martinez had with Mexican sources indicating he was in possession of the methamphetamine.
At about 10:42 am, agents stopped the vehicle and took the passenger, Mr. Martinez, into custody. A search of the vehicle produced a box covered by a black jacket behind the driver’s seat in which there were three (3) clear containers, which held a total of 11.6 pounds of crystal methamphetamine.
The Illegal Reentry charge was a result of Mr. Martinez’s being found in Tift County, Georgia on May 2, 2016, having been deported and removed from the United States on October 4, 2012 and not receiving the consent of the Attorney General or the Secretary for Homeland Security to re-apply for admission to the country.
Mr. Martinez faces a maximum sentence of forty (40) years in prison, a $5 million fine, or both. His sentencing hearing will be held in August following a pre-sentence investigation and report.
“This case involves two of the top priorities of the Department of Justice and of my office, the sale of illegal drugs and the violation of our immigration laws. Methamphetamine is a scourge on the Middle District of Georgia. Mr. Martinez was not only in this country illegally, but chose to further break its laws by illegally distributing this highly addictive and extremely dangerous drug,” said United States Attorney Peeler.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “The success of this investigation was possible because of unified law enforcement cooperation and the subsequent prosecution by the U.S. Attorney’s Office. As a result of a trial verdict, this Crystal Methamphetamine trafficker will now face a substantial monetary fine and significant prison time for the crimes he committed.”
This case was investigated by the Coffee County Sheriff’s Office, the Tift County Sheriff’s Office and the U.S. Drug Enforcement Administration. Assistant United States Attorneys Sonja B. Profit and Tamara Jarrett 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.
Medical Supply Executive Sentenced to 36 Months in Prison for Her Role in A $30 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MARINA BURMAN was sentenced today to 36 months in prison. BURMAN, the former president of a medical supply company, submitted approximately $3.4 million in fraudulent bills to the New York State Medicaid Program, falsely claiming to have dispensed adult diapers and other medical supplies that were not medically necessary and, in many cases, not dispensed at all. BURMAN was sentenced today by United States District Judge Lorna G. Schofield.
U.S. Attorney Geoffrey S. Berman said: “The Medicare and Medicaid programs are intended to provide essential medical care to the elderly and the needy, not to line the pockets of fraudsters and opportunists. Ultimately, the real victims of Marina Burman and her co-conspirators’ crimes are U.S. taxpayers and needy patients with legitimate medical needs. Today’s sentence sends a strong message that those who cheat Medicare and Medicaid will not go unpunished.”
According to the Indictment and other documents filed in federal court, as well as statements made during BURMAN’s plea proceeding and sentencing:
Between 2007 and 2013, BURMAN’s ex-husband and co-defendant, Aleksandr Burman, owned and operated six medical clinics in Brooklyn (the “Clinics”) that fraudulently billed Medicare and Medicaid approximately $30 million for medical services and supplies that were medically unnecessary or otherwise fraudulently billed. Under New York State law, medical clinics must be owned and operated by a medical professional. To circumvent this requirement, Aleksandr Burman, who was not a medical professional, hired doctors to pose as the nominal owners of each of the Clinics. As part of the fraud, the doctors also signed medical charts falsely stating that they had examined patients, and wrote prescriptions and referrals for medically unnecessary tests and supplies, including the $3.4 million in adult diapers and other supplies dispensed by BURMAN’s medical supply company. Instead of actually obtaining many of these supplies, patients exchanged their prescriptions for merchandise, such as bed linens, tablecloths, dishes, kitchen appliances, and other housewares. In furtherance of the fraud, BURMAN also falsely held herself out to Medicare and Medicaid as the sole owner of the medical supply company and concealed the fact that she actually owned that company jointly with her then-husband, Aleksandr Burman.
In all, 11 defendants have been charged for their participation in this healthcare fraud scheme. Aleksandr Burman pled guilty and on May 8, 2017, was sentenced to 120 months in prison. Two medical doctors (Mustak Y. Vaid and Ewald J. Antoine), two Clinic executives (Asher Oleg Kataev and Alla Tsirlin), and two individuals who helped run two of the Clinics and a related ambulette company (Ivan Voychak and Edward Miselevich) have pled guilty and are awaiting sentencing. Three additional defendants – a doctor (Paul J. Mathieu), a physical therapist (Hatem Behiry), and an occupational therapist (Lina Zhitnik) – are scheduled to go to trial before Judge Schofield on November 26, 2018. These three remaining defendants are presumed innocent unless and until proven guilty.
MARINA BURMAN, 55, of Manhattan, pled guilty to health care fraud and conspiracy to commit health care fraud, mail fraud, and wire fraud before Judge Schofield on November 14, 2017. In addition to the prison term, Judge Schofield ordered BURMAN to forfeit six condominium apartments paid for with the proceeds of the healthcare fraud scheme, and to pay restitution of $3,415,363 to Medicaid.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York State Office of the Medicaid Inspector General (“OMIG”).
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis, Stephen J. Ritchin, and Won S. Shin are in charge of the prosecution.
McLaughlin Man Sentenced for Sexual Contact and AssaultRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man convicted of Abusive Sexual Contact by Force and Assault Resulting in Serious Bodily Injury was sentenced on May 14, 2018, by U.S. District Judge Charles B. Kornmann.
Jeremy Agard, age 36, was sentenced to 235 months in custody, followed by 10 years of supervised release, restitution in the amount of $13,697, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Agard was indicted by a federal grand jury on March 15, 2017. He pled guilty on December 4, 2017.
The conviction stems from an incident on the evening of October 15, 2016, when the victim and Agard were in Agard’s trailer socializing. At some point in the evening, Agard asked the victim to have sex with him, but the victim told him no. Agard got mad and repeatedly struck the victim about the face and body, causing the victim to lose consciousness. When the victim regained consciousness, she was naked on the floor of Agard’s home. Agard, noticing she was awake, begin to assault the victim again, throwing her out of his residence completely unclothed. The victim ran to a neighbor’s house and law enforcement and an ambulance were summonsed. The victim was taken to the Mobridge hospital, where staff noted she was suffering from head injuries, including facial fractures and internal hemorrhaging. Injuries consistent with a sexual assault were also noted.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Agard was immediately turned over to the custody of the U.S. Marshals Service.
Man Pleads Guilty to Attempting to Launder over $1.3 MillionRead the Press Release
ALEXANDRIA, Va. – A Fairfax man pleaded guilty today to conspiring to launder money on behalf of a group of individuals, causing funds to be transferred to bank accounts located in the United States and overseas.
According to court documents, from at least 2014 through at least November 2015, Tuyen Huu Nguyen, 54, participated in a money laundering conspiracy in which co-conspirators obtained stolen funds—either via emails that duped victims into transferring money to certain bank accounts controlled by Nguyen or by acquiring control of a victim’s bank account—and caused those funds to be transferred Nguyen’s accounts. It was Nguyen’s role, upon receiving the proceeds of these frauds, to move the funds to financial accounts located in the United States and in foreign countries. Some of the bank accounts that Nguyen used for his laundering activities were opened in the names of corporate entities that Nguyen owned and controlled but which did not have any employees.
In total, the amount of money intended to be laundered by Nguyen and his co-conspirators, in a manner that was reasonably foreseeable to Nguyen, was $1.365 million. The total amount actually laundered by Nguyen and his co-conspirators was $260,000.
Nguyen’s sentencing has been scheduled for August 10, 2018. The offense of conspiracy to commit money laundering carries a maximum term of incarceration of 20 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 P. Cronan, Acting Assistant Attorney General for the Justice Department’s Criminal Division, and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Leonie M. Brinkema accepted the guilty plea. Assistant U.S. Attorney Alexander P. Berrang, Senior Counsels Ryan K. Dickey and James S. Yoon of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney Kendrack D. Lewis and Former Trial Attorney Elizabeth Wright of the Justice Department’s Money Laundering and Asset Recovery Section investigated and prosecuted the case. Former Assistant U.S. Attorney Alexander Nguyen and former Special Assistant U.S. Attorney Joseph V. Longobardo provided assistance investigating 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-194.
Lower Brule Woman Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, woman charged with Assaulting, Resisting, and Impeding a Federal Officer pled guilty and was sentenced on May 16, 2018, by U.S. Magistrate Judge Mark A. Moreno.
Candace Byington, age 37, was sentenced to 4 months in custody and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on April 27, 2017, when Byington was brought into the Lower Brule Tribal jail following her tribal arrest for a probation violation, disorderly conduct, disturbing the peace, and resisting arrest. Upon arrival at the facility, Byington was searched, per department policy. A correctional officer conducted the search. At several points during the search, Byington would turn her body away, and physically resisted the officer’s search.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Lower Brule Agency. The case was prosecuted by Assistant U.S. Attorney Troy R. Morley.
Byington was remanded to the custody of the U.S. Marshals Service.
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on May 17, 2018, Samuel Turner, 50, of Lincoln, Nebraska, was sentenced to 30 years (360 months) in prison for possession with intent to distribute five grams or more of methamphetamine actual. Following the prison term, Turner will serve eight years on supervised release. Turner was convicted by a federal jury in February of 2018.
On the late evening of August 9, 2017, officers of the Lincoln Police Department, investigating a disturbance call, contacted Turner outside his residence in a north Lincoln trailer park. During a conversation with officers, Turner asked one of the officers to lower his flashlight beam, so it would not shine in his eyes. When the officer did so, officers saw that Turner was standing on a baggie of crystalline substance which contained at least 31 grams of pure methamphetamine. Another smaller bag containing approximately 1 gram of methamphetamine was found nearby.
Turner faced a potential sentence of 10 years to life. He had two prior federal felony drug convictions. He was convicted of conspiracy to distribute crack cocaine and distribution of crack cocaine in 1990 and conspiracy to distribute methamphetamine, cocaine, and marijuana in 2009. Under the federal sentencing guidelines, the 2009 drug conviction and a 2009 Lancaster County District Court conviction for attempted first degree domestic assault made Turner a “career offender,” with a suggested sentencing range of 360 months to life imprisonment.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Kayenta Woman Sentenced to Prison for Injuring Children during Car Accident on Navajo Nation Indian ReservationRead the Press Release
PHOENIX – Today, Larrissa Helen Smith, 29, of Kayenta, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 12 months and one day in prison, followed by three years of supervised release, for a car accident that resulted in injuries to four minor children. Smith had previously pleaded guilty to one count of assault resulting in serious bodily injury.
During the early morning hours of March 20, 2017, Smith was driving on Highway 163 on the Navajo Nation Indian Reservation when she caused her Chevy Tahoe to go airborne and then crash into a dirt embankment. The vehicle contained four unrestrained children, all of whom suffered injury as a result of the crash. Laboratory testing revealed both alcohol and methamphetamine in Smith’s system at the time of the accident. Smith is an enrolled member of the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08153-PCT-DLR
RELEASE NUMBER: 2018-068_Smith
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Jury Convicts Former Police OfficerRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has returned a guilty verdict against a former San Juan police officer for lying to federal agents, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for approximately two days before convicting Salvador Hernandez, 30, of McAllen, following a five-day trial.
The jury heard that on Aug. 27, 2016, authorities seized a load of cocaine from an abandoned vehicle in a San Juan orchard. The investigation revealed 40 bundles of cocaine were intentionally left in the vehicle. However, officers with the San Juan Police Department had logged only 37 bundles into evidence.
During the course of the investigation into the missing cocaine, law enforcement discovered the drugs had been stored in a vehicle belonging to Hernandez at the scene. Authorities interviewed him, at which time he claimed he never opened the hatch once the drugs were placed in his unit. He added that while assisting in the search for a suspect, he helped search a shed with fellow officer Richard Leon Castillo, 26, of Donna and Border Patrol agents. The jury saw video evidence and heard testimony that contradicted both statements.
Authorities interviewed Castillo, at which time he claimed never to have seen the narcotics prior to their arrival at the police department and that he did not know who transported the cocaine to the police department. Video evidence also confirmed that statement to be false.
Further, the jury saw video evidence of Hernandez allowing Castillo to touch the cocaine bundles. The footage also showed the two men discussing the fact that the bundles had not yet been counted. Specifically, as Castillo reached for one bundle, Hernandez is heard saying, “That one’s mine.”
The investigation revealed Castillo and Hernandez both failed to upload the video to police department records and failed to include any mention of touching the drugs within any department records.
Further evidence presented to the jury revealed that when agents asked Castillo whether he was involved in stealing three kilograms of cocaine, he looked down and refused to answer the question. At the time of Hernandez’s arrest, he questioned being taken into custody, noting there were “bigger fish involved.”
At trial, the defense attempted to attack the credibility of witnesses, the validity of lab reports confirming the presence of cocaine and the suggestion that Hernandez and Castillo’s false statements were mistakes.
In December 2017, a federal jury convicted Castillo, of lying to federal agents.
Previously released on bond, both were permitted to remain on bond pending their sentencing, set for July 31, 2018. At that time, they face up to five years in prison.
Drug Enforcement Administration, the FBI, and the Department of Homeland Security – Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kristen Rees and Bobby Lopez are prosecuting the case.
Jury Convicts Bandidos Outlaw Motorcycle Organization Leadership on All Federal ChargesRead the Press Release
In San Antonio today after a nearly three-month trial, a federal jury convicted the two highest ranking officers of the Bandidos Outlaw Motorcycle Organization (Bandidos)--National President Jeffrey Fay Pike and National Vice President Xavier Portillo--on federal racketeering and drug trafficking charges.
That announcement was made today by United States Attorney John F. Bash, Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Acting Austin Police Chief Brian Manley; San Antonio Police Chief William McManus; and, Atascosa County Sheriff David A. Soward.
“I am immensely proud of our prosecution team and our law-enforcement partners for this successful prosecution,” stated United States Attorney John F. Bash. “What this verdict shows more than anything is that the Department of Justice is fully capable of stripping away a veneer of legitimate activity to expose and punish underlying criminal conduct. Others should take note.”
Jurors convicted Pike, age 62 of Conroe, TX, and Portillo, age 58 of San Antonio, of (count 1) conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; (count 3) violent crimes in aid of racketeering (VICAR)--murder; (count 4) conspiracy to commit murder in aid of racketeering; (count 5) one count of conspiracy to commit assault with a dangerous weapon; (counts 6 and 7) aiding and abetting assault with a dangerous weapon; (count 9) discharging a firearm during a violent crime; and, (count 12) interference with commerce by extortion. Jurors also convicted Portillo of (count 2) violent crimes in aid of racketeering (VICAR)--murder; (count 8) discharging a firearm during a crime of violence; (count 10) conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and cocaine; (count 11) possession with intent to distribute cocaine; and, (count 13) felon in possession of a firearm.
Jurors found Pike and Portillo guilty of conspiring to conduct the affairs of a criminal organization through racketeering acts including directing, sanctioning, approving and permitting members of the Bandidos to commit murder, attempted murder, robbery, assault, intimidation, extortion and drug trafficking. Evidence during trial revealed that in 2006, Pike and Portillo ordered other Bandidos members to murder Anthony Benesh. At the time, Benesh was attempting to start a Texas Chapter of the Hell’s Angels Outlaw Motorcycle Organization in Austin. Members of the Bandidos warned Benesh to cease his activities and recruitment, which Benesh ignored. Several Bandidos members then murdered Benesh on March 18, 2006, outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise.
Jurors also found that Portillo and others killed Robert Lara in January 2002 in Atascosa County as payback for killing Bandidos member Javier Negrete. Negrete, a member of the same Bandidos chapter as Portillo, was killed outside a San Antonio bar in October 2001.
Jurors also found that Pike, Portillo and others conspired to murder and assault members and associates of the Cossacks Outlaw Motorcycle Organization (Cossacks). Testimony revealed that Portillo, with Pike’s approval, declared that the Bandidos were “at war” with the Cossacks. A number of violent acts were committed by the Bandidos around Texas in furtherance of this “war,” including in Fort Worth, Gordon, Odessa, Port Aransas, Crystal City and elsewhere.
Testimony also revealed that Portillo and other members of the Bandidos were engaged in trafficking methamphetamine and cocaine and maintained an agreement with the Texas Mexican Mafia wherein Bandidos members were not required to pay the 10-percent “dime” to the Texas Mexican Mafia in exchange for permission to traffic narcotics.
“The convictions of the Bandidos National President Jeffery Pike and National Vice President John Portillo make it clear that the DEA and the Justice Department will bring organized criminal enterprises, like the Bandidos, to justice,” said Will R. Glaspy, Special Agent in Charge of the Drug Enforcement Administration - Houston Division. “DEA, along with our law enforcement partners, remain committed to removing violent criminals and drugs traffickers from our communities.”
“The verdict rendered today is the result of the outstanding partnership between the FBI and all our law enforcement partners,” said FBI Special Agent in Charge Christopher Combs. “This effort demonstrates our ongoing commitment to prevent gang violence and criminal activity from poisoning our communities. It also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises.”
Pike, who previously had been on bond, was remanded into the custody of the United States Marshals Service following today’s verdict. Portillo remains in federal custody. The defendants face up to life in federal prison. Sentencing for Portillo is scheduled for 9:00am on September 24, 2018. Sentencing for Pike is scheduled for 9:00am on October 1, 2018. Both sentencings will be before Senior United States District Judge David A. Ezra in San Antonio. Criminal forfeiture in this case has yet to be determined. The Government is seeking the criminal forfeiture of Portillo’s residence, which according to the evidence presented during trial, was used extensively to carry out the criminal affairs of the organization including drug distribution.
“Today’s verdict is a testament to the hard work and dedication of our local, state and federal officers. The arrest and successful prosecution of these violent offenders involves cooperation and collaboration among the different agencies. We will continue to work together to ensure that our community is a safe community,” stated San Antonio Police Chief William McManus.
The FBI, DEA and Texas DPS investigated this case together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, Palo Pinto County Sheriff’s Department, Ector County Sheriff’s Department, and the Bexar County District Attorney’s Office. Assistant United States Attorneys Eric Fuchs and John Gibson are prosecuting this case on behalf of the Government.
Jackson Man Pleads Guilty under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Jeremy Jerome Fletcher, 28, of Jackson, pled guilty today before United States District Judge Tom S. Lee to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI).
On or about December 13, 2017, Jackson Police Department conducted a traffic stop on Highway 80 near Valley Street in Jackson, Mississippi, of a vehicle occupied by three individuals. The front seat passenger was Jeremy Jerome Fletcher. Upon running a check, it was determined that the driver had active warrants out of Carroll County and both Fletcher and the rear passenger had warrants for traffic violations. All were arrested and an inventory of the vehicle revealed a loaded .22 caliber revolver inside a yellow towel underneath the front passenger seat. A records check revealed that on April 21, 2014, Fletcher had been sentenced in the Circuit Court of Rankin County, Mississippi, to fifteen (15) years imprisonment, with twelve (12) years suspended, and five (5) years of supervised probation, for the felony offense of robbery. Fletcher was on probation at the time of the subject traffic stop.
After being Mirandized and waiving his rights, Fletcher gave a confession that the .22 caliber revolver was his and stated when they drove past the police officer, he placed the gun under his seat (the front passenger seat). He further stated he purchased it approximately one month prior for $65.00.
Fletcher is scheduled to be sentenced by Judge Lee on August 23, 2018 at 10:00 a.m., and faces a maximum sentence of 10 years in federal prison and a $250,000 fine.
This case was investigated by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It is being prosecuted by Assistant U.S. Attorney Keesha Middleton.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Jackson County Resident Charged with Drug OffensesRead the Press Release
On May 8, 2018, Dwayne L. Watson, a/k/a "C," 44, of Murphysboro, Illinois, was charged by indictment with two counts of Unlawful Distribution of Heroin and one count of Unlawful Distribution of Cocaine, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. The indictment alleges that the offenses occurred in Jackson County on October 27, 2017, February 7, 2018, and March 6, 2018. On May 14, 2018, Watson made his initial appearance in federal court. He was ordered held without bond pending a July 9, 2018 jury trial.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury. The drug offenses each carry a maximum penalty of up to 20 years imprisonment, three years supervised release, and a fine of $1,000,000.00.
The ongoing investigation is being conducted by the Southern Illinois Drug Task Force. The Jackson County States Attorney’s Office also assisted in the investigation.
Illegal alien living in Abbeville pleads guilty to possessing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that an illegal alien from Mexico pleaded guilty Wednesday to using his phone and an online account to acquire and possess child pornography.
Paul Armenta-Bojorquez, 33, of Mexico, but who resides in Abbeville, Louisiana, pleaded guilty before U.S. Magistrate Judge Carol Whitehurst to one count of possession of child pornography. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, law enforcement agents interviewed Armenta-Bojorquez on November 13, 2017 regarding possession of child pornography. He told agents that he received the child pornography through his phone and then transferred it onto an online account. Law enforcement agents reviewed the material found on the online account, and it contained child pornography. Some of the material was of children who were younger than 12.
Armenta-Bojorquez faces up to 20 years in prison, five years to life of supervised release, mandatory registration as a sex offender and up to a $250,000 fine. The court set sentencing for August 22, 2018.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security and the Louisiana Attorney General’s Louisiana Bureau of Investigation Cyber Crime Unit conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Illegal alien from Mexico sentenced to 30 months in prison for reentering the U.S. for fifth timeRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that an illegal alien from Mexico was sentenced last week to two and a half years in prison for reentering the United States after being deported four times.
Fernando Garcia-Lopez, 37, of Tumbiscatio, Michocan, Mexico, was sentenced Friday by U.S. District Judge Elizabeth E. Foote on one count of illegal reentry of an illegal alien. According to the February 1, 2018 guilty plea, Vermilion Parish Sheriff’s deputies conducted a controlled buy of marijuana on March 9, 2017 at Garcia-Lopez’s Abbeville, Louisiana, residence. He was arrested and provided a false identity to law enforcement. After his actual identity was discovered, he was also found to have been deported in 2010, 2012, 2013 and 2015.
Homeland Security Investigations and the Vermilion Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert F. Moore prosecuted the case.
Indianapolis Man Charged in Large-Scale Fraud SchemeRead the Press Release
Alleged to have written thousands of bogus checks at area Kroger stores to purchase gift cards
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler today announced federal charges against an Indianapolis man for his role in organizing a fraud ring that utilized fraudulent checks to purchase gift cards and merchandise from stores throughout the country, to include area Kroger stores. Frank D. Powell 28, Indianapolis, was charged in a ten count Indictment, including seven counts of wire fraud, one count of attempted bank fraud, one count of aggravated identity theft, and one count of false statements to a financial institution.
“Individuals who defraud local business and banks drive up prices for all consumers,” said Minkler. “Those who chose to swindle others in this district will be held accountable.”
According to the indictment, between January 2016 and April 8, 2018, Powell and others presented and used fraudulent checks at Kroger stores in at least 12 states, many of which were in the Indianapolis area, to purchase gift cards and merchandise. The government alleges that Powell and his associates used more than 5,000 fraudulent checks during the course of the fraud scheme in at least thirty different individual and business names, such as “Frank Powell”, “Frank Pawell” and “Pawell Child Care LLC.” After processing, the checks would ultimately be returned to Kroger as “account closed, forged, non-sufficient funds or unable to locate account.”
In a second scheme, on March 12, 2018, Powell attempted to defraud a local bank and car dealership when he tried to obtain financing for the purchase a Cadillac Escalade using the identity of another person (victim), without that victim’s knowledge or authorization. Powell used the name, address and social security number of that victim, along with a fraudulent Illinois driver’s license that contained the victim’s information but Powell’s photograph, during the loan application process. When employees at the car dealership determined that Powell was not the individual described in the loan application, Powell allegedly offered one of the employees a sectional sofa to not report his illegal activity.
This case was investigated by the Federal Bureau of Investigation, Hamilton County Prosecutor’s Office, Fishers Police Department, Carmel Police Department, Johnson County Sheriff’s Department, Indianapolis Metropolitan Police Department and Kroger’s Organized Retail Crime Investigators, Central Division.
"This indictment sends a clear message that the FBI will aggressively investigate those who commit financial fraud," said Grant Mendenhall, Special Agent in Charge of the FBI's Indianapolis Division. "It also highlights the strong relationships we have with our local law enforcement partners in pursuit of those who take advantage of others through their illegal and criminal behavior.
“Kroger admires the diligence of every agency involved in this investigation,” said Eric Halvorson, Manager of Corporate Affairs, The Kroger Co., Central Division. “We know it required a substantial effort from the store level up to the U.S. Attorney’s Office. We are pleased the partnership produced the evidence that led to this indictment.”
According to Assistant United States Attorney MaryAnn T. Mindrum, who is prosecuting this case for the government, Powell could face up to 30 years’ imprisonment on bank-related charges, up to 20 years’ imprisonment on each of the wire fraud charges, and a mandatory minimum of 2 years’ imprisonment on the aggravated identity theft charge, to be served consecutive to any other sentence, if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are considered innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution sentencing demonstrates the office’s firm commitment to partner with federal and local law enforcement agencies to prosecute complex and large-scale fraud schemes that undermine faith in the markets, as well as to prosecute sophisticated identity fraud organizations. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Sections 4.5 and 5.1)
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Houston Man Sentenced for Cocaine ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MILTON CARLOS SEGURA-SANCHEZ, age 36, from Houston, Texas, was sentenced on May 16, 2018 by United States District Judge Sarah S. Vance.
SEGURA-SANCHEZ pled guilty to conspiracy to distribute one kilogram or more of cocaine hydrochloride, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), and 846.
Judge Vance sentenced SEGURA-SANCHEZ to 88 months imprisonment. Upon release, SEGURA-SANCHEZ will serve a 4 year term of supervised release. Additionally, the defendant was ordered to pay a $100 special assessment.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
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Houma Man Pleads Guilty to Heroin ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that MICHAEL C. CRAWFORD, JR., age 42, of Houma, pled guilty today to three counts of distribution of heroin.
According to court documents, on January 20, 24, and 30, 2018, CRAWFORD distributed a quantity of a mixture containing a detectible amount of heroin. For each charge, CRAWFORD faces a term of imprisonment of up to twenty years, at least three years of supervised release following any term of imprisonment, and a fine of up to $1,000,000.
Judge Ivan L. R. Lemelle set sentencing for August 20, 2018.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Terrebonne Parish Sheriff’s Office. Assistant U.S. Attorneys Nicholas D. Moses, André Jones, and James Baehr are in charge of the prosecution.
Houma Man Indicted for Possession of Child PornographyRead the Press Release
NICHOLAS GARCIA (“GARCIA”), age 32, of Houma, Louisiana, was indicted today for possession of child pornography, announced United States Attorney Duane A. Evans.
On February 21, 2018, law enforcement officers with the Louisiana Bureau of Investigation arrested GARCIA after finding that GARCIA was in possession of a Samsung Galaxy tablet that contained images and videos depicting the sexual victimization of prepubescent children.
Court records also revealed that GARCIA was previously convicted on December 14, 2009, in Terrebonne Parish Criminal District Court for indecent behavior with juveniles and was sentenced to five (5) years imprisonment.
U. S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Due to his prior conviction, if convicted, GARCIA faces a mandatory minimum penalty of ten (10) years imprisonment up to twenty (20) years, followed by up to a life term of supervised release, and a $250,000.00 fine. In addition, GARCIA will be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
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.”
U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Bureau of Investigation, and Terrebonne Parish Sheriff’s Office in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Honduran National Sentenced for Illegal Use of a Social Security NumberRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that ALLAN ARZU MATAMOROS-BANEGAS (“MATAMOROS-BANEGAS”), age 31, was sentenced today after pleading guilty to a one-count Bill of Information that charged him with illegal use of a social security number in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court records, MATAMOROS-BANEGAS knowingly and with the intent to deceive, falsely represented that a social security number was assigned to him by the Commissioner of Social Security when, in fact, as MATAMOROS-BANEGAS knew, the social security number had not been assigned to him. His deception and illegal use of the social security number was done for the purpose of obtaining employment located in the Eastern District of Louisiana. United States District Judge Carl J. Barbier sentenced MATAMOROS-BANEGAS to a term of imprisonment of time served, a term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Michael M. Simpson is in charge of the prosecution.
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Henderson Man Sentenced for Sex Trafficking of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Carl Burdick, 59, of Henderson, NY, who was convicted of transporting a minor across state lines for the purpose of engaging in sexual conduct, was sentenced to 20 years in prison and 10 years supervised release by U.S. District Judge Charles J. Siragusa. The defendant will also have to register as a sex offender.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that Burdick, a long haul truck driver, utilized text messaging and social media to develop a sexual relationship with a 15-year-old female living in the Western District of New York. The defendant engaged in grooming activity over a period of several months in 2015, during which he solicited nude photographs from the victim. In the summer of 2015, Burdick took the victim from her home in Wayne County to the State of Montana in his tractor-trailer, during which time the defendant engaged in criminal sexual activity with the victim.
The sentencing is the result of an investigation by the Wayne County Sherriff’s Department, under the direction of Barry Virts; the Monroe County Sherriff’s Department, under the direction of Sheriff Todd Baxter; 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. Additional assistance was also provided by the Bivona Child Advocacy Center.
Haughton man pleads guilty to distribution of methamphetamine obtained in DallasRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Haughton man pleaded guilty Tuesday to distribution of methamphetamine the defendant obtained in Dallas.
Jason Rich, 47, of Haughton, Louisiana, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of possession with intent to distribute methamphetamine. According to the guilty plea, law enforcement agents obtained information that Rich was a methamphetamine and marijuana distributer in Haughton. After conducting an investigation, agents learned that Rich may have traveled to Dallas, Texas, to obtain drugs and was on his way back. A Louisiana State Police trooper stopped Rich’s vehicle May 3, 2018 near the intersection of Interstate-220 and Louisiana Highway 80. The trooper searched the vehicle and found a semi-automatic handgun, 141.3 grams of methamphetamine, 36.5 grams of the marijuana, and three blue and white capsules containing approximately 31.1 grams of methamphetamine. Rich said he knew about the firearm and had purchased 4 ounces of methamphetamine from two different sources in the Dallas area.
Rich faces 10 years to life in prison, at least five years of supervised release and up to a $10 million fine. The court set a sentencing date of September 7, 2018.
The case was investigated by the DEA and the DEA task force, which consists of state and local agencies like the Louisiana State Police and Caddo Parish Sheriff’s Office. Assistant U.S. Attorney Mary J. Mudrick is prosecuting the case.
Grenada Woman Sentenced to over 14 Years in Federal Prison on Drug ChargesRead the Press Release
Gulfport, Miss. – Tambra Brown, 30, of Grenada, was sentenced today by U.S. District Judge Sul Ozerden, Jr. to 175 months in federal prison, followed by 5 years of supervised release, for conspiracy to possess with intent to distribute 500 grams or more of cocaine and 50 grams or more of actual methamphetamine, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration Assistant Special Agent in Charge Derryle Smith. Brown was also ordered to pay a $3,000.00 fine.
During the investigation of a drug conspiracy ring, DEA agents learned through cooperating sources that Brown was involved in transporting narcotics from Texas to the Mississippi Gulf Coast. At least three cooperating sources identified Brown and provided information about her participation in the conspiracy. According to the sources, Brown would travel from Grenada, Mississippi, to Houston, Texas, where she would pick up the methamphetamine, cocaine or large amounts of United States currency and then then travel to the Gulf Coast. During another individual’s arrest, agents located some of the methamphetamine that was involved in the conspiracy, which had a 90% purity level.
The case was investigated by the Drug Enforcement Administration, Mississippi Bureau of Narcotics and Gulfport Police Department. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Great Falls Felon Sentenced for Gun PossessionRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that 31-year old Daniel Gonzalez of Great Falls was sentenced to 30 months in prison, three years of supervised release, and a $100 special assessment. U.S. District Judge Brian M. Morris presided over the hearing.
In June of 2017, Great Falls law enforcement searched for Gonzalez in relation to a shooting that had occurred in Great Falls. Officers were aware that Gonzalez typically carried a firearm and had an outstanding warrant. On June 12, 2017, officers received information that Gonzalez was still in town. Detectives subsequently located Gonzalez sitting in the passenger seat of a car in a parking lot. They could not see any other occupants in the car. Officers approached the car and arrested Gonzalez.
Detectives received permission to search the car and retrieved a black handgun from underneath the passenger seat where Gonzalez had been seated. The handgun was loaded with round in the chamber; the magazine also contained several rounds of ammunition.
Gonzalez admitted that he was a heroin user and had been seeking drugs. He also admitted that the gun found underneath the passenger seat of the car was his firearm. He said he had received the firearm as payment for a heroin deal that had occurred a few months prior. Gonzalez added that it was necessary to carry a gun in Great Falls because everyone had a firearm.
Gonzalez has an extensive criminal history that includes prior convictions for thefts, burglaries, assaults, and domestic violence, and is prohibited from possessing firearms.
The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department.
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.
Great Falls Businessman Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced that Jay Nash, 50, of Great Falls, Montana, pleaded guilty to Wire Fraud and Money Laundering during a federal court hearing on May 16, 2018, in Great Falls, Montana, before U.S. District Judge Brian M. Morris. Nash faces a federal prison sentence of up to 30 years, a $500,000 fine, restitution of over $800,000, and a $200 special assessment.
In an Offer of Proof, Assistant U.S. Attorneys Ryan Weldon and Thomas Bartelson stated the Government would have proved Nash obtained a warranty deed on the property owned by a victim. The parties entered into a Promissory Note, which outlined that Nash would pay the victim an amount equal to the value of the house. The Promissory Note was secured by a mortgage, which was never filed with Cascade County. Four months later, Nash took out mortgages on the property totaling over $180,000. Nash ultimately sold the property and did not give the proceeds of the sale to the victim.
As part of the investigation, agents tracked where Nash spent the victim’s money from the two mortgages and the ultimate sale of the house. Agents discovered that Nash spent the money on boats, furniture, sex toys, his mother’s house, and other unrelated living expenses. None of those expenditures were approved by the victim, nor was the money given for that purpose.
The investigation also revealed three other victims. Similarly, Nash entered into promissory notes with these additional victims and spent the money on unauthorized purchases, including ATVs, tax payments to the IRS, and a motorhome. In one example, Nash spent over $430,000 of victim money in less than 120 days.
Sentencing is set for September 27, 2018, at 10:00 a.m., at the Missouri River Courthouse, in Great Falls, Montana, before U.S. District Court Judge Brian M. Morris.
This case was investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and local law enforcement.
Georgia Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss – Horace M. Rutledge, Jr., 44, of Atlanta, Georgia, entered a guilty plea today before U.S. District Judge Louis Guirola, Jr. to possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst.
Rutledge admitted he brought a .50 caliber rifle, a multi-caliber rifle with two 30-round magazines, and a multi-caliber pistol to a confidential informant as the second down payment for cocaine on September 23, 2017. On August 27, 2017, Rutledge brought $27,500 to Gulfport as a down payment for cocaine. Rutledge and others were part of conspiracy that was attempting to purchase as much as 50 kilos of cocaine from a DEA confidential informant. They wired money to Gulfport along with bringing cash and the firearms. Rutledge has four previous convictions for second degree assault, felony resisting arrest, possession of a firearm, and sale of a firearm as a second offender from Nassau County, New York.
Rutledge faces a potential maximum sentence of 10 years in prison and a $250,000 fine. Sentencing is set for August 16, 2018, at 10:00 a.m. before U.S. District Judge Sul Ozerden.
The case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is prosecuted by Assistant United States Attorney Annette Williams.
Georgetown Man Convicted of Federal Narcotics and Firearms OffensesRead the Press Release
Charleston, South Carolina ---- Tywone Eli Reed, age 38, of Georgetown, South Carolina, was convicted in federal court, in Charleston, of possession with intent to distribute 100 grams or more of heroin, as well as a quantity of cocaine and crack cocaine; possession of firearms and ammunition by a convicted felon; possession of a firearm with an obliterated serial number; and possession of firearms in furtherance of a drug trafficking crime. Senior United States District Judge P. Michael Duffy, of Charleston, presided over the trial and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the trial established that on September 2, 2016, the 15th Circuit Drug Enforcement Unit, comprised of narcotics investigators from local law enforcement agencies in Georgetown and Horry counties, executed a search warrant at the defendant’s residence. In the defendant’s kitchen, agents found over 200 grams of heroin, almost 225 grams of cocaine and approximately twenty grams of crack cocaine, along with paraphernalia used to manufacture crack cocaine and package narcotics for distribution. In the defendant’s bedroom, agents recovered two loaded handguns on the nightstand, a loaded .556 caliber rifle leaning against the wall and a .22 caliber handgun in a drawer. They also recovered approximately $3,800 from the defendant’s bedroom. Agents recovered a total of 439 rounds of various caliber ammunition from the defendant’s kitchen and bedroom. Evidence also showed that a six year old child was in the defendant’s residence at the time the search warrant was executed, despite agents waiting until school was in session to execute the search warrant.
Bill Knowles, Commander of the 15th Circuit Drug Enforcement Unit, stated, “We appreciate the working relationship that the DEU has with the United States Attorney’s Office and we are pleased with the jury’s decision to hold the defendant responsible for choosing to deal dangerous narcotics while heavily armed in our community.” United States Attorney Drake added, “In the U.S. Attorney’s Office, we do our best work when we work closely with our state and local law enforcement. Many thanks to the 15th Circuit Drug Enforcement Unit and the DEA for the investigation that lead to getting this heavily armed heroin dealer off the street.”
Ms. Drake stated that Reed faces a mandatory minimum of ten years’ imprisonment and a maximum penalty of life imprisonment.
The case was investigated by agents of the 15th Circuit Drug Enforcement Unit, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Georgetown County Sheriff’s Office, City of Georgetown Police Department and the 15th Circuit Solicitor’s Office. Assistant United States Attorneys Nick Bianchi and Chris Schoen of the Charleston office tried the case.
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Gang Member Sentenced for Multiple ChargesRead the Press Release
CORPUS CHRISTI, Texas - A 25-year-old Corpus Christi resident and member of the Texas Mexican Mafia has been sentenced to federal prison on charges of sex trafficking of a child as well as firearms and drug trafficking charges, announced U.S. Attorney Ryan K. Patrick. Marcus Anthony Tunchez was convicted on charges of sex trafficking of a child after a one-day trial that occurred Dec. 14, 2017. Tunchez had previously entered a guilty plea for the drug trafficking and narcotics charges prior to trial.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Tunchez to 151 months in prison on the charges of sex trafficking of a child. He also received 60 months for distributing methamphetamine as well as 60 months for being a felon in possession of a firearm. The sentences will run concurrently for a total 151-month-term of imprisonment. Tunchez was further ordered to serve 10 years on supervised release on each of his cases following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
At the hearing, the court also heard testimony from a federal agent who reported that in August 2017, Tunchez attempted to rob someone. During the course of the robbery, Tunchez pointed a firearm at the victim’s head and fired a round that narrowly missed him. The victim was able flee and flagged down a police officer. The agent also testified that Tunchez used a social media application to advertise methamphetamine and used several local hotels to prostitute women and distribute methamphetamine.
During trial, U.S. District Judge heard about a joint investigation targeting gang members in the Corpus Christi area involved in narcotics trafficking and the sex trafficking of children. Tunchez was one of those identified as a member of the Mexican Mafia gang involved in both methamphetamine distribution and sex trafficking.
In May 2017, Tunchez began selling methamphetamine to an undercover officer and said he acted as a pimp to several young women. Tunchez explained he created and posted advertisements on a commercial sex website for the young women who then gave half the proceeds from their commercial sex acts to Tunchez. During the investigation, authorities also learned Tunchez was a convicted felon and discovered a social media posting of a video depicting Tunchez firing a pistol at a gun range in Corpus Christi.
In September 2017, Tunchez met with the undercover officer for the purpose of sex trafficking a child he believed was a 14-year-old girl. Tunchez expected to meet the child and transport her to a hotel where she would engage in a commercial sex act. Tunchez expected to receive 20 percent of the proceeds. He was taken into custody upon his arrival at the designated meeting place.
At trial, he attempted to convince the court that he intended to rob the undercover officer and not commit a sex trafficking crime. Judge Ramos did not believe his claims and found him guilty as charged.
Tunchez was arrested on federal charges in September 2017 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which 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."
Fort Thompson Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Involuntary Manslaughter was sentenced on May 14, 2018, by U.S. District Judge Roberto A. Lange.
Zachery Lee Ziegler, age 32, was sentenced to 20 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.
Ziegler was indicted by a federal grand jury on June 14, 2017. He pled guilty on February 21, 2018.
The conviction stemmed from an incident on May 23, 2017, when the victim was a guest at a residence in Fort Thompson, where an acquaintance of Ziegler’s lived. Ziegler had purchased $20 of meth from an individual at the home, but it was “bad” so Ziegler returned to the home to get his $20 back. The owner of the residence asked Ziegler to leave. As Ziegler was leaving, Ziegler and the victim entered into a physical confrontation where Ziegler struck the victim in the head with his fist, incapacitating him on the ground. Ziegler then fled the scene. The victim was transported via ambulance to the Sanford Chamberlain Hospital where he was later pronounced dead.
An autopsy revealed that the cause of death was subdural hemorrhage due to blunt force injury of the head due to assault.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Ziegler was immediately turned over to the custody of the U.S. Marshals Service.
Fort Hall Man Sentenced to 87 Months in Prison for Federal Gun OffenseRead the Press Release
POCATELLO - Tyrell Owen Dixey, 34, of Fort Hall, Idaho, was sentenced yesterday for illegal possession of a sawed-off shotgun, U.S. Attorney Bart M. Davis announced. Chief U.S. District Judge B. Lynn Winmill sentenced Dixey to 87 months in prison, followed by three years of supervised release. Dixey pleaded guilty to the charge in February 2018.
According to the plea agreement, on January 30, 2017, a vehicle was stopped in Fort Hall. Dixey was a passenger in the vehicle. Inside the vehicle, officers found a Mossberg 12 gauge shotgun with a barrel of less than 18 inches in length. The shotgun was later determined to have Dixey’s fingerprints on it. Dixey admitted possessing the shotgun and knowing the shotgun had a barrel length of less than 18 inches. The shotgun was not registered to Dixey in the National Firearms Registration and Transfer Record, as required by law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Fort Hall Police Department.
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.
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Former Tribal Executive Sentenced to Federal Prison for EmbezzlementRead the Press Release
United States Attorney Ron Parsons announced that a former executive board member of the Old Agency District of the Sisseton-Wahpeton Oyate Tribe, was sentenced in federal court to 16 months of imprisonment. Barbara Kirk, 66, of Sisseton, South Dakota, was also ordered to pay restitution in the amount of $100,620, and to serve three years of supervised release following her prison sentence.
According to court documents, beginning on or about January 20, 2011, and continuing through March 9, 2013, in the District of South Dakota and elsewhere, Barbara Kirk and others embezzled, stole, and knowingly converted to their own use, funds from the Old Agency District of the Sisseton Wahpeton Oyate Tribe (“Tribe”), an Indian tribal organization, and aided and abetted each other in doing so. The Old Agency District (“District”) is a subdivision of the Tribe.
Kirk, among others, were elected executive board members of the District. During the relevant time period, the District's executive board members were entitled to receive a monthly stipend for their service. From approximately January 2011 through March 2013, Kirk and others stole money from the District by writing checks to themselves for payroll, stipends, assistance, travel, and other miscellaneous reasons. Kirk and her co-defendants stole a total of $360,499 from the District and used the funds for their own purposes.
The investigation was conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Scott Township Man Pleads Guilty in Methamphetamine Distribution SchemeRead the Press Release
PITTSBURGH, PA – A former resident of Scott Township, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics laws , United States Attorney Scott W. Brady announced today.
Charles D. Outcalt, Jr., age 25, pleaded guilty to two counts before United States District Court Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on July 29, 2016, Outcalt conspired with others to distribute and possessed with intent to distribute over 5 grams of actual methamphetamine.
Judge Hornak scheduled sentencing for September 14, 2018. The law provides, at each count, for a term of imprisonment of not less than 5 years and not more than 40 years, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Stowe Township Police Department and the Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Hamilton County Deputy Charged with Excessive Use of ForceRead the Press Release
CINCINNATI – A federal grand jury has charged Jason Mize, 31, of Cincinnati, with using unreasonable force while acting under color of law in an indictment returned here yesterday and unsealed today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to the indictment, on August 20, 2016, Hamilton County Sheriff’s Office deputies arrested a 61-year-old individual and brought him to the county Justice Center for processing.
While the victim was in medical intake, Mize allegedly approached the victim from behind and told the individual to stand. It is alleged that Mize then pushed the victim towards a holding cell, shoving the victim with such force that the victim collided headfirst with a concrete wall. The victim suffered bodily injury, including lacerations to his scalp and a leg fracture.
Mize is charged with one count of depravation of rights under color of law, a crime punishable by up to 10 years in prison. He was arrested today by FBI agents.
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorneys Megan Gaffney and Ebunoluwa Taiwo, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Former Bookkeeper Who Embezzled Employers Sentenced to 3 Years in Prison and Ordered to Pay over $3 Million in Restitution for Filing False Tax ReturnsRead the Press Release
A former bookkeeper was sentenced today to 3 years in prison and ordered to repay over $3 million, for failing to report to the Internal Revenue Service (“IRS”) money she embezzled from her employers.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Lauren Ransom, 49, of Deerfield Beach, was sentenced to 36 months in prison, to be followed by 1 year of supervised release by U.S. District Judge Federico Moreno, in Fort Lauderdale. Ransom was also ordered to pay $2,245,402.13 in restitution to her former employers and $790,983 to the IRS. Ransom previously pled guilty to three counts of making and subscribing a false tax return, in violation of Title 26, United States Code, Section 7206(1).
According to stipulated facts filed with the court and information provided at the sentencing hearing, for over thirty-three years, the defendant worked as a bookkeeper at two South Florida insurance companies. Ransom embezzled money from one of the company’s business accounts where she used her signatory authority on the accounts and wrote unauthorized company checks payable to “Cash” and “Lauren Ransom.” She then cashed these checks or deposited them into her personal checking account. Ransom used the money to pay for her credit cards, mortgage and auto loans, insurance, and other personal living expenses. She also gambled and lost approximately $1,410,276.95 from December 1, 2008 to January 31, 2014 by playing slot machines.
Ransom concealed the embezzlement by altering numerous copies of these cancelled checks by “whiting out” and then changing the payee sections to create so-called legitimate business expenses for the insurance companies. The defendant created false hand-written entries in the companies’ cash disbursement journals, in order to further conceal the fraud.
In the stipulated facts filed with the court, Ransom admitted she filed false individual tax returns, Forms 1040, for tax years 2011, 2012, and 2013 because she knowingly failed to report to the IRS the money she had unlawfully obtained through her embezzlement scheme. The false statements resulted in tax losses.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant United States Attorney Randy Katz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Five Former Salesmen for Morris County Clinical Lab Sentenced for Bribing Doctors in $100 Million Test Referral SchemeRead the Press Release
NEWARK, N.J. – Five individuals were sentenced today for bribing doctors in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Craig Carpenito announced.
Doug Hurley, 38, of Hillsborough, New Jersey, and Kevin Kerekes, 52, of Florham Park, New Jersey, were both sentenced to 24 months in prison. Luke Chicco, 45, of Garden City, New York, was sentenced to 21 months in prison. Kristina Hamdan, 40, of Paterson was sentenced to 41 months in prison. David McCann, 45, of Lyndhurst, New Jersey, was sentenced to three years of probation. U.S. District Judge Stanley R. Chesler imposed all five sentences today in Newark federal court.
Hurley, Kerekes, and Chicco previously pleaded guilty in June 2013 to separate informations charging them with one count of conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act and one count of money laundering.
Hamdan pleaded guilty to Counts One and Thirteen of an indictment charging her with conspiracy to violate the Anti-Kickback Statute, the Federal Travel Act and the honest services wire fraud statute, and conspiracy to commit money laundering. McCann pleaded guilty to an information charging him with conspiring to violate the Anti-Kickback Statute and the Travel Act.
According to documents filed in this and related cases and statements made in court:Hurley, Kerekes, and Chicco each admitted that from the fall of 2010 through April 2013, they conspired with BLS president and part owner, David Nicoll and his brother, Scott Nicoll, to pay bribes to doctors in the forms of cash, checks and other means in order to induce them to refer patient blood specimens to BLS. Hurley, Kerekes, and Chicco also admitted that in some instances, they paid bribes to doctors through sham consulting companies, which they created and controlled, in order to hide the fact that BLS was the true source of the bribes.
Hamdan admitted that from November 2009 through April 2013, she paid doctors illegal bribes in exchange for blood specimen referrals to BLS. For example, Hamdan bribed Yousef Zibdie, an internal medicine doctor with a practice in Woodland Park, in exchange for generating more than $900,000 in lab business for BLS. The bribes were funded by BLS and, in an effort to obscure that BLS was the true source of the payments paid to the doctors by Hamdan, she made the payments through a sham consulting company that she created and controlled.
McCann paid thousands of dollars in cash on a monthly basis between December 2011 and April 2013 to numerous physicians on behalf of BLS in exchange for the doctors’ referral of blood specimens to BLS.
In addition to the prison term, Judge Chesler sentenced Hurley, Chicco, Kerekes, and Hamdan a year of supervised release. Hurley, Chicco, and Kerekes must also pay forfeiture of $800,000, $850,000, and $1.2 million, respectively. Hamdan must pay forfeiture of $1,209,890.36.
The investigation has thus far resulted in 53 convictions – 38 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $13 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca; IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation.The government is represented by Senior Litigation Counsel Joseph N. Minish, Assistant U.S. Attorneys Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit and Jacob T. Elberg, Chief of the Health Care and Government Fraud Unit, as well as Assistant U.S. Attorney Barbara Ward of the Asset Forfeiture and Money Laundering Unit.
Defense counsel: Luke Chicco: Robert J. Anello Esq., New York
Doug Hurley: Michael Baldassare Esq., Newark
Kevin Kerekes: Nace Naumoski Esq., Roseland and Alan Bowman Esq., Newark
McCann: Benjamin Choi Esq. and Joseph Horn, Esq., Rutherford, New Jersey
Kristina Hamdan: Edward J. Bilinkas Esq., Randolph, New JerseyFederal inmate admits to assault and sentencedRead the Press Release
CLARKSBURG, WEST VIRGINIA – Norman Hinton, an inmate at the United States Penitentiary Hazelton was sentenced today to 42 months incarceration, to be served consecutively to his current sentence, for assaulting another inmate, United States Attorney Bill Powell announced.
Hinton, age 39, pled guilty to one count of “Assault With a Dangerous Weapon With the Intent to do Bodily Harm” today. Hinton admitted to illegally possessing a deadly weapon and assaulting another inmate at USP Hazelton in Preston County on June 19, 2017.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Federal Bureau of Prisons investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Federal Prisoner Convicted of Possessing a WeaponRead the Press Release
CORPUS CHISTI, Texas – A 20-year-old man from Corpus Christi has entered a guilty plea to possessing a dangerous weapon while in custody, announced U.S. Attorney Ryan K. Patrick.
On Jan. 9, 2018, Isaiah Martinez was awaiting sentencing at the Coastal Bend Detention Facility. On that date, correctional officers responded to a large fight inside the unit between two groups of inmates. During the incident, which was caught on video, Martinez removed an object from his waistband and attacked another inmate, who sustained several puncture wounds to the right side of his abdomen.
During a search of the inmates involved in the fight, officers recovered a homemade weapon or “shank” that appeared to be a metal spike approximately six inches in length from Martinez.
The following day, Senior U.S. District Judge Hayden Head sentenced Martinez to a total of 240 months in prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
He again will appear before Judge Head for sentencing in this case on May 23, 2018. At that time, he faces another five-year-maximum term of imprisonment and a possible $250,000 fine.
Martinez has remained in federal custody since his initial arrest where he will remain pending that hearing.
The FBI and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Federal Law Enforcement Involved in Fatal Shooting in Cleveland CountyRead the Press Release
OKLAHOMA CITY – On Thursday, May 17, at approximately 11:15 a.m., members of the Western District of Oklahoma’s U.S. Marshals Metro Fugitive Task Force were involved in a shooting in rural Cleveland County, announced U.S. Marshal Johnny Kuhlman, Secret Service Special Agent-in-Charge Kenneth Valentine, and Acting U.S. Attorney Robert J. Troester. Federal law enforcement officers were attempting to arrest a suspect based on multiple federal warrants.
During the attempted arrest, the suspect produced a long gun and fired multiple rounds at Task Force members, who returned fire. The suspect was killed. His name is being withheld pending definitive identification and notification of next of kin.
As a matter of policy, the U.S. Marshals Service and the U.S. Secret Service will not release the names of law enforcement officers involved in shooting incidents until the conclusion of all investigations surrounding the incident. The Oklahoma Highway Patrol and the Oklahoma City Police Department will conduct a joint investigation of the shooting.
More information will be available in coming days concerning this ongoing investigation.
Federal Jury Convicts Three High-Ranking Bloods Gang Members of Racketeering ConspiracyRead the Press Release
Three high-ranking leaders of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, including the “Godfather” of the organization, who also served as “Chairman” of the UBN, were convicted today of racketeering conspiracy charges.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
Pedro Gutierrez, aka Magoo/Light/Inferno, 45; James Baxton, aka Frank White, 44; and Cynthia Gilmore, aka Cynthia Young/Lady Bynt, 42, Raleigh, North Carolina, were convicted by a federal jury sitting in Charlotte following a two-week trial.
“This guilty verdict represents a significant blow against the highest leadership of the Nine Trey Gangsters and the United Blood Nation,” said Acting Assistant Attorney General Cronan. “It reflects the sustained and extensive commitment by federal, state and local law enforcement, including the Criminal Division’s Organized Crime and Gang Section, to disrupt and dismantle this and other prison and street gangs throughout the country.”
“UBN uses violence and intimidation to assert power over our neighborhoods and vicious tactics to bolster the image of an indestructible gang,” said U.S. Attorney Murray. “Today’s convictions of three high-ranking leaders delivered a blow to that myth, proving that UBN gangsters are no different than other common criminals – they can and will be found and prosecuted for their crimes. As we continue our efforts to curb gang violence and devastate gang networks in Western North Carolina, we have a message for the UBN and all other criminal organizations: We are coming for you. Person by person, set by set, clique by clique, and leader by leader. You are in our sights. Your gang will be dismantled and you will be held accountable.”
“These leaders of the UBN thought they were untouchable, continuing to run their criminal enterprise from inside state prison,” said Special Agent in Charge Strong. “Today’s guilty verdicts in federal court abruptly put an end to their dirty business. Do not be mistaken, to anyone who tries to fill the criminal void left by these convictions, you should know, we'll come after you next with the full strength of our federal, local, and state law enforcement partners.”,.
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since its inception as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”
According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and, “Godfather.” Based on evidence introduced during the trial, Gutierrez was a “Godfather” of the Nine Trey Gangsters and had served since 2003 as the “Chairman” of the council that governs the UBN. Gutierrez, together with James Baxton and Omari Rosero, were “the last ones that God put in power” over the UBN. As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011 directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months.
Further, trial evidence established that Cynthia Gilmore, who trafficked cocaine, was a local high-ranking officer who routinely traveled from North Carolina to New York to meet with Defendant Gutierrez, acting as his “eyes” and “voice” in the South. The evidence also showed that Baxton was trafficking heroin within the New York State and prison system. He also was calling and threatening the family members of inmates incarcerated in New York State in an effort to obtain money.
In addition to the three defendants convicted at trial today, 35 defendants have previously pleaded guilty in this investigation, including nine defendants in high-ranking leadership positions:
- Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN gang.
- Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy. Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.”
- Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
- Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Moreover, Coker was recorded discussing a potential murder of a rival gang member;
- Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low”;
- Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards;
- Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of Harrison’s plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton;
- MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and heroin trafficking, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low”; and
- Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.”
The following defendants have also pleaded guilty in this case:
- Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
- Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
- Christopher Dentre Hamrick, aka Red Dot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
- Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy;
- Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy;
- Joe Tarpeh Johnson, aka JR, Big Pusha, and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
- Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
- Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy;
- Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy;
- James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy;
- Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
- Anthony Bernard Smith, 25, aka Redd Lion, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy;
- Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
- Cedric Surratt, aka Hollywood, 5-Star and Lingo, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud; and
- Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Federal Jury Convicts Three High-Ranking Bloods Gang Members of Racketeering ConspiracyRead the Press Release
CHARLOTTE, N.C. – Three high-ranking leaders of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, including the “Godfather” of the organization, who also served as “Chairman” of the UBN, were convicted today of racketeering conspiracy charges.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
Pedro Gutierrez, aka Magoo/Light/Inferno, 45; James Baxton, aka Frank White, 44; and Cynthia Gilmore, aka Cynthia Young/Lady Bynt, 42, all of Raleigh, North Carolina, were convicted by a federal jury sitting in Charlotte following a two-week trial.
“This guilty verdict represents a significant blow against the highest leadership of the Nine Trey Gangsters and the United Blood Nation,” said Acting Assistant Attorney General Cronan. “It reflects the sustained and extensive commitment by federal, state and local law enforcement, including the Criminal Division’s Organized Crime and Gang Section, to disrupt and dismantle this and other prison and street gangs throughout the country.”
“UBN uses violence and intimidation to assert power over our neighborhoods and vicious tactics to bolster the image of an indestructible gang,” said U.S. Attorney Murray. “Today’s convictions of three high-ranking leaders delivered a blow to that myth, proving that UBN gangsters are no different than other common criminals – they can and will be found and prosecuted for their crimes. As we continue our efforts to curb gang violence and devastate gang networks in Western North Carolina, we have a message for the UBN and all other criminal organizations: We are coming for you. Person by person, set by set, clique by clique, and leader by leader. You are in our sights. Your gang will be dismantled and you will be held accountable.”
“These leaders of the UBN thought they were untouchable, continuing to run their criminal enterprise from inside state prison,” said Special Agent in Charge Strong. “Today’s guilty verdicts in federal court abruptly put an end to their dirty business. Do not be mistaken, to anyone who tries to fill the criminal void left by these convictions, you should know, we'll come after you next with the full strength of our federal, local, and state law enforcement partners.”,.
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since its inception as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”
According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and, “Godfather.” Based on evidence introduced during the trial, Gutierrez was a “Godfather” of the Nine Trey Gangsters and had served since 2003 as the “Chairman” of the council that governs the UBN. Gutierrez, together with James Baxton and Omari Rosero, were “the last ones that God put in power” over the UBN. As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011 directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months.
Further, trial evidence established that Cynthia Gilmore, who trafficked cocaine, was a local high-ranking officer who routinely traveled from North Carolina to New York to meet with Defendant Gutierrez, acting as his “eyes” and “voice” in the South. The evidence also showed that Baxton was trafficking heroin within the New York State and prison system. He also was calling and threatening the family members of inmates incarcerated in New York State in an effort to obtain money.
In addition to the three defendants convicted at trial today, 35 defendants have previously pleaded guilty in this investigation, including nine defendants in high-ranking leadership positions:
- Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN gang.
- Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy. Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.”
- Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
- Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Moreover, Coker was recorded discussing a potential murder of a rival gang member;
- Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low”;
- Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards;
- Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of Harrison’s plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton;
- MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and heroin trafficking, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low”; and
- Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.”
The following defendants have also pleaded guilty in this case:
- Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
- Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
- Christopher Dentre Hamrick, aka Red Dot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
- Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy;
- Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy;
- Joe Tarpeh Johnson, aka JR, Big Pusha, and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
- Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
- Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy;
- Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy;
- James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy;
- Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
- Anthony Bernard Smith, 25, aka Redd Lion, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy;
- Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
- Cedric Surratt, aka Hollywood, 5-Star and Lingo, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud; and
- Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Federal Jury Convicts Man of String of Violent Convenience Store Robberies in the TriangleRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, JOHN DEVERE BATTLE, 25, of Durham, was convicted in a four-day jury trial before Senior United States District Judge Malcolm J. Howard. The jury found BATTLE guilty of 12 counts including Conspiracy to commit Hobbs Act Robbery, Interference with commerce by robbery and aiding and abetting, four-counts of Brandishing a firearm in furtherance of a crime of violence and aiding and abetting, Interference with commerce by robbery and aiding and abetting, Taking motor vehicle by force, violence and intimidation with intent to cause serious bodily injury, and aiding and abetting, Bank robbery and aiding and abetting, two-counts of Possession of a firearm and ammunition by a convicted felon.
The evidence at trial showed that on May 14, 2016 BATTLE and others robbed the Kangaroo gas station located at 1807 North Harrison Avenue in Cary at gunpoint. On June 15, 2016, BATTLE and others robbed the Quality Mart gas station located at 7411 Chapel Hill Road in Cary at gunpoint. On June 16, 2016, BATTLE and others committed a home invasion in Cary. During the home invasion, BATTLE and others robbed the victims at gunpoint, tied up the victims and threatened to kill them. One of the victims was pistol-whipped. BATTLE and others took one of the victims at gunpoint to a bank in Cary and forced the victim to withdraw money. The evidence also established that BATTLE was arrested on June 17, 2016 after the execution of a search warrant at a home in Wendell, NC. During the execution of the search warrant, a handgun was recovered along with numerous stolen items taken from the home invasion.
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.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
At sentencing, currently scheduled for September 11, 2018, BATTLE faces a mandatory 82 years federal prison sentence.
The investigation of this case was conducted by the Cary Police Department, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Durham Police Department, Federal Bureau of Investigation, Wake County Sheriff’s Office, and Wendell Police Department. Assistant United States Attorneys Peggah B. Wilson and Ethan A. Ontjes represented the government in this case.
Fall River Man Admits to Being an Armed Drug TraffickerRead the Press Release
PROVIDENCE, RI – An armed drug trafficker arrested by Newport Police during a Project Safe Neighborhoods investigation into an alleged cocaine and crack cocaine trafficking conspiracy pleaded guilty on Wednesday to federal drug trafficking and firearms charges.
Jose Martinez-Hernandez, 29, pleaded guilty in U.S. District Court in Providence, as charged in a federal indictment returned in December 2017, to one count each of conspiracy to possess with intent to distribute cocaine and crack cocaine, possession with intent to distribute cocaine, possession with intent to distribute crack cocaine, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm.
Martinez-Hernandez’s guilty plea is announced by United States Attorney Stephen G. Dambruch, Newport Police Chief Gary T. Silva, and Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives Mickey Leadingham.
The Project Safe Neighborhoods investigation by members of the Newport Police Department in October 2017, into an alleged drug trafficking conspiracy run out of Fall River, interrupted a prearranged delivery of cocaine in Newport and led to the arrest of Hernandez and three other individuals.
According to information presented to the Court, Newport Police detectives developed information regarding a scheduled delivery of 14 grams of cocaine for $600, on October 30, 2017. The delivery by members of an alleged drug trafficking conspiracy operating out of Fall River was to take place in the parking lot of the Newport Grand casino. Information developed by Newport Police detectives indicated that the traffickers would be travelling to the casino in two vehicles.
As the vehicles arrived in tandem and parked, Newport Police detectives surrounded the vehicles and detained the occupants. Hernandez, who was a passenger in one of the vehicles, was found to be carrying a loaded firearm and 11 grams of cocaine. A search of both vehicles and their occupants resulted in the additional seizure of two loaded firearms, 14 grams of cocaine and 37 individual bags of crack cocaine.
Also arrested, later charged by way of a federal indictment and now awaiting trial in federal court, are Antonio Oquendo Cancel, aka ”Loco,” 30, and Jorge L. Pizzaro, aka “Chino, 21, of Fall River, and Manuel C. Coradin, 38, of Cranston.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Martinez-Hernandez is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 7, 2018.
The cases are being prosecuted by Assistant U.S. Attorney Richard W. Rose.
Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted the Newport Police Department and the United States Attorney’s Office with the investigation of this matter and preparing the cases for prosecution.
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Ex-Teamsters Union Officials Plead Guilty to Embezzlement and FraudRead the Press Release
Scott Alexander, 56 and Nancy Alexander, 52, from Belleville, Illinois, entered pleas of guilty to Embezzlement and Theft from a Labor Union and Wire Fraud, the United States Attorney for the Southern District of Illinois, Donald Boyce, announced today. The offenses carry a possible sentence of up to 25 years in jail, a fine of up to $500,000 and mandatory restitution. Sentencing is scheduled for August 24, 2018.
As part of the plea, it was acknowledged that between January 1, 2012, and June 30, 2016, during the time Scott D. Alexander was President/Business Agent of the union Local 50 of the International Brotherhood of Teamsters and his wife Nancy L. Alexander was the Local’s office administrator, the Alexanders embezzled and converted Union funds by using the Union’s credit card to make personal purchases, manipulating their payroll withholdings in order to increase their net pay at the Local’s expense, receiving more vacation pay than earned, receiving salary while on vacation, and receiving additional auto allowance payments.
The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Elizabeth Man Sentenced for Role in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH, PA – A resident of Elizabeth, Pennsylvania, has been sentenced in federal court to three years’ probation, 150 hours’ community service, and a $3000 fine on his conviction of conspiracy to distribute narcotics, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Paul Sedor, 36. According to information presented to the court at the time he entered a guilty plea, Sedor, from March through June 2017, regularly purchased one-quarter ounce to one-ounce quantities of cocaine from his codefendant, Skyler Carter, for personal use and further distribution purposes. He was held responsible for the distribution of approximately 100 grams of cocaine during that time period. This was Sedor’s first drug trafficking conviction. He is the second of the 21 defendants charged in the conspiracy to be sentenced.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). 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.