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Thursday 5 April 2018
Orlando Men Sentenced to Federal Prison for Scheme Involving Impersonating Homeland Security AgentsRead the Press Release
Orlando, Florida –U.S. District Judge Carlos E. Mendoza has sentenced John Pierre Mack, III (26, Kissimmee) and David Augusta Jones, III (27, Orlando) to four years and nine years in federal prison, respectively, for conspiracy to commit wire fraud and wire fraud. They pleaded guilty in January 2018.
According to court documents, from at least August 2015 through July 6, 2017, the conspirators demanded money from victims by claiming to be agents with the Department of Homeland Security (DHS) and/or the Cyber Crimes Center (C3). Typically, the victims had responded to an online dating post and engaged in a conversation and exchange of photos with a female that they believed was an adult. The victims were later contacted by the schemers posing as “agents,” who alleged that the female from the dating post was under the age of 18. The “agent” would claim that they had an arrest warrant for charges of soliciting a minor and would then direct the victim to make payments for “fines” and “penalties,” in lieu of being arrested. To further their scheme, the “agents” sent paperwork to victims displaying the DHS seal, a judge’s name, and legal terms related to child exploitation. The schemers utilized email addresses containing variants of “child exploitation” and “cybercrimes center” in their correspondence. The victims were directed to retail locations to wire money to pay these “fines” or “fees,” and the conspirators then took turns picking up the payments. The defendants also traded victims with each other to continue the scheme and to get more money. The victims, many of whom were members of the military or elderly, sent multiple extortion payments, ranging from $200 to $1,900 per transaction, fearing they would otherwise be arrested.
Mack was a supervisor/manager in this scheme and received at least 61 extortion payments from victims totaling $79,847. Jones received at least 30 payments from victims totaling $66,684. Law enforcement agents estimate that the scheme generated more than $340,000 in profits.
Four others previously pleaded guilty for their roles in this scheme. Last month, Ronnie Rolland Montgomery (28, Orlando) was sentenced to 7 years in federal prison and Ashley Ferrell (26, Orlando) was sentenced to 10 months’ imprisonment. Dillon McDowell (26, Orlando) will be sentenced on April 26, 2018, and Amaryllis Pagan (20, Kissimmee) will be sentenced on May 29, 2018.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations – Office of Professional Responsibility and Homeland Security Investigations (San Diego), with assistance from the Naval Criminal Investigative Service (San Diego) and the Osceola County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorneys Christina R. Downes and Brandon Bayliss, on assignment from the Office of the Principal Legal Advisor, ICE.
Okmulgee Man Pleads Guilty to Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kenneth Delano Fultz, Jr., age 46, of Okmulgee, Oklahoma pled guilty to Felon in Possession of Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
The Indictment alleged that on or about January 16, 2018, within the Eastern District of Oklahoma, the defendant, Kenneth Delano Fultz, Jr., having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, to-wit: One (1) Sig Sauer, Model SP, 9mm semi-automatic pistol, serial number 24B215081; and Eleven (11) rounds Tulammo, 7.62 x 39 caliber ammunition, which had been shipped and transported in interstate commerce.The charges arose from an investigation by the Okmulgee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Ohio County men indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Quavonte Pugh and Caveizz Cunningham, both of Wheeling, West Virginia, were arrested today and appeared in federal court to face drug charges after being indicted by a federal grand jury on April 3, 2018, United States Attorney Bill Powell announced.
Pugh, also known as “Q,” age 22, was indicted on one count of “Conspiracy to Distribute Heroin and Cocaine Base,” one count of “Distribution of Heroin,” and two counts of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location.” Pugh is accused of conspiring to distribute heroin and cocaine base, selling heroin, and selling cocaine base near Bloch Playground in January 2018 in Ohio County
Cunningham, age 23, was indicted on one count of “Conspiracy to Distribute Heroin and Cocaine Base” and one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location.” Cunningham is accused of conspiring to distribute heroin and cocaine base and selling cocaine base near Bloch Playground in January 2018 in Ohio County.
Pugh and Cunningham each face up to 20 years incarceration and a fine of up to $1,000,000 for the conspiracy count and each face up 40 years incarceration and a fine of up to $2,000,000 for the distribution near a protected location count. Pugh also faces up to 20 years incarceration and a fine of up to $1,000,000 for the distribution of heroin count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, are investigating. The United States Marshals Service made the arrest.
U.S. Magistrate Judge James E. Seibert presided.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio County man indicted on heroin and cocaine chargesRead the Press Release
WHEELING, WEST VIRGINIA – Kevin J. Pugh, of Wheeling, West Virginia, was arrested today and appeared in federal court to face drug charges after being indicted by a federal grand jury on April 3, 2018, United States Attorney Bill Powell announced.
Pugh, age 38, was indicted on one count of “Distribution of Heroin within 1,000 Feet of a Protected Location,” one count of “Distribution of Cocaine within 1,000 Feet of a Protected Location,” and one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location.” Pugh is accused of selling heroin and cocaine near Bloch Playground in September and October 2017 in Ohio County.
Pugh faces up 40 years incarceration and a fine of up to $2,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, are investigating. The United States Marshals Service made the arrest.
U.S. Magistrate Judge James E. Seibert presided.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Oahu Tax Preparer Pleads Guilty to Filing Fraudulent ReturnsRead the Press Release
HONOLULU – Guillermo Dahilig, of Waialua, Hawaii, pled guilty today in federal court to one count of aiding and assisting in the preparation and filing of false tax returns in violation of Title 26, United States Code, Section 7206(2).
According to court documents and information presented in court, from 2009 to 2016, Dahilig was the owner and operator of Speedy Gill Services, an Oahu tax preparation business. He prepared between 750 and 1,000 tax returns per year for clients, and charged between $100 and $200 per return. Dahilig falsified his clients’ tax returns by claiming deductions for items such as medical expenses, personal property tax, job expenses, and charitable contributions that he knew were greater than the figures provided by his clients. He then filed the returns, knowing that they would generate refunds larger than his clients deserved. In addition, from at least 2010 through 2013, Dahilig underreported the income of Speedy Gill Services on the income tax returns he prepared and filed for himself and his wife.
“During tax season, it’s especially important to remember that filing false tax returns is a crime,” said U.S. Attorney Kenji Price. “Our office is committed to prosecuting tax preparers who make a living by stealing from the government’s coffers.”
IRS-CI Acting Special Agent in Charge Troy Burrus stated, “This plea comes at a time when most Americans are filing their tax returns. Law abiding citizens deserve to know that IRSCI will investigate and prosecute those return preparers who use specialized knowledge of the tax laws for their own personal gains. Bad return preparers like Guillermo Dahilig, can cause problems for clients when they file fraudulent returns. It pays to be cautious when entrusting your tax affairs to others.”
Dahilig’s sentencing is scheduled for July 16, 2018 before U.S. District Judge Susan Oki Mollway. He faces up to three years in prison, a fine of up to $250,000, and a period of supervised release of up to one year. He agreed to pay restitution to the IRS in an amount determined by the Court for the taxes due from fraudulent tax returns filed between tax years 2010 and 2015 for himself and his clients.
The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Amalia Fenton.
New Orleans resident sentenced to 30 months for possessing 282 counterfeit credit/debit cardsRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a New Orleans man was sentenced Tuesday to two and a half years in prison for possessing 282 counterfeited credit/debit cards.
Bruce Daliet, 34, of New Orleans, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of 15 or more counterfeit or unauthorized access devices. He was also sentenced to three years of supervised release and ordered to pay $14,010 in restitution.
According to the guilty pleas of Bruce Daliet and co-defendant Brittany Sanders, 35, also of New Orleans, a Louisiana State Police trooper pulled over a rental car on January 9, 2015 in St. Martin Parish that Daliet and Sanders were traveling in. The trooper searched the vehicle and found a pink suitcase that contained 282 counterfeit credit/debit cards and $4,000 worth of gift cards. Law enforcement agents discovered that 156 of the credit/debit cards were embossed with Sanders’ name, and 126 were embossed with Daliet’s name.
Sanders was sentenced on February 22, 2018, to 30 months in prison and three years of supervised release. She was also ordered to pay $14,010 restitution.
The U.S. Secret Service and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Robert F. Moore prosecuted the case.
New Orleans Man Pleads Guilty to Bank RobberyRead the Press Release
U.S. Attorney Duane A. Evans announced that EDDIE JAMES, age 40, of New Orleans, pled guilty yesterday before United States District Judge Sarah Vance to a one-count Bill of Information charging him with bank robbery in violation of Title 18, United States Code, Section 2113(a).
According to court documents, JAMES robbed the Fidelity Homestead Bank at 1201 S. Carrollton Avenue in New Orleans on November 2, 2017. JAMES faces a sentence of up to twenty years in prison, a period of up to three years of supervised release, and a fine of $250,000. Sentencing is scheduled for August 8, 2018 at 9:30 a.m.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney David Haller is in charge of the prosecution.
New Orleans Man Charged with Failure to Register as a Sex OffenderRead the Press Release
U.S. Attorney Duane A. Evans announced that NATHANIEL RAINEY, a/k/a “Nathan Lee,” a/k/a “Nathaniel Rainie,” a/k/a “Nathaniel Palmore,” age 59, of New Orleans, was indicted by a federal grand jury today with one count of failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
If convicted, RAINEY faces a maximum term of 10 years in prison and a $250,000.00 fine. He also would have to be sentenced to a term of supervised release of between 5 years and life.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Marshal’s Service and the Louisiana State Police in this matter. He extended his thanks to the New Orleans Police Department and the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorney Matthew Payne is in charge of prosecution.
New Haven Man Pleads Guilty to Federal Gun and Robbery ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that THOMAS JOHNSON, 27, of New Haven, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to federal robbery and firearm charges.
According to court documents and statements made in court, on June 30, 2016, at approximately 1:41 a.m., New Haven Police officers were dispatched to Ferry Street after a report of person who had been shot. At the scene, officers found two victims. One victim had been shot in the left elbow and was bleeding heavily, and the other victim was bleeding from the nose.
The investigation, which has included witness interviews, DNA evidence, ballistics evidence and footage from a surveillance video, revealed that JOHNSON and Shaquille Richardson attacked the two victims after they exited a convenience store in an attempt to steal marijuana and money from the victims. JOHNSON shot one of the victims in his elbow, and Richardson struck the other victim in the face with a gun.
Officers apprehended Richardson near the scene of the robbery. When Richardson was found, he was bleeding from a gash to his hand where one of the victims had slashed him with a knife in self-defense. JOHNSON was arrested on July 28, 2016, during a motor vehicle stop. At the time of his arrest, JOHNSON possessed the firearm he used during the robbery.
JOHNSON pleaded guilty to one count of Hobbs Act Robbery, an offense that carries a maximum term of imprisonment of 20 years; one count of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years, and one count of discharging a firearm in furtherance of a crime of violence, an offense that carries a mandatory consecutive term of imprisonment of 10 years. Judge Shea scheduled sentencing for July 9, 2018.
Richardson, who pleaded guilty to related charges on January 31, 2018, also awaits sentencing.
JOHNSON and Richardson have been detained since their arrests.
This matter is being investigated by the New Haven Police Department and the Bureau of Alcohol, Firearms, Tobacco and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
Navajo Man Pleads Guilty to Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Alton Jay Cowboy, 48, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the Sex Offender Registration and Notification Act (SORNA).
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Cowboy was charged by indictment on Feb. 27, 2018, with violating SORNA by failing to update his sex offender registration from April 4, 2017 through Dec. 27, 2017, in Bernalillo County, N.M.
During today’s proceedings, Cowboy pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Cowboy faces a maximum penalty of ten years in federal prison. He will be required to register as a sex offender when he completes his prison sentence pursuant to his previous conviction. Cowboy remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
National Crime Victims’ Rights Week ObservancesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., and the Interagency Council of North Carolina announce the National Crime Victims’ Rights Week Observances, April 8 - April 14, 2018. This year’s theme-“Expand the Circle: Reach All Victims.”- emphasizes the importance of inclusion in victim services. This year’s theme addresses how the crime victim field can better ensure that every crime victim has access to services and support; and how professionals, organizations, and communities can work in tandem to reach all victims.
Each April since 1981, when President Ronald Reagan proclaimed the first Victims' Rights Week, communities across the nation have held public rallies, candlelight observances, and commemorative activities to promote awareness of victims' rights and needs. This year, The U.S. Attorney’s Office for the Eastern District of North Carolina is joining forces with victim service providers, criminal justice agencies, and concerned citizens throughout North Carolina and America to raise awareness of victims’ rights and observe National Crime Victims’ Rights Week.
In honoring National Crime Victims’ Rights Week we reaffirm a commitment to respect and enforce victims’ rights and address victims’ needs during Crime Victims’ Rights Week and throughout the year; and express our appreciation for those victims and crime survivors who have turned personal tragedy into a motivating force to improve our response to victims of crime and to continue to advance the cause of justice for crime victims throughout North Carolina.
This year the ceremony will take place on Tuesday, April 10, 2018 from 1:00 – 3:00 p.m. at the North Carolina Museum of History located at 5 East Edenton Street in Raleigh.
Montana Men Receive Prison Sentences for Meth OffensesRead the Press Release
MISSOULA - Hugh Shawgo, a 45-year-old resident of Libby, and Michael Norton, a 42-year-old resident of Kalispell were sentenced today to 156 and 78 months in prison respectively to be followed by 5 years of supervised release. Both pleaded guilty to possession with the intent to distribute methamphetamine and Shawgo pleaded guilty to the additional charge of possessing a firearm in furtherance of drug trafficking. United States District Judge Donald W. Molloy handed down the sentences.
Beginning in August of 2017 and continuing through September 13, 2017, Shawgo and Norton would fly via Norton’s private plane to Spokane, Washington to pick up methamphetamine, which was later to be redistributed in Northwestern Montana. Members of law enforcement recovered 426 grams of methamphetamine and a .40 caliber handgun from Shawgo’s bag on Norton’s plane. The methamphetamine recovered from Shawgo was more than 98% pure and contained 3408 doses which were headed for users in Montana.
The case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the Northwest Drug Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Minnesota Man Sentenced to 110 Months for CarjackingRead the Press Release
United States Attorney Ron Parsons announced that U.S. District Judge Karen E. Schreier sentenced a Dilworth, Minnesota man convicted of Carjacking on April 2, 2018.
Michael Jaime, age 28, was sentenced to 110 months custody, followed by 3 years of supervised release, and was ordered to pay $100 to the Federal Crime Victims Fund. A restitution hearing will be held at a later date.
Jaime was indicted for Carjacking by a federal grand jury on December 6, 2016. He pled guilty on December 27, 2017.
On July 23, 2016, Michael Chase Jaime pointed a handgun at the driver of a Mercedes car in the parking lot of Denny’s Restaurant at the Flying J Truck Stop in Sioux Falls, South Dakota. While inserting a magazine into the handgun, Jaime told the 18 year-old driver and the four teenage passengers that he was taking the car. Jaime and an adult female got into the vehicle and sped away from the scene. Later the same day, officers in Moorhead, Minnesota saw Jaime in the stolen vehicle and attempted to stop him. Jaime, however, failed to stop and the officers discontinued their pursuit after speeds reached 140 miles per hour. The car was found abandoned the next day in Dilworth, Minnesota.
This case was investigated by the Sioux Falls Police Department, the Moorhead, Minnesota, Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jeff Clapper prosecuted the case.
Jaime was immediately turned over to the custody of the U.S. Marshals Service.
Mexican National Sentenced to Three Years for Illegal Reentry, Identity Theft, and Other CrimesRead the Press Release
U.S. Attorney Duane A. Evans announced that LUIS ALBERTO TEJEDA-QUIROZ, age 33, a Mexican national, was sentenced today to three years’ imprisonment for Illegal Use of a Social Security Number, False Claim to United States Citizenship, Illegal Reentry of Removed Alien, and Identity Theft.
Prior to November 2014, TEJEDA-QUIROZ had been deported from United States three times and had reentered the United States after each deportation. In November 2014, TEJEDA-QUIROZ obtained a Louisiana state identification card using the personal identifying information of another person. In March 2015, TEJEDA-QUIROZ used the identification card and other identifying information of this other person to apply for employment with a local business. As part of the application, TEJEDA-QUIROZ falsely claimed in an Employment Eligibility Verification Form that he was a United States citizen and that the other person’s Social Security number was assigned to him.
In August 2017, a Louisiana State Police trooper encountered TEJEDA-QUIROZ while conducting a traffic stop. TEJEDA-QUIROZ falsely claimed to be the other person and presented a Kentucky State driver’s license issued in the other person’s name.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement - Homeland Security Investigations and the assistance of the Louisiana State Police in investigating this matter. Assistant United States Attorney Chandra Menon was in charge of the prosecution.
Mexican National Sentenced for Conviction on Federal Heroin and Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Lorenzo A. Ruiz-Gonzalez, 26, entered a guilty plea to heroin and methamphetamine trafficking charges today in federal court in Las Cruces, N.M. Immediately thereafter, Ruiz-Gonzales was sentenced to 70 months of imprisonment. He will be deported after completing his prison sentence.
Ruiz-Gonzalez , a Mexican national who had been residing in El Paso, Texas, was arrested in July 2017, after New Mexico State Police (NMSP) officers found approximately 1,061.1 grams of methamphetamine and 612 grams of heroin inside Ruiz-Gonzalez’s vehicle during a routine traffic stop on Interstate 10 in Dona Ana County, N.M.
Today, Ruiz-Gonzalez pled guilty to a felony information charging him with possession of methamphetamine and heroin with intent to distribute. In entering the guilty plea, Ruiz-Gonzalez admitted that on July 13, 2017, he drove a vehicle containing approximately 856.8 grams of methamphetamine and 493 grams of heroin. Ruiz-Gonzalez admitted that he was in the process of delivering the drugs to another when he was pulled over by law enforcement for a traffic violation.
This case was investigated by the Las Cruces office of the FBI and the NMSP. The case was prosecuted by Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Memphis Man Guilty of Child ExploitationRead the Press Release
Memphis, TN – A federal jury has found a Memphis man guilty on two counts of distribution of child pornography and one count of possession of child pornography. Attorney D. Michael Dunavant for the Western District of Tennessee announced the verdicts today.
According to information presented in court, from February through October 2016, Marcus Williams, 28, used the chat application Kik, as well as several email accounts, to distribute images of minors engaging in sexually explicit conduct. When members of the Memphis Child Exploitation Task Force searched Williams’ Memphis residence, they seized three smart phones and one laptop, all containing child pornography. The laptop alone contained more than 3,000 videos that depicted sexual assault of children, many of whom were prepubescent.
U.S. Attorney D. Michael Dunavant said, "With new and ever-changing technology, criminals are using more creative and disturbing ways to commit cyber-crimes against vulnerable victims, including the sexual exploitation of children by distribution of child pornography. This office will always aggressively prosecute and seek significant and mandatory sentences for such predatory behavior in order to protect children and hold offenders accountable."
This case was brought as part of Project Safe Childhood (PSC), 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 Child Exploitation and Obscenity Section, PSC 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 PSC, please visits http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.
Sentencing is set for July 25, 2018 at 9:30 a.m., before U.S. Senior District Judge Samuel H. Mays. Williams faces a maximum sentence of up to 60 years imprisonment.
This case was investigated by Homeland Security Investigations and FBI. Assistant U.S. Attorney Deb Ireland is prosecuting this case on the government’s behalf.
Married Couple Indicted for String of ATM Burglaries and A RobberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury has indicted Matthew Dale Bush, age 38, and Crystal French, a/k/a “Crystal Lynn Bush,” age 34, both of Graysonville, Maryland, on charges of Bank Robbery, Interstate Transportation of Stolen Vehicle and Conspiracy to Commit Offenses against the United States.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI;) and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to the nine-count indictment, beginning in September 2017 and continuing through October 23, 2017, Bush and French stole ATMs and used stolen vehicles to travel to and from the scenes of the crimes. The burglaries took place within the District of Maryland, the Northern District of Virginia, the District of Delaware, the Eastern District of Pennsylvania, and elsewhere. Bush and French spent the proceeds of the crimes they committed on personal items including heroin and other illegal narcotics.
In September and October 2017, the couple allegedly stole or attempted to steal ATMs in the following locations; Stevensville, Maryland; Chester, Maryland; Kent County, Delaware; Sterling, Virginia; Broadlands, Virginia; Dover, Delaware; Stevensville, Maryland; and Cambridge, Maryland.
According to the indictment, in addition to the ATM burglaries, on October 23, 2017, Bush allegedly burglarized a High’s Store in Harford County, and robbed a bank in Perry Hall, Maryland.
Bush has also been indicted on charges of Bank Larceny, Interstate Transportation of Stolen Property, Felon in Possession of a Firearm and Ammunition, and four counts of Interstate Transportation of Stolen Vehicle.
Bush and French face a maximum sentence of 5 years in prison for conspiracy, 10 years in prison for each count of Interstate Transportation of Stolen Vehicle and 20 years in prison for bank robbery.
Bush also faces a maximum penalty of 10 years for each additional count of Bank Larceny, Interstate Transportation of Stolen Property, and Felon in Possession of a Firearm and ammunition.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the HSI, Maryland State Police, Delaware State Police, Queen Anne’s County Office of the Sheriff, Harford County Sheriff’s Office, Baltimore County Police Department, and Loudon County, Virginia Sheriff’s Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul Budlow and Sandra Wilkinson, who are prosecuting the case.
Man and Woman Sentenced for Sex Trafficking of a MinorRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that United States District Judge Louise W. Flanagan sentenced BOBBY RAY WILLIAMS, JR., 41, of Stantonsburg, North Carolina, and TEMEEKA NESHAUNE HONEY, 40, of Wilson, North Carolina, in a sex trafficking case. Williams was sentenced after pleading guilty to sex trafficking of a minor, and Honey was sentenced after pleading guilty to conspiracy to commit sex trafficking of a minor. WILLIAMS was sentenced to 180 months imprisonment followed by 10 years of supervised release. HONEY was sentenced to 61 months imprisonment followed by 5 years of supervised release. Both defendants are also required to register as a sex offender upon their release from prison.
In December 2015, the Federal Bureau of Investigation (FBI) and the Raleigh Police Department (RPD) investigated the sex trafficking of a minor. Agents identified a minor female (Victim) who was reportedly being sexually exploited by several individuals. The investigation revealed that William Maurice Saddler, previously convicted by a federal jury on November 30, 2017, began an illicit dating relationship with the Victim while she was thirteen or fourteen years old. Around 2015, when the Victim was fifteen years old, Saddler forced her to prostitute at migrant camps around Wilson, North Carolina. Among other tactics, Saddler used violence, fear, and manipulation to force the victim to continue prostituting to support Saddler’s crack cocaine habit.
WILLIAMS and HONEY were Saddler’s coconspirators. HONEY was Saddler’s girlfriend and assisted Saddler by transporting the Victim to various migrant camps for prostitution. WILIAMS is Saddler’s brother, and he assisted Saddler in prostituting the Victim by accompanying them on multiple occasions to the migrant camps. WILLIAMS also prostituted the Victim himself and also coerced the fifteen-year-old Victim to have a sexual relationship with him.
At sentencing, tentatively set for June 5, 2018, Saddler faces a maximum sentence of not less than 15 years in prison up to life imprisonment and a fine of up to $500,000.
Mr. Higdon commented: “The sentences imposed by the Court send a clear message that we will not tolerate the trafficking of humans - here a 15 year young girl – in the Eastern District of North Carolina. This horrible victimization of this young woman is beyond despicable and really is among the worst offenses our law addresses. Human trafficking – on an individual level – or on a larger scale plagues our country and debases us as a people. We will aggressively move to prosecute and convict those who traffic in human beings and end their victimization. I commend our law enforcement partners for their thorough and successful investigation.”
Investigation of this case was conducted by the Federal Bureau of Investigation, the Raleigh Police Department, the N.C. State Bureau of Investigation, the Wilson Police Department and the Wilson County Sheriff’s Office. Assistant United States Attorneys Erin C. Blondel and Eleanor Morales represented the United States.
Luchese Crime Family Soldier and Organized Crime Associate Plead Guilty to Conspiring to Illegally Distribute OxycodoneRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Anthony Grado, a member of the Luchese organized crime family, and Lawrence Tranese, an organized crime associate, pleaded guilty to conspiracy to distribute oxycodone. The proceeding was before United States Magistrate Judge Sanket J. Bulsara.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty pleas.
“Luchese family member Grado imperiled our community, threatening a doctor to force him to write prescriptions for oxycodone and then trafficking in the addictive drugs,” stated United States Attorney Donoghue. “Violent threats to a doctor by Mafia defendants, combined with their trafficking of oxycodone pills, posed an especially serious danger to our community. As demonstrated by today’s guilty pleas, this Office together with our law enforcement partners will be relentless in the prosecution of organized crime and those who contribute to the opioid epidemic.”
“Organized crime groups and other criminal entities are seizing on the outbreak of addiction plaguing our country to make money,” stated FBI Assistant Director-in-Charge Sweeney. “It shouldn’t be a shock that members of the Luchese crime family used violence to force a member of the medical community to further their criminal enterprise. The FBI Joint Organized Crime Task Force is committed to aggressively pursuing these groups to stop them from further contributing to the deadly opioid epidemic affecting our country.”
According to court documents and statements at the plea proceedings, Grado and Tranese conspired with others to distribute oxycodone that they obtained through fraudulent prescriptions written on a Brooklyn-based doctor’s prescription pad. Grado, a Luchese family member, together with Tranese and their coconspirators provided the doctor with the names of people for whom the doctor should write prescriptions. The doctor then wrote prescriptions in those names for medications containing oxycodone, usually without conducting any examination. Grado, Tranese and their coconspirators filled the prescriptions and sold the pills. At other times, Grado held the doctor’s prescription pads himself and either had the doctor write the fraudulent prescriptions at his direction, or completed the prescriptions and later advised the doctor of the details.
Members of the conspiracy used violence and threats of violence to seize control of the doctor’s prescription pads. For example, in one recorded conversation, Grado told the doctor that he would make the doctor write “a thousand scripts a day and [expletive] feed you to the [expletive] lions” if the doctor wrote prescriptions without Grado’s approval. In the same conversation, Grado also told the doctor that if the doctor’s newly ordered prescription pads “go in anybody’s hands,” besides Grado’s, “I’ll put a bullet right in your head.” During the course of the conspiracy, Grado also ordered one of his associates to stab the doctor, and the associate carried out the order. Finally, Grado called upon a higher-ranking member of the Luchese crime family to attend a “sit down,” or meeting, to resolve issues related to the pill distribution scheme.
When sentenced, the defendants each face up to 20 years in prison, as well as forfeiture and a fine of up to $1 million.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Mathew S. Miller and Matthew J. Jacobs are in charge of the prosecution.
The Defendants:
ANTHONY GRADO
Age: 54
Monroe Township, New JerseyLAWRENCE TRANESE
Age: 55
Brooklyn, New YorkE.D.N.Y. Docket No. 17-559 (S-1)
Lower Brule Woman Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Candace Byington, age 36, was indicted on August 16, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 3, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 27, 2017, Byington forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a correctional officer of the Bureau of Indian Affairs, while said officer was engaged in the performance of his official duties, and said conduct involved physical contact with the correctional officer.
The charge is merely an accusation and Byington is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Byington was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lexington Man Pleads to Federal Drug and Firearm ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Bryshun Genard Furlow, age 34, of Lexington, plead guilty in federal court to possession with intent to distribute cocaine, methamphetamine, and a substance containing both methamphetamine and cocaine, as well as to being a felon in possession of firearms and ammunition, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 851 and Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). Senior United States District Judge Cameron McGowan Currie, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on November 3, 2016, the Lexington County Sheriff’s Department executed a state search warrant at Furlow’s Wessinger Street apartment after having made three separate controlled purchases of crack cocaine in September and October 2016 from Furlow at the apartment. During the search of the apartment, deputies recovered baggies of cocaine, methamphetamine, and tablets consisting of cocaine and methamphetamine. Deputies also recovered two digital scales, $5,422, a pyrex dish with cocaine residue, a .40 caliber handgun, a .38 caliber revolver, and various rounds of .40 caliber and .38 caliber ammunition. Furlow, his girlfriend, and two children were at the apartment at the time of the search. After being advised of his rights, Furlow admitted to the drugs in the apartment.
Furlow is prohibited under federal law from possessing firearms and ammunition based upon his prior Georgia state convictions for possession with intent to distribute cocaine (2003), possession with intent to distribute marijuana (2003), possession of cocaine (2008), aggravated stalking (2008), arson 1st degree (2 counts)(2008), terroristic threats (2008) and his prior South Carolina state conviction for distribution of crack cocaine (April 2016).
Furlow faces a maximum of 30 years imprisonment, a fine of $2,000,000, and at least 6 years of supervised release on the drug charge. Additionally, Furlow faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of firearms and ammunition charge. However, if he is deemed an armed career criminal in light of his prior convictions, he would face a statutory mandatory minimum term of imprisonment of 15 years with a maximum of life, a fine of $250,000, and 5 years of supervised release on the firearms charge.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Lexington County Sheriff’s Department and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Lexington Man Charged with Insider TradingRead the Press Release
BOSTON – A Lexington man was arrested today and charged in federal court in Boston in connection with trading on non-public information thus profiting more than $800,000.
Charlie Jinan Chen, 48, was indicted on three counts of securities fraud and one count of making a material false statement. Chen is scheduled to appear before U.S. District Court Magistrate Judge David H. Hennessy this afternoon.
The indictment alleges that Chen had a close personal relationship with a Lexington couple, one of whom was a VistaPrint employee in the Financial Planning and Analysis department, preparing and reviewing earnings data for the company’s quarterly earnings reports before the information was made public. Between July 2012 and July 2014, Chen obtained material non-public information from the Lexington couple and, on the basis of that information, engaged in risky “put and call” option trading in which Chen correctly anticipated the direction of the change in VistaPrint stock price following the earnings announcements. Specifically, in the final two quarters of 2014, Chen profited more than $800,000 by correctly predicting the direction of the change in the company’s share price following the company’s earnings announcements.
The indictment also alleges that Chen falsely told federal agents that he could not specifically recall his option trading in VistaPrint, even though it was the largest position he had taken in any stock and had generated more than $800,000 in three months. Chen allegedly used a portion of the proceeds of the insider trading scheme to purchase a condominium in Stoneham. Finally, the indictment alleges that Chen falsely claimed that the spouse of the VistaPrint employee was more of an acquaintance than a friend, when in fact Chen and his family socialized together and even vacationed together, including trips to Hawaii and Europe with the former VistaPrint employee, spouse and their family.
The charge of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of making a materially false statement provides for a sentence of no greater than five years in prison, one year of supervised release and fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities and Exchange Commission during the investigation. Assistant U.S. Attorney Neil J. Gallagher Jr. of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that CARLOS ARGUETA-MANCIA, age 24, a citizen of Honduras, was sentenced today after pleading guilty on February 22, 2017 to a one-count Bill of Information charging him with illegal reentry of a removed alien, in violation of 8 U.S.C. § 1326(a). U.S. District Judge Mary Ann Vial Lemmon sentenced ARGUETA-MANCIA to four months in the custody of the Bureau of Prisons.
According to the court documents, ARGUETA-MANCIA was found in the United States on or about December 30, 2017, after having been previously removed on September 25, 2015.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Michael M. Simpson is in charge of the prosecution.
Hattiesburg Man Plead Guilty to Illegally Possessing FirearmRead the Press Release
Gulfport, Miss. – Cory Demond Ward, 31, of Hattiesburg, entered a guilty plea today before U.S. District Judge Keith Starrett to possession of a firearm by a previously convicted felon, U.S. Attorney Mike Hurst announced.
Ward admitted he sold a .38 caliber Colt revolver to a confidential informant for $125 on October 21, 2017. Ward had previously been convicted of burglary of a dwelling in the Circuit Court of Lamar County.
Ward faces a potential sentence of 10 years, a $250,000 and 3 years of supervised release. U.S. District Judge Keith Starrett has set sentencing for August 21, 2018, at 10:45 a.m.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is prosecuted by Assistant United States Attorney Annette Williams.
Hartford Man Sentenced to 54 Months in Federal Prison for Planning Robbery of Drug DealerRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIE DEAS, also known as “Debo” and “Flee,” 22, of Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 54 months of imprisonment, followed by three years of supervised release, for planning to rob a drug dealer.
According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford’s Parkville neighborhood, and related overdoses. The investigation specifically targeted criminal activity being committed by members and associates of the Orange Street Killas (OSK), which operated principally in the area of Orange, Cherry and Arbor Streets. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members acquired heroin and crack cocaine and then sold the narcotics on the streets of Hartford.
On October 8, 2016, investigators intercepted calls on which Ruben Torres and other OSK members discussed firearms and the planning of a potentially violent act. Investigators immediately notified Hartford Police that violence might be imminent in the Orange and Cherry Street area, but before police could respond, at approximately 10:12 p.m., a man was chased and shot multiple times in front of 7-9 Cherry Street. The victim was located in the backyard of 51 Orange Street. He was suffering from three gunshot wounds to his legs, was transported to the hospital and survived the shooting. Minutes after the shooting, DEAS called Torres and referenced both the shooting and hiding a firearm.
On October 10 and 11, 2016, an individual working with law enforcement purchased crack from DEAS. The individual also told DEAS that he planned to rob his drug supplier and asked DEAS if he had a gun to sell. DEAS indicated that he had a gun but declined to sell it. Instead, he offered to bring the gun and help in the robbery. DEAS was arrested on October 26, 2016, on his way to the “robbery.” At the time of his arrest, he possessed a .40 caliber handgun, which had been reported stolen, loaded with 10 rounds of ammunition.
DEAS has been detained since his arrest. On November 6, 2017, he pleaded guilty to one count of interference with commerce by attempted robbery.
Sixteen individuals were charged as a result of the investigation.
Torres pleaded guilty and, on March 30, 2018, was sentenced to 78 months of imprisonment.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hartford Man Pleads Guilty to Drug Charge Stemming from Norwich Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FELIX LOPEZ, also known as “Pablo,” 23, of Hartford, waived his right to be indicted and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of possession with intent to distribute, and distribution of, heroin, cocaine base (“crack cocaine”) and fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on September 13, 2017, Norwich Police and emergency medical personnel responded to a report of an untimely death at a residence in Norwich. Responding officers were informed that the decedent, a 20-year-old woman, had an addiction to heroin. At the scene, officers seized drug and non-drug evidence, including the victim’s cell phone.
The State of Connecticut Office of the Chief Medical Examiner subsequently determined that the victim died from acute fentanyl and heroin intoxication.
The investigation revealed that LOPEZ supplied the heroin and fentanyl consumed by the victim shortly before she died.
LOPEZ was arrested on a federal criminal complaint on November 13, 2017. At the time of his arrest, he possessed a quantity of crack cocaine.
Chief Judge Hall scheduled sentencing for June 28, 2018, at which time LOPEZ faces a maximum term of imprisonment of 20 years. LOPEZ has been detained since his arrest.
This matter has been investigated by the Drug Enforcement Administration and Norwich, Hartford and Manchester Police Departments. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national was sentenced today in federal court in Boston for illegally reentering the United States after deportation.
Gilberto Ramirez-Ramirez, 27, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 21 months in prison. Ramirez-Ramirez will be subject to deportation proceedings. In January 2018, Ramirez-Ramirez pleaded guilty to one count of unlawful reentry of a deported alien.
In October 2015, Ramirez-Ramirez was arrested by federal immigration officers after he was convicted in state court of a domestic violence-related offense. Officers determined Ramirez-Ramirez was in the country illegally, and he was then deported on March 3, 2016. In April 2017, law enforcement in Lynn arrested Ramirez-Ramirez on two separate state cases involving domestic violence. While in custody on state charges, law enforcement determined Ramirez-Ramirez to be again illegally present in the United States. Ramirez-Ramirez was convicted on both state charges in June 27, 2017, and received a two-year sentence.
United States Attorney Andrew E. Lelling and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Geauga County man sentenced to more than 11 years in prison for sharing videos of children being raped and sexually assaultedRead the Press Release
A Geauga County man was sentenced to more than 11 years in prison for possessing videos of children being raped and sexually assaulted.
John S. Mobasseri, 40, of Novelty, was sentenced to 136 months in prison after previously being found guilty of distribution of images of minors engaged in sexually explicit conduct and possession of child pornography.
“These are cases with real victims, children whose lives will be forever changed because adults assaulted and violated them,” U.S. Attorney Justin Herdman said. “We will continue to work to prosecute those who re-victimize these children by sharing and downloading these images.”
Mobasseri last year had two USB storage devices, 14 computer disks and a computer that contained images of real minors engaged in sexually explicit conduct. Mobasseri received and distributed images of minors engaged in sexually explicit conduct between 2009 and 2017, according to court documents.
The files include titles such as “10Yo Preteen Raped (Incest).mpeg” and images such as children being blindfolded and sexually assaulted, as well as children being bound and masked while being sexually assaulted, according to court documents.
This case is being prosecuted by Assistant U.S Attorney Michael A. Sullivan following an investigation by the Department of Homeland Security – Homeland Security Investigations and the Ohio Internet Crimes Against Children Task Force.
Fresno Escapee Charged Again with Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned two one-count indictments today against Samuel Delacruz, 40, of Fresno, charging him with escaping from custody and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Delacruz was transferred from the Federal Correction Institute in Phoenix, Arizona to Turning Point Fresno Residential Reentry Center to serve the remainder of his federal sentence. He escaped on October 15, 2017, by leaving without permission, and his whereabouts remained unknown until he was apprehended in Fresno on March 22, 2018, after fleeing from police and tossing a gun into an area where children were playing. His underlying conviction was for being a felon in possession of a firearm.
This case is the product of an investigation by the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kimberly A. Sanchez is prosecuting the case.
If convicted, Delacruz faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the felon in possession charge and five years in prison and a $250,000 fine for the escape charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Frank Mercedes Sentenced to Life in Prison Plus 10 Years for Hiring Contract Killers in 1999 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FRANK MERCEDES was sentenced today to life in prison plus 10 years for murder in connection with a drug conspiracy, murder-for-hire, murder-for-hire conspiracy, and use of a firearm resulting in death, in connection with his role in the murder of Richard Diaz, 28, in Manhattan in 1999. MERCEDES was convicted after a one-week jury trial before U.S. District Judge Richard J. Sullivan, who imposed today’s sentence.
U.S. Geoffrey S. Berman said: “Frank Mercedes callously ordered the murder of someone who had stolen from his drug business. As a result of that order, 28-year-old Richard Diaz—an innocent man who had nothing to do with Mercedes’ drug trafficking—was brutally killed in the summer of 1999. Today’s proceeding is a reminder that this Office will never stop working to obtain justice on behalf of those affected by this type of senseless violence. We hope that today’s sentence, almost 20 years after Mr. Diaz’s death, brings some small measure of peace to Mr. Diaz’s family.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
FRANK MERCEDES, a/k/a “Jabao,” ran a significant drug enterprise in Upper Manhattan in the late 1990s. In the summer of 1999, MERCEDES hired three men, including Jose Luis Gracesqui, a/k/a “Muffler,” to kill one of his drug customers (the “Intended Victim”) after the Intended Victim and a number of his associates stole heroin and money from MERCEDES.
On the night of July 19, 1999, after tracking the Intended Victim for days, Gracesqui and another member of the crew saw the Intended Victim in a car and followed the car through Manhattan. When the car with the Intended Victim stopped at a red light, Gracesqui approached the passenger’s side window and began shooting. The shots hit both the Intended Victim and Richard Diaz, who was driving the car. Mr. Diaz was able to drive a short distance to the Henry Hudson Parkway, until he lost consciousness and died. The Intended Victim sustained serious injuries, although he survived. Shortly thereafter, MERCEDES met with Gracesqui and the other members of the hit team to pay them tens of thousands of dollars for committing the murder.
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MERCEDES, 51, from the Dominican Republic, was sentenced to three concurrent life sentences, to be followed by a consecutive term of ten years.
Gracesqui was previously convicted in January 2016 of charges relating to his role in the murder of Richard Diaz, and also is currently serving a life sentence.
Mr. Berman praised the investigative work of the U.S. Drug Enforcement Administration (DEA) New York Drug Enforcement Task Force, which comprises agents, detectives, and investigators from the DEA, the New York City Police Department, and the New York State Police. Mr. Berman also thanked the Special Agents of the United States Attorney’s Office for the Southern District of New York.
This case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rebekah Donaleski, Jessica K. Fender, and Laurie A. Korenbaum are in charge of the prosecution.
Former Vessel Captain Convicted of Discharging Oily Waste into the OceanRead the Press Release
Randall Fox, one-time captain of the fishing vessel Native Sun, was found guilty today in U.S. District Court in Seattle of discharging oily waste directly into the ocean, a felony violation of the Act to Prevent Pollution from Ships. The jury deliberated 5 hours following a three-day trial before U.S. District Judge John C. Coughenour. Randall Fox faces a maximum of six years in prison and a criminal fine of up to $250,000.
“Today’s conviction shows that illegal dumping in our oceans will not be tolerated,” said Acting Assistant Attorney General Jeff Wood of the Justice Department’s Environment and Natural Resources Division (ENRD). “The Department of Justice will continue to work with our partners like the U.S. Coast Guard to aggressively prosecute criminals that pollute the oceans.”
The Act to Prevent Pollution from Ships specifically prohibits the discharge of bilge slops and other oily mixtures, unless they have been properly treated using approved pollution prevention equipment and meet rigorous standards. The act implements America’s obligations under an international treaty to control pollution by ocean-going vessels.
The government alleged and proved that Randall Fox discharged bilge slops from the Native Sun directly overboard into the ocean using unapproved pumps and hoses. One of these discharges was video-recorded by a crewmember, who reported the crime to authorities. Other evidence at trial established that the Native Sun had repeatedly pumped its bilges in the same manner depicted in the video. Bingham Fox, the defendant’s father and the owner of the Native Sun, was convicted at trial of related crimes a year ago.
This case was investigated by the U.S. Coast Guard. The case is being prosecuted by trial attorneys Todd W. Gleason and Stephen Da Ponte of ENRD’s Environmental Crimes Section.
Former UAW Official Pleads Guilty to Accepting Illegal Payments from Fiat Chrysler AutomobilesRead the Press Release
Another former UAW official entered a guilty plea to accepting illegal payments from Fiat Chrysler Automobiles (FCA), announced United States Attorney Matthew Schneider.
Joining in the announcement was James Vanderberg, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy R. Slater, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Ian Berg, District Director, U.S. Department of Labor – Office of Labor-Management Standards, and Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations.
Keith Mickens, 64, of Clarkston, Michigan pleaded guilty before the Honorable Paul D. Borman in United States District Court in Detroit, Michigan. The plea marked the fifth conviction in the ongoing federal investigation into corruption at the UAW and FCA.
Keith Mickens admitted to helping transfer hundreds of thousands of dollars from FCA to former UAW Vice President General Holiefield using two companies that Holiefield controlled with his girlfriend and later wife, Monica Morgan. FCA executives concealed the illegal payments using the bank account of the UAW-Chrysler National Training Center. According to court documents, Morgan and Holiefield used the payments for expenses such as installing a swimming pool at their residence in Harrision Township, Michigan. In January 2018, Monica Morgan was convicted of criminal tax fraud. Morgan is awaiting sentencing.
Separate from the illegal activities involving UAW Vice President Holiefield, Keith Mickens admitted that he and other senior UAW officials also accepted thousands of dollars worth of clothing, electronics, golf equipment, and other personal items that were paid for by FCA.
Between 2010 and 2014, Keith Mickens was one of the senior UAW officials responsible for administering the collective bargaining agreements on behalf of tens of thousands of UAW members employed by FCA. Mickens served as a member of the UAW’s National Negotiating Committee in 2011 and was one of the UAW officials responsible for negotiating the collective bargaining agreements between the UAW and FCA.
“Today’s conviction is the latest in a string of senior UAW officials who took secret and prohibited payments from the company they were supposed to be negotiating against,” said U.S. Attorney Matthew Schneider. “The hard working rank and file members of the UAW deserve better from those who represent their interests.”
“Today’s guilty plea demonstrates a continued importance for the UAW’s leadership to provide active assistance in the ongoing investigation to root out anyone who has participated in this “pay to play” scheme”, said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI.
“Mickens is another former UAW employee who abused his position by conspiring with UAW officers and employees to accept illegal payments and other things of value from FCA while he was responsible for collective bargaining on behalf of UAW members. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards to safeguard the assets of union members,” said James Vanderberg, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
A sentencing date will be set by the court.
U.S. Attorney Schneider commended the outstanding work of the U.S. Department of Labor, the Internal Revenue Service and the Federal Bureau of Investigation, in conducting a comprehensive criminal investigation into labor corruption and tax fraud activities involving a vital sector of the local and national economy.
Former Rental Company Executive Sentenced to 2 Years in Prison for Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN N. MILNE, 58, of Westport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment for violating the conditions of his supervised release.
According to court documents and statements made in court, on March 11, 2010, MILNE was sentenced to 27 months of imprisonment, followed by three years of supervised release, for conspiring to falsify the books and records of United Rentals, Inc. while he served as its President and Chief Financial Officer. In a resolution of a separate civil action brought by the U.S. Securities and Exchange Commission, (SEC v. John N. Milne, 3:08CV505), MILNE agreed to disgorge $6.25 million. MILNE paid $1 million to the SEC prior to his sentencing in 2010. As part of his original sentence, in lieu of a restitution order, MILNE was ordered to pay the remaining $5.25 million to the SEC as a condition of his supervised release.
Since his release from prison in May 2012, MILNE has paid approximately $500,000 of the $5.25 million of disgorgement that was due. Chief Judge Hall found that, based on MILNE’s income and expenditures on luxury services, personal items and travel, he had the ability to pay much more. The Court had previously continued the hearing on multiple occasions to provide MILNE the opportunity to make additional disgorgement payments, but he repeatedly failed to do so. MILNE also violated his supervised release by traveling out of Connecticut without the permission of the U.S. Probation Office.
MILNE is citizen of Canada and a lawful permanent resident of the U.S.
This case was prosecuted by Assistant U.S. Attorney Michael S. McGarry with the assistance of the U.S. Securities and Exchange Commission.
Former Puerto Rico Police Officer Sentenced on Child Pornography ChargesRead the Press Release
SAN JUAN, P.R. – Yesterday, Gabriel Rodríguez-Pacheco, a former Puerto Rico Police Officer was sentenced to 21.8 years in prison for production of child pornography and for possession of child pornography involving a prepubescent minor, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On August 8, 2017, after a three-day trial, Rodríguez-Pacheco was convicted of 16 counts for separately using three minor females to produce sexually explicit images and videos, and of one count for possessing sexually explicit images of a prepubescent minor, younger than 12 years of age, presumably downloaded from the internet.
During trial, the evidence showed that the Rodríguez-Pacheco requested sexually explicit images from one minor he met online. He took photos of himself having sex with a second minor he met in a fast food restaurant while on duty wearing his police uniform. He also took photos of himself having sex with yet another third minor he knew personally through his family. In each case, he stored the images and videos on his personal computer as part of a collection of images and videos of women with whom he had sex. These images and videos of the minors were Rodríguez-Pacheco’s "trophies" of his many sexual exploits.
"The U.S. Department of Justice, through its Project Safe Childhood, will continue prosecuting sexual predators of minors, especially those in positions of public trust," said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. "Children are the most vulnerable and innocent victims in our society; they deserve every measure of protection we can give them. The public should be reminded to report all inappropriate behavior with children to their local authorities and together, local and federal law enforcement, will see that justice is carried out."
"ICE will not tolerate the exploitation of the most vulnerable members of our society and will continue working with our partners in the Puerto Rico Crimes Against Children Task Force to investigate those who exploit our children and deprive them of their innocence," said Orlando Baez, acting special agent in charge of HSI San Juan. "This case is particularly alarming as the defendant held a position of trust as a Puerto Rico Police Department police officer even though he had been suspended at the time of his arrest in March 2015. Make no mistake, HSI will continue to investigate and apprehend those who exploit our children, especially those who betray the trust placed in them by committing these despicable acts."
The case was prosecuted by Assistant U.S. Attorney Marshal D. Morgan, Coordinator of the Project Safe Childhood initiative. The case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Owner of Indoor Soccer Team Indicted for Massive Tax FraudRead the Press Release
A former Seattle college soccer star, currently jailed on sexual assault charges in Arizona, was indicted April 4, 2018, by a federal grand jury for a massive tax fraud scheme, announced U.S. Attorney Annette L. Hayes. During the course of the scheme, 46-year old DION L. EARL purchased the Seattle Impact FC franchise, a professional indoor soccer club. The indictment alleges that between 2008 and 2014, EARL used false documents to lie about his income, the amount of tax dollars withheld by employers, and his mortgage deductions, so that he could claim tax refunds of more than $1.1 million. Because EARL currently faces sexual assault charges in Arizona, his arraignment on the indictment has not been scheduled.
In the 1990’s EARL was a soccer star at Seattle Pacific University. According to the indictment, between 2008 and 2014 EARL claimed to be making huge salaries working for car dealers in the Puget Sound region, and as the owner/operator of Dion Earl’s Total Soccer & Tennis Camps, LLC, d/b/a Total Business Ventures. For example, the indictment alleges that in 2012, EARL claimed on his 2011 Form 1040 tax return that he made $880,000 working for five different car dealers. EARL claimed the dealers withheld more than $330,000 of his wages for taxes. EARL then falsely claimed mortgage interest payments on four different properties, reducing his ‘tax liability.’ With the scheme, EARL obtained a tax refund of $329,198. In fact, EARL made less than $80,000 that year, had no tax payments withheld, and paid limited mortgage interest.
The Indictment further alleges that even after the IRS began a civil audit on EARL, he continued to make false claims and provided false information to the IRS. As late as 2015, EARL claimed he and his wife made $765,000 from Dion Earl’s Total Soccer & Tennis Camps, LLC, d/b/a Total Business Ventures, and the Seattle Impact FC. EARL claimed $180,000 was withheld and attempted to get a tax refund of $137,554. That refund was not paid. In all EARL sought $1.6 million in fraudulent tax refunds, and was paid approximately $1.1 million.
EARL is also charged in connection with false income information he submitted to Key Bank in 2008 to qualify for a home equity line of credit.
The five-count indictment charges EARL with three counts of false statement on tax returns, corrupt endeavor to impede administration of the Internal Revenue laws, and false statement on a loan application.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
If convicted EARL faces up to ten years in prison.
The case is being investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorney Arlen Storm.
earl_indictment_0.pdfFormer Liberty University Student and Raleigh Native Sentenced to 26 Years for the Manufacture of Child PornographyRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced JUSTIN COLE MILAM, 22, from Raleigh to 312 months in prison, a lifetime of supervision upon release and a $4,000.00 fine for the Manufacture of Child Pornography (CP). MILAM pled guilty to the charge on October 12, 2017.
In June 2015, Google, Inc. (Google) reported a violation related to child pornography (CP) to the National Center for Missing and Exploited Children (NCMEC). Google identified an email account, which was responsible for the upload of at least one video file depicting CP. The email account was identified as belonging to a registered sex offender, residing in Carpinteria, California. A search of his residence uncovered a smartphone which contained approximately 1,500 images and videos of CP. He acknowledged using the smartphone to access the aforementioned email account. Moreover, he acknowledged using the smartphone to store and distribute CP.
Forensic examination of the device revealed that he used, a mobile instant messenger application which utilizes an internet connection to transmit and receive messages, photos, videos, and other content transmitted through the program. The service also allows users to register for a user account without providing a telephone number and prevents users from being located on the service through any information other than their chosen user name. The examination uncovered evidence that the convicted sex offender utilized his account to exchange CP with other users. One such account was identified as belonging to MILAM. The examination further revealed that 77 messages were exchanged between the convicted sex offender and MILAM. Further analysis of the IP connectivity logs revealed that MILAM logged into his account on multiple dates and times from different IP addresses. One of the login IP addresses was identified as being directly associated with Liberty University (LU) in Lynchburg, Virginia. Continued investigation confirmed that MILAM was enrolled as a student in Liberty University during the timeframe of the offense established during the investigation.
Based on the investigation, the Federal Bureau of Investigation (FBI) in Raleigh, North Carolina, executed a search of MILAM’s residence on January 12, 2017. At the time of the search, MILAM provided an unprotected statement to authorities acknowledging that the email address used to exchange CP was his. Additionally, MILAM acknowledged he began trading CP approximately two years earlier. MILAM collected CP over time and periodically deleted his collection only to begin recollecting CP again. After locating a user account of others wishing to trade CP, MILAM initiated a conversation with the user prior to trading CP. MILAM acknowledged having images of CP on his smartphone to include images of toddlers being sexually abused. MILAM’s smartphone was seized and a preliminary on-site examination revealed evidence of CP which had been saved on an external hard drive. The external hard drive was found in MILAM’s bedroom and also revealed images of CP.
Forensic examination of the item uncovered approximately 986 images and 117 videos of CP. Several of the images portrayed sadistic or masochistic conduct or other depictions of violence. Additionally, approximately 69 images and 1 video depicted the sexual abuse of infants/toddlers.
As the investigation progressed, agents recovered numerous chat conversations between MILAM and other users in which CP was exchanged and the sexual abuse of children discussed. More than 130 user accounts were identified as receiving or sharing CP with MILAM. Of the 130 accounts discovered, 51 of the users were identified as being located in the United States. The investigation uncovered multiple pornographic images of minors sent directly to MILAM at his request. During multiple chat conversations with minors, MILAM requested they create and send pornographic images of themselves performing sexual acts. As the investigation progressed, agents identified 10 minors who forwarded MILAM pornographic images and/or videos of themselves at the request of MILAM.
Based on the investigation, MILAM used an internet messenger service to request multiple minors between the ages of 13 and 17 to create and distribute CP. At his request, at least 10 identified minors forwarded pornographic images of themselves to MILAM. In return, MILAM knowingly distributed CP to the minors. As such, MILAM used a computer or an interactive service to persuade, induce, and entice a minor to engage in sexually explicit conduct. Because MILAM engaged in a pattern of activity involving prohibited sexual conduct, the production of CP, on at least two or more occasions with multiple minors, he is classified as a repeat and dangerous sex offender against minors.
Mr. Higdon commented: “Today the Court imposed a 26 year sentence on a defendant who preyed upon numerous of our most vulnerable citizens. Through the manufacture and collection and distribution of child pornography the defendant victimized our children in the most degrading and base way. The sentence imposed by the court is extremely appropriate and should be a warning to others who would threaten our children in this way. We will seek sentences like this and other cases in our unwavering effort to stop this type of behavior and to protect our children. I want to thank the investigators with the FBI and with the Raleigh Police Department for their outstanding work.”
The case was investigated by Federal Bureau of Investigation and the Raleigh Police Department. The federal prosecution was handled by Assistant United States Attorney Ethan A. Ontjes.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Former Lake Oswego Financial Advisor Accused of Defrauding InvestorsRead the Press Release
PORTLAND, Ore. – Shayne Kniss, 42, formerly of Lake Oswego, Oregon, was charged today in federal court with defrauding clients of his investment firm, Iris Capital Management.
The criminal information alleges that Kniss offered clients, many of whom were 65 or older, four investment funds composed of residential properties in the greater Portland area that would be rehabilitated, upgraded and resold at a substantial profit. Between February 2011 and April 2013, 47 people invested over $4.3 million in the funds. The information alleges Kniss commingled investor money among the funds, used new investments to make payments to prior investors, and used more than $500,000 of investor funds for personal use, including investing in a retail marijuana enterprise.
Kniss will make his first appearance before a U.S. Magistrate Judge in Portland where a plea will be entered and a trial date set.
A criminal charge is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI and is being prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
Former City of Atlanta official indicted on federal bribery, money laundering, obstruction and tax fraud chargesRead the Press Release
ATLANTA - Mitzi Bickers has been arraigned on 11 federal charges including conspiring to commit bribery, wire fraud, money-laundering, federal obstruction and tax fraud. Bickers was indicted by a federal grand jury on March 27, 2018.
“City of Atlanta contracts always should go to the most qualified bidder through a contracting process that is fair and transparent,” said U.S. Attorney Byung J. “BJay” Pak. “Instead, Mitzi Bickers allegedly conspired to use her influence as a high-ranking City of Atlanta official and later as a connected political consultant to steer lucrative city contracts to Elvin R. Mitchell, Jr., Charles P. Richards, Jr., and their companies through bribery. The illicit arrangement netted over $2 million in bribes for Bickers and almost $17 million in city contracts for Mitchell and Richards, and has shaken the public’s trust in the city’s contracting process.”
“The actions of Bickers, alleged in this indictment, traded the public’s trust in a fair bidding process for personal gain,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI and its partners in law enforcement will not tolerate those who choose to try to influence established and proper government procedures.”
“Public officials need to be reminded of the trust and duty bestowed upon them by the taxpayers to serve the public’s interest not their own,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation. “When public officials and those seeking to do business with them break this trust by committing fraud, they will be charged to the fullest extent of the law.”
According to U.S. Attorney Pak, the charges, and other information presented in court: As the City of Atlanta’s Director of Human Services and after leaving employment with the city, Bickers allegedly conspired with contractors Elvin R. Mitchell, Jr. and Charles P. Richards, Jr. to accept bribe payments for herself and other public officials in exchange for the her agreement to obtain city contracts for Mitchell’s and Richards’ companies. Both Mitchell and Richards have pleaded guilty to paying bribes to Bickers and are currently serving federal prison sentences for their crimes.
In 2009, Bickers worked on the mayoral campaign and began working for the City of Atlanta after the election. From February 2010 to May 22, 2013, Bickers served as the City of Atlanta’s Director of Human Services. Beginning in 2010, Mitchell and Richards agreed to pay bribes to Bickers to secure profitable City of Atlanta contracts for their businesses. At times, the bribe payments allegedly were referred to as “up-front money.” In reality, Mitchell and Richards often paid Bickers when their companies actually received City of Atlanta contract work.
In exchange for the bribe payments, Bickers promised to represent Mitchell, Richards and their companies on matters relating to City of Atlanta contracting, even though she was a high-level city employee at the time. Bickers also allegedly provided Mitchell and Richards with sensitive contracting information during the critical time when they were bidding on city contracts. Between 2010 and 2013, Mitchell’s and Richard’s companies received multi-million dollar contracts with the city for snow removal, sidewalk repair and maintenance, and bridge reconstruction.
In effort to conceal her relationship with Mitchell and Richards, Bickers allegedly filed numerous false City of Atlanta Financial Disclosure Forms. For example, in 2011, Bickers swore under penalty of perjury that she had no financial relationships with any outside businesses, even though Mitchell’s and Richards’ companies paid her over $650,000 in that year. She used much of this money to purchase a $775,000 lakefront home in Jonesboro, Georgia, making a down payment of over a half million dollars. In that same year, Bickers also allegedly claimed on her taxes that she made only $57,896 as a city employee, resulting in a $3,924 tax refund from the IRS.
In 2013, Bickers’ financial ties to the Pirouette Companies came to light and Bickers resigned her position with the City of Atlanta. After her resignation, Bickers, Mitchell, and Richards allegedly continued the bribery scheme. For example, Bickers helped Mitchell secure a multi-million dollar contract for snow and debris removal work after a snowstorm locked down Atlanta in 2014. In turn, Mitchell paid Bickers and companies associated with her hundreds of thousands of dollars in bribes. Bickers spent the proceeds of the bribery at stores like Gucci and on expensive vacations, home renovations, four Yamaha WaveRunners, a sports utility vehicle and an ATV. Bickers is also charged with money laundering for purchasing an SUV and four WaveRunners with bribery proceeds from an account held by the Bickers Group, which was her political consulting company.
Ultimately, between 2010 and 2015, Mitchell and Richards allegedly paid Bickers and companies associated with her over $2 million in an attempt get City of Atlanta contracts through bribery. In this same period, the City of Atlanta paid Mitchell’s and Richards’ businesses approximately $17 million for the government contracts they secured.
In September 2015, Mitchell began cooperating with FBI’s investigation into corruption at City Hall. On September 11, 2015 at approximately 5:30 a.m., Shandarrick Barnes threw a concrete block reading “ER, keep your mouth shut!” through a plate glass window in Mitchell’s home. Bickers is alleged to have played a role in this attempt to obstruct the federal investigation. Barnes will be sentenced by District Court Judge Steven C. Jones on April 9, 2018.
Mitzi Bickers, 51, of Atlanta, Georgia, was arraigned today before U.S. Magistrate Judge Russell G. Vineyard. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI and Internal Revenue Service Criminal Investigation.
First Assistant U.S. Attorney Kurt R. Erskine and Assistant U.S. Attorney Jeffrey W. Davis are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Bickers IndictmentFormer Buncombe County Manager and Her Son Indicted on Federal ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney R. Andrew Murray announced today that the former Buncombe County Manager, Wanda Skillington Greene, 66, and her son, Michael Gene Greene, 47, both of Arden, N.C., are facing federal charges related to the misuse of public funds. A criminal bill of indictment charges Wanda Greene and Michael Greene with conspiracy to embezzle, steal, obtain by fraud or misapply Buncombe County funds and wire fraud offenses. Wanda Greene is also charged with embezzling public funds and aiding and abetting such embezzlement.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Director Robert Schurmeier of the North Carolina State Bureau of Investigation (SBI); and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney Murray in making today’s announcement.
According to the indictment, Wanda Greene was appointed as County Manager for Buncombe County (the County) in 1997, and remained in that position until her retirement in June 2017. Michael Greene began his employment with Buncombe County in 2004, until he resigned in August 2017.
As County Manager, Wanda Greene was responsible for the administration of all departments of the County’s government under the control of the Board of Commissioners (the Board). In that role, Wanda Greene had the power to appoint, suspend, and remove all county officers, employees, and agents, and was responsible for directing and supervising the administration of all county offices, departments, boards, commissions and agencies controlled by the Board. As part of her duties, Wanda Greene was also required to prepare and submit the County’s annual budget and capital program to the Board, and to submit annually to the Board, and make available to the public, a complete report of the finances and administrative activities of the county at the end of the fiscal year.
According to allegations contained in the indictment, from about 2007 to August 12, 2017, Wanda Greene and Michael Greene carried out a conspiracy to embezzle public funds, by misusing their government credit cards, also known as PCards, issued to them by Buncombe County, and by using the PCards of other County employees, to make approximately $200,000 worth of improper purchases.
The indictment alleges that, on multiple occasions during the relevant time period, Wanda Greene improperly used her government issued PCards to purchase multiple gift cards totaling $21,760 from various retailers and restaurants, including Walmart, Target, Olive Garden, and Cracker Barrel. For example, on or about December 6, 2007, Wanda Greene used two different PCards to purchase 10 separate $500 Walmart gift cards totaling $5,000. The indictment alleges that Wanda Greene split the purchase of the gift cards onto two different PCards, to avoid exceeding the County’s policy spending limit of $5,000. Wanda Greene then used the gift cards to buy items for herself and others, including groceries, personal hygiene products, clothing, wine and make-up. Wanda Greene gave some of the gift cards to other individuals who also used them to make improper purchases.
In addition to using the County’s credit cards to purchase gift cards, Wanda Greene also made personal purchases on her PCard at various retail stores, including purchases totaling $18,256 at Best Buy, $10,718 at Target, and $6,479.03 at TJ Maxx, among others. Furthermore, the indictment alleges that Wanda Greene used her PCard to pay a total of $15,308 for electronic devices and for service from telecommunications carriers that were personal use items and services.
According to the indictment, in 2011, Wanda Greene ceased using any County credit cards issued to her, and informed a Buncombe County employee that she was returning the PCards because the records of her use of those cards could be subject to disclosure under North Carolina law. From that time forward, Wanda Greene allegedly used PCards assigned to subordinate county employees, or directed the subordinate employees to use their PCards to make improper purchases for her, Michael Greene, and other individuals. According to the indictment, Wanda Greene misused the employees’ PCard information to purchase $75,400 in gift cards; to pay for personal use wireless services and wireless devices, with a total cost of $24,160; and to pay for more than $18,257 in goods and services at various retail stores.
To obtain the PCard holders’ credit card information, Wanda Greene required Buncombe County employees to provide her with a photocopy of the front and back of their PCards, which she then used to make the improper purchases. According to the indictment, Michael Greene also possessed such a photocopy until it was recovered in his County office.
The indictment alleges that, in addition to participating in the misuse of Wanda Greene’s PCards and those of her subordinate employees, Michael Greene used his County PCard to pay for food, wireless services, and goods totaling more $9,100. Michael Greene’s PCard privileges were revoked in January 2009 following an audit.
Wanda Greene and Michael Greene have been ordered to appear on a summons. The conspiracy charge carries a maximum prison terms of five years and a $250,000 fine, the federal program fraud charges carry a maximum prison term of 10 years per count and a $250,000 fine, and the wire fraud charges carry a maximum penalty of 20 years in prison per count and a $250,000 fine.
In making today’s announcement U.S. Attorney Murray thanked the FBI, IRS-CI and the SBI for their investigation of this case, and noted that the investigation into allegations of criminal activities within the Buncombe County Government is ongoing.
Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is prosecuting the case.
Former Atlantic County Prosecutor’s Office Detective Sentenced to 18 Months in Prison for Mortgage Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, woman who admitted her role in a more than $200,000 mortgage fraud conspiracy involving a property she purchased in Mays Landing, New Jersey, was sentenced today to 18 months in prison, U.S. Attorney Craig Carpenito announced.
Betsy Borges, 38, of Mays Landing, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging her with one count of conspiracy to commit bank fraud. Judge Simandle imposed the sentence today in Camden federal court.
Borges was originally charged by complaint in May 2017 with Iraida Fuentes, 35, of Pleasantville, New Jersey.
According to documents filed in this case and statements made in court:
In December 2002, Borges purchased a property in Mays Landing. Despite failing to make mortgage payments to Wachovia and its successor, Wells Fargo, Borges collected rental income from tenants living in the property and concealed that income from the banks. Borges also falsely represented to Wells Fargo, on multiple occasions, that she could not make the mortgage payments for the property.
Borges subsequently arranged with Wells Fargo for Fuentez to purchase the property through a short sale. Not only did Borges and Fuentez conceal their familial relationship from Wells Fargo, they also concealed the fact that Borges and another conspirator provided Fuentez the funds to purchase the property.
On Sept. 20, 2012, Fuentez purchased the property at a price well below its actual value. On Nov. 22, 2016, B&B Properties – a company owned in part by Borges – purchased the property from Fuentez for $25,000. On Feb. 3, 2017, Borges then individually purchased the property from B&B Properties for one dollar.
In addition to the prison term, Judge Simandle sentenced Borges to three years of supervised release and ordered her to pay restitution of $206,405.
Fuentes pleaded guilty on Nov. 6, 2017 and was sentenced Feb. 9, 2018 to two years of probation.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.Defense counsel: Louis M. Barbone Esq., Atlantic City, New Jersey.
Federal Jury Convicts Minister of Tax CrimesRead the Press Release
CHARLOTTE, N.C. – A federal jury has convicted a former Charlotte-area minister, William Todd Coontz, 51, of Fort Lauderdale, Florida, of failure to pay taxes and aiding and assisting in the filing of false tax returns, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI).
According to filed court documents and evidence presented at trial, from 2010 to 2014, Coontz was the minister of Rock Wealth International Ministries (Rockwealth Ministries), and the author of numerous books on faith and finances, such as “Please Don’t Repo My Car,” and “Breaking the Spirit of Debt.” Coontz also operated two for-profit companies, Legacy Media and Coontz Investments and Insurance.
Beginning in at least tax year 2000 and continuing through at least tax year 2014, Coontz filed delinquent U.S. Federal Income Tax Returns, Forms 1040, with the IRS and consistently failed to make timely payments on the taxes he owed, despite receiving multiple letters and late notices from the IRS. For example, for tax years 2011 through 2013, Coontz filed late tax returns and did not pay the total assessed taxes, resulting in total tax liabilities of more than $326,394 for those years.
Trial evidence established that Coontz also filed false federal income tax returns for tax years 2010 through 2013, which underreported his income. Specifically, Coontz engaged in a check cashing scheme, involving payments for travel reimbursements for speaking engagements and the sale of books and other products. For example, during 2010 through 2013, Coontz regularly traveled to speak at various ministries, for which he was paid speaking fees and was reimbursed for his travel expenses. Coontz hid income from the IRS by claiming the travel as a business expense while simultaneously receiving travel reimbursement that he kept as personal income. In order to conceal the payments, Coontz directed, or caused his travel assistant to direct, the ministries to make reimbursement checks for travel expenses directly payable to “Todd Coontz,” and to send the checks to his personal address, rather than to Rockwealth Ministries – the entity that paid for his travel. Coontz then cashed these checks rather than deposit them into a bank account.
Also, in order to boost his income, Coontz told his travel assistant to bill the churches for the cost of a full fare first-class ticket, even though his actual expenses for those tickets was substantially less than the amount billed. Fraudulent travel invoices were created and submitted to the ministries that falsely purported that Coontz had actually paid the full fare ticket price. As a result, the travel reimbursement checks sent directly to Coontz were for amounts in excess of the actual travel expenses incurred by Rockwealth Ministry.
According to trial evidence and other court records, during 2010 through 2013, Coontz also directed that other checks, such as payments for speeches and for the purchase of books and other products, be made payable to “Todd Coontz” and sent to his personal address. In total, Coontz concealed and cashed at least 102 checks for travel reimbursements, speeches, and books and other products, totaling at least $252,037.99 for the relevant time period, causing his total income for the relevant tax years to be underreported on his federal income tax returns. During 2014, Coontz continued to conceal and cash checks received as payments, cashing at least 32 checks totaling $105,454.90 which were not reflected in his accounting records.
Coontz also underreported his income on his tax returns for tax years 2010 through 2013, by failing to include as income payments made by his corporations and ministry for his personal expenses, including payments for the benefit of his family members, and for meals and entertainment. Contrary to the advice of his Certified Public Accountant about comingling personal and business funds, Coontz spent substantial amounts of business funds to pay for personal expenditures, which were falsely classified as business expenses. These purported business expenses included payments totaling more than $227,700 for clothing purchases, and over $140,000 to pay for meals and entertainment expenses at various restaurants, including more than 400 distinct charges at movie theaters.
In addition, instead of holding assets in his own name, Coontz utilized residences and luxury vehicles titled in the names of companies he owned and controlled. For example, luxury vehicles purchased by Legacy Media, Coontz Investments and Insurance, and Rockwealth Ministries during 2011 through 2013 included three BMWs, two Ferraris, a Maserati, and a Land Rover, and a Regal 2500 boat, among others. Coontz treated payments for those items as business expenses, even though some of them were used by family members and there were no records kept about their supposed business use. Additionally, in 2012, Rockwealth Ministries purchased a $1.5 million condominium as a parsonage for Coontz.
Coontz has been released on bond. The failure to pay tax charge carries a maximum prison term of one year and a $100,000 fine, per count. The aiding and assisting in the filing of false tax returns charge carries a maximum prison term of three years and a $250,000 fine, per count.
The investigation was led by IRS-CI. Assistant U.S. Attorneys Jenny G. Sugar and Dallas Kaplan, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney R. Trent Shores announced today the results of the April 2018 Federal Grand Jury.
This substantial group of indictments represents a wide range of federal offenses, including complex white collar, immigration, and large-scale drug trafficking crimes. Several Project Safe Neighborhood cases involving violent crimes and firearms violations appear prominently also. “These indictments reflect the hard work of the dedicated federal prosecutors and support staff of the United States Attorney’s Office who are tirelessly committed to enforcing federal law and protecting the public whom they serve,” said United States Attorney Shores.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Juan Luis Atayde. Possession With Intent to Distribute Methamphetamine. Atayde, 24, of Stockton, California, is charged with possessing with the intent to distribute methamphetamine. If convicted, he faces a maximum penalty of life in prison and a $10,000,000 fine. The Drug Enforcement Administration is the investigative agency.
Luis German Beltran-Quintero. Reentry of Removed Alien. Beltran-Quintero, 32, of Tulsa, is charged with having returned to the United States unlawfully after being deported in June 2013 from Del Rio, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa Police Department are the investigative agencies.
Justin Lee Boyer. Sexual Exploitation of a Child; Enticement of a Minor; Receipt of Child Pornography; Possession of Child Pornography. Boyer, 31, of Sapulpa, is charged with exploiting and enticing a minor to engage in sexually explicit conduct for the purpose of producing graphic image files and video files, and receiving sexually explicit images of minors engaging in sexually explicit conduct from the internet by computer and cellular telephone.
If convicted, he faces a maximum penalty of 50 years in prison and a $250,000 fine for the Sexual Exploitation of a Child charge; a maximum penalty of life in prison and a $250,000 fine for the Enticement of a Minor charge; a maximum penalty of 40 years in prison and a $250,000 fine for the Receipt of Child Pornography charge; and a maximum penalty of 20 years in prison and a $250,000 fine for the Possession of Child Pornography charge. In addition, he would forfeit any visual depictions produced or received and any real or personal property used to commit the crimes. The Federal Bureau of Investigation, the Sapulpa Police Department, the Jefferson County Sheriff’s Office and the Creek County Sheriff’s Office are the investigative agencies.
Tracy Allen Crawford. Obstruct, Delay, and Affect Commerce by Robbery; Carry, Use, and Brandish a Firearm During and in Relation to a Crime of Violence; Felon in Possession of a Firearm. Crawford, 32, of Tulsa, is charged with robbing Burger King, No. 1 Kitchen, Family Dollar, and Cash America Pawn by waving a handgun as a means of threatened force, violence, and fear of injury, after a prior felony conviction. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine for the Obstruct, Delay, and Affect Commerce by Robbery charges; a maximum penalty of life in prison and a $250,000 fine for the Carry, Use, and Brandish a Firearm During and in Relation to a Crime of Violence charges; and a maximum penalty of 10 years in prison and a $250,000 fine for the Felon in Possession of a Firearm charges. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Logan Philip Davis. Felon in Possession of Firearm. Davis, 29, of Claremore, is charged with possessing a firearm after prior felony convictions. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Larry O. Douglas, Jr. Tampering With a Witness, Victim, and Informant by Physical Force and Threats of Physical Force; Tampering With a Witness, Victim, and Informant by Intimidation, Threats, and Corrupt Persuasion, and Misleading Conduct. Douglas, 44, address unknown, is charged with physically beating a victim, and for providing the victim with support, affection and material goods in order to persuade against and prevent her from communicating to law enforcement of his commission of a Federal offense. If convicted, he faces a maximum penalty of life in prison and a $250,000 fine for the Tampering With a Witness, Victim, and Informant by Physical Force and Threats of Physical Force charge, and a maximum penalty of 20 years in prison and a $250,000 fine for the Tampering With a Witness, Victim, and Informant by Intimidation, Threats, and Corrupt Persuasion, and Misleading Conduct charge. The Federal Bureau of Investigation and Tulsa Police Department are the investigative agencies.
Thadeus Michael Horn. Felon in Possession of Firearms. Horn, 37, of Pawhuska, is charged with possessing firearms after prior felony convictions. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Osage County Sheriff’s Office are the investigative agencies.
Tyrone Lee. Obstruct, Delay, and Affect Commerce by Robbery; Use and Discharge of a Firearm During and in Relation to a Crime of Violence; Possession of an Unregistered Firearm; Felon in Possession of a Firearm. Lee, 36, of Tulsa, is charged with robbing Forest Acres Liquor Store, discharging a shotgun in relation to the robbery, and possessing a firearm after prior felony convictions. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine for the Obstruct, Delay, and Affect Commerce by Robbery charge; a maximum penalty of life in prison and a $250,000 fine for the Use and Discharge of a Firearm During and in Relation to a Crime of Violence charge; a maximum penalty of 10 years in prison and a $250,000 fine for the Possession of an Unregistered Firearm charge; and a maximum penalty of 10 years in prison and a $250,00 fine for the Felon in Possession of a Firearm charge. In addition, he would forfeit the firearm and ammunition involved in the offense. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Jerry Lee Manus. Possession of Methamphetamine With Intent to Distribute. Manus, 43, of Tulsa, is charged with possessing with the intent to distribute methamphetamine. If convicted, he faces a maximum penalty of 20 years in prison and a $1,000,000 fine. The Drug Enforcement Administration, the Tulsa Police Department, the Texas State Police Department and the Oklahoma Highway Patrol are the investigative agencies.
Elijah Kai Marler. Possession of Cocaine With the Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Felon in Possession of Firearm and Ammunition. Marler, 23, of Tulsa, is charged with possessing with the intent to distribute cocaine, possessing a pistol in furtherance of a drug trafficking crime, and possessing a firearm after prior felony convictions. If convicted, he faces a maximum penalty of 20 years in prison and a $1,000,000 fine for the Possession of Cocaine With the Intent to Distribute charge; a maximum penalty of life in prison and a $250,00 fine for the Possession of a Firearm in Furtherance of a Drug Trafficking Crime charge; and a maximum penalty of 10 years in prison and a $250,000 fine for the Felon in Possession of Firearm and Ammunition charge. In addition, he would forfeit the firearm and ammunition involved in the offense. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Gerardo Regalado-Cuevas. Reentry of Removed Alien. Regalado-Cuevas, 52, of Tulsa, is charged with having returned to the United States unlawfully after being deported in November 1997 from Laredo, Texas. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement and the Tulsa Police Department are the investigative agencies.
Harvey Joseph Stephens, Jr. Bank Fraud; Tax Evasion. Stephens, 48, address unknown, is charged with obtaining approximately $67,000 by defrauding Arvest Bank, Task Force Staffing, LLC, and Sagebrush Pipeline by creating fictitious employees, forging endorsements and cashing 78 checks. He is also charged with failing to file income tax returns that would have reported the stolen funds and failing to pay income taxes of $6,000 for 2012 and $19,000 for 2013. If convicted, he faces a maximum penalty of 30 years in prison and a $1,000,000 fine for the Bank Fraud charge, and a maximum penalty of 5 years in prison and a $100,000 fine for the Tax Evasion charges. In addition, he would forfeit any property derived from proceeds obtained as a result of the bank fraud offense. The Internal Revenue Service/Criminal Investigation and the United States Secret Service are the investigative agencies.
Curtis Dewayne Townsend. Felon in Possession of Firearm and Ammunition. Townsend, 50, of Okmulgee, is charged with possessing a firearm and ammunition after prior felony convictions. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Drug Enforcement Administration, the Texas State Police Department and the Oklahoma Highway Patrol are the investigative agencies.
Rosendo Valdovinos-Garcia, Ady Yesinia Oscal, Jennifer Barraza-Garcia. Drug Conspiracy. Valdovinos-Garcia, 28, of Bakersfield, California, Oscal, 27, of Los Angeles, California, and Barraza-Garcia, 26, of Norte Costa Rica, are charged with conspiracy to possess with intent to distribute 500 grams or more of methamphetamine. If convicted, they face a maximum penalty of life in prison and a $10,000,000 fine. The Drug Enforcement Administration, the Texas State Police Department and the Oklahoma Highway Patrol are the investigative agencies.
Kong Meng Vang. Drug Conspiracy; Possession With Intent to Distribute Marijuana. Vang, 34, of Tulsa, is charged with conspiracy to possess with intent to distribute and possessing with intent to distribute 100 kilograms or more of marijuana. If convicted, he faces a maximum penalty of 40 years in prison and a $5,000,000 fine. In addition, he would forfeit any property derived from proceeds obtained as a result of the conspiracy. The Drug Enforcement Administration, the Internal Revenue Service and the Tulsa Police Department are the investigative agencies.
Erick Viveros. Alien Unlawfully in the United States in Possession of Firearms and Ammunition. Viveros, 36, of Tulsa, an alien illegally in the United States, is charged with possessing firearms and ammunition. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Immigration and Customs Enforcement, the Oklahoma Highway Patrol and the Washington County Sheriff’s Office are the investigative agencies.
Etowah County Man Convicted for Drug Trafficking CrimesRead the Press Release
BIRMINGHAM- Today a federal jury convicted an Etowah County man for drug trafficking crimes, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
JEFFREY MORRIS BEAM, JR., 37, of Gadsden, Alabama was charged in a multi-count indictment with eight other defendants for Conspiracy to Possess and Distribute Methamphetamine. The jury found Beam guilty for his role in the conspiracy that started in 2014 and ended in April 2016. He was also convicted for distributing more than 50 grams of methamphetamine and possessing with the intent to distribute more than 5 grams of methamphetamine in August 2015. All other defendants have pled guilty.
The evidence at trial established that Beam and others were responsible for importing multiple kilograms of methamphetamine into the Etowah County area from California and Georgia. Beam used FedEx to receive the meth from California and used co-defendants to transport meth from Georgia back to Alabama in their vehicles.
“Methamphetamine persists in plaguing our streets, neighborhoods, schools, and cities,” Town said. “Today’s verdict ensures that another dealer in this poison will be behind bars until he draws his last breath. We have an excellent trial team, to include the FBI and a conscientious jury, to thank for that,” Town said.
“Beam will now be held accountable for his role in distributing the poison that is destroying lives in Etowah County. I appreciate the work of my agents and our law enforcement partners in bringing this case to final resolution,” Sharp said.
Beam faces a life sentence for these crimes.
This case was prosecuted by Laura D. Hodge and Erica W. Barnes. The FBI investigated this case along with the Etowah County Drug Enforcement Unit who are members of the FBI North Alabama Safe Streets Task Force.
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Eastside Hollygrove Drug Trafficker Pleads Guilty to Drug and Firearm ViolationsRead the Press Release
U.S. Attorney Duane A. Evans announced that BRIAN MAXSON, aka “Chin,” age 34, of New Orleans, pled guilty today to one count of conspiring to distribute and to possess with intent to distribute heroin and fentanyl. MAXSON also pled guilty to one count of conspiring to possess firearms in furtherance of his drug-trafficking activities.
On MAXSON’s drug conspiracy count, MAXSON is facing a mandatory minimum sentence of 5 years’ imprisonment, a maximum sentence of 40 years’ imprisonment, a possible fine of up to $5,000,000, and at least four years of supervised release upon his release from prison. On the firearm count, MAXSON is facing a maximum sentence of 20 years’ imprisonment, a possible fine of up to $250,000, and not more than three years of supervised release.
U.S. District Judge Sarah S. Vance will sentence MAXSON on August 8, 2018 at 9:30 a.m.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Evans praised the work of the FBI New Orleans Gang Task Force (NOGFT), which led this investigation and was assisted by the Drug Enforcement Administration, New Orleans Police Department, St. Tammany Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office. Assistant United States Attorneys Brandon S. Long, David Haller, and Edward Rivera are in charge of the prosecution.
Dominican National Indicted for Passport Fraud and Identity TheftRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with passport fraud and identity theft.
Manuel Alejandro Guzman Soto, 49, was indicted today on one count of passport fraud and one count of aggravated identity theft.
On Aug. 18, 2011, Guzman Soto entered a Roslindale post office and used the name, date of birth, and Social Security Number of a United States citizen from Puerto Rico to apply for a United States passport.
The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory two years in prison, which must run consecutive to any other imposed term of imprisonment. Guzman Soto will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit is prosecuting this case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Correctional Officer Arrested for Taking Bribes to Smuggle Contraband into the Metropolitan Correctional CenterRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Ronald G. Gardella, Special Agent-in-Charge of the New York Field Office of the Department of Justice Office of the Inspector General (“DOJ OIG”), announced today the unsealing of a criminal Complaint in Manhattan federal court charging federal correctional officer VICTOR CASADO with taking bribes in exchange for smuggling contraband into the Metropolitan Correctional Center (“MCC”), a Manhattan detention facility that houses federal inmates. CASADO was arrested this morning and will be presented today before Magistrate Judge Henry B. Pitman.
U.S. Attorney Geoffrey S. Berman said: “As alleged, correctional officer Victor Casado had a duty to ensure the safety and security of the Metropolitan Correctional Center and federal inmates in his care. Instead he allegedly abused the trust placed in him by taking bribes to smuggle contraband to federal inmates. Casado now transitions from Justice Department employee to defendant.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Casado served as a gateway for the introduction of contraband into a federal prison. Not only did his actions violate federal laws and prison protocol, but they posed additional risks for other prison guards who would be responsible for removing these items if found and disciplining those who were in possession. Casado’s alleged crime is a serious offense that will be me with just scrutiny.”
DOJ OIG Special Agent-in-Charge Ronald G. Gardella said: “The DOJ OIG takes allegations of contraband smuggling into our federal prison system very seriously. We will continue to vigorously investigate such allegations and work with our law enforcement partners to identify and bring to justice any Justice Department employee involved in a smuggling scheme.”
According to the allegations in the Complaint unsealed today in Manhattan federal court[[1]]:
CASADO has been employed as a correctional officer at the MCC since 2012.
On multiple occasions in 2016 and 2017, CASADO smuggled cellphones, alcohol, over-the-counter medications, and food into the MCC in exchange for bribe payments. These bribes were funneled to CASADO by non-incarcerated relatives or associates of the inmates, either in cash or by wire transfer. For example, on multiple occasions, CASADO received bribes from an inmate (“Inmate-1”), transferred by one of Inmate-1’s attorneys, totaling more than $45,000 in exchange for smuggling alcohol and cellphones, among other contraband, into the MCC for Inmate-1. Additionally, CASADO also requested and received thousands of dollars in payments from another inmate (“Inmate-5”), which were delivered to CASADO by Inmate-5’s relatives and a paralegal who worked for him. Inmate-5 paid CASADO at CASADO’s insistence, ostensibly to fund travel by CASADO to the Dominican Republic.
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CASADO, 35, of the Bronx, New York, has been charged in the Complaint with one count of conspiracy to commit bribery and to introduce contraband into prison, which carries a maximum prison term of five years; one count of bribery, which carries a maximum prison term of 15 years; one count of introducing contraband into prison, which carries a maximum prison term of one year; one count of conspiracy to commit honest services wire fraud, which carries a maximum prison term of 20 years; and one count of honest services wire fraud, which carries a maximum prison term of 20 years. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the FBI and the DOJ Office of the Inspector General in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Lonergan and Nicolas Roos are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Co-Owner & CEO of Computer Company Sentenced for Conspiring to Steal Intellectual PropertyRead the Press Release
COLUMBUS, Ohio – The co-owner and CEO of TERiX Computer Company, Inc. was sentenced in U.S. District Court today for his role in fraudulently obtaining more than $10 million worth of intellectual property. Bernd D. Appleby, 66, of San Jose, Calif., was sentenced to 24 months in prison and two years of supervised release and ordered to pay a $100,000 fine.
TERiX – located in Sunnyvale, Calif. and Dublin, Ohio – used the intellectual property belonging to Sun Microsystems, Inc. and Oracle Corporation to support its customers nationwide and internationally.
U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by Senior U.S. District Judge James L. Graham.
Appleby was one of four TERiX executives who pleaded guilty in August 2017 to one count of conspiracy to commit wire fraud. The others have also been sentenced and include:
- TERiX co-owner and COO James A. Olding, 52, of Dublin, Ohio, who was sentenced to 12 months and one day in prison, three years of supervised release and a $50,000 fine;
- Director of Sales Lawrence E. Quinn, Jr., 58, of Hilliard, Ohio, who was sentenced to one day in prison, two years of supervised release and a $5,000 fine; and
- Director of Technical Services Jason T. Joyce. 47, of Dublin, Ohio, who was sentenced to 24 months of probation and a $5,000 fine.
According to court documents, the four conspired to set up three fake companies using aliases – which they supported using bogus email addresses and addresses, pre-paid telephones and pre-paid credit cards – to enter into service support contracts with Sun and Oracle for a single server.
The support contracts gave the four defendants credentials for Sun’s and Oracle’s databases, and allowed them to download Sun’s and Oracle’s intellectual property without detection. The intellectual property included firmware patches and updates for various Sun or Oracle hardware products, or operating system patches and updates for various versions of Sun’s and Oracle’s Solaris operating system.
The four used the fraudulently obtained intellectual property to support at least 500 TERiX customers, who did not know about the fraud. A statement of facts filed with the plea agreements cites more than 2,700 separate downloaded pieces of intellectual property between 2010 and 2014.
The primary purpose of the conspiracy was to fraudulently obtain intellectual property worth millions of dollars and then use the intellectual property to support unwitting TERiX customers, and for their own personal benefit.
“As the head of TERiX’s executive management team and 70 percent co-owner of the company, Appleby was responsible for all aspects of the business,” U.S. Attorney Glassman said. “He designed the conspiracy and its evolution over almost 10 years, and understood and directed all aspects of the criminal activity. As the scheme was uncovered, he instructed other company employees to devise ways to avoid detection.”
Glassman commended the investigation by the FBI and Assistant United States Attorney Jessica H. Kim who is representing the United States in the case.
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Clarksville Man Facing Federal Charges for Firing Weapon at Police OfficersRead the Press Release
NASHVILLE, Tenn. – April 5, 2018 – Levi West, 34, of Palmyra, Tennessee, was indicted yesterday by a federal grand jury in Nashville, Tennessee, and charged with being a convicted felon in possession of a firearm and possession of body armor, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
“This is yet another example of our policy to review every act of violence against our law enforcement officers,” said U.S. Attorney Cochran. “As in this case, the U.S. Attorney’s Office will bring federal charges where appropriate, for acts of violence committed against our men and women in blue.”
According to the indictment, on February 3, 2018, West was attempting to flee from a traffic stop by Clarksville Police officers and fired several shots at pursuing officers. West then fled into a wooded area and was later apprehended with the help of a police K-9. The indictment also alleges that officers recovered a .40 caliber Glock near West and recovered a ballistic vest and other military equipment in his vehicle. West was found to have a prior felony conviction and is prohibited from possessing a firearm. He is also prohibited from possessing body armor by virtue of a prior conviction of a crime of violence.
If convicted, West faces up to 10 years in prison on the firearms charge and up to three years in prison on the body armor charge and a $250,000 fine.
This case was investigated by the Clarksville, Tennessee Police Department and the Bureau of Alcohol, Tobacco, Firearms & explosives. The case is being prosecuted by Assistant U.S. Attorney Thomas Jaworski.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Clairton Man is 10th of 21 Defendants to Plead Guilty in Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH, PA. - A resident of Clairton, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Jojuan Bray, 22, pleaded guilty to one count of conspiring with 20 other individuals, between March and June 2017, to distribute narcotics. In connection with the guilty plea, the court was advised that Bray purchased cocaine from his codefendant, Skyler Carter, for further distribution in the Clairton area, and is responsible for the distribution of approximately 230 grams of cocaine during the relevant period. He is the tenth of 21 defendants charged to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for September 13, 2018, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of not more than $1 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Bray remains on bond pending the sentencing hearing.
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. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
Canfield man indicted for having unregistered machine gun and ammunition despite felony convictionRead the Press Release
A Canfield man was arrested today after being indicted on firearms violations, said U.S. Attorney Justin E. Herdman.
Michael G. Malvasi, 55, was indicted on one count of possessing a firearm not registered to him in the national firearms registration and transfer record and one count of being a felon in possession of a firearm and ammunition.
Malvasi on Aug. 2, 2017 possessed an Interdynamic 9 mm machinegun that was not registered to him in the National Firearms Registration and Transfer Record. He was also prohibited from having the firearm and ammunition because of a 2011 conviction for tax evasion, according to court documents.
The investigation was conducted by the Canfield Police Department and Bureau of Alcohol, Tobacco and Firearms. It is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge 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.