Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
4 May 2018
Dublin Man Sentenced to 16 Months in Prison for Filing False Corporate Tax ReturnRead the Press Release
OAKLAND –Shiv D. Kumar, the former president and sole shareholder of A-Paratransit Inc. (API), was sentenced today to 16 months in prison for filing a false corporate tax return with the Internal Revenue Service, announced Acting U.S. Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Jon S. Tigar, U.S. District Judge, following the entry of a guilty plea on April 20, 2018, in which Kumar admitted underreporting income on API’s 2010 corporate tax return.
Kumar, 61, of Dublin, Calif., was the sole shareholder and president of API, a multi-million dollar company that provided transportation services to disabled individuals in the Bay Area. Kumar filed false corporate returns with the IRS for tax years 2008, 2009, and 2010. The returns underreported API’s gross receipts in total by more than $4 million, resulting in a tax loss to the United States of more than $1.4 million. Kumar deposited API’s gross receipts into multiple bank accounts, concealed millions of dollars in gross receipts, and caused API to provide its tax return preparer with doctored and incomplete bookkeeping records showing less in gross receipts than API actually received. Kumar further admitted the unreported gross receipts were used to purchase real property in California.
In addition to the prison term, Judge Tigar ordered Kumar to serve a one-year term of supervised release. Judge Tigar ordered Kumar to self-surrender on or before June 15, 2018, to begin serving his prison term.
Assistant U.S. Attorney Jose A. Olivera is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Des Moines Durable Medical Equipment Company to Pay $189,061.90 to Resolve Overbilling Allegations Related to Medicaid RecipientsRead the Press Release
DES MOINES, Iowa – Catholic Health Initiatives—Health at Home d/b/a Mercy Respiratory Care and Med Supply (CHI-MRC), a supplier of durable medical equipment in Des Moines, has agreed to pay $189,061.90 to the United States to resolve allegations it overbilled the State of Iowa’s Medicaid program for purchases of durable medical equipment.
The settlement resolves claims that, from January 1, 2013, to December 31, 2015, CHI-MRC improperly billed Medicaid for durable medical equipment purchases by continuing to charge for the equipment after receiving full payment for the equipment’s purchase price.
“Our office will aggressively pursue overpayment by Medicaid to providers, including providers of durable medical equipment, to ensure providers comply with state and federal regulations and taxpayers do not pay the bill for excessive expenses,” said Marc Krickbaum, United States Attorney for the Southern District of Iowa. “This recovery sends the message to health care providers there will be consequences if they fail to comply with state and federal regulations. We also note and appreciate the provider’s cooperation throughout the investigation.”
This investigation was initiated by the United States Attorney’s Office for the Southern District of Iowa with the assistance of the State of Iowa’s Medicaid Fraud Control Unit, Iowa Department of Health and Human Services, and United States Department of Health and Human Services Office of Inspector General.
DEA Suspends the Registration of Morris & Dickson Company from Distributing Controlled SubstancesRead the Press Release
The Drug Enforcement Administration today announced the issuance of an Immediate Suspension Order served on Morris & Dickson Company, a wholesale pharmaceutical distributor, located in Shreveport, Louisiana.
Morris & Dickson Company has been the subject of a DEA investigation that alleges that this distribution center failed to properly identify large suspicious orders for controlled substances sold to independent pharmacies with questionable need for the drugs. The investigation, which focused primarily on purchases of Oxycodone and Hydrocodone, revealed that in some cases, pharmacies were allowed to purchase as much as six times the quantity of narcotics the pharmacy would normally order. In spite of regulations which require distributors to identify such orders, DEA alleges that Morris & Dickson Company failed to identify these large suspicious orders resulting in millions of dosage units of Oxycodone and Hydrocodone being distributed in violation of the law.
"Opioid distributors have a legal obligation not to facilitate the illicit diversion of drugs," said Attorney General Jeff Sessions. "That obligation has never been more important than it is right now as we face the deadliest drug crisis in American history. According to the allegations, many large suspicious orders for opioids were made, filled, and unreported by Morris and Dickson. We can only imagine how many pills were diverted, abused, and how many addictions began as a result. Today's suspension will help us achieve the President's goals of reducing opioid prescriptions in the United States and stopping the spread of addiction. I want to thank the DEA for their vigilance, for all of their hard work. The Justice Department will continue to use suspensions, deregistrations, and every other tool we have to stop the drug epidemic."
“Distributors have an obligation to ensure that all pharmaceutical controlled substances their customers order are for legitimate use, and it is their duty to identify, recognize and report suspicious orders to DEA,” said DEA Acting Administrator Robert W. Patterson. “This is another reminder that DEA will hold accountable those companies who choose to operate outside the law.”
In October 2017, DEA became aware of the high-volume sales of Oxycodone and Hydrocodone from Morris & Dickson Company to five of the top ten purchasing pharmacies within the state of Louisiana. DEA records indicated that Morris & Dickson Company had not filed any suspicious order reports on any of the pharmacies in question in Louisiana. A review of the purchases made by these high-volume independent pharmacies showed that these pharmacies were purchasing quantities which were not indicative of the pharmaceutical market. Not only were numerous “independent” retail pharmacies purchasing more Oxycodone and Hydrocodone than the largest chain pharmacies operating within the state, they were purchasing more narcotics than several of the largest chain pharmacies combined within the same zip code. In some instances, DEA noted these “independent” pharmacies were purchasing more than ten times the amount of narcotics the average Louisiana pharmacy purchased per month.
DEA’s actions today suspend the DEA Certificate of Registration issued to Morris & Dickson Company as a drug distributor pursuant to Title 21, United States Code, Sections 823 and 824. The DEA’s investigation of Morris & Dickson Company determined that the continued registration of this company constitutes a substantial likelihood of imminent danger to public health and safety. This action only applies to the distribution of controlled substances and will not affect non-controlled pharmaceutical drugs distributed by the company.
Morris & Dickson Company received written notice of the factual and legal basis for this action. In addition, they will be given the opportunity for an administrative hearing within the next 60 days. After the hearing, the DEA Acting Administrator will make a final decision on whether Morris & Dickson Company’s registration should be permanently revoked. This decision will be published in the Federal Register.
Today, more than four million Americans are addicted to prescription painkillers, including a quarter million adolescents. Sadly, drug overdoses are now the leading cause of injury death in the United States, more than deaths from motor vehicle crashes or deaths from firearms. Parents and children are encouraged to educate themselves about the dangers of drugs by visiting DEA’s interactive websites at www.JustThinkTwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.Corporate Executive Convicted in $300 Million Market Manipulation SchemeRead the Press Release
Abraxas J. Discala, also known as “AJ Discala,” the Chief Executive Officer of OmniView Capital Advisors LLC, was convicted today of eight counts in the indictment by a federal jury in Brooklyn. Discala was convicted of conspiracy to commit securities fraud, conspiracy to commit mail fraud and wire fraud, and two securities fraud counts related to the publicly-traded companies CodeSmart Holdings, Inc. and Cubed, Inc., and four counts of wire fraud related to Cubed and the publicly-traded company StarStream Entertainment Inc. The verdicts followed a five-week trial before United States District Judge Eric N. Vitaliano. When sentenced, Discala faces a maximum of 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“Discala and his network of company insiders, brokers and others executed a scheme designed to dupe investors into believing that companies with little in the way of assets were worth hundreds of millions of dollars by manipulating trading activity. At the end of the day, the defendant’s criminal game of musical shares cost unsuspecting investors millions,” stated United States Attorney Donoghue. “Today’s verdict sends a powerful message that this Office, together with our law enforcement partners, will hold corporate executives accountable when they use their expertise to facilitate the commission of crimes.” Mr. Donoghue expressed his appreciation to the Securities and Exchange Commission, New York Regional Office, and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group, for their assistance in this case.
“Investors know they’re taking a chance when purchasing stock and other securities, but they don’t anticipate the odds being stacked against them from the start,” stated FBI Assistant Director-in-Charge Sweeney. “In so many cases, we see criminals in the white collar world autonomously controlling other people’s money and diverting it for their own benefit. Stealing is stealing, in whatever form or fashion, and today’s conviction proves just that.”
The evidence at trial established that in May 2013, Discala, along with separately charged co-conspirators, engineered a reverse merger of CodeSmart, a private company, with a public shell company. After gaining control of CodeSmart’s three million purportedly unrestricted shares, Discala and his co-conspirators on two occasions fraudulently inflated share price and trading volume of CodeSmart, which traded under the ticker symbol ITEN, and then sold their shares at a profit when the price reached desirable levels — a scheme commonly referred to as a “pump and dump.”
The first pump and dump occurred between May 13, 2013 and August 21, 2013. During this period, the co-conspirators manipulated CodeSmart’s stock price causing it to rise from $1.77 to a high of $6.94, before “dumping” their shares thereby causing it to drop to $2.19.
The second pump and dump occurred between August 21, 2013 and September 20, 2013. During this period, the defendant and his co-conspirators manipulated CodeSmart’s stock price causing it to rise from $2.19 to a high of $4.60, before selling, or “dumping,” their shares causing it drop to $2.13. During the entire period, Discala and his co-conspirators coordinated their trading activity to artificially control CodeSmart’s stock price. Evidence at trial established that Discala made more than $2.8 million in trading profits from the CodeSmart pump and dumps, while investors lost millions of dollars.
CodeSmart’s market capitalization at its highest closing price of $6.94 per share on July 12, 2013 was $86,347,800. That same day, CodeSmart filed with the U.S. Securities and Exchange Commission an amended Form 10-K, in which it listed only $6,000 in total assets, $7,600 in revenue and a net loss of $103,141. By December 30, 2013, CodeSmart’s stock was trading at $0.66 per share, and on July 9, 2014, its stock closed at $0.01 per share.
The evidence at trial also established that in early 2014, Discala and his co-conspirators defrauded investors and potential investors in Cubed, which traded under the ticker symbol CRPT. Discala and his co-conspirators gradually increased the price of Cubed’s stock to give it the appearance of a legitimate company with genuine and steady market demand for the security. The conspirators used an “escrow account” to successfully control the price and trading volume of Cubed’s stock, and to conceal the defendant’s and their co-conspirators’ ownership interests. In a telephone call intercepted pursuant to a judicially authorized wiretap, Discala boasted to a co-conspirator about his control over Cubed’s stock price through the use of the escrow account, stating, “I’m the [expletive] brake and the gas . . . . If I take my foot off the brake it’s 55 [dollars] tomorrow.” At the same time the defendant and their co-conspirators were touting Cubed to prospective investors, Discala stated on an intercepted call that, “We’ll be out before [expletive] company will even see if the Cube works, ok?”
On June 23, 2014, Cubed reached its highest closing price of $6.75 per share, resulting in a market capitalization of approximately $200 million. Previously, Cubed filed with the SEC a Form 10-Q that reported less than $1,500 in cash holdings, zero revenue, negative stockholders’ equity, a net loss of $15,000 and accrued professional fees of $131,824.
The evidence at trial also established that, in addition to manipulating the stock of CodeSmart and Cubed, between October 2013 and July 2014, Discala also fraudulently manipulated the stock of StarStream Entertainment Inc. and The Staffing Group, Ltd. StarStream was a Nevada corporation with its principal place of business in Monterey, California. It was promoted as a company that produced, promoted, supported and developed motion pictures, and it traded under the ticker symbol SSET. The Staffing Group was a Nevada corporation with its principal place of business in New Orleans, Louisiana. It was promoted as a company that recruited, hired, employed and managed skilled workers for clients, and it traded under the ticker symbol TSGL.
The jury also acquitted Discala of two wire fraud counts. Separately charged defendant Kyleen Cane was acquitted of the three counts against her.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Shannon C. Jones, Patrick T. Hein and Mark E. Bini are in charge of the prosecution with assistance provided by Assistant United States Attorney Claire Kedeshian of the Office’s Civil Division which is responsible for the forfeiture of assets.
The Defendant:
ABRAXAS J. DISCALA (also known “AJ Discala”)
Age: 47
Scarsdale, New YorkE.D.N.Y. Docket No. 14-CR-399 (ENV)
Connecticut Man Found Guilty on Wire Fraud Charges for Credit and Gift Card Fraud SchemeRead the Press Release
NEWARK N.J. – A Connecticut man who defrauded credit card companies of hundreds of thousands of dollars was found guilty on stolen goods charges today, U.S. Attorney Craig Carpenito announced.
Nikolay Krechet, 47, of West Hartford, Connecticut, was found guilty on all counts on which he was indicted – one count of conspiracy to sell, receive or possess stolen goods and two counts of sale, receipt or possession of stolen goods following a two-and-a-half week trial before U.S. District Judge William H. Walls in Newark federal court. The jury deliberated 25 minutes before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
Krechet bought and used millions of dollars of gift cards purchased with stolen credit card information. The substantive counts corresponded to the purchase of tens of thousands of dollars of gift cards in cash and bartered electronics for gift cards at a considerable discount off their face value.
The conspiracy count carries a maximum penalty of five years in prison and the two substantive counts each carry a maximum penalty of 10 years in prison. Sentencing is scheduled for July 31, 2018.
U.S. Attorney Carpenito credited special agents of FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; and the U.S. Postal Inspection Service, under the director of Acting Inspector in Charge Ruth M. Mendonca, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys David Feder and Joshua Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Thomas Ambrosio Esq., Lyndhurst, New Jersey
Connecticut Man Charged with CyberstalkingRead the Press Release
Jacob Waitze, 22, of Southbury, Connecticut, was charged today by criminal information with cyber-stalking, announced United States Attorney William M. McSwain.
The information alleges that, from October 23, 2015, through February 16, 2016, Waitze used an interactive computer service and an electronic communication system to engage in a course of cyber-stalking that caused substantial emotional distress to another individual.
If convicted as charged, the defendant faces a maximum possible sentence of five years’ imprisonment, supervised release for a maximum term of three years, a $250,000 dollar fine, full restitution of as much as $10,000, and a mandatory $100 special assessment.
The case was investigated by Homeland Security Investigations, the Philadelphia Police Department, and the Drexel University Police Department. The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Chandler Man Sentenced to Three Years in Prison for Tax EvasionRead the Press Release
PHOENIX – This week, U.S. District Judge David G. Campbell sentenced William “Larry” Dorsey, 56, of Chandler, Ariz., to 36 months in prison and three years of supervised release. The Court also ordered Dorsey to pay $7.3 million in restitution to the Internal Revenue Service. Dorsey had previously pleaded guilty to tax evasion.
Dorsey owned and operated several professional employment organizations, including Pinnacle Employee Group, Inc. (PEG) and Pinnacle Planning Group, Inc. (PPG), which contracted with small business owners to provide payroll services. Dorsey, through PEG and PPG, collected federal employment taxes from his clients but, instead of paying the taxes over to the IRS as he contracted to do, kept a significant portion of the taxes for his own personal use and to fund other business ventures. To conceal his theft, Dorsey filed false employment tax returns with the IRS, which underreported the taxes due from PEG and PPG. From 2011 through 2014, Dorsey underreported and underpaid approximately $7.3 million in federal employment taxes due and owing by PEG and PPG.
The investigation in this case was conducted by Internal Revenue Service Criminal Investigation. The prosecution was handled by Bridget Minder and Peter Sexton, Assistant United States Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-18-00128-DGC-PHX
RELEASE NUMBER: 2018-058_Dorsey
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Berwick Man Sentenced for Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Justin Weist, age 26, of Berwick, Pennsylvania, was sentenced on May 2, 2018, to 33 months’ imprisonment by United States District Court Judge Robert D. Mariani for Bank Robbery.
According to United States Attorney David J. Freed, Weist admitted to the February 23, 2017, robbery of First National Bank in Tannersvile, Monroe County, Pennsylvania during his guilty plea on October 11, 2017. Weist stole $1,800, all of which was recovered. Weist, who did not possess a weapon, robbed the bank by presenting a note to a teller demanding money.
The case was investigated by the U.S. Federal Bureau of Investigation (FBI) and was prosecuted by Assistant U.S. Attorney Sean A. Camoni.
# # #
AG Sessions Selects SDTX to Receive Additional Resources to Combat the Southwest Border CrisisRead the Press Release
HOUSTON - Attorney General Jeff Sessions has selected the Southern District of Texas (SDTX) to receive additional personnel for the fight against illegal immigration, announced U.S. Attorney Ryan K. Patrick.
A total of 35 new Assistant U.S. Attorney (AUSA) positions have been allocated to the five U.S. Attorney’s Offices along the Southwest border, eight of which were dedicated to the SDTX.
The additional prosecutors will be utilized to handle the prosecutions of improper entry, illegal reentry and alien smuggling cases.
“The SDTX regularly prosecutes multiple thousands of illegal entry, illegal reentry and smuggling cases per year,” said Patrick. “These new attorneys will go towards increased enforcement of the administration’s zero tolerance policy towards those who illegally enter the county and other immigration matters. Our offices in Laredo, McAllen, Brownsville and Corpus Christi are the front line in this effort.”
“The American people made very clear their desire to secure our borders and prioritize the public safety and national security of our homeland,” said Sessions. “Promoting and enforcing the rule of law is essential to our republic. By deploying these additional resources to the Southwest border, the Justice Department and the Trump Administration take yet another step in protecting our nation, its borders and its citizens. It must be clear that there is no right to demand entry without justification.”
Due to a recent increase in the number of apprehensions at the Southwest border, the new AUSA positions will assist in the prosecutions of illegal reentry (8 U.S.C. § 1326), alien smuggling (8 U.S.C. § 1324) and improper entry (8 U.S.C. § 1325) pursuant to the Justice Department’s “Zero-Tolerance Policy” Sessions announced April 6, 2018, and its prior April 11, 2017, directive to prioritize charging immigration offenses.
A decision on how the new SDTX positions will be specifically allocated throughout the district has yet to be determined.
3 May 2018
Wisconsin Woman Sentenced to 41 Months in Federal Prison for Stealing More Than $2 Million from Illinois CompaniesRead the Press Release
ROCKFORD — A Gratiot, Wisc., woman was sentenced today by U.S. District Judge Frederick J. Kapala for stealing more than $2 million from her former employer and related companies.
TERESA L. JOHNSON, 53, was sentenced to 41 months in federal prison, to be followed by three years of supervised release, and was also ordered to pay $2,204,508 in restitution. Johnson pleaded guilty to a wire fraud charge on Dec. 13, 2017.
According to the written plea agreement, Johnson was a credit and collections specialist for a company located in Winslow, Ill. Johnson also did credit and collections work for two other companies, all of which had the same ownership. As a part of her duties, Johnson would send payment instructions to customers that owed money to the companies. From Jan. 18, 2012, through Aug. 15, 2016, Johnson created payment instructions for customers making payment by electronic bank transfer that contained her personal bank account number and provided those instructions to customers of the companies.
As stated in the plea agreement, the customers electronically submitted payments to the bank account number provided by Johnson, rather than to the companies. Johnson received the customers’ payments, totaling more than $2 million, in her personal bank account. Johnson also admitted that she used various methods to conceal her scheme, including using prepayments on balances due from customers and applying those prepayments to the past due balances of the customers whose money she took.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Wisconsin Man Pleads Guilty to Firearms Straw Purchasing ConspiracyRead the Press Release
United States Attorney Gregory G. Brooker today announced the guilty plea of MICHAEL PATRICK COUPE, 27, for his role in a firearms purchasing conspiracy. COUPE, who was charged on March 22, 2018, along with his co-defendant, JAMIE FLEMING, entered his guilty plea earlier today before Judge Donovan Frank in U.S. District Court in St. Paul, Minnesota.
“This defendant is a convicted felon who broke the law by illegally obtaining firearms through the use of a straw buyer, then resold the guns to another felon” said Assistant U.S. Attorney Jeffrey Paulsen. “These illegal purchasing schemes that seek to put guns in the hands of dangerous criminals will not be tolerated.”
According to the defendant’s guilty plea and documents filed in court, from September 13, 2017, through December 14, 2017, COUPE conspired with FLEMING and others to purchase five separate firearms, including a Mossberg Tactical 22 .22 caliber rifle, a SCCY model CPX-2, 9mm pistol, a Phoenix model HP22A .22 caliber pistol, a Taurus model PT111 9mm pistol, and a Taurus model PT140 .40 caliber pistol. When purchasing the firearms, FLEMING falsely attested on the required ATF Forms 4473 that she was the actual purchaser of the firearms, when in fact she was not. FLEMING purchased the firearms at the direction of COUPE, who has two prior felony convictions in Sawyer County, Wisconsin, and is prohibited from possessing firearms.
According to documents filed in court, following the purchase of the firearms, COUPE and FLEMING transferred some or all of the firearms to others, including an individual identified as G.T., who is a convicted felon. On multiple occasions between September 14, 2017, and November 27, 2017, COUPE and FLEMING traveled from Hayward, Wisconsin to Minneapolis, Minnesota where they met with G.T. and transferred firearms to G.T.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, and the Sawyer County Sheriff’s Office.
Assistant U.S. Attorney Jeffrey S. Paulsen is prosecuting this case.
Defendant Information:
MICHAEL PATRICK COUPE, 27
Hayward, Wis.
Convicted:
- Conspiracy – Felon in possession of a firearm, 1 count
- Felon in possession of a firearm, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600Wilmington Man Indicted on Child Pornography ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that a Federal grand jury in Raleigh has returned an eleven-count indictment charging RICARDO JEROME BENNETT, SR., age 47, of Wilmington, North Carolina, with ten counts of Receipt of Child Pornography and one count of Possession of Child Pornography.
The indictment alleges that, beginning at a time unknown and ending on December 19, 2014, BENNETT received at least ten images containing visual depictions of minors engaged in sexually explicit conduct. The indictment further alleges that on December 19, 2014, BENNETT was found to be in possession of digital media containing images and videos involving minors engaged in sexually explicit conduct.
If convicted of these charges, BENNETT would face a maximum of twenty years’ imprisonment and up to a lifetime of supervised release following any term of imprisonment.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Melissa Belle Kessler is prosecuting the case for the government.
Warren Man Arraigned on Attempted Enticement, Child Pornography ChargesRead the Press Release
PROVIDENCE, RI – A Warren man who allegedly communicated with and arranged to meet with a person he believed to be a 14-year-old girl with the intent of having her wear baby diapers while walking through a local mall and then engage in illicit sexual activity in the mall with her has been charged in federal court in Providence with attempted enticement and child pornography charges.
Christopher Kinney, 43, was released on unsecured bond following an initial appearance in federal court on April 27, on a criminal complaint charging him with one count each of attempted enticement of a minor, possession of child pornography and distribution of child pornography.
Kinney’s arrest and initial appearance in U.S. District Court are announced by United States Attorney Stephen G. Dambruch, Superintendent of the Rhode Island State Police Colonel Ann C. Assumpico, and Acting Special Agent in Charge of Homeland Security Investigations (HSI) Michael S. Shea.
It is alleged in court documents that Kinney had a series of online communications with the person he believed to be a 14-year-old girl. It is alleged that he described his desire to meet with the teenager at a local mall where he would dress her in a diaper and, after walking her around the mall, would engage in illicit sexual activity with her in a mall restroom.
The person Kinney was actually communicating with was a Rhode Island State Police Detective assigned to the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force, who is also a cross-designated HSI agent.
Kinney was arrested by members of the ICAC Task Force and HSI agents inside the mall on April 26, 2018, after he arrived and then walked around the mall in what appeared to be an effort to identify members of law enforcement. Inside of Kinney’s car law enforcement discovered, among other items, a diaper bag containing several diapers, a pacifier and baby bottle, condoms, candy and a canister of children’s bubble fluid.
Seized from Kinney’s pocket was an Apple iPhone on which it is alleged in court documents that investigators identified at least fifty-six images of child pornography. In addition, investigators identified numerous times where Kinney allegedly shared images of child pornography with others and investigators identified numerous files of children allegedly being harshly punished and/or beaten.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The matter is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
###
Virginia man sentenced to 20 years for his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Kevin L. Navarro, of Berryville, Virginia, was sentenced this week to 240 months incarceration for methamphetamine distribution, United States Attorney Bill Powell announced.
Navarro, age 24, was sentenced today to 240 months incarceration, to run consecutively with any other federal or state sentence. Navarro, 24, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine - Aiding and Abetting” in September 2017. He admitted to conspiring with another person to distribute methamphetamine in Hardy County, West Virginia in October 2016.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The United States Postal Inspection Service and the West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.U.S. Attorney’s Office Concludes Investigation into Fatal Shooting at Southwest Washington Recreation CenterRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against two officers from the Metropolitan Police Department (MPD) who were involved in the May 16, 2017, fatal shooting of Isabelle Duval in Southwest Washington.
The U.S. Attorney’s Office and the Metropolitan Police Department (MPD) conducted a comprehensive review of the incident, including interviews of civilian and law enforcement witnesses, and the review of body worn camera (BWC) and other video footage; autopsy and toxicology reports; District of Columbia Department of Forensic Sciences’ reports, photographs, and diagrams; audio transmissions; and physical evidence collected on the scene and from Ms. Duval’s vehicle, including an operable Ruger SR 22 .22LR semi-automatic pistol; an operable .45 caliber Zenith Zig 1911 semi-automatic pistol loaded with six .45 caliber GECO cartridges; a black magazine loaded with ten .22 caliber REM cartridges; an extended clip magazine loaded with nineteen 9mm cartridges of various brands; and three empty magazines.
According to the evidence, on May 16, 2017, at approximately 6:26 p.m., two Seventh District officers were dispatched to the Bald Eagle Recreation Center located at 100 Joliet Street SW, for the report of a “woman with a gun.” Several moments earlier, Ms. Duval had driven her gray Nissan Altima into a tree next to the recreation center, after previously leaving the scene of an accident six tenths of a mile away. Civilian witnesses approached Ms. Duval’s smoking vehicle to help her get out. Although Ms. Duval appeared to have a broken leg, she told the witnesses that she did not want them to call 911 because she had a warrant for her arrest. Ms. Duval then pulled out an operable Ruger SR 22 .22LR semi-automatic pistol, and started crawling and scooting towards the front door of the recreation center. As one witness called 911, two other witnesses moved the children who were on the adjoining playground and inside the recreation center to safety. When Ms. Duval reached the front door, she tried to get into the building, but the doors were locked. She then sat down in front of the entrance with the weapon in her hand.
When the two Seventh District officers arrived at the recreation center, they observed Ms. Duval sitting in front of the recreation center with the weapon still in her hand. The officers, and two other officers who had arrived on the scene, approached Ms. Duval and repeatedly ordered her to drop the weapon, but she did not comply. At approximately 6:32 p.m., as one of the officers repositioned his cruiser onto the grass next to the sidewalk so that the officers could use the doors of the cruiser as ballistic shields, Ms. Duval rose up on her knees and pointed her weapon at the officer in the cruiser. The initial two responding officers, both of whom were positioned in front of Ms. Duval with civilians to their rear, immediately fired their weapons in response. Ms. Duval was struck once in the center of the chest and once in the left buttock, and a bullet grazed her thigh and groin. She fell to the ground and dropped the weapon by her side.
The officers immediately holstered their weapons and ran towards Ms. Duval to render medical assistance, but she no longer had a pulse when personnel arrived from the District of Columbia Department of Fire and Emergency Medical Services. Ms. Duval, 41, was then transported to Howard University Hospital, where she was officially pronounced dead. The autopsy report indicates that the cause of Ms. Duval’s death was the gunshot wound to her chest, and the toxicology report revealed that Ms. Duval was under the influence of alcohol, cocaine, methamphetamine, and fentanyl.
Department of Forensic Sciences technicians recovered Ms. Duval’s operable Ruger SR 22 .22LR pistol with an empty magazine inserted into the weapon’s well, and another weapon and multiple rounds of ammunition, from her vehicle. They also recovered seven cartridge casings that were fired by the two shooting officers.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officers used excessive force under the circumstances. To the contrary, there is sufficient evidence that the officers were acting in self-defense and defense of others at the time of the shooting.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
Tucson Man Sentenced to 8 Years' Prison for Possession of Firearms by Convicted FelonRead the Press Release
TUCSON, Ariz. – On May 2, 2018, Marc Ryan Shipley, 34, of Tucson, Ariz., was sentenced by U.S. Senior District Judge David C. Bury to 96 months’ imprisonment. Shipley had been previously found guilty following trial of possession of firearms and ammunition by a convicted felon.
Shipley had been convicted in 2007 of the felony offenses of conspiracy to commit bribery of a public official and interference with commerce by extortion, and as a result was prohibited by law from possessing firearms and ammunition. However, in March of 2016, Shipley entered Benson Justice Court with a handgun and was removed by courthouse security. Later that same month, Shipley was in an automobile accident and was armed with a pistol in a holster on his hip and another firearm in his vehicle. In April of 2016, ATF agents questioned Shipley about his possession of firearms. At that time Shipley had another loaded pistol in his vehicle. Agents obtained a search warrant for Shipley’s house, where they found eight more firearms, 1,754 rounds of ammunition, and several high capacity firearm magazines.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Arizona Department of Public Safety and the Tucson Police Department. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-16-01061-TUC-DCB
RELEASE NUMBER: 2018-056_Shipley
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three from Summit County indicted for having 1,500 pills of fentanyl stamped to look like OxycodoneRead the Press Release
Three people from Summit County were indicted in federal court after they were arrested with 1,500 pills stamped to look like Oxycodone but which were actually pills of fentanyl.
Gerald Bowerman, 36, of Cuyahoga Falls, Emmett Nelson, 34, of Akron, and Cortney Williams, 22, of Cuyahoga Falls, were each indicted on one count conspiracy to possess with intent to distribute fentanyl and one count of possession with intent to distribute fentanyl.
“This case is another stark reminder that drugs bought on the street don’t come with a verified list of ingredients and people have no idea what they are putting into their body,” U.S. Attorney Justin E. Herdman said. “Those who make the mistake of trying these drugs can be making the last mistake of their lives. These arrests helped save at least 1,500 lives.”
Akron Police Chief Kenneth Ball said: “The battle against the opioid crisis takes many shapes and impacts a widely diverse group. In this instance, criminal predators were willing to put so many at great risk by poisoning prescription drugs with fentanyl. Communities and families continue to suffer significantly because of acts like this. Fortunately law enforcement continues to work together to hold these despicable lawbreakers accountable.”
Bowerman, Nelson and Williams on April 17 traveled from 789 Upson Street in Akron to a residence at 1523 S. Chapel Street in Louisville, then back to the Akron residence. Bowerman carried a package with him as he entered the Akron home, according to court documents.
All three were detained later that day. Williams possessed 260 pills stamped as Oxycodone 30 milligrams, as well as a drug ledger that contained the amounts of pills Williams was selling and delivering. Agents and officers found approximately 1,000 pills on the kitchen counter next to an empty U.S. Postal package, according to court documents.
Nelson stated the package they picked up in Louisville was supposed to contain 1,500 pills and he was in the process of counting the pills when law enforcement entered the home, according to court documents.
While the pills were stamped as Oxycodone, a subsequent test revealed the pills were made up of fentanyl and cutting agents.
The defendants are scheduled to appear in court later this week.
This case was investigated by the Drug Enforcement Administration, Summit County Drug Unit and Akron Police Department. It is being prosecuted by Assistant U.S. Attorneys Vasile Katsaros and Patrick Burke.
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 violation. 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.
Three Men Arrested for Scheme to Defraud Elderly Victims in the Sale of Worthless StockRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrests of VLADIMIR ZISKIND, a/k/a “Mike Palmer,” KEITH ORLEAN, a/k/a “Jack Allen,” and KEVIN WEINZOFF, a/k/a “Mike Palmer,” and unsealing of a criminal complaint charging ZISKIND, ORLEAN, and WEINZOFF with conspiracy, securities fraud, and wire fraud in connection with their scheme to target elderly persons to solicit purchases of stock in a series of valueless companies through a variety of lies and misrepresentations. The defendants are expected to be presented this afternoon before U.S. Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendants worked together over several years to trick elderly individuals into investing millions of dollars in worthless stock. The defendants allegedly deceived their victims into handing over their hard-earned money in exchange for nothing but lies and false promises. Today’s arrests demonstrate that this profoundly harmful and cynical alleged conduct will not be tolerated.”
FBI Assistant Director William F. Sweeney Jr. said: “We take all cases of securities fraud seriously, but there are few fraud schemes sleazier than defrauding elderly victims through deceit and manipulation. The defendants allegedly solicited more than $2 million in stock purchases from their more than four dozen victims. While nothing could restore the damage that has already been done, today we begin the process of holding those charged accountable for their actions.”
According to the allegations in the Complaint filed today in Manhattan federal court:[1]
For several years, the defendants operated a fraudulent scheme in which a salesman named “Mike Palmer” would call elderly persons on the phone and offer them what he claimed was a time-sensitive opportunity to buy stock in certain companies. In fact, there was no “Mike Palmer,” and the salesman was actually VLADIMIR ZISKIND or KEVIN WEINZOFF, who were taking turns using the fake alias. The purported time-sensitive investment opportunity was also fabricated by the defendants, as the companies in which they solicited investments were actually companies under their control. In one intercepted phone call conversation, ZISKIND described to KEITH ORLEAN his strategy for a successful investor sales pitch as: “You ram it down their fucking throat.” In another intercepted call between ZISKIND and ORLEAN, upon learning that a particular victim investor died, ZISKIND remarked: “I knew I should have pulled the last $10,000 out of him.”
The most recent version of the defendants’ phony sales pitch included false representations about an impending initial public offering, or “IPO,” for their company, Digital Donations Technologies, Inc. For example, in April 2018, one of the defendants assured a victim investor that “our company is doing great,” that the company had an offer for an IPO valued at approximately $300 million, and that defendant KEITH ORLEAN was considering a private sale of the company for more than $1.5 billion. In truth, however, the defendants knew that the company had little or no actual commercial value and that no such IPO or sale was taking place.
The FBI estimates that since April 2014, the defendants have convinced more than approximately 50 elderly persons to purchase stock in companies controlled by one or more of the defendants based on false representations. The defendants appear to have solicited more than $2 million in stock purchases from victims.
* * *
ZISKIND, 49, of Brooklyn, New York, ORLEAN, 60, of Dix Hills, New York, and WEINZOFF, 53, of Brooklyn, New York, are each charged with one count of conspiracy to commit securities fraud, one count of securities fraud, one count of conspiracy to commit wire fraud, and one count of wire fraud. The securities fraud, wire fraud, and wire fraud conspiracy counts each carry a maximum penalty of 20 years in prison. The conspiracy to commit securities fraud count carries a maximum penalty of five years in prison. The maximum potential sentences in this case 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 outstanding work of the FBI.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrew Thomas and Max Nicholas are in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendants are 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.
Tallahassee Man Charged with Committing Federal Child Pornography CrimesRead the Press Release
TALLAHASSEE, FLORIDA – Milton Sumrell, 43, of Tallahassee, was arraigned today in the U.S. District Court in Tallahassee after a federal grand jury returned an indictment charging him with production of child pornography, enticement of a minor to perform illegal sex acts, and possession of child pornography. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, in October and November 2017, Sumrell persuaded a minor to engage in sexually explicit conduct for the purpose of producing child pornography and persuaded someone under age 18 to engage in sexual activity. The indictment further alleges that, between January and March 2018, Sumrell possessed child pornography. The trial is scheduled for June 11, 2018, at 8:15 a.m.
If convicted, Sumrell faces a minimum of 15 years and maximum of 30 years in prison for the production charge, a minimum of 10 years and a maximum of life in prison for the enticement charge, and a maximum of 10 years in prison for the possession charge.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and the Trumann Police Department (Arkansas). The case is being prosecuted by Assistant United States Attorney Michael Harwin.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Statement of United States Attorney Richard P. Donoghue on Appointment by the District CourtRead the Press Release
“Chief Judge Dora L. Irizarry has notified me that the Court, pursuant to 28 U.S.C. § 546(d), has appointed me to serve as the United States Attorney for the Eastern District of New York. I am deeply grateful to the Court for the opportunity to continue to serve as the U.S. Attorney. I am equally grateful to the women and men of the Eastern District who have created and maintained a tradition of honor, integrity and excellence. Together, we will pursue justice, protect the people of this great nation and be faithful to the rule of law.”
Statement of U.S. Attorney David C. Weiss on the Guilty Verdict in U.S. v. Wilmington Trust Corporation et al.Read the Press Release
WILMINGTON, Del. – First, I want to thank the jury for their service. This was a complicated case. The subject matter was dense. Those of you who observed trial know, however, that the jury paid close attention to the witnesses and carefully reviewed the documents throughout the seven weeks of trial. Further, the jury’s questions during their deliberations demonstrated a comprehensive review of the evidence.
This was an important case to the citizens of Delaware. Wilmington Trust Company was the preeminent financial institution in the state. Founded more than 100 years ago by the DuPont family, Wilmington Trust was the gold standard. The bank’s demise was a significant development—significant to the Delaware community and especially the bank’s employees, shareholders and customers.
The defendants’ actions contributed to the bank’s demise. They loaned money to a small group of real estate developers when other banks were adopting a more cautious approach under the then existing difficult economic conditions. Many of these commercial loans came due in 2009. That was the moment of truth. Defendants made the conscious decision to lie about hundreds of millions of dollars in matured, past due loans.
Defendants’ failure to disclose these past due loans was significant. The volume of past due loans is a key metric for regulators and investors when evaluating the condition of an institution’s loan portfolio.
Defendants were a victim of their own arrogance. They convinced themselves that they knew better. They rationalized that it was somehow acceptable to waive over 300 million in matured, past due loans and mass extend another 500 million dollars in commercial loans without proper due diligence—because they knew better. The fact is that defendants’ disclosure obligations were clear. They had an absolute responsibility to disclose these past due loans to the Federal Reserve, the SEC and the public. The failure to make these disclosures is particularly troublesome when defendants went to the market and asked the public to invest 287 million in capital in the Bank in February 2010. The public had the right to know how the Bank was keeping score. Based on the Bank’s disclosures in the third and fourth quarter of 2009, no one could have known the true condition of Wilmington Trust’s loan portfolio.
The jury understood these facts. People who have mortgages, car loans, and credit cards understand that there are no loan extensions or waivers. When the bill comes due banks expect to be paid—period.
Finally, I want to thank the Assistant United States Attorneys and the agents who worked this case. Recently it’s become a bit of a sport to ridicule the DOJ, the FBI and other federal agencies. I won’t comment further on this issue globally, but I can speak to the agents and attorneys who work in Delaware. They are among the finest professionals in law enforcement. Robert Kravetz and Lesley Wolf have worked this investigation/prosecution for seven years. Jamie McCall has been with the team for the last three years. Dave Bole and Greg Mrozek from the FBI have been on this case from the beginning, along with Anthony Lopiccolo from IRS and Brendon Clark from SIGTARP. The case could not have reached this conclusion without their years of sacrifice and dedication. I am so proud of these professionals and the entire United States Attorney’s Office for the District of Delaware. Prosecuting a case of this size and complexity requires contributions from literally everyone in the office. I could not be more appreciative of their hard work.
South Bend, Indiana, Man Sentenced to 10 Years in PrisonRead the Press Release
SOUTH BEND - Edward Bishop, age 26, of South Bend, Indiana, was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for discharging a firearm during a drug trafficking crime, announced U.S. Attorney Kirsch.
Bishop was sentenced to 120 months imprisonment followed by 2 years of supervised release.
According to documents in this case, Bishop drove from Lafayette to Warsaw to sell marijuana to two individuals. He brought other drugs along with him, as well as a loaded Taurus handgun. When he met the buyers, the drug deal “went bad”. Bishop exited his car and fired shots toward the buyers’ car. One of the shots struck one of the buyers as she tried to drive away. Broken glass, bullet fragments and the victim’s blood were found in her car. The Taurus handgun used by Bishop was recovered by law enforcement in the trunk of Bishop’s car.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms with assistance from the Warsaw Police Department. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
###
Somersworth Man Sentenced to 48 Months in Prison for Child Pornography PossessionRead the Press Release
CONCORD - Nicholas Guy, 23, of Somersworth, New Hampshire, was sentenced to serve 48 months in federal prison for possessing child pornography, announced United States Attorney Scott W. Murray.
According to court records, law enforcement officers executed a search warrant at the Somersworth residence of Guy in March of 2017. Various devices seized contained hundreds of images and videos of child pornography.
Guy pleaded guilty to possessing child pornography on December 11, 2017. After serving his 48-month prison sentence, he will be on supervised release for ten years.
“Protecting children from exploitation is a high priority of the U.S. Attorney’s Office,” said U.S. Attorney Murray. “Our law enforcement partners work tirelessly to identify those who are exploiting children by possessing or producing child pornography. Those who commit crimes related to child pornography cause untold damage to their young victims and will be prosecuted aggressively.”
“We are proud to have worked closely with our local, state and federal law enforcement partners in New Hampshire to help bring this case through to conclusion,” said Peter C. Fitzhugh, Special Agent In Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Boston. “It’s important to remember that these cases are not so-called ‘victimless crimes’ but that real people- minor children- are victimized by the actions of individuals who traffic in this filth.”
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the New Hampshire Crimes Against Children Task Force in conjunction Homeland Security Investigations Manchester, and the police departments of Somersworth, Concord, Portsmouth, and Rochester, New Hampshire. The case was prosecuted by Assistant United States Attorney Georgiana L. Konesky.
###
Solon Man Pleads Guilty to CyberstalkingRead the Press Release
DAVENPORT, IA – On Monday, April 30, 2018, Daniel Lee Stone, age 48, of Solon, Iowa, appeared before United States Magistrate Judge Stephen B. Jackson, Jr., and pleaded guilty to cyberstalking announced United States Attorney Marc Krickbaum.
According to the plea agreement, Stone admitted to texting a minor female over 170 times from on or about October 31, 2016, through November 3, 2016. Stone purported to be someone else in the text messages and offered her cash and other “goodies” to become his sugar baby. He also sent numerous texts indicating he was watching the female, was outside her home, and described, with accuracy, items or places within the female’s residence. The minor female made repeated requests for Stone to leave her alone.
Stone’s sentencing is scheduled for September 12, 2018, at 9:30 a.m. before United States District Court Chief Judge John A. Jarvey. Stone faces a prison term of up to five years and a maximum fine of $250,000.
This matter was investigated by the Johnson County Sheriff’s Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa
Six Family Members Indicted on Federal Charges Related to $4 Million Extortion SchemeRead the Press Release
WASHINGTON –Five people, all members of the same family, have been indicted on federal charges alleging that they took part in a $4 million extortion and money laundering scheme. A sixth family member has been indicted on charges of tampering with a witness.
The indictments were announced today by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Michael E. Horowitz, Inspector General of the U.S. Department of Justice.
Five of the defendants are to appear this afternoon for a status hearing before the Honorable Emmet G. Sullivan in the U.S. District Court for the District of Columbia. They earlier pled not guilty to charges in the indictment. The indictment was returned on April 19, 2018, and unsealed on April 25, 2018.
Those scheduled to make court appearances today include Archie Kaslov, 51, his wife, Candy Evans, 48, and their sons: Tony John Evans, 29; Robert Evans, 30, and Corry Blue Evans, 25. All are from New York, N.Y. Gina Rita Russell, 29, of Los Angeles, Calif., remains in custody while awaiting extradition to the District of Columbia. She is the common law spouse of Robert Evans.
According to the indictment, from approximately November 2016 through approximately April 2017, Kaslov, Tony John Evans, Robert Evans, Corry Blue Evans, and Russell engaged in a wide-ranging scheme to enrich themselves through the extortion and attempted extortion of others and through the scheme received more than $4 million in cash, gold bars, and gold coins.
The indictment also alleges that from approximately January 2017 through June 2017, these same five defendants engaged in a scheme to launder their fraudulent proceeds. The indictment alleges that they used the fraudulent proceeds to purchase, among other items, luxury merchandise, jewelry, designer watches, and two Rolls Royce Phantom automobiles.
The indictment further alleges that Candy Evans and Russell engaged in obstruction of justice through various conduct, which included arranging a fraudulent marriage in an attempt to obstruct potential witness testimony, creating a false letter of exoneration, and coaching potential witnesses on false information to provide to law enforcement.
With the exception of Candy Evans, all of the defendants are charged with one count of conspiracy to commit extortion, bank fraud, and wire fraud, and one count of conspiracy to commit money laundering. Candy Evans is charged with three counts of tampering with a witness. Kaslov also is charged with three counts of money laundering. Tony Evans and Robert Evans also are charged with one count each of interference with interstate commerce by extortion and money laundering. Corry Blue Evans also is charged with one count each of bank fraud, wire fraud, and money laundering. Russell also is charged with one count of interference with interstate commerce by extortion, one count of bank fraud, one count of wire fraud, and three counts of tampering with a witness.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Inspector General Horowitz expressed appreciation for the work performed by Special Agents from the FBI’s Washington Field Office and the Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Diane Lucas, who is assisting with forfeiture issues, Paralegal Specialists Brittany Phillips, Kristy Penny and Joshua Fein, former Paralegal Specialist Jessica Mundi, and Forensic Accountant Bryan Snitselaar.
Finally, they commended the work of Assistant U.S. Attorneys David Kent and Kondi Kleinman, who investigated and are prosecuting the case.
Sheridan Man Sentenced for Child Pornography ChargesRead the Press Release
JOSHUA E. POOLE, 40, of Sheridan, Wyoming was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 2, 2018 for transportation of child pornography. Poole was arrested in Sheridan, Wyoming. He received sixty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay restitution in the amount of $3,500.00 and a $100.00 special assessment. The Wyoming Division of Criminal Investigation, U.S. Immigration and Customs Enforcement, and the FBI investigated this case.
Seven York County Individuals Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted seven individuals in two separate indictments on April 25, 2018, on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictments charge the following defendants for offenses that took place between November 2017 and April 2018 in York County:
- Francisco Rivera-Rivera, age 26 – is charged with one count of conspiracy to distribute heroin; one count of possession of a firearm in further of a drug trafficking crime; one count of felon in possession of firearm; one count of possession of a stolen firearm; and four counts of distribution of heroin;
- Axel Pena-Reyes, age 24 – is charged with one count of conspiracy to distribute heroin; two counts of distribution of heroin; one count of possession with intent to distribute heroin, marijuana, cocaine base and cocaine hydrochloride;
- Jessica Curet, age 37 – is charged with one count of conspiracy to distribute 100 grams of heroin (which is equivalent to approximately 4,000-5,000 individual doses); six counts of distribution of heroin; two counts of distribution of cocaine base; one count of felon in possession of firearm;
- Christopher Cruz-Ortiz, age 23 - is charged with one count of conspiracy to distribute heroin; nine counts of felon in possession of firearm; five counts of possession of a stolen firearm; one count of distribution of heroin; three counts of possession of a firearm with obliterated serial number;
- Jaiell Montalvo, age 19 - is charged with one count of felon in possession of firearm; one count of possession of a firearm with obliterated serial number;
- Deondre Densby, age 35 – is charged with one count of felon in possession of firearm; one count of possession of a stolen firearm; and
- Edwin Garbrial Ramos-Reyes, age 37 – is charged with one count of being a felon in possession of firearm.
The indictment also alleges that defendants sold 16 firearms, including 15 pistols and one AK style rifle. Of the firearms that were sold, six were confirmed stolen, and three had their serial numbers obliterated.
“There are two important takeaways from today’s announcement,” said United States Attorney Freed. “First, our concerted efforts to address violent crime in York are a team effort and we are true partners. And we are not going anywhere. In the last few years the United States Attorney’s office has prosecuted more than 70 violent felons from York. And as long as this criminal behavior continues, we will be standing together with our local partners. Second, today’s announcement again underscores that drug dealing is inherently violent activity. Illegal drugs and illegal guns go hand in hand. We will not rest in our mission to reduce violence in this city.”
"This investigation is an example of ATF’s dedication to working with our state, local and federal partners in identifying, targeting, and investigating violent criminals who are involved in selling narcotics and firearms who prey upon innocent citizens and lessen the quality of life in our neighborhoods,” said ATF Special Agent in Charge Donald Robinson. “Our neighborhoods deserve to exist without fear and intimidation inflicted by all violent drug gangs. We will continue to work with our partners to impact the violent drug related activity that has wreaked havoc throughout York.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), York City Police Department, York County District Attorney’s Office, the York County Drug Task Force and West Manchester Police Department, with assistance on arrests of defendants by York County Probation and the United States Marshal Service Task Force. Assistant U.S. Attorney Daryl Bloom is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the charges of conspiracy to distribute and possess with intent to distribute heroin; distribution of heroin; possession with intent to distribute heroin; distribution of cocaine base are all up to 20 years’ imprisonment; the charges of felon in possession; possession of a stolen firearm; felon in possession and aiding and abetting; possession of a firearm with an obliterated serial number are all up to 10 years’ imprisonment; and possession of a firearm in furtherance of drug trafficking is up to life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Seven Manatee County Men Charged in Federal Racketeering Case Involving Six MurdersRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of a 12-count indictment charging seven individuals, all of Manatee County, for their roles in a racketeering conspiracy involving murder, attempted murder, arson, robbery, drug trafficking, and other crimes. The attached summary chart identifies the individuals, charged offenses, and potential penalties. Anyone with information relevant to this case is encouraged to call 1-800-ATF-GUNS (1-800-283-4867) or email [email protected].
According to the indictment, Jordan Rodriguez (24), Andrew Thompson (23), Alfonzo Churchwell (31), Juan Ortiz (24), Raymy Escoto (23), Phillip Uscanga (24), and Jesse Rodriguez (20) were part of an ongoing criminal enterprise in Manatee County that furthered their illegal activities by, among other things, using and threatening to use various levels of violence, ranging from simple assault to murder, and by concealing and destroying evidence of, and tampering with witnesses to, their illegal activities.
The indictment alleges that on January 1, 2016, Thompson shot and killed Demetrius Robinson and Florence Randall. On the same day, Jordan Rodriguez, Ortiz, Escoto, and Uscanga committed a drive-by shooting, killing Julio Tellez. On September 11, 2017, Churchwell shot and killed Earnestine Gardner. On January 13, 2017, Thompson shot and killed LaShawna Stevenson-Weeks and Berry Joseph.
The indictment also alleges that Jesse Rodriguez, Jordan Rodriguez, Andrew Thompson, and Alfonzo Churchwell used and maintained a drug premises.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Manatee County Sheriff’s Office, and the State Attorney’s Office for the Twelfth Judicial Circuit. It will be prosecuted by Assistant United States Attorneys Natalie Hirt Adams and Christopher F. Murray.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Name
Charge/Count
Maximum Penalty
Jordan Rodriguez
Andrew Thompson
Alfonzo Churchwell
Juan Ortiz
Raymy Escoto
Phillip Uscanga
Jesse Rodriguez
(Count One)
RICO Conspiracy
Life in federal prison.
Jordan Rodriguez
Andrew Thompson
Alfonzo Churchwell
Jesse Rodriguez
(Count Two)
Drug Trafficking Conspiracy
20 years in federal prison.
Raymy Escoto
Phillip Uscanga
(Count Three)
Arson Conspiracy
Minimum mandatory term of 5 years, and up to 20 years, in federal prison.
Raymy Escoto
Phillip Uscanga
(Count Four)
Arson
Minimum mandatory term of 5 years, and up to 20 years, in federal prison.
Andrew Thompson
(Count Five)
Possession with the intent to distribute heroin, cocaine, and crack cocaine
20 years in federal prison.
Alfonzo Churchwell
(Count Six)
Discharge of a firearm resulting in death of Earnestine Gardner, during and in relation to a drug trafficking conspiracy
Minimum mandatory term of 10 years, and up to life, in federal prison (to run consecutive to any other term of imprisonment), or death.
Alfonzo Churchwell
(Count Seven)
Felon in possession of ammunition
10 years in federal prison.
Andrew Thompson
(Count Eight)
Attempted possession with the intent to distribute cocaine and methamphetamine
20 years in federal prison.
Andrew Thompson
(Count Nine)
Discharge of a firearm resulting in death of Lashawna Stevenson-Weeks, during and in relation to drug trafficking crimes
Minimum mandatory term of 10 years, and up to life, in federal prison (to run consecutive to any other term of imprisonment), or death.
Andrew Thompson
(Count Ten)
Discharge of a firearm resulting in death of Berry Joseph, during and in relation to drug trafficking crimes
Minimum mandatory term of 10 years, and up to life, in federal prison (to run consecutive to any other term of imprisonment), or death.
Andrew Thompson
(Count Eleven)
Possession of firearms and ammunition while subject to a restraining order
10 years in federal prison.
Jordan Rodriguez
Andrew Thompson
Alfonzo Churchwell
Jesse Rodriguez
(Count Twelve)
Using or maintaining a drug premises
20 years in federal prison.
Seven Individuals Indicted on Federal Drug Trafficking and Firearms ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that seven individuals have been indicted on federal drug trafficking and firearms charges. The defendants named in the indictment are:
- Christina Quintana, a/k/a “Lete,” 32, of Las Cruces, New Mexico;
- Andrea Avalos, a/k/a “Josie,” 22, of Las Cruces, New Mexico;
- Peter Krovina, a/k/a “Lil’ Pete,” 39, of Sitka, Alaska;
- Porter Treadway, 36, of Sitka, Alaska;
- Holly Chambers, 25, of Sitka, Alaska;
- Aaron Didrickson, 29, of Sitka, Alaska; and
- Eric Morisky, a/k/a “Curly,” 30, of Juneau, Alaska.
The indictment charges each of them with drug conspiracy and possession of firearms in furtherance of drug trafficking. Quintana and Treadway face additional charges for illegally possessing firearms as convicted felons. On Tuesday, May 1, they each appeared in federal court in Juneau on the charges and were detained pending trial.
According to the indictment, beginning on May 2, 2017, and continuing until April 3, 2018, the defendants conspired to distribute and possess with intent to distribute quantities of methamphetamine and heroin in Sitka, Alaska. Quintana and Avalos allegedly obtained drugs from California and New Mexico for subsequent distribution in Sitka. Quintana and Avalos intimidated other members in the conspiracy by telling them they were members of a larger drug trafficking gang.
Krovina, Treadway, Chambers, Didrickson, and Morisky were members of the drug conspiracy who assisted Quintana and Avalos in the distribution of the drugs in Sitka, as well as the collection of drug debts from others. They all, including Quintana and Avalos, possessed firearms to facilitate their drug trafficking activities, as well as to extract retribution against members of the drug conspiracy who owed drug debts. For example, the indictment alleges that the defendants organized and perpetrated a violent home invasion and robbery where Quintana shot an individual in both legs, and Treadway attacked another individual with a claw hammer, in order to collect a drug debt owed during the course of the conspiracy.
The Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Sitka Police Department conducted the investigation, with the assistance of the United States Marshals Service (USMS), leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Saranac Lake Man Sentenced for Securities FraudRead the Press Release
SYRACUSE, NEW YORK – Mark Gillis, age 48, of Saranac Lake, New York, was sentenced today to time served, to be followed by 1 year of home detention, for defrauding customers of his brokerage firm out of nearly $400,000.
The announcement was made by United States Attorney Grant C. Jaquith and Peter F. Magnetto, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
In 2012, Gillis was a co-owner of Hudson Valley Capital Management, Inc., a securities broker-dealer with offices in Saranac Lake and Croton-on-Hudson, New York. Gillis was a licensed stockbroker and worked out of Saranac Lake.
Gillis admitted to purchasing shares of a stock and then transferring the shares to three Hudson Valley customers at improper markups of up to 280%. As a result of the markups, Gillis stole $379,652.41 from the customers. Gillis did this to cover up a nearly $400,000 loss he suffered while trading securities for his own benefit.
Senior United States District Judge Norman A. Mordue also ordered Gillis to forfeit $379,562.41, and to pay $226,500 in restitution to the Securities Investor Protection Corporation.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
SCI Smithfield Inmate Pleads Guilty to Tax FraudRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jeremy Baney, age 47, an inmate at SCI Smithfield, Huntingdon, Pennsylvania, pleaded guilty on May 2, 2018, before Senior United States District Court Judge Sylvia H. Rambo to aiding and assisting in making false statements to the IRS.
According to United States Attorney David J. Freed, Baney admitted to being involved in a prison tax scheme from November 17, 2009 through February 25, 2012. Baney obtained names and social security numbers of inmates to file false tax returns or would send that information to a former inmate who would then prepare and file the fraudulent 1040EZ tax returns with fictitious wages and holdings in order to get a tax refund.
The government is alleging that Baney attempted to receive tax refunds totaling $236,407, to which he was not entitled to receive.
Judge Rambo ordered a presentence report to be completed by the end of June. Sentencing will be scheduled at a later date.
“Tax refunds should only be issued to taxpayers who are entitled to them," said Guy Ficco, Special Agent in Charge IRS Criminal Investigation. “IRS-CI is sworn to protect the tax system and bring to justice those who would steal from the Treasury.”
The investigation was conducted by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney William A. Behe is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is three years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Rio Rancho Man Sentenced for Conviction on Federal Marijuana Trafficking ChargeRead the Press Release
ALBUQUERQUE – Antonio Ruelas, 32, of Rio Rancho, N.M., was sentenced late yesterday afternoon in federal court in Albuquerque, N.M., to 30 months of imprisonment based on his previously entered guilty plea to a marijuana trafficking conspiracy charge. Ruelas will be on supervised release for three years after completing his prison sentence.
Ruelas is one of ten defendants charged as the result of a two-year investigation by the FBI and IRS-Criminal Investigation into a drug trafficking organization led by Enrique Cavazos, 32, of Tijeras, N.M., that distributed high-grade marijuana throughout New Mexico and across the country. The investigation revealed that the Cavazos drug trafficking organization cultivated and purchased high-grade marijuana in California, distributed the marijuana throughout the country, and laundered its drug proceeds through a number of businesses and bank accounts in New Mexico.
Ruelas, Enrique Cavazos, his wife Lindsey Cavazos, 33, his father Felix Cavazos, 59, of Albuquerque, Joaquin Alaniz, 41, and Daniel Nieto, 30, both of Carlsbad, N.M., Eliberto Nava, 36, of Madera, Calif., and Robert Moreno, 38, of Calif., were charged by indictment in Nov. 2015, with marijuana trafficking and money laundering offenses. The indictment charged the co-conspirators with participating in a marijuana trafficking conspiracy that existed from at least Jan. 2008 through Nov. 2015, and operated in the District of New Mexico and elsewhere.
According to court filings, Enrique Cavazos operated a marijuana trafficking business by directing his co-conspirators to purchase large quantities of marijuana in California and distribute the marijuana in New Mexico and other destinations across the country. Lindsey Cavazos was responsible for keeping the books on businesses she and her husband established with proceeds from their marijuana trafficking activities and for the purpose of laundering their drug proceeds. The couple engaged in a money laundering conspiracy and used bank accounts in the names of several of their businesses, including a restaurant and a car dealership, to launder their drug proceeds.
The indictment was superseded in Aug. 2016, to add money laundering charges against three new defendants: Steven Becerra, 62, the owner of the Becerra Group Tax and Accounting Firm in Albuquerque, who previously was employed by the IRS for 18 years; Deborah Gutierrez, 55, who operated Automated Financial Technologies, which is no longer in business; and Glen F. Lucero, 66, a retired school teacher. The superseding indictment also removed Felix Cavazos, Enrique Cavazos’s father, who passed away after the original indictment was filed, from the list of defendants.
Enrique Cavazos pled guilty on May 24, 2017, to marijuana trafficking and money laundering charges under a plea agreement that recommended a sentence within the range of 48 to 120 months of imprisonment. Lindsey Cavazos also pled guilty on May 24, 2017, to a money laundering charge under a plea agreement that recommends a sentence of a five-year term of probation. The Cavazos’ plea agreements require the couple to forfeit the proceeds of their drug trafficking and money laundering activities, including real estate, vehicles, cash, weapons, and jewelry, which are valued at more than $1,883,500. The Cavazos are scheduled for sentencing on May 9, 2018.
Nieto pled guilty on May 25, 2017, to possessing hashish oil with intent to distribute. Nieto’s sentencing hearing is scheduled for May 24, 2018.
The remaining six defendants, who have entered not guilty pleas to the superseding indictment, are pending trial, which has yet to be scheduled. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The investigation of this case was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. It was conducted by the Albuquerque offices of the FBI and IRS Criminal Investigation. Assistant U.S. Attorneys Jennifer M. Rozzoni, Timothy S. Vasquez and Joel R. Meyers are prosecuting the case and Assistant U.S. Attorney Stephen R. Kotz is handling the forfeiture matters.
Registered Investment Advisor Charged with Stealing More Than $1 Million in Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, today announced that a federal grand jury in New Haven returned a 12-count indictment yesterday charging LEON C. VACCARELLI, 41, of Waterbury, with fraud and money laundering offenses stemming from an investment scheme that defrauded individuals of more than $1 million.
VACCARELLI appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven, entered a plea of not guilty to the charges, and was released on a $100,000 bond.
As alleged in the indictment, VACCARELLI, was a registered representative of The Investment Center, a brokerage company, and was an investment adviser associated with IC Advisory Services, Inc. He also was the owner and only member of LWLVACC, LLC, and conducted business through an entity named Lux Financial Services. Using these various entities, VACCARELLI operated a financial advisory and brokerage service through which he offered investment advice and sold investments and securities to individuals and families in the Waterbury area.
Between approximately 2011 and 2017, it is alleged that VACCARELLI defrauded victim investors of more than $1 million by falsely representing that he would invest his clients’ money in IRA rollover accounts, money market accounts, certificates of deposit (“CDs”), or other types of interest-earning investments. However, instead of investing customers’ funds as he had represented, VACCARELLI deposited customer funds into his own personal account and business bank accounts, commingled those funds with his own money, and used the funds to pay both business and personal expenses, including tuition and mortgage payments. In some instances, he also used customer funds to make bogus “interest payments” to other victim-investors.
The indictment charges VACCARELLI with three counts of mail fraud, and six counts of wire fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. The indictment also charges VACCARELLI with three counts of money laundering, an offense that carries a maximum term of imprisonment of 10 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
In a parallel action, the Securities and Exchange Commission brought related civil charges against VACCARELLI.
Red Lake Man Charged with MurderRead the Press Release
United States Attorney Gregory G. Brooker today announced a criminal complaint charging MICHAEL WAYNE WHITEFEATHER, 18, with murder in the second degree. WHITEFEATHER made his initial appearance earlier today before Magistrate Judge Huseby in United States District Court in Bemidji, Minnesota.
According to the complaint and law enforcement affidavit, on April 28, 2018, following a 911 call, investigators found the body of a male victim on a trail near the intersection of Highway 1 and Pike Creek on the Red Lake Indian Reservation. The subsequent autopsy indicated that the victim died of a gunshot wound to the head. Investigators located three spent yellow shotgun shells, two were found near the victim’s body and the third was found in a nearby field. Several witnesses reported to investigators that they heard multiple gunshots during the early morning hours of April 28, 2018, near the location where the victim’s body was found.
According to the complaint and law enforcement affidavit, on May 2, 2018, investigators located and arrested WHITEFEATHER in Bemidji. During a post-Miranda interview, WHITEFEATHER admitted to possessing a pump-action shotgun and three yellow shotgun shells, and to shooting the victim in the head with the shotgun.
The FBI is still seeking individuals involved in this matter, if you have any information about their whereabouts please call the FBI at 763-569-8000.
This case is the result of an investigation conducted by the Red Lake Department of Public Safety, the FBI Headwaters Safe Trails Task Force, the Paul Bunyan Drug Task Force, the Bemidji Police Department, and the Beltrami County Sheriff's Office.
This case is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
MICHAEL WAYNE WHITEFEATHER, 18
Red Lake, Minn.
Charges:
- Murder in the second degree, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Randolph County Man Sentenced to 16 Years on Methamphetamine OffenseRead the Press Release
On May 3, 2018, Joseph S. Hatley, 39, of Tilden, Illinois, was sentenced to 16 years in federal prison for conspiracy to distribute methamphetamine, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. Hatley’s federal sentence was ordered to run consecutively to any previously imposed state sentence.
Evidence at the plea and sentencing hearings established that Hatley was involved with other persons in the manufacture and distribution of methamphetamine in Southern Illinois. Co-defendants Dyllan Wayland and Colty Peak were previously sentenced to 100 months’ imprisonment and 140 months’ imprisonment, respectively, for their roles in the conspiracy. The one-count superseding indictment to which Hatley previously pled guilty charged that the conspiracy occurred between November 2013 and August 2015, in Perry, Randolph, Monroe, Jackson and St. Clair Counties.
At sentencing, the district judge found Hatley responsible for the distribution of 1.76 kilograms of methamphetamine and 283.5 grams of ice. Ice is methamphetamine which has a purity level of at least 80%. Hatley was also found responsible for the unlawful possession of 28.8 grams of pseudoephedrine. His sentence was enhanced based on his reckless endangerment of others during an August 18, 2015 police pursuit in Monroe County.
This case is part of an ongoing investigation being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Monroe County Sheriff’s Office, Percy Police Department, Steeleville Police Department, Sparta Police Department, and Illinois Department of Corrections. The Randolph County States Attorney’s Office also assisted in the investigation.
Radiation Control Technician Supervisors Sentenced for Falsifying Former Hunter’s Point Naval Shipyard Clean-Up RecordsRead the Press Release
SAN FRANCISCO – Stephen C. Rolfe and Justin E. Hubbard have been sentenced to eight months in prison for falsifying records in a federal investigation, announced Acting United States Attorney Alex G. Tse; U.S. Nuclear Regulatory Commission Office of Investigations (NRC:OI) Acting Director Scott Langan; Environmental Protection Agency (EPA) Special Agent in Charge Jay Green; and Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DOD-OIG), Special Agent in Charge Chris D. Hendrickson. Both defendants supervised a team of radiation control technicians retained to conduct radiological remediation at the former Hunter’s Point Naval Shipyard. The Honorable James Donato, United States District Judge, sentenced the defendants after each pleaded guilty to falsifying documents in related criminal cases. The cases against Hubbard and Rolfe were unsealed yesterday during Hubbard’s sentencing proceedings.
Yesterday, Judge Donato sentenced Hubbard, 48, of Boulder City, Nevada, to eight months in prison for falsifying documents. Hubbard pleaded guilty on May 10, 2017, to the offense. On March 15, 2017, Rolfe, 65, of Bradenton, Florida, pleaded guilty to falsifying documents. On January 24, 2018, Judge Donato sentenced him to serve eight months in prison for the offense.
“When our community’s health and safety is in jeopardy, we must vigilantly respond with all of our law enforcement tools,” said Acting United States Attorney Tse. “This sentence reflects our commitment to ensure that bogus reports intended to deceive the protectors of our environment will be investigated and prosecuted to the fullest extent of the law. We could not have achieved this success without the coordinated efforts of the Justice Department and our partner agencies.”
“Today’s announcement by the U.S. Attorney’s Office reaffirms the NRC’s continuing commitment to protecting public health, safety and the environment. The collaborative work of all federal agencies involved in this case serves as a reminder that the NRC will hold accountable any individual who willfully provides inaccurate and incomplete information to a safety regulator,” said NRC Executive Director for Operations Victor M. McCree.
“Accurate data is a critical component of EPA’s efforts to protect communities and the environment at Superfund sites,” said Assistant Administrator Susan Bodine. “Yesterday’s sentence demonstrates that those who place communities at risk by deliberately falsifying information will be held accountable.”
“Rolfe and Hubbard’s lies and shortcuts in the soil-testing process potentially put the community at risk and frustrated the contracting efforts of the U.S. Navy to test and remediate soil at the former Hunter’s Point Naval Shipyard,” said Special Agent in Charge Hendrickson. “These results demonstrate that DCIS and its law enforcement partners are committed to holding accountable those who cheat the Department of Defense procurement process and U.S. taxpayers.”
According to their plea agreements (Hubbard, Rolfe), the defendants were employed by government contractors performing nuclear remediation work at the former Hunter’s Point Naval Shipyard located in the Bayview District of San Francisco. Contractors at the site were expected to take soil from certain marked sampling locations, referred to as survey units, have the samples bagged and labeled, and then send them to a laboratory for analysis to determine, among other things, whether they contained certain radionuclides above an acceptable level. If a laboratory analysis determined a collected sample to contain a higher-than-allowable level of radionuclides of concern, then additional remediation of the survey area was to be conducted until all samples passed laboratory analysis. The defendants admitted that, rather than take samples from the intended survey units undergoing analysis, they participated in the substitution of dirt that was “clean” (containing acceptable levels of radionuclides) fraudulently taken from other areas within the former naval base.
As part of his plea agreement, Hubbard admitted that during 2012, he drove his company truck to an area outside the marked survey unit that he was tasked with remediating, and filled a bucket with clean dirt that he then substituted for legitimate soil samples. He then placed bar code stickers on the bags of dirt that misidentified the locations from where the samples were obtained. Hubbard acknowledged that he knew he was falsifying data that would ultimately be submitted to the U.S. Navy to demonstrate the area had been successfully remediated. Hubbard specifically admitted that on May 31, 2012, he fraudulently switched soil samples for four survey units at the former naval shipyard.
Rolfe admitted that he directed employees on his team to get clean dirt from outside the appropriate marked survey units and to substitute this clean dirt for legitimately collected samples. Rolfe estimated that he told his subordinates to obtain clean dirt in this manner on approximately twenty occasions in 2012. Rolfe further admitted that during this period, he observed forms containing this false information being filled out on between ten and twenty occasions. Rolfe admitted that on one occasion in August 2012, he personally falsified data on a tracking sheet to suggest that a sample of soil came from an area that he knew it did not. Rolfe acknowledged that he knew his conduct would impede the proper investigation and administration of the U.S. Navy’s radiological remediation efforts at the former naval shipyard.
Hubbard and Rolfe both were charged by information (Hubbard, Rolfe), each with one count of destruction, alteration, or falsification of records in federal investigations and bankruptcy, in violation of 18 U.S.C. § 1519. Pursuant to their plea agreements, they each pleaded guilty to the charge.
In addition to their prison terms, Hubbard and Rolfe were ordered to pay fines of $10,000 and $2,000, respectively. Both will be placed on a three-year period of supervised release following their prison sentences. Counsel for the defendants informed the Court that both defendants no longer work in the remediation industry. Judge Donato ordered Hubbard to self-surrender on or before July 9, 2018, to begin serving his sentence. Rolfe is currently serving his sentence.
Assistant U.S. Attorneys Philip Kearney and Matthew McCarthy are prosecuting the case with the assistance of paralegal Alycee Lane, and legal assistants Bridget Kilkenny and Rosario Calderon. The prosecution is the result of an investigation by the NRC:OI, EPA, and DOD-OIG.
Priority One: Protecting Our CommunitiesRead the Press Release
By U.S. Attorney David C. Joseph
As our Constitution provides, it is my duty as the newly appointed United States Attorney for the Western District of Louisiana to “take Care that the Laws be faithfully executed.” We are a nation of laws, designed to promote and foster an environment where citizens can live in safety and security. Working in cooperation with our federal, state and local partners throughout the 42 parishes that constitute the District, I intend to achieve that goal by focusing the priorities of my office on reducing violent crime, enforcing immigration laws, stemming the nationwide opioid epidemic, ferreting out public corruption and protecting our environment and natural resources.
After years of decline, violent crime rates in our state are on the rise. United States Attorney General Jeff Sessions and I are committed to using the Department of Justice’s law enforcement and community resources to combat violent crime at every turn. I have instructed the prosecutors in my office to take every action available to take guns out of the hands of felons and remove armed felons and drug dealers from our streets and neighborhoods. In furtherance of this aim, we are pursuing the most serious charges supported by the evidence against violent offenders. One way we are implementing this directive is through the reinvigorated Project Safe Neighborhoods program, which prosecutes felons and individuals involved in criminal enterprises, such as drug trafficking, that are in possession of firearms and pose a threat to the neighborhoods where they operate. Moving forward in this way will reduce crime by removing the worst offenders from neighborhoods – thereby allowing the families living in those neighborhoods to live their lives in peace.
Enforcement of our country’s immigration laws is of vital importance to the supremacy of law in our country and protects our citizens by ensuring dangerous aliens are deported. The promise of the American Dream has brought us immigrants from across the globe seeking life, liberty and the pursuit of happiness. These immigrants have contributed greatly to our country and have made it what it is today. But the foundation of the success of America, and what allows our democracy to flourish, is our shared commitment to the Rule of Law. There is nothing compassionate about the failure to enforce immigration laws. Rather, our failure to faithfully enforce those laws puts our nation at risk of crime and even terrorism. So, my office will continue to aggressively prosecute those who violate our immigration laws, particularly aliens with violent criminal histories.
Consistent enforcement of our immigration laws also protects immigrants from exploitation and American workers from unfair competition. Illegal aliens use our roads, schools and hospitals, often without paying into the system as taxpayers. Accordingly, those who hire illegal immigrants are unlawfully pushing a portion of their labor costs onto the taxpayers and hospitals of Louisiana. For that reason, my office will also hold accountable those businesses who ignore immigration laws and hire illegal aliens.
Opioid abuse is now among our country’s most pressing law enforcement and public health crises. Recently, the Centers for Disease Control reported that 115 Americans die every day from opioid overdose, about 40 percent of which involves a prescription drug. My office will use all the tools at its disposal to prosecute drug crime, including those crimes committed by doctors and other medical professionals who run “pill mills.” In addition to prosecutions, my office will also continue its community outreach efforts to warn the public—particularly young people—of the dangers posed by illegal drugs. Those efforts have and will continue to include, in cooperation with the DEA, FBI and others, presentations to our schoolchildren throughout the District that explain the dangers of opioids and drug abuse.
Public corruption erodes the public’s confidence in government and deprives individuals and businesses of fair treatment. We must make sure that our public servants are putting Louisianans first and let the world know that Louisiana is a great place to live and a great place to do business. As such, we will aggressively prosecute those who violate the public’s trust and use public office as a way to illegally line their own pockets.
Louisiana is a beautiful state with a vast, diverse ecosystem that is rich in natural resources. These environmental treasures should be protected from those who would illegally exploit or damage them. Our office has prosecuted and will continue to aggressively prosecute those who poison our environment and will seek restitution for any damages they inflict.
Obviously, my office does not act alone in its mission. The dedicated men and women of the office work cooperatively with other federal agencies and our state and local law enforcement partners. It is through coming together and upholding the Rule of Law that we faithfully execute the principles inherent in our Constitution and ultimately “secure the blessings of liberty” for our citizens.
David C. Joseph was appointed by President Donald Trump to be the U.S. Attorney for the Western District of Louisiana, which consists of 42 of Louisiana’s 64 parishes and encompasses two-thirds of the State of Louisiana. This area covers the cities of Alexandria, Lafayette, Lake Charles, Monroe and Shreveport. Sworn in on March 30, 2018, Joseph oversees the investigation and litigation of all criminal and civil cases brought on behalf of the United States in the Western District. For more information visit, www.justice.gov/usao-wdla.
President of Park Avenue Art Gallery in Manhattan Pleads Guilty to Defrauding Art Dealers and Collectors of Millions of Dollars of ArtworkRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that EZRA CHOWAIKI pled guilty today to defrauding art dealers and collectors out of millions of dollars by entering into fraudulent agreements with these dealers and collectors to buy or sell artwork through his Manhattan art gallery (the “Gallery”), and using these dealers’ and collectors’ funds and artwork for unauthorized purposes, such as to repay other dealers to whom CHOWAIKI had outstanding debts.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today in federal court, Ezra Chowaiki ran a multimillion-dollar fraud on art dealers and collectors around the country. In some instances, Chowaiki sold artwork, purportedly on consignment, without the owners’ authorization. In other instances, he took money from clients purportedly to purchase artwork, and kept the money but purchased no art. This Office is committed to holding the perpetrators of such fraud responsible and returning these valuable works of art to their rightful owners.”
According to the allegations contained in the Information and other documents filed in federal court, as well as statements made in public court proceedings:
Until November 2017, EZRA CHOWAIKI was the president and the minority owner of a private art gallery located on Park Avenue in New York, New York (the “Gallery”). CHOWAIKI founded the Gallery in or about 2004, and since that time, CHOWAIKI has used the Gallery to facilitate the purchase, sale, and consignment of works of fine art, as well as for the hosting of various art exhibitions featuring works of art and sculptures by well-known artists such as Pablo Picasso, Alexander Calder, Marc Chagall, Edgar Degas, and others. CHOWAIKI lost control of the Gallery in or about November 2017 when the Gallery filed for bankruptcy and was taken over by a trustee to oversee its liquidation.
Between at least in or about 2015 and 2017, through the Gallery, CHOWAIKI engaged in a scheme to deceive other dealers and collectors of fine artwork into sending him money or valuable artwork under the false pretenses that CHOWAIKI would engage in legitimate transactions such as the purchase, sale, or consignment of these and other artworks. In truth, however, CHOWAIKI did not, and often could not, conduct the transactions as promised, and instead kept funds and artwork for himself and the Gallery, or sold or consigned them to others both in and outside the United States, without authorization. Through these fraudulent transactions, CHOWAIKI fraudulently transferred over $16 million of artwork.
* * *
CHOWAIKI, 49, of Brooklyn, New York, pled guilty to one count of wire fraud. That offense carries a maximum prison term of 20 years. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
CHOWAIKI is scheduled to be sentenced on September 12, 2018, at 4:00 p.m.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation (“FBI”). To date, the FBI has seized millions of dollars of artwork that was fraudulently transferred through CHOWAIKI’s scheme. Any person who believes he or she is a victim of this crime is encouraged to send an email to [email protected].
The case is being prosecuted by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Daniel M. Tracer is in charge of the prosecution.
Portage County man sentenced to 33 years in prison for videotaping children using the restroom and having multiple videos of children being raped and sexually assaultedRead the Press Release
A Portage County man was sentenced to more than 33 years in prison for videotaping children using the restroom and for having multiple videos of children being raped and sexually assaulted.
Thomas D. Brown, 41, was sentenced to 405 months in prison after previously pleading guilty to two counts of sexual exploitation of a child, one count of distributing child pornography and one count of 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.”
Brown secretly videotaped acquaintances using the restroom in apartments where he lived. This took place from Jan. 1, 2014, through Dec. 31, 2015, and again from June 1, 2016, through May 22, 2017, according to court documents.
Brown knowingly received and distributed numerous computer files of toddlers and young children being sexually abused. Brown possessed a computer, a Lexar flash drive and an SD card in May 2017, each of which contained child pornography, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. It was investigated by the Federal Bureau of Investigation and the Canton Police Department.
North Side Woman Admits Participating in Painkiller Distribution SchemeRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh pleaded guilty in federal court to a charge of conspiring to possess and distribute opiate painkillers, oxycodone and oxymorphone, United States Attorney Scott W. Brady announced today.
Nicole Miller, 31, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Miller participated in a criminal network of drug dealers who obtained opiate pain killers and then illegally distributed them to users in the Pittsburgh area. Miller took orders for pills, recruited customers, delivered pills, and delivered payment to dealers.
Judge Hornak scheduled sentencing for August 27, 2018 The law provides for a total sentence of not more than twenty years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of the Attorney General, the Pittsburgh Bureau of Police, and the Allegheny County Police Department conducted the investigation that led to the prosecution of Miller.
New York Man Sentenced to Prison for Violent Hobbs Act Robberies of Two St. Thomas Jewelry Stores and Related Gun ChargesRead the Press Release
St. Thomas, USVI – On May 3, 2018, District Court Judge Curtis V. Gomez sentenced Jakeem Emmanuel, 21, to 8 years and 6 months imprisonment and five years of supervised release, for Hobbs Act Robbery and related gun charges, United States Attorney Gretchen C.F. Shappert announced. Judge Gomez also ordered Emmanuel to perform 400 hours of community service and pay a special assessment of $300.
On August 10, 2016, Emmanuel pleaded guilty to two counts of Hobbs Act Robbery, one count of Brandishing a Firearm during a Federal Crime of Violence, and Assault in the First Degree.
On March 3, 2016, a federal grand jury returned an 8-count indictment, which was a result of an investigation into Hobbs Act robberies of two jewelry stores on St. Thomas: Signature Jewelers on August 19, 2015, and 3G’s Jewelry and Repair on September 14, 2015. According to the Indictment, Emmanuel and other individuals conspired to rob the stores and brandished weapons to threaten and intimidate store employees. The robbers used duct tape to bind and gag the victims and then fled the store with cash and merchandise.
This case is a result of an investigation by the Federal Bureau of Investigation and the Virgin Islands Police Department. It was prosecuted by Assistant United States Attorney Anna A. Vlasova.
New Orleans Man Sentenced to 117 Months Imprisonment for Drug Trafficking, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Convicted Felon in Possession of a FirearmRead the Press Release
U.S. Attorney Duane A. Evans announced that TIMOTHY JACKSON, age 29, of New Orleans, Louisiana, was sentenced on Tuesday by United States District Court Judge Ivan L.R. Lemelle. The defendant previously pled guilty to possession with the intent to distribute heroin and firearms offenses.
According to previously filed court documents, JACKSON was arrested along with another individual on January 4, 2017. At that time, JACKSON was in possession of a quantity of heroin meant for distribution as well as two loaded semi-automatic handguns and approximately $1,825 in U.S. currency.
Judge Ivan L.R. Lemelle sentenced JACKSON to 117 months incarceration to be followed by a three year term of supervised release. JACKSON must also pay a $300 special assessment.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Michael Simpson is in charge of the prosecution.
New Jersey Woman Pleads Guilty in Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH, PA – A New Jersey resident has pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney Scott W. Brady announced today.
Carolyn Spann, age 53, Paterson, New Jersey, pleaded guilty before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the Court was advised that from 2013 to September 2017, Spann conspired with others to possess with intent to distribute and distribute one kilogram or more of heroin.
United States District Judge Schwab scheduled sentencing for September 4, 2018 at 9:30 a.m. The law provides for a maximum total sentence of up to life in prison, a fine of $20 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation along with the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police, conducted the investigation leading to the successful prosecution of Spann. 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.
New Haven Man Sentenced to More Than 10 Years for Illegal Gun Possession, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN SINGH, also known as “Smurf,” 39, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 122 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on June 14, 2017, the FBI executed a search warrant at SINGH’s resident on Hallock Street in New Haven and seized approximately five grams of crack cocaine, narcotics paraphernalia, and a Taurus 9mm semi-automatic pistol containing a magazine loaded with 10 rounds of ammunition.
This is SINGH’s fourth federal conviction. In June 2011, he was sentenced in Bridgeport federal court to concurrent sentences of 24 months of imprisonment and five years of supervised release for two crack cocaine distribution offenses and, in July 2015, he was sentenced to 38 months of imprisonment and three years of supervised release for illegally possessing ammunition and violating the conditions of his supervised release imposed when he was sentenced in 2011. He was released from federal prison in March 2016.
SINGH also has been convicted in state court for narcotics, weapons, assault, and reckless endangerment offenses.
SINGH has been detained since his arrest on June 14, 2017. On November 16, 2017, he pleaded guilty to one count of possession of a firearm by a previously convicted felon, and admitted that he violated the conditions of his supervised release.
Judge Shea sentenced SINGH to 110 months of imprisonment for the firearm offense, and a consecutive 12 months of imprisonment for violating his supervised release.
This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department, and was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Navy Petty Officer Indicted for Receipt of Child PornographyRead the Press Release
DON EDWARD PANNELL, II (“PANNELL”), age 32, of Harvey, Louisiana, was indicted today for receipt of child pornography, announced United States Attorney Duane A. Evans.
The case against Petty Officer 2nd Class DON EDWARD PANNELL, II developed as a result of an undercover child exploitation investigation conducted by special agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”). PANNELL is a Petty Officer 2nd Class in the U.S. Navy assigned to Fleet Readiness Center Mid-Atlantic Detachment, New Orleans. On April 2, 2018, HSI special agents along with special agents with the Naval Criminal Investigative Service and the Louisiana Bureau of Investigation seized electronic evidence from PANNELL’s Harvey apartment and took PANNELL into custody. According to the federal indictment, PANNELL knowingly received and attempted to receive visual depictions of minors engaging in sexually explicit conduct in violation of federal law.
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.
If convicted, PANNELL faces a mandatory minimum penalty of five (5) years imprisonment up to twenty (20) years, followed by up to a life term of supervised release, and a $250,000.00 fine.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, the Naval Criminal Investigative Service, and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Navajo Man Sentenced to Prison for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Alrenzon Yazzie, 20, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., was sentenced today in federal court in Albuquerque, N.M., to 36 months in prison followed by three years of supervised release for his conviction on an involuntary manslaughter charge.
Yazzie was arrested in Sept. 2017, on a criminal complaint charging him with killing a Navajo woman on Sept. 3, 2017, on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, Yazzie killed the victim by running her over with a vehicle. At the time Yazzie ran over the victim, Yazzie was driving under the influence of alcohol.
On Dec. 1, 2017, Yazzie pled guilty to a felony information charging him with involuntary manslaughter and admitted killing the victim by striking her with his vehicle while driving recklessly while under the influence of alcohol. Yazzie acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
Middlesex County, New Jersey, Tax Preparer Charged with Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Keasbey, New Jersey, tax preparer was indicted today for allegedly using false information to increase his clients’ tax refunds and secretly diverting a portion of those funds into accounts that he controlled, U.S. Attorney Craig Carpenito announced.
David Patterson, 37, is charged by indictment with 16 counts of aiding and abetting in the filing of false tax returns. Patterson will be arraigned at a later date.
According to the indictment:
Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. Patterson allegedly prepared multiple fraudulent tax returns on behalf of his clients by falsifying their income, charitable contributions, employee business expenses, and education costs, all so his clients would receive higher refunds than those to which they were actually entitled. Patterson then diverted a portion of the tax refunds to bank accounts he controlled without his clients’ knowledge or consent.
According to the indictment, Patterson allegedly prepared 53 phony tax returns on behalf of 19 clients for tax years 2010 through 2015, which resulted in a tax loss to the United States of $290,321.
The false filing charges each carry a maximum potential penalty of three years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Patrick Mullin Esq., Fort Lee, New Jersey
Mexican Man Charged with Illegal Re-entryRead the Press Release
United States Attorney Duane A. Evans announced that OSCAR LOPEZ-GUERRERO, age 30, a native of Mexico, was charged today in a one-count Indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the Indictment, LOPEZ was previously removed from the United States on July 31, 2014. He was later found in the Eastern District of Louisiana on April 19, 2018, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, LOPEZ faces a maximum term of imprisonment of twenty years, a fine of $250,000, three years of supervised release, and a $100 special assessment fee.
U.S. Attorney Evans reiterated that an 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 Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Masstech, Richard Lee, and Arnold Lee to Pay U.S. $1.9 Million to Settle False Claims Act Allegations Relating to Small Business Innovation Research AwardsRead the Press Release
FOR IMMEDIATE RELEASE CONTACT ELIZABETH MORSE
www.justice.gov/usao/md (410) 209-4885
Baltimore, Maryland – Columbia-based MassTech, Inc., its former Chief Executive Officer, Arnold Lee, and its former Chief Financial Officer, Richard Lee, have agreed to pay the United States $1.9 million to resolve allegations that MassTech falsely certified it was a small business concern in order to obtain Small Business Innovation Research (“SBIR”) awards.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur; Inspector General for the National Science Foundation, Allison Lerner; Special Agent in Charge for NASA Office of Inspector General, Michael Sonntag; and Special Agent in Charge for the Office of Inspector General for the Department of Health and Human Services, Maureen Dixon.
“Entities that participate in government-funded research grants must truthfully report their eligibility to participate in these programs, including the SBIR program. Companies and individuals that misrepresent their eligibility in order to obtain government funding undermine the integrity of the government grant process,” said Robert K. Hur, United States Attorney for the District of Maryland.
“The SBIR program is a valuable tool in advancing NSF’s mission to promote the progress of science by increasing opportunities for small businesses to undertake cutting-edge scientific research, and it is essential to protect the integrity of this program,” commented Allison Lerner, the Inspector General for NSF. “The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds and I commend the U.S. Attorney’s Office and our investigative partners for their strong support in this effort.”
“Individuals who fraudulently obtain federal research funds earmarked for small businesses deprive others of an opportunity to pursue meaningful technological discoveries,” said NASA OIG Special Agent in Charge, Michael Sonntag. “I commend the outstanding efforts of our agents and other law enforcement partners who are committed to ensuring the integrity of this program.”
“HHS-OIG expects all companies and individuals who accept HHS research funds to be truthful on their applications,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “We will continue to work with our law enforcement partners to ensure the integrity of HHS grant funds.” The SBIR program is a set-aside program for small businesses. The purpose of the SBIR program is to strengthen the role of small business concerns (“SBC”) in federally funded research and development and to increase private sector commercialization. To receive SBIR funds, each awardee of an SBIR Phase I or II award must qualify as an SBC at the time of the award as well as throughout the duration of the award. To be eligible, an SBC and its affiliates collectively must have fewer than 500 employees. According to the settlement agreement, the United States alleged that MassTech, Arnold Lee, and Richard Lee falsely represented to NSF, NASA, and HHS that MassTech was an eligible small business concern at the time of the SBIR application as well as throughout the lifecycle of the award. As a result, NSF, NASA, and HHS approved and funded SBIR awards to MassTech that MassTech otherwise would not have received. MassTech, Arnold Lee, and Richard Lee denied the United States’ allegations.
U.S. Attorney Robert K. Hur commended the NSF Office of Inspector General, the NASA Office of Inspector General, and the HHS Office of Inspector General for their work in the investigation. Mr. Hur thanked Assistant United States Attorneys Thomas Corcoran and Rebecca Koch who handled the case.
Man Charged for Arson of the Drew Las Vegas Resulting in Approximately $10 Million in DamageRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man charged by a federal criminal complaint for starting a fire causing approximately $10 million in damage to The Drew Las Vegas, made his initial court appearance today, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Andrew Joseph Sanders, 26, was charged with one count of arson. He made his initial court appearance before U.S. District Magistrate Judge Cam Ferenbach. A preliminary hearing is set for May 16, 2018.
According to allegations contained in the complaint, Sanders was observed on video surveillance trespassing at The Drew Las Vegas property, formerly the Fontainebleau Hotel and Casino, on March 1, 2018. The surveillance depicted Sanders at the approximate time and near the location where man-made (incendiary) fires were set in the structure. When leaving the structure, Sanders engaged in a physical altercation with a responding firefighter, which delayed the firefighters’ efforts to get water to the fire. Sanders fled the scene and was later arrested by officers from the Las Vegas Metropolitan Police Department. The majority of the fire damage occurred within 3,000 square feet of unfinished ballroom space on the 11th floor of a tower structure. A second fire was set in another ballroom space.
Fire investigators determined that both fires were incendiary and not the result of an accidental cause, such as an electrical or appliance malfunction. Based on a preliminary estimate, approximately $10 million in damage was caused by the fire.
It is further alleged that during an interview with Fire Investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clark County Fire Department, Sanders admitted to trespassing at The Drew Las Vegas property and being on the 11th floor of the parking tower where the fire was started.
The maximum statutory penalty for arson is 20 years in prison and a $250,000 fine.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clark County Fire Department. Assistant U.S. Attorney Patrick Burns is prosecuting the case.
###