Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 23 March 2018
Third Strike for Armed Drug Trafficker Eutawville Man Convicted of Drug Trafficking ConspiracyRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Joey Lamont Brunson, a/k/a “Solo Flex,” age 42 of Eutawville (Orangeburg County), South Carolina was convicted of all twelve of the charges in his federal indictment after a four day jury trial before Judge Joseph F. Anderson, Jr. After four hours of deliberations, the jury returned verdicts convicting Brunson of being a member of a conspiracy to distribute 5 kilograms or more of cocaine, four counts of use of a cell phone to further drug trafficking, money laundering conspiracy, possession with intent to distribute marijuana and cocaine, felon in possession of a firearm, possession of a firearm in furtherance of drug trafficking, and perjury. Judge Anderson will impose sentence after a presentence report is prepared by the United States Probation Office.
Evidence presented at the trial included numerous wiretap calls between Brunson and his main source of supply Lamario Vincent Wright from June through October of 2013. In the calls, Brunson brazenly discussed beating another conspirator in an effort to recover cocaine that the conspirator had stolen from Wright. Repeatedly in the intercepted calls and texts, Brunson ordered drugs using coded language from his suppliers.
After Brunson was indicted in 2015, agents testified he went on the run and eluded capture by the FBI for almost two years. After receiving a tip from the Navy Federal Credit Union in Summerville, agents learned that Brunson was depositing between $3000.00 and $9000.00 cash regularly at multiple locations in late 2016 and 2017. On March 3, 2017, Summerville Police Officers responded to a call for service from one of the credit unions and arrested Brunson after a brief struggle. Agents searched the silver Suzuki he was driving and located cocaine, crack cocaine, marijuana and two firearms. Bank records proved that Brunson deposited over $90,000.00 in cash in multiple accounts while on the run from the FBI.
Evidence at trial also included testimony and pictures of a $30,000 Escalade truck that Brunson bought at the request of his supplier Lamario Wright. Records showed that Brunson used over $20,000.00 in drug money to purchase the truck and that he placed it in his name to hide the fact that the truck actually belonged to his partner Wright.
Brunson has previously been convicted of federal drug violations in the late 1990s and in 2007, and has previously served two custodial sentences in the Bureau of Prisons. Based on his prior convictions and the fact that he was convicted of multiple felony drug convictions yesterday, Brunson faces a statutory mandatory minimum life sentence without the possibility of parole.
The case was investigated by agents from the Federal Bureau of Investigation with the assistance of the Summerville Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshal’s Office. The case was prosecuted by Assistant U. S. Attorneys Will Lewis and J.D. Rowell.
#####
Texas Man Sentenced to 2 Years Probation for Making False Statements in Relation to Blowout Preventer Testing on Oil Platform in Gulf of MexicoRead the Press Release
U.S. Attorney Duane A. Evans announced that KENNETH JOHNS, age 46, of Rosharon, Texas, was sentenced yesterday by U.S. District Judge Nannette Jolivette Brown to 2 years probation and $750.00 fine, for making false statements to the Bureau of Safety and Environmental Enforcement’s (BSEE) Safety and Incident Investigation Division (SIID) of the United States Department of Interior in relation to the veracity of blowout preventer testing on an offshore oil and gas platform.
According to court documents, on or about November 27, 2012, production and well workover operations were being conducted on the platform located at Ship Shoal 225, and the blowout preventer system had to be tested. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control.
On or about November 28, 2012, JOHNS and another worker created a false blowout preventer test. The next day when BSEE inspectors conducted a routine compliance inspection of the platform, the fabricated blowout preventer pressure test chart was presented to the BSEE inspectors with the expectation that it would be a passing test and the inspectors would not find the platform to be in non-compliance for failing to properly test the blowout preventer system. JOHNS signed the fabricated pressure chart and a schematic of the testing sequence as if he had actually been involved in the BOP testing.
During subsequent investigation of the veracity of the blowout preventer test by the Department of Interior, JOHNS lied and told investigators the BOP chart with his signature was pre-signed and that he had been testing a pump when he made the chart.
U.S. Attorney Evans praised the work of the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from BSEE, and the Environmental Protection Agency-Criminal Investigation Division in investigating this matter. Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit was in charge of the prosecution.
TDCJ Inmate Receives More Prison Time for Threatening Federal Judge…AgainRead the Press Release
HOUSTON – A 46-year-old inmate who formerly resided in Houston has received another federal sentence for threatening a U.S. District Judge, announced U.S. Attorney Ryan K. Patrick. George Yarbrough pleaded guilty Sept. 8, 2017.
Today, U.S. District Judge Harmon handed Yarbrough a 120- month sentence. In handing down the sentence, the court noted that this was the second time Yarbrough has been convicted of sending a threatening letter to the same federal judge. He was sentenced in that case to 21 months which will be served consecutively to the previous prison term imposed today.
Yarbrough is currently in the custody of the Texas Department of Criminal Justice (TDCJ). While in custody, Yarbrough wrote a letter threatening to kill a Houston federal judge. The U.S. District Court Clerk’s Office in Houston received the letter on April 19, 2017. In the letter, Yarbrough said “So the State of Texas and the Fed. Govt. (illegible), are to Blame: for me killing you, and your family.” It also included that “Everyday I look at your photo, that I got of the internet, and think of many ways to kill you, and your family.”
Yarbrough previously wrote a similar letter in 2014. In that case, Yarbrough indicated the basis for the threat was because the judge had had dismissed a civil rights lawsuit Yarbrough filed against TDCJ personnel several years earlier. He had stated then that he was going to murder the judge upon his release from TDJC and blamed the judge for all his problems. He added that he had people on the outside that would murder the judge if something happened to him before he got out. Yarbrough also said he was going to murder a judge in San Antonio who took his daughter away.
In the current case, Yarbrough admitted writing the letter, expressing his concern that he is not being taken seriously as the sentence he received the fist time was so short, referring to it as a “slap on the wrist.” During the interview with authorities, he again threatened the judge, a state senator and two prison guards which who were the basis of the original civil lawsuit.
He will be returned to state custody. Upon his release there, he will be transferred to a U.S. Bureau of Prisons facility to be determined in the near future to serve his total 120 month federal prison term. Yarbrough was also ordered to serve a three-year term of supervised release upon his release from federal prison, during which he will participate in mental health counseling.
The U.S. Marshals Service and FBI conducted the investigation. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
Stapleton Couple Sentenced for Income Tax Evasion and Bankruptcy FraudRead the Press Release
DENVER –Daryl F. Yurek, age 62, and Wendy M. Yurek, age 62, were sentenced by U.S. District Court Judge William J. Martinez on March 22 and 23, 2018. Mr. Yurek was sentenced to 50 months incarceration followed by three years of supervised release and an asset forfeiture money judgment was entered against him in the amount of $132,991.61. Mrs. Yurek was sentenced to 27 months incarceration followed by three years of supervised release. The Yureks and were also ordered to pay $1,614,536.38 in restitution to the IRS. Both were convicted by a Denver Jury on July 27, 2017, of tax evasion and bankruptcy fraud following a two week trial. Daryl Yurek was also convicted of three additional related offenses. Their sentences were announced today by United States Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne.
According to the indictment and evidence presented at trial, Daryl Yurek was a partner in Bolder Venture Partners from 1999 through 2012, and Wendy Yurek was a partner from 2008 through 2012. Daryl Yurek acted as a consultant to start-up and growing companies and provided a variety of services, including temporary management and fundraising. Daryl Yurek also exerted significant control over other companies, including ID Watchdog, and Veracity Credit Consultants. The Yureks reported tax due and owing for tax years 1999 and 2004 of $624,127 and $53,978, respectively. In 2006, the Yureks submitted an Offer in Compromise to the IRS attempting to settle their tax obligation for $75,000. With the Offer in Compromise, the Yureks indicated the reason for the offer was “Doubt as to Collectability – ‘I have insufficient assets and income to pay the full amount.’” Later, in September 2010, the Yureks filed with the United States usBankruptcy Court in the District of Colorado a Voluntary Chapter 7 Bankruptcy Petition. During the bankruptcy proceeding, Daryl Yurek testified that the primary reason for pursuing bankruptcy was "the $1.2 million that the IRS wants."
However, during the period the Yureks claimed to be unable to pay their tax liability, the Yureks caused Bolder Venture Partners and Veracity Credit Consultants to pay substantial personal expenses for the Yureks. In March, 2006, the Yureks purchased a downtown Denver loft as their personal residence for $1.3 million in the name of one of their sons. Between 2006 and 2011, Veracity Credit Consultants made mortgage payments of $526,511.99 for the Yureks’ loft, while Bolder venture Partners paid $43,866 for the loft’s Condo Association Fees. Additionally, between 2006 and 2010, Veracity Credit Consultants made $107,204.36 in rental payments for vacation homes in Tabernash, Colorado used by the Yureks. Daryl Yurek’s Pinehurst Country Club membership and associated expenses paid by Veracity Credit Consultants between 2007 and 2012 totaled approximately $90,810.74.
Furthermore, the Yureks committed numerous affirmative acts of evasion, including submitting false statements to the IRS on IRS Forms 433-A, IRS Collection Information Statement for Wage Earners and Self-Employed Individuals, as well as Daryl Yurek transferring shares he held in ID Watchdog to Veracity Credit Consultants and to his sons while falsely claiming to the IRS that he had not made any transfers for less than full value.
“It’s pretty simple: you’ve got to pay your taxes,” said U.S. Attorney Bob Troyer. “The Yureks were determined not to pay, now they’ll pay with prison.”
“Taxpayers thinking about participating in fraudulent tax schemes, including hiding assets, should stop in their tracks and carefully consider the consequences of taking the next step,” said Steven Osborne, Special Agent in Charge of IRS Criminal Investigation. “Those consequences include going to prison, being branded a convicted felon, and paying back all the taxes owed plus steep penalties and interest.”
This case was prosecuted by Assistant United States Attorney Pegeen D. Rhyne with Assistant United States Attorney Laura B. Hurd assisting with asset forfeiture. The case is captioned United States of America v. Yurek, et al., Case No. 15-cr-394.
####
Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNews
South San Francisco Resident Pleads Guilty to Money Transmission and Tax SchemeRead the Press Release
SAN FRANCISCO – Subhash Jay pleaded guilty today to operating an unlicensed money transmitting business and filing a false tax return announced Acting United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf. The plea was accepted by the Honorable Charles R. Breyer, United States District Judge, in San Francisco.
According to the plea agreement, Jay, 59, of South San Francisco admitted to operating a money transmitting business known as Force Services, Inc., without obtaining required state or federal licenses. Jay admitted that, during 2010 through 2014, he caused two domestic bank accounts held in the name of Force Services to receive international wire transfers on behalf of a client. The wire transfers had an aggregate value of at least $4,515,236. Jay forwarded most of those funds to the client, but retained $817,734 as commissions. Jay willfully filed corporate tax returns for Force Services for the years 2010 through 2014, which failed to report the commissions as gross receipts. Jay also willfully filed individual income tax returns for the years 2010 through 2014, which failed to report the commissions as income.
A federal grand jury indicted Jay on April 6, 2017, charging him with one count of operating an unlicensed money transmitting business, in violation of 18 U.S.C. § 1960; ten counts of filing false tax returns, in violation of 26 U.S.C. § 7206(1); one count of making false statements to a government agency, in violation of 18 U.S.C. § 1001(a)(2); and one count of structuring financial transactions to evade reporting requirements, in violation of 31 U.S.C. § 5324(a)(3). Today Jay pleaded guilty to one count of operating an unlicensed money transmitting business, and one count of filing false tax returns. Judge Breyer scheduled Jay’s sentencing hearing for July 18, 2018. Jay faces a maximum sentence of five years in prison and a fine of $250,000 for operating an unlicensed money transmitting business, and three years in prison and a fine of $250,000 for filing false tax returns. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.Assistant United States Attorney Michael G. Pitman is prosecuting the case. The prosecution is the result of an investigation by the IRS-CI.
Slidell Couple Charged with Making “Straw Purchases” and Illegal Possession of Firearms and Ammunition in Violation of the Federal Gun Control ActRead the Press Release
U.S. Attorney Duane A. Evans announced that CHRISTOPHER MAZUR, age 32, and REBECCA COMSTOCK, age 36, were charged on March 22, 2018, in a two-count indictment with violations of the Federal Gun Control Act.
According to the indictment, MAZUR and COMSTOCK made false statements to a federally licensed firearms dealer related to three firearms. MAZUR also unlawfully possessed ten firearms and 2,825 rounds of ammunition. If convicted, MAZUR and COMSTOCK face as to each count a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Evans reiterated that an indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney J. Ryan McLaren is in charge of the prosecution.
Six from Cherokee County Guilty of Drug Trafficking in East TexasRead the Press Release
TYLER, Texas – U.S. Attorney Joseph D. Brown announced today that six Jacksonville, Texas men have pleaded guilty following a drug trafficking investigation in the Eastern District of Texas.
Lenard Donnell Atkins, 31, pleaded guilty to possession with intent to distribute methamphetamine, cocaine, and other controlled substances.
Keyonta Monquan Johnson, 23, pleaded guilty to distribution of methamphetamine near a playground.
Carlos Brejohn Battle, 33, Carlton Deshan Johnson, 28, Jimendrick Clenon Shedd, 37, and David Lee Williams, 32, each pleaded guilty to possession with intent to distribute methamphetamine before Judge Love.
The plea hearings were held on Mar. 21 and Mar. 22, 2018 before U.S. Magistrate Judge John D. Love.
The defendants were named in an indictment returned by a federal grand jury on Oct. 18, 2017, charging conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine and other controlled substances; possession with intent to distribute methamphetamine, cocaine, and other controlled substances; use, carrying, possession of firearms in furtherance of a drug trafficking crime; felon in possession of firearms; distribution of methamphetamine near a playground; possession with intent to distribute methamphetamine and aiding and abetting; possession with intent to distribute methamphetamine on premises where children are present and aiding and abetting.
Under federal statutes, the defendants face sentences ranging from five to 80 years in federal prison. The sentences will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Mary Ann Cozby. The investigating agencies were the Federal Bureau of Investigation, Cherokee County Sheriff's Office, and Texas Department of Public Safety.
Six People Indicted on Federal Drug Conspiracy Charges Following Investigation into Sales in Southwest WashingtonRead the Press Release
WASHINGTON –Nine people have been indicted on federal charges stemming from an ongoing investigation into the trafficking of PCP, crack cocaine and heroin in Southwest Washington, announced U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The defendants are charged in four indictments returned in the U.S. District Court for the District of Columbia. Six were arrested on March 22, 2018, and the others already were in custody. The drug conspiracy indictment – which charges six people, including two brothers – was unsealed today.
The indictments followed an investigation by ATF and the MPD targeting the area near the King Greenleaf Recreation Center, in the 200 block of N Street SW. The investigation began after authorities noticed an increase in drug sales and violent activity in the area, which is in MPD’s First Police District. According to the government’s evidence, in addition to the area near the recreation center, drug sales took place in various alleys and corners, including near a church in the 1300 block of First Street SW, near a food market in the 1300 block of Half Street SW, and near a convenience store in the 1100 block of South Capitol Street SW.
Six defendants were indicted on March 20, 2018, and charged with conspiring to distribute and possess with the intent to distribute more than 100 grams of PCP, heroin, and crack cocaine. They include Antonio Spencer, 24; his brother, Maurice Spencer, 19; Kione Banks, 20; Raymond Boston, 26; Damion Littman, 32, and Davon Warren, 21. All are from Washington, D.C. The charges cover a time period extending from January 2017 through July of 2017. All but Banks were arrested on March 22; Banks already was in custody.
In a separate indictment returned this week and unsealed today, Morriko Washington, 24, of Washington, D.C., is charged with distributing more than 100 grams of PCP on four separate occasions between August 2017 and November of 2017. Washington was arrested March 22.
Jerome Fuller, 33, of Washington, D.C., was arrested on March 12, 2018, on charges of selling PCP and crack cocaine in July and August of 2017. He has pled not guilty to the charges.
The ninth defendant, Mark Jamahl Stephens, 26, also of Washington, D.C., was indicted on Dec. 14, 2017 on charges of possession with the intent to distribute crack cocaine and possession of a firearm in connection with his arrest in May 2017. He has been in custody.
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.
This case is being investigated by ATF and MPD. It is being prosecuted by Assistant U.S. Attorney Kevin L. Rosenberg, of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
Savannah Man Sentenced to Fifteen Years for Possession of a HandgunRead the Press Release
SAVANNAH, GA: Savannah resident Ernest Jackson, 36, was sentenced on March 12, 2018, by Senior District Court Judge William T. Moore, Jr., for his role in a counterfeiting scheme spanning Chatham, Bryan, Bulloch, and McIntosh Counties, as well as for his possession of a firearm. Judge Moore awarded Jackson 60 months’ confinement for the counterfeiting offense, and a concurrent term of 180 months’ confinement for possessing a firearm as a convicted felon.
Evidence during the sentencing hearing emphasized that Jackson possessed the firearm at issue after earning multiple felony convictions for Armed Robbery, Aggravated Assault, Carjacking, and Aggravated Assault upon a Police Officer. Jackson’s violent criminal history placed him in the category of an “Armed Career Criminal,” which designation requires a mandatory minimum 15-year term of confinement. Additionally, ballistics testing linked Jackson’s firearm to multiple unsolved Savannah-area shootings.
The case was investigated and prosecuted with assistance from the United States Secret Service, the Savannah Police Department, the Richmond Hill Police Department, the Bryan County Sheriff’s Office, the Liberty County Sheriff’s Office and the Georgia State Patrol.
Glen Kessler, the Resident Agent in Charge of the U.S. Secret Service said, “The U.S. Secret Service, with its local and state partners, will continue to work towards protecting our communities from gun violence by aggressively targeting those gun carrying felons that come onto our radar for criminal offenses like counterfeiting, credit card fraud or other federal violations.”
United States Attorney Bobby Christine said, “Law enforcement’s top priority is the safety of our citizens. We will bring the full force of justice on dangerous criminals who possess firearms. Those dangerous felons who possess firearms will be investigated, prosecuted, and can expect to serve lengthy sentences in federal prison.”
Assistant United States Attorney Jennifer G. Solari prosecuted the case against Jackson for the United States. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Regional Enforcer of Gangster Disciples Sentenced to 30 Years in Prison for RacketeeringRead the Press Release
A Gangster Disciples gang member was sentenced today to 360 months in prison and five years of supervised release for conspiring to participate in a racketeering enterprise.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U. S. Attorney D. Michael Dunavant of the Western District of Tennessee, Special Agent in Charge Michael T. Gavin of the FBI’s Memphis Division, and Acting Special Agent in Charge Jack Webb of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Memphis Field Division, made the announcement.
Henry Cooper, aka Big Hen, 37, of Memphis, Tennessee, was sentenced by U.S. District Judge John T. Fowlkes Jr. of the Western District of Tennessee. Cooper previously pleaded guilty to conspiracy to participate in racketeering activity.
The Gangster Disciples is a highly organized national gang active in more than 24 states. The scope of the Gangster Disciples’ crimes is wide-ranging and consistent throughout its national operation. The gang protects its power through threats, intimidation, and violence, including murder, attempted murder, assault, and obstruction of justice. The Gangster Disciples promotes its enterprise through member-only activities and provides financial and other support to members charged with or incarcerated for gang-related offenses or who are fugitives from law enforcement.
Members and associates of the Gangster Disciples are subject to a strict code of discipline and are routinely fined, beaten, and even murdered for failing to follow the gang’s rules. "Enforcers" within the enterprise ensure that members who violate the strict rules of the enterprise are appropriately punished.
According to statements made at his sentencing hearing, Cooper was a Gangster Disciple from 1992 until the time of his arrest in 2016. Furthermore, he was a high-ranking member of the Gangster Disciples, and at the time of indictment and arrest in this case served as the Regional Enforcer for the State of Tennessee. As the Regional Enforcer, Cooper was responsible for enforcement in Tennessee and six other states, including Arkansas, Illinois, Indiana, Kentucky, Ohio, and Wisconsin. One of Cooper’s responsibilities was to pass along information from the Chief Enforcer for the Gangster Disciples to enforcers in these states. Cooper also oversaw the enforcement of punishments, supervised the criminal activities of other members, issued orders to commit violent offenses against rivals and subordinates, and presided over Gangster Disciple meetings where criminal activity was discussed.
Cooper also participated directly in the activities of the gang, including acts involving murder, kidnapping, assault, witness intimidation, narcotics distribution, and weapons trafficking. Cooper’s participation in the criminal activities of the Gangster Disciples spanned approximately 25 years.
The FBI; ATF; the Memphis Multi-Agency Gang Unit; the Memphis Police Department; the Shelby County, Tennessee Sheriff’s Office; the Jackson Police Department Gang Enforcement Team; the Tennessee Bureau of Investigation; the Madison County, Tennessee Sheriff’s Department; the 28th District West Tennessee Drug Task Force; The Tipton County, Tennessee, Sheriff’s Office; the 26th Judicial District Attorney General’s Office; the 25th Judicial District Attorney General’s Office; the Atascosa County, Tennessee District Attorney’s Office; and the Shelby County District Attorney General’s Office investigated this case. Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Beth Boswell of the Western District of Tennessee and Samuel Stringfellow of the Northern District of Mississippi are prosecuting the case.
Raytown Landlord Sentenced for Bankruptcy FraudRead the Press Release
KANSAS CITY, Mo. – A Raytown, Mo., man has been sentenced in federal court for engaging in a bankruptcy fraud scheme in order to prevent dozens of rental properties from being sold by the county for failure to pay property taxes.
Kenneth Mabrie, 68, of Raytown, was sentenced by U.S. District Judge Brian C. Wimes on Thursday, March 22, 2018, to five years of probation. The court also ordered Mabrie to pay $92,040 in restitution.
On Sept. 14, 2017, Mabrie pleaded guilty to one count of aiding and abetting bankruptcy fraud.
Mabrie was an intercity landlord who did not pay his Jackson County property taxes nor the city assessments on the properties he owns and rents. When the properties went into foreclosure by Jackson County in 2009 and again in 2011, Mabrie filed a Chapter 13 bankruptcy proceeding shortly before the sale of the properties at the annual August auction. The bankruptcy petitions were soon dismissed for failure to file required information, but prevented the foreclosure and Mabrie continued to collect rent from the properties (including money from the Housing Choice Voucher (HCV) program, also known as the Section 8 tenant-based assistance program).
According to court documents, Mabrie’s conduct had a broader negative impact on the community. In a letter to the court, the Director of Neighborhood Housing Services for the City of Kansas City, Mo., stated that “Kenneth Mabrie, and his associated limited liability companies and business entities, have failed to maintain their properties for many years. His failure to maintain its properties has resulted in both a quantifiable monetary loss to taxpayers and pervasive blight throughout the city.”
Co-defendant Curtis Jones, 55, of Kansas City, Mo., also pleaded guilty to his role in the scheme and was sentenced to three years of probation.
Jones filed for bankruptcy on Aug. 22, 2012, five days before the date of the auction sale. Jones listed 31 tax delinquent properties in his bankruptcy petition. Jones was deeded 17 of those properties from Mabrie one day prior to the filing. Seven of those properties were included in Mabrie’s 2011 bankruptcy petition. An additional two properties listed by Jones were privately owned by Mabrie at the time of the filing. The remaining 12 properties were deeded to Jones one day prior to filing from other persons. The majority of the remaining 12 properties had some sort of nexus to Mabrie; for example, of the remaining 12 properties, Mabrie owned 10 of the properties previously, and one of the properties was deeded from Mabrie’s daughter. Jones’s bankruptcy petition was dismissed on Sept. 7, 2012, for failure to file information.
Jones filed for bankruptcy again on Aug. 23, 2013, the same day of the auction sale. Jones listed 29 tax delinquent properties in his bankruptcy petition. Two of those properties were deeded from Mabrie on the day of the filing and 26 of the properties had been included in the 2012 petition. This bankruptcy petition was dismissed on Sept. 13, 2013, for failure to file information.
The loss amount to Jackson County was $92,040, for which the court ordered Mabrie to pay restitution. This represents only the most recent tax bill as included in the bankruptcy filings (2010 or 2011 or 2012), less any money Mabrie or Jones paid to Jackson County following the bankruptcy filings (as of September 2015).
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the U.S. Department of Housing and Urban Development – Office of Inspector General.
Prolific Opioid Dealer Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Brandon Jerome Randolph (29, Bradenton) to 15 years in federal prison for conspiracy to distribute cocaine, cocaine base, heroin, methamphetamine, carfentanil, and fentanyl. He pleaded guilty on December 11, 2017.
According to court documents, Randolph and his associates sold drugs out of a house in Bradenton that operated as an open-air drug market. These drugs included cocaine, cocaine base, heroin, methamphetamine, carfentanil, and fentanyl. Randolph and his associates sold these drugs to undercover detectives on numerous occasions.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
Pittsburgh Man Pleads Guilty to Drug ConspiracyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court for violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Michael King, 37, pleaded guilty to one count before United States District Judge David Stewart Cercone.
In connection with the guilty plea, the court was advised that from in and around April 2016, and continuing thereafter to in and around October 2016, King conspired with others to distribute and possess with intent to distribute a quantity of cocaine, a Schedule II controlled substance. During his plea colloquy, the defendant admitted that on or about September 30, 2016, he possessed approximately four ounces of cocaine and that he sold cocaine for $1,200 per ounce.
Judge Cercone scheduled sentencing for July 25, 2018 at 1 p.m. The law provides for a maximum sentence of 30 years in prison, a fine not to exceed $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and comprises members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Stowe Township Police Department also provided assistance in this investigation. 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.
Pennsylvania Man Charged with Illegally Exporting Firearm Parts to IraqRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today the unsealing of an indictment charging Ross Roggio, age 49, of Stroudsburg, Monroe County, Pennsylvania, and Roggio Consulting Company, LLC, a firm with which Ross Roggio was associated, for alleged involvement in a conspiracy to illegally export firearm parts, firearm manufacturing tools, and “defense services,” including items used to manufacture M4 rifles, from the United States to Iraq, in violation of the Arms Export Control Act and the International Emergency Economic Powers Act.
According to U.S. Attorney David J. Freed, the indictment charges Ross Roggio and Roggio Consulting Company, LLC with criminal conspiracy, illegal export of goods, wire fraud, and money laundering. Pursuant to regulations of the U.S. Department of Commerce, a license is required to export certain goods and services from the United States to Iraq for reasons of regional stability and national security. Similarly, defense services and defense articles may not be exported to Iraq without a license from the U.S. Department of State.
The indictment alleges that, beginning in January of 2013 until the date of the indictment, Ross Roggio conspired to export both items and services from the United States to Iraq, without the required U.S. Commerce Department and U.S. State Department licenses. The conspirators allegedly purchased firearms parts and manufacturing tools from the United States, illegally exported the items to Iraq where the items were utilized and incorporated in the manufacture and assembly of complete firearms in a firearms manufacturing plant constructed and operated in part by Ross Roggio. It is alleged that the items illegally exported included: M4 Bolt Gas Rings MIL; Firing Pin Retainers; Rifling Combo Buttons, and “defense services.” The defense services allegedly provided by Ross Roggio and his firm include the furnishing of assistance to foreign persons in the manufacture of firearms.
In addition to the charges relating to export controls violations, the indictment also alleges that Ross Roggio and his firm committed wire fraud on at least three occasions by purchasing items from a United States company and providing said company with false information about the end-user of the items. Finally, the indictment charges Ross Roggio and his firm with 27 counts of money laundering in the form of bank transfers from Iraq to two accounts within the Middle District of Pennsylvania, in furtherance of their unlawful export conspiracy.
“The conduct alleged in this indictment directly violates laws enacted to keep our nation secure,” said United States Attorney Freed. “We commend the FBI, HSI and Department of Commerce for their outstanding efforts in this complicated international case. We will not allow anyone to put profits above our security, at home or abroad.”
“The Office of Export Enforcement vigorously pursues violators of our nation’s export control laws, which are in place to further and protect our national security and foreign policy. As in this instance, we work closely with our colleagues at the FBI and HSI and other agencies in prosecuting this case,” said Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office.
"U.S. export controls are in place to keep our nation's most sensitive military and defense technologies from falling into the wrong hands," said Marlon V. Miller, special agent in charge of HSI Philadelphia. "One of HSI's highest priorities is to prevent the illicit procurement and proliferation of export-controlled military and defense commodities in violation of United States law."
"As alleged, this defendant brazenly flouted U.S. arms export controls enacted in the interests of our national security, and international stability," said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "It suggests an all too familiar attitude: in the face of an illegal, but very lucrative, plan -- laws be damned."
The case is being prosecuted by Assistant U.S. Attorney Todd K. Hinkley for the Middle District of Pennsylvania, and Trial Attorneys Scott Claffee and Heather Alpino, of the National Security Division, Counterintelligence and Export Control Section.
Indictments and Criminal Informations 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 combined maximum penalty under federal law for these offenses is 705 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.
# # #
Pennsylvania Man Charged with Illegally Exporting Firearm Parts to IraqRead the Press Release
An indictment was unsealed today charging Ross Roggio, 49, of Stroudsburg, Pennsylvania, and Roggio Consulting Company, LLC, a firm with which Ross Roggio was associated, for alleged involvement in a conspiracy to illegally export firearm parts, firearm manufacturing tools, and “defense services,” including items used to manufacture M4 rifles, from the United States to Iraq, in violation of the Arms Export Control Act and the International Emergency Economic Powers Act.
Assistant Attorney General for National Security John C. Demers; U.S. Attorney David J. Freed of the Middle District of Pennsylvania; Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office; and said Special Agent in Charge Marlon V. Miller of Homeland Security Investigations Philadelphia Office made the announcement.
The indictment charges Ross Roggio and Roggio Consulting Company, LLC with criminal conspiracy, illegal export of goods, wire fraud and money laundering. Pursuant to regulations of the U.S. Department of Commerce, a license is required to export certain goods and services from the United States to Iraq for reasons of regional stability and national security. Similarly, defense services and defense articles may not be exported to Iraq without a license from the U.S. Department of State.
The indictment alleges that, beginning in January of 2013 until the date of the indictment, Ross Roggio conspired to export both items and services from the United States to Iraq, without the required U.S. Commerce Department and U.S. State Department licenses. The conspirators allegedly purchased firearms parts and manufacturing tools from the United States, illegally exported the items to Iraq where the items were utilized and incorporated in the manufacture and assembly of complete firearms in a firearms manufacturing plant constructed and operated in part by Ross Roggio. It is alleged that the items illegally exported included: M4 Bolt Gas Rings MIL; Firing Pin Retainers; Rifling Combo Buttons, and “defense services.” The defense services allegedly provided by Ross Roggio and his firm include the furnishing of assistance to foreign persons in the manufacture of firearms.
In addition to the charges relating to export controls violations, the indictment also alleges that Ross Roggio and his firm committed wire fraud on at least three occasions by purchasing items from a United States company and providing said company with false information about the end-user of the items. Finally, the indictment charges Ross Roggio and his firm with 27 counts of money laundering in the form of bank transfers from Iraq to two accounts within the Middle District of Pennsylvania, in furtherance of their unlawful export conspiracy.
The combined maximum penalty under federal law for these offenses is 705 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Any sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This case is being prosecuted by Assistant U.S. Attorney Todd K. Hinkley for the Middle District of Pennsylvania, and Trial Attorneys Scott Claffee and Heather Alpino of the National Security Division’s Counterintelligence and Export Control Section.
Passaic County Man Indicted for Conspiracy to Distribute Heroin in Paterson, New Jersey, and Suburbs in New York, New JerseyRead the Press Release
NEWARK, N.J. – A federal grand jury returned an indictment today against an alleged member of a heroin distribution conspiracy that reached from the Bronx, New York, to Paterson and suburban communities in New York and New Jersey, U.S. Attorney Craig Carpenito announced.
Reinaldo Rodriguez, a/k/a “Money,” a/k/a “Mimo,” 29, of Paterson, is charged in a four-count indictment with conspiracy to distribute a kilogram or more of heroin, possession with intent to distribute heroin and marijuana, felony possession a firearm, and possession of a firearm in furtherance of a drug trafficking crime. He was arrested in May 2016 and has been in custody since that time.
Reinaldo Rodriguez was originally charged by complaint with Juan Pablo Goris-Castellano, 27, of the Bronx; Edwin Lopez, 32, of Elmwood Park, New Jersey; Carolina Almonte, 30, of the Bronx; Charlie Rodriguez, 34, of Paterson; Victor Alfonso Alvarez Martinez, 28, of the Bronx; Edward M. Stanel, 27, of Parsippany, New Jersey; and Joseph Trimarco, 30, of Stony Point, New York.
According to documents filed in this case:
From June 2015 through May 2016, the defendants participated in a drug trafficking organization that amassed wholesale quantities of heroin at multiple locations in and around the Bronx and used couriers to deliver large quantities of that heroin to mid-level drug dealers operating in and around Paterson. The heroin was either sold in the Paterson area or re-distributed to street-level drug dealers in suburban areas, including but not limited to, Morris County, New Jersey, and Rockland County, New York.
Goris-Castellano, who was based out of the Bronx, packaged and distributed large quantities of heroin to Lopez, who operated out of Paterson. Goris-Castellano worked with his associates, Almonte and Alvarez Martinez, who brought the heroin to Lopez and returned to Goris-Castellano with Lopez’s payment for the drugs. Lopez then sold portions of that heroin to Charlie Rodriguez, who, working closely with Reinaldo Rodriguez, resold portions of that heroin to street-level drug dealers in Paterson and suburban areas, including Stanel and Trimarco, who operated in Morris County and Rockland County, respectively.
At the time of his arrest, Reinaldo Rodriguez was in a bedroom in which distribution quantities of heroin and marijuana were found on the floor and a gun was found on top of a box of drug paraphernalia in the closet.
Due to his prior felony drug distribution conviction, the drug distribution conspiracy charge in the indictment carries a mandatory minimum penalty of 20 years in prison, a maximum potential penalty of life in prison, and a $20 million fine. The possession with intent to distribute charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The felon in possession of a firearm charge carries a maximum potential penalty of 10 years in prison. The possession of a firearm in furtherance of a drug trafficking crime charge carries a mandatory minimum penalty of five years in prison to run consecutively to any term imposed on the drug possession charge.
Almonte, Alvarez Martinez, Goris-Castellano, Lopez, Charlie Rodriguez, Stanel, and Trimarco have all pleaded guilty to their roles in the conspiracy. Almonte was sentenced to 46 months in prison in May 2017. Lopez was sentenced to 162 months in prison in July 2017.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie Nickerson in Newark, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John B. Devito, with the investigation.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies dedicated to identifying and dismantling the most serious drug trafficking, weapons trafficking and money laundering organizations.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations against Reinaldo Rodriguez are merely accusations, and he is considered innocent unless and until proven guilty.
Defense counsel: Elizabeth Smith Esq., Mendham, New Jersey
North Carolina Man Sentenced to 27.5 Years in Prison for Enticing and Traveling to Pensacola for Sex with a MinorRead the Press Release
PENSACOLA, FLORIDA – Nicholas G. Peacock, 34, of Salisbury, North Carolina, was sentenced to 27.5 years in prison today in the U.S. District Court in Pensacola for enticement of a minor and interstate travel for illicit sexual activity. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In April 2016, S.S. reported that her twelve-year-old granddaughter was missing and that she believed the child had met someone online and left with him. When law enforcement visited S.S.’s residence, the child had returned home. The child said she traveled to North Carolina for the weekend with a white male named “Nick,” who was later identified as Peacock.
S.S. later told officers that she found information on a laptop that she had allowed her granddaughter to use that led S.S. to believe the child had been sexually active with Peacock. In interviews with investigators, the victim disclosed that she had been sexually active with Peacock over the weekend while they were in North Carolina, that she had met Peacock online via Skype, and that Peacock had transported her to North Carolina and then back to Florida after Peacock had found a missing person report.
In addition to telephone and hotel records, investigators reviewed thousands of Skype chats on the laptop from the time period of December 2015 through April 2016, which revealed many sexually explicit conversations, images, and videos exchanged between the victim and Peacock. Peacock pled guilty on July 17, 2017.
The case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Escambia County Sheriff’s Office, and other members of the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
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.
Ninth Defendant Sentenced to 5 Years in Prison for Drug TraffickingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Ellen L. Hollander sentenced Luis Lopez, age 40, of North East, Maryland today to five years in prison, followed by four years of supervised release, for Conspiracy To Distribute And Possess With Intent to Distribute Cocaine.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service – Washington Division; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, law enforcement began an investigation in 2015 into a drug conspiracy involving the importation and distribution of cocaine into the northeast Maryland and southern Delaware areas from Puerto Rico. Lopez and his co-defendants conspired with others known and unknown to possess and distribute cocaine.
According to the plea agreement, the investigation revealed a number of suspicious parcels were being sent through the U.S. Postal Service from Puerto Rico to fictitious addressees in Maryland and Delaware. For example, on February 20, 2015, investigators observed a U.S. Postal Service Priority Mail Express parcel was sent from Puerto Rico to an address in North East, Maryland, and that neither occupant at either address was associated to the sending or receiving addressee. Postal Inspectors obtained a search warrant for the parcel and found that it contained approximately 250 grams of cocaine.
Similarly, on May 2, 2015, investigators became aware of a U.S. Postal Service Priority Mail Express parcel that was accepted by a male, who was later identified as Leroy Fuentes, Jr. A traffic stop was conducted on Mr. Fuentes shortly after he left the post office with the parcel. After a K-9 unit gave a positive alert to his vehicle, the vehicle and its contents were searched. A search of the parcel revealed that the parcel contained approximately 135 grams of cocaine. In each instance, these parcels were packaged in a similar fashion.
On September 3, 2016, law enforcement conducted a lawful traffic stop of Luis Lopez. Lopez was searched and found to have a quantity of cocaine with him. Law enforcement subsequently seized and obtained a search warrant for Lopez’s phone. The search warrant revealed photographs sent to him via text message of a parcel similar to those that had been seized. The phone also contained tracking information for a parcel sent to a P.O. Box in Bear, Delaware. In addition to these photos, Lopez’s phone contained text messages between Lopez and his co-conspirators discussing the price of cocaine.
Finally, on September 22, 2016, law enforcement executed a search warrant at the residence of Lopez and found numerous loose pills in plastic baggies and $11,806 in U.S. Currency.
Lopez’s co-conspirators have all pleaded guilty to the conspiracy and been sentenced as follows:
Troy Baker, age 28, of North East, Maryland was sentenced to 38 months;
Leroy Fuentes, age 30, of North East, Maryland was sentenced to 30 months;
Roy Fuentes, Jr., age 26, of Newark, Delaware was sentenced to 24 months
Dahan Lopez, age 37, of Elkton, Maryland was sentenced to 60 months;
Angel Padilla, age 29, of Elkton, Maryland was sentenced to 42 months;
Eileen Perez, age 39, of New Castle, Delaware was sentenced to 18 months;
Fernando Lopez, age 40, of New Castle, Delaware was sentenced to 60 months; and
Nadja Velez, age 31, of Elkton, Maryland was sentenced to 12 months and 1 day.
Acting United States Attorney Stephen M. Schenning praised the FBI, the United States Postal Inspection Service and the Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Jason D. Medinger who prosecuted this Organized Crime Drug Enforcement Task Force case.
Nine Iranians Charged with Conducting Massive Cyber Theft Campaign on Behalf of the Islamic Revolutionary Guard CorpsRead the Press Release
An Indictment charging Gholamreza Rafatnejad, 38; Ehsan Mohammadi, 37; Abdollah Karima, aka Vahid Karima, 39; Mostafa Sadeghi, 28; Seyed Ali Mirkarimi, 34; Mohammed Reza Sabahi, 26; Roozbeh Sabahi, 24; Abuzar Gohari Moqadam, 37; and Sajjad Tahmasebi, 30, all citizens and residents of Iran, was unsealed today. The defendants were each leaders, contractors, associates, hackers-for-hire or affiliates of the Mabna Institute, an Iran-based company that, since at least 2013, conducted a coordinated campaign of cyber intrusions into computer systems belonging to 144 U.S. universities, 176 universities across 21 foreign countries, 47 domestic and foreign private sector companies, the U.S. Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the United Nations, and the United Nations Children’s Fund. Through the defendants’ activities, the Mabna Institute stole more than 31 terabytes of academic data and intellectual property from universities, and email accounts of employees at private sector companies, government agencies, and non-governmental organizations. The defendants conducted many of these intrusions on behalf of the Islamic Republic of Iran’s (Iran) Islamic Revolutionary Guard Corps (IRGC), one of several entities within the government of Iran responsible for gathering intelligence, as well as other Iranian government and university clients. In addition to these criminal charges, today the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated the Mabna Institute and the nine defendants for sanctions for the malicious cyber-enabled activity outlined in the Indictment.
The charges were announced by Deputy Attorney General Rod J. Rosenstein; Assistant Attorney General for National Security John C. Demers; U.S. Attorney Geoffrey S. Berman for the Southern District of New York; FBI Director Christopher A. Wray; Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Division; and Treasury Under Secretary for Terrorism and Financial Intelligence Sigal Mandelker.
“These nine Iranian nationals allegedly stole more than 31 terabytes of documents and data from more than 140 American universities, 30 American companies, five American government agencies, and also more than 176 universities in 21 foreign countries,” said Deputy Attorney General Rosenstein. “For many of these intrusions, the defendants acted at the behest of the Iranian government and, specifically, the Iranian Revolutionary Guard Corps. The Department of Justice will aggressively investigate and prosecute hostile actors who attempt to profit from America’s ideas by infiltrating our computer systems and stealing intellectual property. This case is important because it will disrupt the defendants’ hacking operations and deter similar crimes.”
“Today, in one of the largest state-sponsored hacking campaigns ever prosecuted by the Department of Justice, we have unmasked criminals who normally hide behind the ones and zeros of computer code,” said U.S. Attorney Berman. “As alleged, this massive and brazen cyber-assault on the computer systems of hundreds of universities in 22 countries and dozens of private sector companies and governmental organizations was conducted on behalf of Iran’s Islamic Revolutionary Guard. The hackers targeted innovations and intellectual property from our country’s greatest minds. These defendants are now fugitives from American justice, no longer free to travel outside Iran without risk of arrest. The only way they will see the outside world is through their computer screens, but stripped of their greatest asset – anonymity.”
“This investigation involved a complex threat in a dynamic landscape, but today’s announcement highlights the commitment of the FBI and our partners to vigorously pursue those that threaten U.S. property and security,” said Director Wray. “Today, not only are we publicly identifying the foreign hackers who committed these malicious cyber intrusions, but we are also sending a powerful message to their backers, the Government of the Islamic Republic of Iran: your acts do not go unnoticed. We will protect our innovation, ideas and information, and we will use every tool in our toolbox to expose those who commit these cyber crimes. Our memory is long; we will hold them accountable under the law, no matter where they attempt to hide.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:
Background on the Mabna Institute
Gholamreza Rafatnejad and Ehsan Mohammadi, the defendants, founded the Mabna Institute in approximately 2013 to assist Iranian universities and scientific and research organizations in stealing access to non-Iranian scientific resources. In furtherance of its mission, the Mabna Institute employed, contracted, and affiliated itself with hackers-for-hire and other contract personnel to conduct cyber intrusions to steal academic data, intellectual property, email inboxes and other proprietary data, including Abdollah Karima, aka Vahid Karima, Mostafa Sadeghi, Seyed Ali Mirkarimi, Mohammed Reza Sabahi, Roozbeh Sabahi, Abuzar Gohari Moqadam, and Sajjad Tahmasebi. The Mabna Institute contracted with both Iranian governmental and private entities to conduct hacking activities on their behalf, and specifically conducted the university spearphishing campaign on behalf of the IRGC. The Mabna Institute is located at Tehran, Sheikh Bahaii Shomali, Koucheh Dawazdeh Metri Sevom, Plak 14, Vahed 2, Code Posti 1995873351.
University Hacking Campaign
The Mabna Institute, through the activities of the defendants, targeted more than 100,000 accounts of professors around the world. They successfully compromised approximately 8,000 professor email accounts across 144 U.S.-based universities, and 176 universities located in foreign countries, including Australia, Canada, China, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, Malaysia, Netherlands, Norway, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Turkey and the United Kingdom. The campaign started in approximately 2013, continued through at least December 2017, and broadly targeted all types of academic data and intellectual property from the systems of compromised universities. Through the course of the conspiracy, U.S.-based universities spent more than approximately $3.4 billion to procure and access such data and intellectual property.
The members of the conspiracy used stolen account credentials to obtain unauthorized access to victim professor accounts, which they used to steal research, and other academic data and documents, including, among other things, academic journals, theses, dissertations, and electronic books. The defendants targeted data across all fields of research and academic disciplines, including science and technology, engineering, social sciences, medical, and other professional fields. The defendants stole at least approximately 31.5 terabytes of academic data and intellectual property, which they exfiltrated to servers outside the United States that were under the control of members of the conspiracy.
In addition to stealing academic data and login credentials for the benefit of the Government of Iran, the defendants also sold the stolen data through two websites, Megapaper.ir (Megapaper) and Gigapaper.ir (Gigapaper). Megapaper was operated by Falinoos Company, a company controlled by Abdollah Karima, aka Vahid Karima, the defendant, and Gigapaper was affiliated with Karima. Megapaper sold stolen academic resources to customers within Iran, including Iran-based public universities and institutions, and Gigapaper sold a service to customers within Iran whereby purchasing customers could use compromised university professor accounts to directly access the online library systems of particular U.S.-based and foreign universities.
Accompanying Mitigation Efforts
Prior to the unsealing of the Indictment, the FBI provided foreign law enforcement partners with detailed information regarding victims within their jurisdictions, so that victims in foreign countries could be notified and foreign partners could assist in remediation efforts.
Also, in connection with the unsealing of the Indictment, today the FBI provided private sector partners detailed information regarding the vulnerabilities targeted and the intrusion vectors used by the Mabna Institute in their campaign against private sector companies. This information will assist the public in its network defense and mitigation efforts.
* * *
Rafatnejad, Mohammadi, Karima, Sadeghi, Mirkarimi, Sabahi, Sabahi, Moqadam and Tahmasebi was each is charged with one count of conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; two counts of unauthorized access of a computer, each of which carries a maximum sentence of five years in prison; two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the assigned judge.
Mr. Rosenstein and Mr. Berman praised the outstanding investigative work of the FBI, the assistance of the United Kingdom’s National Crime Agency (NCA), and the support of the OFAC. Assistant U.S. Attorneys Timothy T. Howard, Jonathan Cohen and Richard Cooper are in charge of the prosecution, with assistance provided by Trial Attorneys Heather Alpino and Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
For the U.S. Department of Treasury’s press release announcing corresponding sanctions click here.
Nine Iranians Charged with Conducting Massive Cyber Theft Campaign on Behalf of the Islamic Revolutionary Guard CorpsRead the Press Release
Rod J. Rosenstein, the Deputy Attorney General of the United States, Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and John C. Demers, Assistant Attorney General for National Security, announced today the unsealing of an indictment charging GHOLAMREZA RAFATNEJAD, EHSAN MOHAMMADI, ABDOLLAH KARIMA, a/k/a “Vahid Karima,” MOSTAFA SADEGHI, SEYED ALI MIRKARIMI, MOHAMMED REZA SABAHI, ROOZBEH SABAHI, ABUZAR GOHARI MOQADAM, and SAJJAD TAHMASEBI. The defendants were each leaders, contractors, associates, hackers-for-hire, and affiliates of the Mabna Institute, an Iran-based company that was responsible for a coordinated campaign of cyber intrusions that began in at least 2013 into computer systems belonging to 144 U.S.-based universities, 176 universities across 21 foreign countries, 47 domestic and foreign private sector companies, the United States Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the United Nations, and the United Nations Children’s Fund. Through the activities of the defendants, the Mabna Institute conducted these intrusions to steal over 30 terabytes of academic data and intellectual property from universities, and email inboxes from employees of victim private sector companies, government victims, and non-governmental organizations. The defendants conducted many of these intrusions on behalf of the Islamic Republic of Iran’s (“Iran”) Islamic Revolutionary Guard Corps (“IRGC”), one of several entities within the government of Iran responsible for gathering intelligence, as well as other Iranian government clients. In addition to these criminal charges, today the Department of Treasury’s Office of Foreign Assets Control (OFAC) designated the Mabna Institute and the nine defendants for sanctions for the malicious cyber-enabled activity outlined in the Indictment.
Deputy Attorney General Rod J. Rosenstein said: “These nine Iranian nationals allegedly stole more than 31 terabytes of documents and data from more than 140 American universities, 30 American companies, five American government agencies, and also more than 176 universities in 21 foreign countries. For many of these intrusions, the defendants acted at the behest of the Iranian government and, specifically, the Iranian Revolutionary Guard Corps. The Department of Justice will aggressively investigate and prosecute hostile actors who attempt to profit from America’s ideas by infiltrating our computer systems and stealing intellectual property. This case is important because it will disrupt the defendants’ hacking operations and deter similar crimes.”
Manhattan U.S. Attorney Geoffrey S. Berman said: “Today, in one of the largest state-sponsored hacking campaigns ever prosecuted by the Department of Justice, we have unmasked criminals who normally hide behind the ones and zeros of computer code. As alleged, this massive and brazen cyber-assault on the computer systems of hundreds of universities in 22 countries, including the United States, and dozens of private sector companies and governmental organizations was conducted on behalf of Iran’s Islamic Revolutionary Guard. The hackers targeted innovations and intellectual property from our country’s greatest minds. These defendants are now fugitives from American justice, no longer free to travel outside Iran without risk of arrest. The only way they will see the outside world is through their computer screens, but stripped of their greatest asset – anonymity.”
FBI Assistant Director William F. Sweeney Jr. said: “The numbers alone in this case are staggering, over 300 universities and 47 private sector companies both here in the United States and abroad were targeted to gain unauthorized access to online accounts and steal data. An estimated 30 terabytes was removed from universities’ accounts since this attack began, which is roughly equivalent of 8 billion double-sided pages of text. It is hard to quantify the value on the research and information that was taken from victims but it is estimated to be in the billions of dollars. The nine Iranians indicted today now find themselves wanted by the FBI and our partner law enforcement agencies around the globe – and like other cyber criminals they will soon learn their ability to freely move was just limited to the virtual world only.”
According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court:
Background on the Mabna Institute
GHOLAMREZA RAFATNEJAD and EHSAN MOHAMMADI, the defendants, founded the Mabna Institute in approximately 2013 to assist Iranian universities and scientific and research organizations in stealing access to non-Iranian scientific resources. In furtherance of its mission, the Mabna Institute employed, contracted, and affiliated itself with hackers-for-hire and other contract personnel to conduct cyber intrusions to steal academic data, intellectual property, email inboxes and other proprietary data, including ABDOLLAH KARIMA, a/k/a “Vahid Karima,” MOSTAFA SADEGHI, SEYED ALI MIRKARIMI, MOHAMMED REZA SABAHI, ROOZBEH SABAHI, ABUZAR GOHARI MOQADAM, and SAJJAD TAHMASEBI. The Mabna Institute contracted with both Iranian governmental and private entities to conduct hacking activities on their behalf, and specifically conducted the university spearphishing campaign on behalf of the IRGC. The Mabna Institute is located at Tehran, Sheikh Bahaii Shomali, Koucheh Dawazdeh Metri Sevom, Plak 14, Vahed 2, Code Posti 1995873351.
University Hacking Campaign
The Mabna Institute, through the activities of the defendants, targeted over 100,000 accounts of professors around the world. They successfully compromised approximately 8,000 professor email accounts across 144 U.S.-based universities, and 176 universities located in foreign countries, including Australia, Canada, China, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, Malaysia, Netherlands, Norway, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Turkey, and the United Kingdom. The campaign started in approximately 2013, and has continued through at least December 2017, and broadly targeted all types of academic data and intellectual property from the systems of compromised universities, including, among other things, academic journals, theses, dissertations, and electronic books. Through the course of the conspiracy, U.S.-based universities spent over approximately $3.4 billion to procure and access such data and intellectual property.
The hacking campaign against universities was conducted across multiple stages. First, the defendants conducted online reconnaissance of university professors, including to determine these professors’ research interests and the academic articles they had published. Second, using the information collected during the reconnaissance phase, the defendants created and sent spearphishing emails to targeted professors, which were personalized and created so as to appear to be sent from a professor at another university. In general, those spearphishing emails indicated that the purported sender had read an article the victim professor had recently published, and expressed an interest in several other articles, with links to those additional articles included in the spearphishing email. If the targeted professor clicked on certain links in the email, the professor would be directed to a malicious Internet domain named to appear confusingly similar to the authentic domain of the recipient professor’s university. The malicious domain contained a webpage designed to appear to be the login webpage for the victim professor’s university. It was the defendants’ intent that the victim professor would be led to believe that he or she had inadvertently been logged out of his or her university’s computer system, prompting the victim professor for his or her login credentials. If a professor then entered his or her login credentials, those credentials were then logged and captured by the hackers.
Finally, the members of the conspiracy used stolen account credentials to obtain unauthorized access to victim professor accounts, through which they then exfiltrated intellectual property, research, and other academic data and documents from the systems of compromised universities, including, among other things, academic journals, theses, dissertations, and electronic books. The defendants targeted data across all fields of research and academic disciplines, including science and technology, engineering, social sciences, medical, and other professional fields. At least approximately 31.5 terabytes of academic data and intellectual property from compromised universities were stolen and exfiltrated to servers under the control of members of the conspiracy located in countries outside the United States.
In addition to stealing academic data and login credentials for university professors for the benefit of the Government of Iran, the defendants also sold the stolen data through two websites, Megapaper.ir (“Megapaper”) and Gigapaper.ir (“Gigapaper”). Megapaper was operated by Falinoos Company (“Falinoos”), a company controlled by ABDOLLAH KARIMA, a/k/a “Vahid Karima,” the defendant, and Gigapaper was affiliated with KARIMA. Megapaper sold stolen academic resources to customers within Iran, including Iran-based public universities and institutions, and Gigapaper sold a service to customers within Iran whereby purchasing customers could use compromised university professor accounts to directly access the online library systems of particular United States-based and foreign universities.
Prior to the unsealing of the Indictment, the FBI provided foreign law enforcement partners with detailed information regarding victims within their jurisdictions, so that victims in foreign countries could be notified and so that foreign partners could assist in remediation efforts.
Private Sector Hacking Victims
In addition to targeting and compromising universities, the Mabna Institute defendants targeted and compromised employee email accounts for at least approximately 36 United States-based private companies, and at least approximately 11 private companies based in Germany, Italy, Switzerland, Sweden, and the United Kingdom, and exfiltrated entire email mailboxes from compromised employees’ accounts. Among the United States-based private sector victims were three academic publishers, two media and entertainment companies, one law firm, 11 technology companies, five consulting firms, four marketing firms, two banking and/or investment firms, two online car sales companies, one healthcare company, one employee benefits company, one industrial machinery company, one biotechnology company, one food and beverage company, and one stock images company.
In order to compromise accounts of private sector victims, members of the conspiracy used a technique known as “password spraying,” whereby they first collected lists of names and email accounts associated with the intended victim company through open source Internet searches. Then, they attempted to gain access to those accounts with commonly-used passwords, such as frequently used default passwords, in order to attempt to obtain unauthorized access to as many accounts as possible. Once they obtained access to the victim accounts, members of the conspiracy, among other things, exfiltrated entire email mailboxes from the victims. In addition, in many cases, the defendants established automated forwarding rules for compromised accounts that would prospectively forward new outgoing and incoming email messages from the compromised accounts to email accounts controlled by the conspiracy.
U.S. Government and NGO Hacking Victims
In the same time period as the university and private sector hacking campaigns described above, the Mabna Institute also conducted a computer hacking campaign against various governmental and non-governmental organizations within the United States. During the course of that campaign, employee login credentials were stolen by members of the conspiracy through password spraying. Among the victims were the following, all based in the United States: the United States Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the State of Indiana Department of Education, the United Nations, and the United Nations Children’s Fund. As with private sector victims, the defendants targeted for theft email inboxes of employees of these organizations.
* * *
GHOLAMREZA RAFATNEJAD, EHSAN MOHAMMADI, ABDOLLAH KARIMA, a/k/a “Vahid Karima,” MOSTAFA SADEGHI, SEYED ALI MIRKARIMI, MOHAMMED REZA SABAHI, ROOZBEH SABAHI, ABUZAR GOHARI MOQADAM, and SAJJAD TAHMASEBI, the defendants, are citizens and residents of Iran. Each is charged with one count of conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; two counts of unauthorized access of a computer, each of which carries a maximum sentence of five years in prison; two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the assigned judge.
Mr. Berman praised the outstanding investigative work of the FBI, the assistance of the United Kingdom’s National Crime Agency (NCA), and the support of the OFAC. The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Timothy T. Howard, Jonathan Cohen, and Richard Cooper are in charge of the prosecution, with assistance provided by Heather Alpino and Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the Indictment 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 Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Nigerian Citizen Ordered to Prison for Defrauding US VictimsRead the Press Release
HOUSTON – A 34-year-old Nigerian man who was residing in Houston has been ordered to prison for conspiracy to commit mail fraud and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick. Azeez Abiodun Balogun pleaded guilty Oct. 27, 2017.
Today, U.S. District Judge Ewing Werlein Jr. handed Balogun a 75-month sentence. Not a U.S. citizen, Balogun is expected to face deportation proceedings following the sentence. At the hearing, the court noted that this was a sophisticated scheme that began in 2015 and that he only stopped when he caught.
From on or about Jan. 1, 2015, through April 13, 2017, Balogun was involved in a conspiracy that involved many schemes to defraud via the U.S. mail and using personal identifying information (PII) of individuals without their permission.
He would open bank accounts with counterfeit passports in order to facilitate fraud payments into these accounts. Balogun would then use the stolen PII to apply for credit cards. He opened approximately 30 credit card accounts at Bank of America, Chase Bank and others by using the stolen information.
Additionally, he also engaged in Stolen Identity Refund Fraud (SIRF) in which he would use the stolen PII to apply for tax refunds. The stolen funds were then loaded onto prepaid debit cards and mailed to addresses Balogun or others controlled in the Houston area.
The investigation unraveled approximately 10 different identities and passports Balogun used to open bank accounts and receive fraudulent funds from the various his schemes. The total loss attributed to his conduct is $2,976,265.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Postal Inspection Service conducted the investigation along with Department of State – Diplomatic Security Service. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
New York Man Charged with Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Schenectady, N.Y., man was charged in federal court in Springfield yesterday with failing to register as a sex offender.
Jose Dones was charged in an indictment with one count of failing to register as a sex offender.
According to court documents, Dones was convicted in 1994 of second degree rape and in 2008 of forcible touching. Dones has received many notices of his obligation to register as a sex offender, and he has been convicted four times in New York state court of failure to register as a sex offender. In 2016, Dones was convicted of failing to register as a sex offender in federal court in Massachusetts.
In November 2017, Dones lived in Boston without registering as a sex offender while on supervised release in connection with his 2016 failure to register conviction. Then in December 2017, Dones moved to Schenectady, N.Y., where he again failed to register as a sex offender. On Jan. 10, 2018, Dones was arrested in Schenectady.
The charge provides for a sentence of no greater than 10 years in prison, a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Monmouth County, New Jersey, Couple Charged with Conspiring to Evade Personal and Employment TaxesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, couple was arrested this morning by federal agents on charges of conspiracy to defraud the United States by evading the payment of personal and employment taxes, U.S. Attorney Craig Carpenito announced.
Tito Viteri, 39, and, Maria Yepez, 38, of Cream Ridge, New Jersey, are charged by complaint with one count of conspiracy to defraud the IRS of taxes from 2008 through 2016. Viteri and Yepez made their initial appearances today before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court and were released on $300,000 each unsecured bonds.
According to documents filed in this case and statements made in court:
Since 2002, Viteri was the owner and operator of numerous commercial trucking companies that performed delivery services, all of but one of which operated in New Jersey. Yepez was the nominal owner of three of the companies.
Viteri and Yepez allegedly conspired to evade paying personal and business-related taxes by engaging in the following acts: (1) “pyramiding” companies and using nominees as the purported owners of several of the companies in order to shield business assets while incurring employment tax liabilities; (2) failing to file timely and accurate quarterly federal tax returns by falsely categorizing employees as independent contractors, for whom employment taxes did not have to be paid; (3) receiving unreported kickback income from an employee; and (4) concealing personal income and assets by using nominees and depositing money into their child’s bank account.
In 2008, an IRS audit determined that Viteri owed approximately $785,000 in unpaid taxes for one of his companies, and he himself owed approximately $315,000 in unpaid personal taxes. Although Viteri began making payments to the IRS in August 2011, he stopped making those payments in December 2013, claiming he was not “bringing enough money home.” Despite his claims, at around the same time (February 2013 to February 2016) Viteri and Yepez made approximately $111,000 in rental payments (approximately $3,000 per month) for a property in Chesterfield where they lived.
Although Viteri and Yepez still had substantial outstanding tax liabilities, in 2016, Viteri and Yepez purchased a home in Cream Ridge for $929,653. To conceal the purchase of the home from the IRS, Viteri and Yepez purchased the home in the name of Viteri’s mother.
As of March 2018, Viteri owed approximately $1.3 million in personal income taxes, and Viteri and Yepez owed an additional approximately $1.3 million in unpaid business-related taxes.
The conspiracy charge carries a maximum potential penalty of five years in prison and a statutory maximum fine equal to the greatest of: (1) $250,000; (2) twice the gross amount of any pecuniary gain that any persons derived from the offense; or (3) twice the gross amount of any pecuniary loss sustained by any victims.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the FBI, Newark Division, under the direction of Acting Special Agent in Charge Bradley W. Cohen; and the U.S. Department of Labor, Office of the Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, with the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis, Attorney-in-Charge of the U.S. Attorney’s Office Trenton Branch.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense counsel:
Tito Viteri: Darren Gelber Esq., Woodbridge, New Jersey
Maria Yepez: Jerome A. Ballarotto Esq., Hamilton, New JerseyMichigan Man Sentenced to 28 Years for Conspiracy to Distribute OxycodoneRead the Press Release
LEXINGTON, Ky., – Stanford Ray Coleman, 47, of Detroit, Michigan, was sentenced today to 340 months [28 years] in prison by United States District Court Judge Danny C. Reeves for Conspiracy to Distribute Oxycodone. Judge Reeves also ordered Coleman to pay a fine of $15,000.
Coleman was previously found guilty by a jury of the charge. The evidence at trial established that Coleman was the supplier of large amounts of oxycodone 30 mg tablets to street and mid-level dealers in the Mt. Sterling area. Coleman would travel to the Mt. Sterling area from Detroit and Atlanta at regular intervals. Coleman would bring thousands of oxycodone 30 mg tablets to local dealers in and around Mt. Sterling. These local distributors would in turn sell the oxycodone 30 mg tablets to smaller dealers and to users of oxycodone in Mt. Sterling. Coleman used at least five fictitious names to conceal his identity and his presence in this area. Coleman was found to be responsible for 5,000 oxycodone 30 mg tablets pills from May 2015 to July 2015. Coleman has also been convicted of two prior drug trafficking offenses qualifying him as a “Career Offender.” The jury convicted Coleman in December of 2017 after a 4-day trial.
Under federal law, Coleman must serve 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for 8 years. Judge Reeves ordered that this federal sentence run be served consecutive to a Fayette County felony offense for drug distribution.
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, Stuart Lowery, Special Agent in Charge, ATF, Richard Sanders, Commissioner, Kentucky State Police, Chief David Charles, Mt. Sterling Police Department jointly made the announcement today after the sentencing.
The ATF, Kentucky State Police, Mt. Sterling Police Department conducted the investigation. Assistant United States Attorney Roger W. West represented the United States.
This case were prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Mexican Man Charged with Illegal ReentryRead the Press Release
United States Attorney Duane A. Evans announced that JOSE ARTEAGA-CENTENO, age 43, a native of Mexico, was charged yesterday 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, ARTEAGA-CENTENO was previously removed from the United States on May 24, 2013. He was later found in the Eastern District of Louisiana on March 8, 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, ARTEAGA-CENTENO faces a maximum term of imprisonment of ten 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.
Mexican Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Rigoberto Pacheco-Estefes, age 25, and a citizen of Mexico, was sentenced today to time served (49 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Pacheco-Estefes admitted that he was last removed from the United States to Mexico on November 28, 2015. On February 2, 2018, a Border Patrol Agent arrested Pacheco-Estefes in Champlain, New York. Pacheco-Estefes was also removed to Mexico on October 5, 2015 and October 19, 2015.
Pacheco-Estefes was remanded to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Maryland Man Sentenced to 20 years for Drug TraffickingRead the Press Release
RICHMOND, Va. – A Maryland man was sentenced today to 20 years in prison for his participation in a drug trafficking conspiracy responsible for the distribution of kilograms of heroin and fentanyl in the Colonial Beach, Westmoreland County and King George County areas.
According to court documents, Dwayne Proctor, 38, who has ties to Colonial Beach and Westmoreland County, conspired with others to traffic over 1000 grams of heroin and fentanyl from at least January 2015 through May 2017. During the course of the conspiracy, Proctor supplied quantities of heroin ranging from gram to ounce quantities, to others in these areas and utilized several residences for the purposes of selling and storing illegal drugs. Proctor also utilized his mother’s home in Colonial Beach to store over a kilogram of heroin and over a kilogram of fentanyl, which were recovered by law enforcement during a search of the house pursuant to a search warrant on May 2, 2017.
Proctor utilized several individuals to assist and conspired with others in his drug distribution efforts, including the following co-conspirators who were sentenced as follows:
Name, Age
City
Sentencing
Lawrence Buckner, 37
King George
8 years on Oct. 27, 2017
Jeffrey Dudley, 26
Colonial Beach
7 years on Oct. 27, 2017
Clifton Howdershelt, 54
King George
11 years on Nov. 13, 2017
Edward Shupe, 47
King George
11 years on Oct. 20, 2017
Terrell Sylvester Johnson, 28
Westmoreland
12 years on Nov. 20, 2017
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Colonel Gary T. Settle, Superintendent of Virginia State Police, Steve F. Dempsey, King George County Sheriff, C.O. Balderson, Westmoreland County Sheriff, and Tony Lippa, Jr., Caroline County Sheriff, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-57 and the related cases Case Nos. 3:17-cr-55 and 3:17-cr-54.
Martinsburg man appears on illegal ammunition chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gary Owen Jones, of Martinsburg, West Virginia, appeared today before a federal magistrate judge to face an illegal possession of ammunition charge, United States Attorney Bill Powell announced.
Jones, age 46, was indicted on one count of “Unlawful Possession of Ammunition.” Jones, who was previously convicted of a felony in the Circuit Court of Berkeley County, is accused of possessing more than 1,100 rounds of ammunition in February of 2018 in Berkeley County.
Jones was first charged in Berkeley County Magistrate Court after allegedly threatening the Martinsburg Police Department on social media. In the criminal complaint filed by the West Virginia State Police, he is accused of threatening officers on his Facebook account from July 2017 to February 2018. In one such threat, he allegedly references a firearm. Jones is facing a state charge of “Terroristic Threats,” punishable by one to three years incarceration. The alleged firearm reference prompted a federal investigation, as Jones is a convicted felon, preventing him from legally owning a firearm or ammunition.
“We will not tolerate felons in possession of guns or ammunition. We will act swiftly and harshly in every situation involving threats against law enforcement when federal violations occur,” said Powell.
“Threats to the safety of any law enforcement officer are outrageous and will not be tolerated in Martinsburg. I deeply appreciate and commend the hard work of the Eastern Panhandle Drug and Violent Crime Task Force and the leadership of United States Attorney Bill Powell for the arrest and criminal indictment of this offender,” said Chief Maury Richards, Martinsburg Police Department.
“I thank the Eastern Panhandle Drug & Violent Crime Task Force for taking swift action to combat threats made against our law enforcement. I appreciate the opportunity to work with United States Attorney Bill Powell’s office to ensure that we seek justice on both the federal and state levels when appropriate,” said Cadie Wilkes Delligatti, Berkeley County Prosecuting Attorney.
The state charges against Jones are pending in Magistrate Court.
Jones faces up to 10 years incarceration and a fine of up to $250,000 for the federal charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the federal government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Martin County Residents Plead Guilty to Producing and Distributing Child PornographyRead the Press Release
Joshua Lane Rogers, 34, and Richard William Lockley, 34, both of Stuart, pled guilty to producing pornography of a teenage victim.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ken Mascara, Sheriff, St. Lucie County Sheriff's Office (SLCSO), and William D. Snyder, Sheriff, Martin County Sheriff's Office (MCSO), made the announcement.
On March 22, 2018, Rogers pled guilty to two counts of production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2251(a) and (e); and one count of distribution production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, 2252(a)(2) and (b)(1). On January 17, 2018, Lockley pled to one count of production of visual depictions of sexual exploitation of minors. If convicted of the production or distribution charges, Rogers and Lockley face a mandatory minimum sentence of 15 years in prison, a maximum 30 year prison term, a lifetime of supervised release, and will be required to register as sex offenders.
According to the court record, on September 3, 2017, SLCSO deputies responded to a “Missing Person Juvenile/ Runaway” call for a missing 16-year-old minor. On September 27, 2017, Rogers was located with the minor victim. The investigation revealed that Rogers met the victim on-line and had the victim stay at his residence. A forensic analysis of Roger’s cellular smart phone revealed he had recorded sexually explicit activity with the minor victim on numerous occasions. Rogers distributed many of the captured images and videos to other individuals, via MMS text communications, a social media networking program, and in the personal section of a Treasure Coast website.
Rogers and Lockley, together at Rogers’ residence, also produced a video depicting sexually explicit conduct and activity with the minor victim.
Lockley is scheduled to be sentenced on April 20, 2018 at 1 p.m., in Ft. Pierce and Rogers is scheduled to be sentenced on Tuesday, June 5, 2018 at 11 a.m. in Miami, before U.S. District Court Senior Judge Donald L. Graham.
Mr. Greenberg commended the investigative efforts of the FBI, SLCSO and the MCSO for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Sentenced to Prison for Dealing Ice in Hampton RoadsRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 15 years in prison for his involvement in a conspiracy to distribute methamphetamine, commonly known as “ice”, in Hampton Roads.
According to court documents, Russell James Kerfoot, 39, conspired with Coy James Mullins, formerly of Palm Springs, California, and others to distribute methamphetamine in Hampton Roads from 2016 until May 2017. During the conspiracy, Mullins shipped parcels containing methamphetamine to Kerfoot in Norfolk through the mail. Kerfoot distributed the methamphetamine he received from Mullins in Hampton Roads.
On May 8, 2017, the Virginia Beach Police Department and Homeland Security Investigations received information that Kerfoot was in route to a location in Virginia Beach to conduct a drug transaction. The police set up surveillance and subsequently observed Kerfoot arrive at the location in a blue SUV. When uniformed police officers attempted to make contact with Kerfoot, he ran into a retail store and into the bathroom before being arrested. Police seized approximately 69 grams of methamphetamine from the glove box of the blue SUV.
On May 10, 2017, Kerfoot returned to the retail store and attempted to retrieve a quantity of methamphetamine he had hidden in the bathroom just two days before. After an employee called the police they located approximately 58 grams of methamphetamine concealed above the ceiling tiles in the bathroom.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-89.
Man Sentenced for Trafficking Enough Fentanyl to Possibly Kill Nearly 6 Million PeopleRead the Press Release
LAREDO, Texas – A 57-year-old man has been ordered to prison following his conviction of trafficking heroin, cocaine and nearly 12 kilograms of fentanyl, announced U.S. States Attorney Ryan K. Patrick. Jeffrey Layne Parker, of Belleville, Illinois, pleaded guilty Aug. 31, 2017.
Today, visiting U.S. Appellate Judge Kimberly Moore ordered Parker to serve a total of 168 months in federal prison to be immediately followed by five years of supervised release. At the hearing, additional evidence was presented including evidence that fentanyl is 30 to 50 times more powerful than heroin and that one gram of fentanyl can result in the deaths of between 300 and 500 people. The fentanyl found in Parker’s car could have caused the deaths of up to 5.8 million people - more than the populations of Dallas, San Antonio and Houston combined. In handing down the sentence, Judge Moore denied Parker’s requests for leniency, noting the quantities of narcotics found in Parker’s possession, his extensive criminal record and the fact that Parker had transported narcotics loads at least four times.
Parker was first arrested March 7, 2017, after authorities found 16 packages of narcotics concealed in the trunk of Parker’s car at the Border Patrol (BP) checkpoint just north of Laredo. The narcotics included 11.77 kilograms of fentanyl, 1.85 kilograms of heroin, 76 grams of cocaine and 1.41 kilograms of marijuana. He was arrested but later released following a medical issue.
Parker was arrested three months later on June 7, 2017. At that time, he approached the same checkpoint and agents found nine bundles containing 11.15 kilograms of heroin hidden behind the speakers in a Ford pickup truck he was driving.
Parker has been in federal custody without bond since his second arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorney Mike Eaton is prosecuting the case.
Lubbock Man Sentenced to 20 Years in Federal Prison on Child Porn ConvictionRead the Press Release
LUBBOCK, Texas — Eugene Joseph Martinez, 20, of Lubbock, Texas, was sentenced yesterday by Senior U.S. District Judge Sam R. Cummings to 240 months in federal prison, following his guilty plea in December 2017 to one count of transportation of a visual depiction of a minor engaging in sexually explicit conduct, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Martinez has been in custody since the time of his arrest in November 2017.
According to documents filed in the case, between June 22 and September 6, 2016, Martinez used various electronic devices to transport numerous images and videos depicting minors engaged in sexually explicit conduct. Martinez transported these images by way of the Internet, to a Dropbox account that he used to collect the images and videos.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Lubbock Police Department Internet Crimes Against Children Unit investigated the case. Assistant U.S. Attorney Jeffrey Haag and Assistant U.S. Attorney (retired) Steve Sucsy were in charge of the prosecution.
# # #
Lowell Man Charged with Armed Bank RobberyRead the Press Release
BOSTON - A Lowell man was charged yesterday in federal court in Boston with masked and armed bank robbery.
Jason M. Nobles, 35, was charged by criminal complaint with one count of armed bank robbery. Nobles appeared yesterday before U.S. District Court Magistrate Judge Marianne B. Bowler and was detained pending a detention hearing.
According to the compliant, on Feb. 26, 2018, an individual, later identified as Nobles, entered a branch of the Santander Bank in Swansea, approached a teller’s station, brandished what appeared to be a black semi-automatic pistol, pointed the pistol at the bank’s tellers, and demanded cash. The tellers handed Nobles cash from their drawers and Nobles fled the bank. A post robbery audit determined that Nobles took approximately $15,000.
Having witnessed Nobles depart the bank, run to a neighboring parking lot, and leave the area in a gray Toyota SUV, the bank’s employees were able to provide law enforcement with a vehicle description and the physical description of the robber. Law enforcement across multiple towns worked together to locate the Toyota SUV, stop it, and detain the driver - Nobles - who matched the description of the robber given by the bank’s employees.
Later, when law enforcement executed a search warrant on the vehicle, they found a large sum of money and a black Sig Sauer semi-automatic pellet gun.
The charge provides for a sentence of no greater than 25 years in prison and five years of supervised release. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Bristol County District Attorney Thomas M. Quinn; Swansea Police Chief George Arruda; and Rehoboth Police Chief James J. Trombetta made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the court documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Los Angeles Man Indicted for Money Laundering of $1.9 Million Stolen from Appalachian State UniversityRead the Press Release
CHARLOTTE, N.C. – Ho Shin Lee, 31, of Los Angeles, California, was indicted by a federal grand jury in Charlotte for laundering more than $1.9 million stolen from Appalachian State University, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. The 14-count indictment was unsealed today, following Lee’s arrest in California.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, on or about November 18, 2016, Lee applied to the Secretary of State of California to register Royce Hub Trading, Inc. as a corporation in California, claiming that the corporation was in the business “general merchandise.” Lee represented himself to be the Chief Executive Officer, Secretary, and Chief Financial Officer of Royce Hub Trading. The indictment alleges that on or about November 23, 2016, Lee opened a bank account with a financial institution in Los Angeles in the name of Royce Hub Trading, Inc. Lee claimed to be president of Royce Hub Trading and was the sole account holder.
Court documents indicate that in 2016, Appalachian State University (“Appalachian State”) awarded a contract to Rodgers Builders to build a new health sciences building at the university. On or about December 2, 2016, an employee at Appalachian State received an email from an unidentified individual purporting to be D.M., an employee of Rodgers Builders. The e-mail was sent from [email protected]. The legitimate e-mail address for Rodgers Builders was “rodgersbuilders.com.” The fraudulent e-mail contained a direct deposit form and instructions to change Rodgers Builders’ previously submitted banking information to Lee’s newly opened bank account.
The indictment alleges that the Appalachian State employee changed the payment information as directed by the fraudulent e-mail, and on or about December 8, 2016, a payment of approximately $1,959,925.02 intended for Rodgers Builders by Appalachian State was directed to the bank account controlled by Lee.
According to the indictment, on or about December 12, 2016, Lee received the fraud proceeds, and quickly transferred the funds through a series of financial transactions out of his bank account, knowing that the transactions were designed to conceal the nature, location, source, ownership, and control of the fraud proceeds.
Lee is charged with fourteen counts of money laundering. The maximum penalty for the each charge is twenty years in prison and a $ 500,000 fine.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The FBI investigated the case. Assistant U.S. Attorney Kelli Ferry is in charge of the prosecution.
* **
On January 24, 2018, U.S. Attorney Murray announced that $1,542,442.33 would be distributed to Appalachian State, following successful civil forfeiture proceedings against money seized from bank accounts controlled by the alleged fraudsters who targeted the university. The full press release can be found at:
/usao-wdnc/pr/appalachian-state-university-receive-15-million-distribution-resulting-us-attorneys
Lawrence Man Charged with Identity TheftRead the Press Release
BOSTON – A Lawrence man was arraigned yesterday in federal court in Boston on charges related to identity theft.
Kelny Andujar, a/k/a Kelny Alberto Andujar Pinales, 36, was indicted on one count of passport fraud, one count of misusing a Social Security number, and two counts of aggravated identity theft. The crimes allegedly occurred in 2016.
The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison, up to one year of supervised release, and a fine of up to $250,000. The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised released, and a fine of up to $250,000. The charge of misuse of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
KC Man Charged with Using GPS to Track Murder VictimRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been charged in federal court with using a GPS tracking device to assist in the murder of a rival drug trafficker who was fatally shot in front of his 8-year-old daughter.
Lester Brown, 30, of Kansas City, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Thursday, March 22, 2018. Brown remains in federal custody pending a detention hearing on Tuesday, March 27, 2018.
The federal criminal complaint charges Brown with using a GPS tracking device with the intent to commit a crime of violence, which resulted in the death of Christopher Harris, to further Brown’s marijuana trafficking operation.
According to an affidavit filed in support of the federal criminal complaint, Brown and Harris had a long-standing dispute over marijuana trafficking. Brown allegedly murdered Harris in front of Harris’s 8-year-old daughter on March 14, 2018, as Harris was returning his daughter to her mother’s residence. The murder, says the affidavit, was the culmination of conflicts between Brown and Harris’s competing marijuana distribution activities.
Independence police officers were dispatched to a residence on March 14, 2018, regarding a report of shots fired near the residence. Harris’s girlfriend, the mother of his daughter, reported that her boyfriend had been shot. When officers arrived, they discovered Harris suffering from a wound to the head. Harris was unresponsive, and was ultimately pronounced deceased.
An anonymous source told investigators that Brown orchestrated the shooting assault on Harris and enlisted the assistance of two other persons as shooters. Brown allegedly used a GPS tracking device, covertly placed on Harris’s vehicle, to track Harris’s movements.
The anonymous source described a long-standing grievance between Brown and Harris, and indicated it was this conflict which likely resulted in the assault and death of Harris. Harris’s former girlfriend and the mother of his 8-year-old daughter told investigators that Harris had recently told her about a confrontation between himself and Brown at a local shopping center within the two weeks preceding Harris’s death.
The anonymous source also told investigators that Brown distributes high-grade marijuana on his own and has attempted to join other distributors in the metropolitan area to expand his enterprise. Brown has allegedly engaged in robberies of other drug traffickers with the intent of stealing bulk quantities of high-grade marijuana and other illegal drugs to distribute himself. Brown allegedly enlisted the same two shooters to assist him in these robberies.
A second anonymous source told investigators that Brown also had deployed GPS tracking devices on the vehicles of other known distributors of illegal drugs that he intended to target for robberies.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Independence, Mo., Police Department, the Kansas City, Mo., Police Department, and the FBI.
Jefferson County Man Sentenced for Beaumont Bank RobberyRead the Press Release
BEAUMONT, Texas – A 39-year-old Beaumont, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Joseph Dee Carter pleaded guilty on Oct. 26, 2017, to bank robbery and was sentenced to 77 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on July 7, 2017, Carter robbed the DuGood Federal Credit Union on Eastex Freeway in Beaumont. Surveillance video showed that Carter entered the credit union lobby and then had a discussion with an employee about temporary checks. A few minutes later, the video shows Carter walking across the lobby to the restroom before returning to the teller counter and placing a note written on a paper towel on the counter in front of the teller, demanding money. After receiving money from the teller, Carter fled the credit union and was seen driving away in a vehicle. Police found the vehicle, but Carter had fled on foot. Later that day, after having been identified by witnesses and examination of the video, Carter was arrested while walking on Lucas Street. Carter was indicted by a federal grand jury on Aug. 9, 2017.
This case was investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Jacksonville Man on Federal Supervised Release Sentenced to 41 Years in Federal Prison for Aggravated Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Anthony Johnson (53, Jacksonville) to 41 years in federal prison for aggravated identity theft, bank fraud, false representation of a Social Security number, mail fraud, and for violating his federal supervised release. As part of his sentence, the court also ordered him to pay restitution to multiple victims he had defrauded. Johnson was arrested on July 11, 2016, for violating his federal supervised release and he was subsequently indicted on fraud charges on August 10, 2016. He has remained in federal custody since his arrest. On October 19, 2017, a federal jury found Johnson guilty of nine counts of aggravated identity theft, nine counts of bank fraud, seven counts of false representation of a Social Security number, and three counts of mail fraud.
According to evidence presented at trial, beginning in 2014, Johnson falsely claimed to be a former member of the U.S. Army and used the Social Security numbers of two victims, including a lawyer from Seattle, to open a bank account and to obtain a loan and multiple credit cards from USAA in the names of his victims. After obtaining multiple credit card convenience checks, Johnson withdrew thousands of dollars from the USAA bank account for his own use. After obtaining a genuine Florida driver license using the identity of a doctor from Texas, Johnson obtained two fraudulent loans totaling over $148,000 from Bankers Healthcare Group, LLC (BHG). Johnson had the money from BHG wired to a TD Bank business account in the name of a false medical data company he incorporated in Florida. Using the same identity, Johnson then obtained additional loans from Springleaf Financial Services and had the proceeds wired to the bank account he had set up for the false medical data company. Johnson then set up a personal bank account at TD Bank in the victim’s name and began funneling money from the business account to the personal account. Thereafter, Johnson began making large cash withdrawals to fund his purchase of luxury items including a $70,000 luxury car. During this time, Johnson used the identity of a fourth victim to obtain an apartment and then obtained another genuine Florida driver license using the identity of a fifth victim.
During the summer of 2016, using proceeds from his criminal activity, Johnson left the United States in violation of his federal supervised release imposed after a previous federal conviction for fraud and identity theft-related charges. While on this trip, he stayed at the Waldorf Astoria, purchased high-end personal items, and spent more than $4,000 while visiting a club/restaurant. On July 11, 2016, U.S. Immigration and Customs Enforcement, in coordination with the U.S. Marshals Service, arrested Johnson at the Orlando International Airport for violating the terms of his supervised release.
“The U.S. Secret Service is committed to investigating these types of fraud investigations with our federal, state, and local law enforcement partners due to the impact on the U.S. financial system and our local community,” said Neil Melofchik, Special Agent in Charge of the USSS Jacksonville Field Office.
This case was investigated by the Florida Highway Patrol – Bureau of Criminal Investigations and Intelligence, the Jacksonville Sheriff’s Office, the U.S. Marshals Service, U.S. Immigration and Customs Enforcement, and the United States Secret Service - Jacksonville Field Office. Assistant United States Attorney Kevin C. Frein and Beatriz Gonzalez prosecuted it.
International Competition Network Adopts Guiding Principles for Procedural Fairness and New Recommendations for Merger ReviewRead the Press Release
At its annual conference, the International Competition Network (ICN) adopted guiding principles for procedural fairness in competition agency enforcement; substantially revised merger recommended practices addressing international enforcement cooperation, timing of notification, and review periods; and presented the results of a member survey on vertical merger assessment and related economic issues. The ICN also issued a strategy report on advocacy monitoring and evaluation methods, and interim reports on the treatment of vertical restraints under unilateral conduct laws and key elements of cartel leniency programs, the Department of Justice announced today.
The ICN held its 17th annual conference, hosted by the Competition Commission of India, on March 21-23, 2018. Nearly 500 delegates from over 70 jurisdictions participated, including competition experts from international organizations and the legal, business, academic, and consumer communities. Deputy Assistant Attorney General Roger Alford led the Department of Justice’s delegation; the Federal Trade Commission’s delegation was led by Acting Chairman Maureen Ohlhausen. Assistant Attorney General Makan Delrahim had planned to attend, but was required to remain in Washington due to the litigation schedule in a Division matter. The conference showcased the achievements of the ICN working groups on competition advocacy, agency effectiveness, cartels, mergers and unilateral conduct, and featured discussion of current competition issues and the future direction of the network.
“The Division looks forward each year to this opportunity to engage face to face with enforcer colleagues from around the world,” said Assistant Attorney General Delrahim. “The relationships that we develop through ICN are key to our enforcement program, and to promoting sound competition policy worldwide. We commend the Competition Commission of India for hosting an excellent conference.”
Deputy Assistant Attorney General Alford spoke on a panel discussing online markets and vertical restraints. The panel was part of the Unilateral Conduct Working Group’s ongoing work on vertical restraints. The Working Group, co-chaired by the Department of Justice, presented an interim report examining a series of hypothetical vertical restraints and their effect on competition and potential resulting efficiencies.
“The ICN continues to play a critical role in addressing evolving issues and challenges that confront the international competition community,” said FTC Acting Chairman Maureen Ohlhausen. “As exemplified by this year’s work product, led by the FTC, on merger review and procedural due process, there has been substantial progress toward convergence of competition policy around the world.”
Acting Chairman Ohlhausen helped lead the conference’s panel discussion of how competition authorities can communicate the benefits of competition and advocate for pro-competitive policies when the political, social, or economic context is not in their favor. The panel explored how advocacy strategies may differ and recognized that competition advocacy, whatever the context or climate, is a crucial component of a competition agency’s work. Randolph Tritell, Director of the FTC’s Office of International Affairs, led the concluding panel, showcasing the implementation of the ICN’s work across the globe.
The FTC co-chairs the ICN’s Merger Working Group, which promotes convergence toward best practices in merger process and analysis and seeks to reduce the public and private costs of multijurisdictional merger reviews. This year, the Merger Working Group presented revised Recommended Practices on: 1) international enforcement cooperation; 2) timing of notification; and 3) review periods. The working group also presented results of its agency survey on vertical merger analysis and related economic assessment.
The Agency Effectiveness Working Group produced new recommendations on due process in competition law enforcement. The FTC-led project developed Guiding Principles for procedural fairness, recommendations for internal agency practices that support sound decision making, and implementation tips for good agency enforcement process. The group also studied how economic thinking and economic analysis can be incorporated into agencies’ investigations and decision-making processes. The working group introduced new video training modules on merger remedies and enforcement cooperation as part of the ICN’s online interactive educational center for competition authorities from around the world.
The Cartel Working Group addresses the challenges of anti-cartel enforcement, including the prevention, detection, investigation and punishment of cartel conduct. The Cartel Working Group presented an interim report on survey findings regarding major characteristics of leniency regimes, incentives and disincentives for leniency applications and interaction between leniency and other policies.
The Advocacy Working Group provides guidance and facilitates experience-sharing to improve the effectiveness of ICN members’ competition advocacy initiatives. At the conference, the group released its second report as part of the Strategy Project. The report analyzes survey results on how competition agencies assess their advocacy actions and programs, and identifies common practices and trends. This work will inform the development of guidance covering the planning, monitoring, and evaluation of advocacy actions and programs. The working group also expanded the Market Studies Information Store, which now includes over 700 market studies conducted by member agencies, and facilitates knowledge-sharing, collaboration, and best practices in market studies.
Created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world, the ICN, founded by 15 agencies including the Department of Justice’s Antitrust Division and the FTC, has grown to 138 member agencies from 125 jurisdictions, supported by a wide network of non-government advisors from around the world.
Independence Man Charged with Receipt of Child PornographyRead the Press Release
United States Attorney Duane A. Evans announced yesterday that ROY DAVID MELANCON, age 39, of Independence, Louisiana, was charged in a one-count Indictment with receipt of images and videos depicting the sexual exploitation of children, including children as young as approximately six months old.
If convicted, MELANCON faces a mandatory minimum term of imprisonment of five (5) years and a maximum term of imprisonment of twenty (20) years, followed by up to a lifetime of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
United States Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Louisiana Bureau of Investigation in investigating this matter, with support from the Hammond Police Department, the Tangipahoa Sheriff’s Office, and the Department of Homeland Security-Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
Grand Island Man, Company Sentenced for Violations of Clean Air Act Involving AsbestosRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Raj Chopra, 54, of Grand Island, NY, who was convicted of accessory after the fact to a false statement under the Clean Air Act, was sentenced by U.S. District Judge Richard J. Arcara to one year probation. Chopra’s company, Comprehensive Employee Management, (CEM), located on Grand Island, was convicted of making a false statement under the Clean Air Act and also sentenced to one year probation. CEM was also ordered to pay a $25,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that CEM, an environmental consulting company located at 1815 Love Road on Grand Island, provided consulting services to co-defendant Sean Doctor and his asbestos abatement company, S.D. Specialty Services, LLC. Pursuant to federal regulations, all owners or operators of an asbestos abatement project regulated under the Clean Air Act, must maintain a waste shipment manifest to include the name of the owner/operator; the name of the generator; and the date the asbestos was transported. The information enables the Environmental Protection Agency, which enforces the Clean Air Act and associated regulations, properly and timely to investigate suspected violations of the Clean Air Act.
From December 2009 to January 2010, employees of S.D. Specialty performed asbestos abatement work at the Roosevelt Park Shelter in Buffalo, which was subject to regulations of the Clean Air Act. During the project, S.D. Specialty employees removed asbestos from the Roosevelt Park Shelter and transported the material to a waste container at CEM on Grand Island.
On March 11, 2010, defendants Doctor and CEM executed an asbestos waste manifest which falsely indicated that asbestos had been transported to CEM from the Roosevelt Park Shelter on that date. In truth and in fact, such asbestos had been transported to, and stored at, the Grand Island location prior to March 11, 2010. As such false statement was included in the shipping manifest created when a local waste disposal company retrieved the waste container at CEM on March 11, 2010, such false statement became part of a record required to be maintained under the Clean Air Act.
In addition, on April 28, 2011, an inspection of the Roosevelt Park Shelter revealed asbestos was improperly left behind by employees of S.D. Specialty.
Sean Doctor was previously convicted and sentenced to one year probation and fined $2,000.
Today’s sentencings are the result of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Special Agent-In-Charge Tyler Amon; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain John Burke. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.
Gowanda Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shane Aurand, 21, of Gowanda, NY, pleaded guilty to distribution of child pornography, before U.S. District Judge Lawrence J. Vilardo. The charge carries a minimum sentence of five years in prison, a maximum sentence of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that in March 2017, the defendant started communicating with an undercover law enforcement agent on the messaging application Kik. Aurand shared sexually explicit pictures of a seven year old child that he produced while babysitting the child at his residence. The defendant also offered to send the undercover agent pictures of other children if he received child pornography in return.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons.
Sentencing is scheduled for June 26, 2018, at 9:30 a.m. before Judge Vilardo.
Gardner Man Pleads Guilty to Firearm and Drug OffensesRead the Press Release
BOSTON – A Gardner man pleaded guilty yesterday in federal court in Worcester to illegally possessing ammunition and to distributing fentanyl.
Travis Miller, 30, pleaded guilty to one count of being a felon in possession of ammunition and one count of distribution of fentanyl. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 27, 2018. In November 2017, Miller and another individual, Edwin Labaw, were arrested after being charged in a criminal complaint.
According to court documents, Miller met with an undercover federal agent on Sept. 19, 2017, in Gardner, and the agent purchased a double-barrel 12-gauge shotgun, a 9mm Kel-Tech Sub 2000 rifle, and 11 rounds of 12-gauge shotgun ammunition in exchange for $1,200. Miller again met with an undercover agent on Sept. 27, 2017, in Fitchburg, and the agent purchased a 7.62x39mm caliber SKS rifle, along with ammunition and magazines, in exchange for $1,800. Miller engaged in communications with the undercover agent and a cooperating source regarding other firearms, including a sniper rifle and the potential assembly of a fully automatic AR-style rifle.
Subsequently, Miller sent text messages to the undercover agent offering to sell fentanyl patches and OxyContin pills. On Nov. 3, 2017, Miller met with the agent in Worcester and sold him a .38 caliber revolver with an obliterated serial number, .38 caliber ammunition, 39 fentanyl patches, and 65 OxyContin pills.
According to court documents, Miller has prior felony convictions and is therefore prohibited from possessing firearms and ammunition.
Labaw pleaded guilty on March 5, 2018, to being a felon in possession of a firearm and is scheduled to be sentenced on July 9, 2018.
For the ammunition charge, Miller faces a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of fentanyl distribution provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement. This case was investigated with assistance from the Worcester Police Department, Gardner Police Department, Fitchburg Police Department, and Massachusetts State Police. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
Four Defendants Convicted and Sentenced for Role in Broward County Narcotics RingRead the Press Release
The last of four defendants was sentenced on March 13, 2018 for his role in a narcotics ring, operating out of Broward County, involving the powerful opioid fentanyl, as well as cocaine, oxycodone, methamphetamine, and amphetamine.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Amos Rojas, Jr., U.S. Marshals, U.S. Marshals Service (USMS), made the announcement.
According to court records, Justin Devon Hampton, 41, Ricky Jermaine Brinson, 44, Kenneth Alonzo Taylor, 44, of Broward County, and Ernesto Garcia-Hernandez, 52, of Miami-Dade County, conspired to possess with intent to distribute 500 grams or more of cocaine, between January 2017 and June 2017; and defendant Hampton further conspired to possess with intent to distribute fentanyl, oxycodone, methamphetamine, and amphetamine, and maintained a drug-involved residence within 1,000 feet of a playground in Miramar, Florida.
Over the course of the DEA’s investigation, law enforcement conducted surveillance of Hampton’s residence and determined that multiple previously convicted narcotics traffickers, including Garcia-Hernandez, repeatedly visited the home between January and June 2017. Law enforcement obtained a search warrant for Hampton’s residence, which agents planned to execute on June 26, 2017. That evening, as agents conducted surveillance, they observed Taylor and Brinson arrive at the home, followed by Garcia-Hernandez. Taylor, Garcia-Herandez and Hampton then engaged in a narcotics transaction in the driveway. Agents later recovered one kilogram of cocaine from the Brinson and Taylor’s vehicle, as well as over $50,000 in drug proceeds, and distribution quantities of fentanyl, oxycodone, methamphetamine, and amphetamine from Hampton’s residence. Hampton fled to Atlanta, Georgia, where he was later apprehended with the assistance of the U.S. Marshals, in October 2017.
The defendants all pled guilty in late 2017. United States District Judge William P. Dimitrouleas sentenced Hampton to 235 months’ imprisonment, Garcia-Hernandez to 144 months’ imprisonment, Brinson to 60 months,’ and Taylor to 18 months’ imprisonment, for their role in the scheme.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies who, cooperatively, target the region’s drug-trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy which sponsors a variety of initiatives focused on the nation’s illicit drug trafficking threats.
This prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Greenberg commended the investigative efforts of the DEA and USMS. This case was prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Former Resident of John DeShields in East St. Louis, Illinois Sentenced to 60 Months Incarceration for Possessing Three Shell CasingsRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on March 23, 2018, William J. Stepney, 29, a former resident of East St. Louis, Illinois, was sentenced to 60 months incarceration to be followed by three years of supervised release, for being a felon in possession of ammunition.
On January 10, 2017, video surveillance recorded that multiple gunshots were fired from a red Dodge Charger driven by Stepney. Illinois State Police responded to the shooting and recovered multiple spent casings at the intersection of 11th and Bond Avenues in East St. Louis, Illinois. Three additional casings were recovered from the vehicle Stepney drove. Stepney later admitted that, while at the corner of 11th and Bond on January 10, 2017, he had possessed and fired a 9mm handgun at another vehicle. Prior to January 10, 2017, Stepney had been convicted of the felony charge of unlawful possession of a firearm by a felon.
The investigation was conducted by the Illinois State Police with assistance from the Bureau of Alcohol, Tobacco, and Firearms.
Former CEO of Israeli Sales and Marketing Company Charged for Role in Fraudulent Binary Options SchemeRead the Press Release
The former CEO of the Israel-based company Yukom Communications, a purported sales and marketing company, was charged in an indictment filed on March 22, for her alleged participation in a scheme to defraud investors in the United States and across the world in financial instruments known as “binary options.”
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office made the announcement.
Lee Elbaz, 36, of Israel, was charged in the District of Maryland with one count of conspiracy to commit wire fraud and three counts of wire fraud.
The indictment alleges that Yukom provided investor “retention” services for two websites, known as BinaryBook and BigOption, that were used to promote and market purported binary options, and that those binary options were fraudulently sold and marketed. The indictment further alleges that in her role as CEO of Yukom, Elbaz, along with her co-conspirators and subordinates, misled investors using BinaryBook and BigOption by falsely claiming to represent the interests of investors but that, in fact, the owners of BinaryBook and BigOption profited when investors lost money; by misrepresenting the suitability of and expected return on investments through BinaryBook and BigOption; by providing investors with false names and qualifications and falsely claiming to be working from London; and by misrepresenting whether and how investors could withdraw funds from their accounts. Representatives of BinaryBook and BigOption, working under Elbaz’s supervision, misrepresented the terms of so-called “bonuses,” “risk free trades” and “insured trades,” and deceptively used these supposed benefits in a manner that in fact harmed investors, according to the indictment.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s Washington Field Office. Trial Attorneys Ankush Khardori and Tracee Plowell of the Criminal Division’s Fraud Section are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Former CEO and VP of Finance for a Virginia-Based Software Company Plead Guilty to Employment Tax FraudRead the Press Release
Two former executives at a Virginia-based software company pleaded guilty today to conspiring to defraud the government by failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney Tracy Doherty-McCormick for the Eastern District of Virginia.
According to documents and information provided to the court, Robert Lewis was the Chief Executive Officer and Kristie Lynn McDonald was the Vice President of Finance and Administration of a software company in Sterling, Virginia. From January 2011 to February 2013, Lewis and McDonald conspired to defraud the United States by failing to pay over to the IRS more than $1.8 million in payroll taxes withheld from employee paychecks.
As part of their scheme, Lewis and McDonald admitted that they circumvented the company’s normal payroll and accounting procedures by paying some employees with manual checks. The employees still received their correct salary, but by bypassing the accounting system, Lewis and McDonald were able to hide the fact that the withholdings were not being paid over to the IRS. Lewis and McDonald admitted that the practical effect of their scheme was to conceal the company’s failing financial condition from its Board of Directors. Lewis and McDonald also admitted that they caused the company to file false quarterly employment tax returns with the IRS underreporting the amount of tax due.
Lewis and McDonald further admitted that, during this same period, they intentionally failed to remit the full amount of employee retirement contributions to the company’s retirement plan. Through their actions, the company failed to transfer and credit nearly $225,000 in voluntary employee retirement withholdings.
Lewis and McDonald admitted that they used the misappropriated money to pay the operating expenses of the company, which included their own six figure salaries and salary raises for other employees.
U.S. District Judge T.S. Ellis III scheduled sentencing for Lewis on June 29 and for McDonald on June 22. Lewis and McDonald each face a statutory maximum sentence of five years in prison, as well as a period of supervised release and monetary penalties. They further agreed to restitution in the amount of $1,812,706.
Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Doherty-McCormick thanked agents of IRS Criminal Investigation and the Department of Labor, who conducted the investigation, and Tax Division Trial Attorneys Kevin Schneider and Charles M. Edgar, Jr., and Assistant U.S. Attorney Ryan Faulconer, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Final Defendant Pleads Guilty in $2 Million Conspiracy to Defraud the United StatesRead the Press Release
DENVER – Jaquon H. Mucsarney, age 36, of Aurora, Colorado pled guilty on March 21, 2018, to conspiracy to defraud the United States and aggravated identity theft, announced United States Attorney Bob Troyer, IRS – Criminal Investigation Special Agent in Charge Steven Osborne and Social Security Administration Office of Inspector General Special Agent in Charge Wilbert M. Craig. Jaquon H. Mucsarney, with co-conspirators Schosche Mucsarney (Schosche) and Sherry Charleston (Charleston), were indicted by a Federal Grand Jury in Denver on January 7, 2016.
According to information contained in the indictment and plea agreement, between January 1, 2011 and January 1, 2016, Jaquon Mucsarney devised a scheme to defraud the Internal Revenue Service by filing tax returns with false information in order to obtain fraudulent tax refunds. At various times, Mucsarney received assistance from Schosche and Charleston. As leader of this scheme, Mucsarney created approximately 50 fictitious businesses, which only existed on paper and had little or no legitimate business activity. Mucsarney typically filed U.S. Corporation Income Tax Returns (Forms 1120) on behalf of the companies, which contained false information relating to income, deductions, overpayments, and refunds due. Over the course of the scheme, Mucsarney, with the assistance of others, submitted approximately 100 fraudulent income tax returns to the IRS, which claimed refunds totaling $2,168,277. Of the amount requested, the IRS ultimately paid out approximately $327,970.
Jaquon Mucsarney is scheduled to be sentenced by United States District Court Chief Judge Marcia S. Kreiger on June 5, 2018. Both Schosche Mucsarney and Sherry Charleston were sentenced previously. The case is captioned United States of America v. Jaquon Mucsarney et al., Case No. 16-cr-0008-MSK.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Social Security Administration, Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney Tim Neff.
####
Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNews
Federal Jury Finds Tax Preparer Guilty on Preparing Fraudulent Tax ReturnsRead the Press Release
St. Louis, MO – After a four-day trial, a federal jury returned two verdicts for the United States finding that Asmerom “Ace” Keleta conspired to defraud the United States through tax fraud and prepared fraudulent tax returns.
According to court documents, Keleta, 32, of St. Louis, operated University City Tax Service starting in 2012. He conspired with employees Miyoshi Lewis and Teklom Paulos to prepare fraudulent tax returns for clients. He directed the employees to fraudulently inflate client tax refunds by listing false American Opportunity educational tax credits and federal fuel tax credits as well as creating false Schedule C income in order to fraudulently maximize the Earned Income Credit. The jury found that he also prepared false tax returns for clients.
“Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on tax returns to generate larger refunds for their clients,” said Andrew Thornton, Acting Special Agent in Charge of IRS Criminal Investigation. “Return preparer fraud is like a contagious disease, it affects the preparer, but also the individuals who filed false information with the Internal Revenue Service.”
The case was investigated by the Internal Revenue Service – Criminal Investigations. This case was handled by Assistant United States Attorneys Dianna Collins and Carrie Costantin.
Federal Grand Jury Indicts Hutchins Man and Woman for Their Roles in the Murder of an U.S. Postal Service EmployeeRead the Press Release
DALLAS — A federal grand jury in Dallas returned a three-count indictment this week charging Donnie Arlondo Ferrell, 25, and Bei-jing Tashawna Walker, aka “Channelle Walker,” 24, both of Hutchins, Texas, with felony offenses related to the February 19, 2018 murder of a United States Postal Service employee. The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Last month, Ferrell was charged in a related criminal complaint. The indictment charges Ferrell with one count of murder of an officer or employee of the United States and one count of using, carrying, brandishing, and discharging a firearm during and in relation to a crime of violence. Walker is charged with one count of accessory after the fact. Both defendants will remain in custody pending further court hearings.
According to the indictment filed in the case, on February 19, 2018, Ferrell shot and killed an United States Postal Employee while the employee was on duty. Walker assisted Ferrell after the shooting to prevent Ferrell from being apprehended.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation
The Dallas Police Department and United States Postal Inspection Service, with assistance from the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys P.J. Meitl, John Kull and Brian Portugal are prosecuting.
# # #