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2 May 2018
More Than $13 Million Forfeited Against Multiple Individuals in Car Nationalization BusinessRead the Press Release
LAREDO, Texas - Seven people have been ordered to forfeit more than $13 million following their convictions related to a car nationalization business, announced U.S. Attorney Ryan K. Patrick.
Car nationalization is the process by which someone imports a U.S. vehicle into Mexico, such as registering the vehicle with the Mexican government. The Mexican government has specific customs laws or regulations regarding vehicle importation. A car nationalization business helps its customers navigate through these regulations for a fee.
Alejandro Cerda, 44, and Juan Carlos Cerda, 39, both of Laredo, had previously pleaded guilty to operating an unlicensed money transmitting business and making false statements on tax returns. Today, they were collectively ordered to forfeit real property valued at more than $7.4 million and approximately $5.2 million.
Ofelia Jenkins, 67, and Adrian Reyna, 37, both of Laredo, had also pleaded guilty to operating an unlicensed money transmitting business and were respectively ordered to pay a $45,000 and a $16,000 money judgement. Laredoans Elias Ibanez, 51, Gerardo Cadena, 38, and Roberto Cuevas, 42, had entered their guilty pleas to structuring international monetary transactions were each ordered to pay a $250,000 money judgement.
Juan Cerda and Alejandor Cerda owned and operated a vehicle nationalization company titled Grupo MCA Importaciones LLC. The Cerdas along with Reyna and Jenkins who were unlicensed to operate such a business, engaged in the business of transmitting money when they acquired bulk quantities of currency and other monetary instruments from Grupo MCA and other vehicle nationalization businesses operating in the Laredo area. They then opened specific Texas bank accounts whereby for a fee they transmitted the cash to others. The identified Texas banks accounts are known to have received and transmitted more than $24 million in U.S. currency during a 16-month period.
Cadena, Ibanez and Cuevas each owned and operated their own Laredo based vehicle nationalization company through which each admitted to structuring U.S. currency into Mexico at increments of less than $10,000 to avoid a known reporting requirements.
The FBI, IRS-Criminal Investigation. and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation dubbed Operation Conundrum along with the Drug Enforcement Administration. Assistant U.S. Attorney Graciela R. Lindberg is prosecuting the case.
Misdemeanor Immigration Prosecutions – March and April 2018Read the Press Release
ALBANY, NEW YORK – The following is a summary of misdemeanor immigration prosecutions from March and April 2018. All defendants were or will be placed into removal proceedings, by the Department of Homeland Security, following the completion of their sentences.
Citizen of Kenya Sentenced For Illegal Entry
Angela M. Muchui, age 42, and a citizen of Kenya, was sentenced on March 6 to 20 days in jail, following her guilty plea to illegally entering the United States.
Muchui admitted that she crossed the border approximately one mile east of the Fort Covington Port of Entry on February 22, 2018. She was arrested by Border Patrol Agents as she was walking near the border the following morning.
Citizen of Turkey Sentenced For Illegal Entry
Ibrahim Evelek, age 31, and a citizen of Turkey, was sentenced on March 6 to time served (13 days in jail), following his guilty plea to illegally entering the United States.
Evelek admitted that he crossed the border approximately one mile east of the Chateaugay Port of Entry on February 21, 2018. He was arrested by Border Patrol Agents as he was being driven away from the border.
Citizen of India Sentenced For Illegal Entry
Manvir Kaur, age 25, and a citizen of India, was sentenced on March 13 to time served (32 days in jail), following her guilty plea to illegally entering the United States.
Kaur admitted that she crossed the border approximately 5 miles east of the Massena Port of Entry on February 9, 2018. She was arrested by Border Patrol Agents as she was leaving the border area as a passenger in a taxi.
Citizen of Haiti Sentenced For Illegal Entry
Jacques Estime, a citizen of Haiti, was sentenced on March 13 to 15 days in jail following his guilty plea to illegally entering the United States. Estime admitted that on March 2, 2018, he illegally entered the United States by walking through the woods from Canada before being arrested by Border Patrol.
Citizen of Haiti Sentenced For Illegal Entry
Marthine Abel, a citizen of Haiti, was sentenced on March 20 to time served (19 days in jail) following her guilty plea to illegally entering the United States. Abel admitted that on March 2, 2018, she illegally entered the United States by walking through the woods from Canada before being arrested by Border Patrol.
Citizen of Brazil Sentenced For Illegal Entry
Elianay Goncalves-Carreiro, a citizen of Brazil, was sentenced on March 20 to 28 days in jail following his guilty plea to illegally entering the United States. Goncalves-Carriero admitted that on February 28, 2018, he illegally entered the United States by walking through the woods from Canada before being arrested by Border Patrol.
Citizen of Mexico Sentenced For Illegal Entry
Diego Guerra-Lara, age 36, and a citizen of Mexico, was sentenced on March 22 to 30 days in jail, and ordered to pay a fine of $2,000, following his guilty plea to illegally entering the United States.
Guerra-Lara admitted that he crossed the border approximately one half mile east of the Fort Covington Port of Entry on March 11, 2018. He was found and arrested by a Border Patrol Agent as he ran south away from the border.
Citizen of Canada Sentenced For Illegal Entry
Christopher Thomas, age 50, of Winnipeg, Canada, was sentenced on March 27 to 40 days in jail, following his guilty plea to illegally entering the United States.
Thomas admitted that he walked across the border without inspection just east of the Champlain Port of Entry on March 23, 2018. Thomas was arrested by Border Patrol Agents as he was walking south away from the border.
Citizen of Albania Sentenced For Illegal Entry
Sandri Hiraj, also known as Ruhan Hiraj, age 21, and a citizen of Albania, was sentenced on March 27 to 100 days in jail, following his guilty plea to illegally entering the United States.
Hiraj admitted that he walked across the border without inspection approximately 3 miles east of the Churubusco Port of Entry on December 20, 2017. Hiraj was arrested by Border Patrol Agents in Ellenburg, New York, as he was attempting to arrange for transportation away from the border area.
Citizens of Haiti Sentenced For Illegal Entry
Manie Dieula Jean, also known as Manie Jean Piere, age 49, and Wilna Joseph Saintil, age 43, both citizens of Haiti, were each sentenced on March 29 to time served (13 days in jail), following their respective guilty pleas to illegally entering the United States.
Jean and Saintil each admitted that together they walked south through the northbound lanes of Interstate 87 at the border in an effort to sneak into the United States from Canada on March 17, 2018. They were arrested together by United States Customs and Border Protection Officers as they walked south through the Champlain Port of Entry.
Citizen of Mexico Sentenced For Illegal Entry
Luz Hernandez-Gonzalez, a citizen of the Mexico, was sentenced on April 3 to time served (15 days in jail) following her guilty plea to illegally entering the United States. Hernandez-Gonzalez admitted that on March 20, 2018, she was part of a group of 6 people who entered the United States by walking through the woods from Canada before being arrested by Border Patrol.
Citizen of Mexico Sentenced For Illegal Entry
Carlos Marquez-Arteaga, a citizen of the Mexico, was sentenced on April 3 to time served (15 days in jail) following his guilty plea to illegally entering the United States. Marquez-Arteaga admitted that on March 20, 2018, he was part of a group of 6 people who entered the United States by walking through the woods from Canada before being arrested by Border Patrol.
Citizen of Mexico Sentenced For Illegal Entry
Reyes Sanchez-Flores, a citizen of the Mexico, was sentenced on April 5 to time served (17 days in jail) following his guilty plea to illegally entering the United States. Sanchez-Flores admitted that on March 20, 2018, he was part of a group of 6 people who entered the United States by walking through the woods from Canada before being arrested by Border Patrol.
Citizen of Mexico Sentenced For Illegal Entry
Edwin Martinez-Garcia, a citizen of the Mexico, was sentenced on April 5 to time served (17 days in jail) following his guilty plea to illegally entering the United States. Martinez-Garcia admitted that on March 20, 2018, he was part of a group of 6 people who entered the United States by walking through the woods from Canada before being arrested by Border Patrol.
Citizen of Canada Sentenced For Illegal Entry
Bryan Francisco Pineda-Guevara, age 19, of Montreal, Canada, was sentenced on April 19 to 20 days in jail, following his guilty plea to illegally entering the United States.
Pineda-Guevara admitted that he walked across the border without inspection 1.7 miles east of the Champlain Port of Entry on April 9, 2018. Pineda-Guevara was arrested by Border Patrol Agents as he was walking south away from the border.
Citizen of the Philippines Sentenced For Illegal Entry
Aaron Danielle Sevilleja, age 20, and a citizen of the Philippines, was sentenced on April 19 to time served (14 days in jail), following her guilty plea to illegally entering the United States.
Sevilleja used a boat to cross the Saint Lawrence River near Hogansburg, New York, on April 6, 2018. She was then arrested while a passenger in a car that was stopped for a traffic infraction.
Citizen of Albania Sentenced For Illegal Entry
Elizabeta Lulaj, age 20, and a citizen of Albania, was sentenced on April 24 to time served (19 days in jail), following her guilty plea to illegally entering the United States.
Lulaj admitted that she used a boat to cross the Saint Lawrence River near Hogansburg, New York, on April 6, 2018. She was then arrested while a passenger in a car that was stopped for a traffic infraction.
Citizen of Mexico Sentenced For Illegal Entry
Irma Sanchez-Lopez, age 33, and a citizen of Mexico, was sentenced on April 24 to 20 days in jail, following her guilty plea to illegally entering the United States.
Sanchez-Lopez admitted that she crossed the border approximately 3 miles east of the Trout River Port of Entry on April 11, 2018. She was arrested by a Border Patrol Agent as she tried to hide in the woods south of the border.
McHenry County Farmer Charged with Bank FraudRead the Press Release
URBANA, Ill. – A federal grand jury returned an indictment today that charges Timothy A. Cosman, 42, a McHenry county farmer, with bank fraud related to loans he obtained from Busey Bank in Champaign, Ill. A summons will be issued to Cosman to appear in federal court in Urbana for arraignment.
The indictment alleges that from February 2014 to April 2016, Cosman, of Harvard, Ill., executed a scheme to defraud the bank. Cosman allegedly inflated his assets to make the bank believe its loans would be more secure than they were. To inflate his assets, Cosman made false claims about his ownership in family companies; claimed the loans would be secured by farm equipment he owned, when the equipment was actually owned by someone else; falsely claimed he was the beneficiary of a promissory note; and, claimed a loan for cattle would be secured by cattle, however, no cattle were purchased. To further his scheme, Cosman allegedly forged signatures and falsified documents presented to the bank. As a result of the alleged scheme, the bank was exposed to a loss of approximately $2.96 million.
If convicted, each count of bank fraud (three counts) carries a statutory penalty of up to 30 years in prison and a fine of up to $1 million.
The charge is the result of investigation by the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General. Busey Bank has cooperated with investigators during the investigation. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Maryland Man and Woman Indicted for Stolen Identity Refund FraudRead the Press Release
A federal grand jury has returned a superseding indictment, which was unsealed today, charging a Maryland man and woman with multiple federal crimes stemming from their involvement in stolen identity refund fraud (SIRF), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur.
Devell Lincoln and Stephanie Twyman were each charged with conspiracy to commit theft of public money, theft of public money, and aggravated identity theft.
According to the superseding indictment, Lincoln and Twyman and others conspired to file false federal income tax returns with the Internal Revenue Service (IRS) for the purpose of obtaining tax refunds to which they were not entitled. The superseding indictment alleges that the false tax returns were filed using names and Social Security numbers of unwitting taxpayers, but listed addresses that were controlled by a co-conspirator to which the IRS would mail the fraudulent refund checks.
The superseding indictment further charges that Twyman arranged for co-conspirators, including Lincoln, to cash the fraudulently obtained tax refund checks at a check cashing business in Clinton, Maryland. In total, the conspirators are alleged to have obtained from the IRS over $500,000 in fraudulent refunds.
If convicted, the defendants face a statutory maximum sentence of five years in prison on the conspiracy count, 10 years in prison on each theft of public money count, plus an additional mandatory two years in prison on the aggravated identity theft counts. The defendants also face a period of supervised release, restitution and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked special agents of IRS Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration, who investigated the case and Assistant U.S. Attorney Michael Packard and Tax Division Trial Attorney William Guappone, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Maple Heights man indicted for robbing Cleveland bank one day after getting out of prison for robbing the same bankRead the Press Release
A Maple Heights man was indicted for robbing a Cleveland bank day one day after being released from prison for previously robbing the same bank, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Markiko Sonnie Lewis, 40, was indicted on one count of bank robbery. Lewis robbed the Key Bank at 15000 St. Clair Ave. on April 12. Lewis robbed the bank of approximately $1,044, according to the indictment.
Court records indicate Lewis was released from prison the day before the robbery. Lewis was incarcerated for previously robbing the same bank, according to court records.
Assistant United States Attorney Brian S. Deckert is prosecuting the case following an investigation by the Federal Bureau of Investigations and the Cleveland Police Department.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Louisiana Tax Return Preparer Sentenced to Jail for Stolen Identity Tax Refund FraudRead the Press Release
WASHINGTON – A resident of Tangipahoa Parish, Louisiana, was sentenced today to 42 months in prison for her involvement in stolen identity tax fraud, announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana.
Alicia Washington, also known as Alicia Keith, pleaded guilty on Feb. 21, 2017, to one count of conspiracy to defraud the United States and to commit theft of public money, wire fraud and aggravated identity theft and one count of aggravated identity theft.
According to court documents, Washington operated as a tax return preparer using several different business names. From 2008 to 2016, Washington conspired with others to prepare false tax returns using stolen identities. Members of the conspiracy stole the names and Social Security numbers of individuals who had been arrested or imprisoned, and then used that information to file fraudulent tax returns. Washington electronically filed the bogus returns seeking refunds. The IRS provided the fraudulent refunds in the form of checks or prepaid debit cards, which members of the conspiracy converted to cash.
In addition to the term of imprisonment, U.S. District Court Judge Susie Morgan ordered Washington to serve two years of supervised release and to pay restitution in the amount of $809,605.
Principal Deputy Assistant Attorney Zuckerman and U.S. Attorney Evans commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Hayden Brockett and Tax Division Trial Attorney Lauren Castaldi, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Louisiana Tax Return Preparer Sentenced to Jail for Stolen Identity Tax Refund FraudRead the Press Release
A resident of Tangipahoa Parish, Louisiana, was sentenced today to 42 months in prison for her involvement in stolen identity tax fraud, announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana.
Alicia Washington, also known as Alicia Keith, pleaded guilty on Feb. 21, 2017, to one count of conspiracy to defraud the United States and to commit theft of public money, wire fraud and aggravated identity theft and one count of aggravated identity theft.
According to court documents, Washington operated as a tax return preparer using several different business names. From 2008 to 2016, Washington conspired with others to prepare false tax returns using stolen identities. Members of the conspiracy stole the names and Social Security numbers of individuals who had been arrested or imprisoned, and then used that information to file fraudulent tax returns. Washington electronically filed the bogus returns seeking refunds. The IRS provided the fraudulent refunds in the form of checks or prepaid debit cards, which members of the conspiracy converted to cash.
In addition to the term of imprisonment, U.S. District Court Judge Susie Morgan ordered Washington to serve two years of supervised release and to pay restitution in the amount of $809,605.
Principal Deputy Assistant Attorney Zuckerman and U.S. Attorney Evans commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Hayden Brockett and Tax Division Trial Attorney Lauren Castaldi, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Local Woman Arrested for Defrauding Professional Football Player Out of More Than $1 MillionRead the Press Release
HOUSTON – A 44-year-old Houston woman has been taken into custody following the return of a federal indictment charging her for her role in a scheme involving mail, bank and wire fraud and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick.
A grand jury returned a 16-count indictment April 25, 2018, against Tonya Lynn Adkism. She was taken into custody today and is expected to make her initial appearance before U.S. Magistrate Judge Dena Palermo at 10:00 a.m.
According to the indictment, Robert Meachem - a former professional football player - hired Adkism in June 2010 to manage his finances. During her employment, Adkism fraudulently acquired signatory authority over the victim’s corporate accounts and forged his signature on checks drawn on his personal accounts, according to the charges. As a result of her scheme, Adkism allegedly stole more than $1 million from Meachem.
If convicted, Adkism faces up to 20 years in prison for mail fraud and each of the two counts of wire fraud. She also faces two years in prison for each of the five counts of aggravated identity theft which must be served consecutively to the other sentences. Each of these charges also carries a possible $250,000 maximum fine. In addition, Adkism faces up to 30 years in prison and a possible $1 million maximum fine for each of the eight counts of bank fraud.
The FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Kokomo area drug trafficking organization dismantledRead the Press Release
Alleged to have brought large quantities of methamphetamine, cocaine, heroin, fentanyl and weapons into Central Indiana
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced federal charges against 15 individuals who are alleged to have operated a drug trafficking organization bringing large quantities of narcotics into the Kokomo, Indiana area.
“Individuals who bring dangerous drugs into our communities and spread the violence associated with it, can rest assured, they will be held accountable,” said Minkler. “There is no higher priority in my office than to help keep our neighborhoods safe. I want the Southern District of Indiana to be the most inhospitable place in the country to sell drugs.”
Those charged federally include:
Pierre Riley, 50, Macon, GA
Reggie Balentine, 41, a/k/a Pudge, Kokomo, IN
Diondre Jones, 34, Kokomo, IN
Michael O’Bannon, 33, a/k/a Lunchy, Kokomo, IN
Kristin Kinney, 35, a/k/a Cupcake, Kokomo, IN
Michael Jones, 35, a/k/a MJ, Kokomo, IN
Jason Reed, 49, a/k/a Jamon, a/k/a Jasil, Kokomo, IN
Derrick Owens, 37, Terre Haute, IN
Deshoun Everhart, 39, Warsaw, IN
Perry Jones, 43, Kokomo, IN
Melissa Baird, 38, Kokomo, IN
Shuan Myers, 35, Kokomo, IN
Antwon Abbott, 38, Kokomo, IN
Patricia Acord, 58, Kokomo, IN
Bradley Clark, 49, Kokomo, IN
According to the indictment, Balentine is the leader of the distribution conspiracy with Pierre Riley being his source of supply operating from Macon, Georgia, bringing controlled substances to Kokomo. Balantine worked with O’Bannon and Perry Jones to distribute the controlled substances, while Kristin Kinney is alleged to have stored the controlled substances and helped count the proceeds. Balentine is alleged to have sold the controlled substances to Michael Jones, Reed, Everhart and Owens for redistribution.
Yesterday morning (May 1, 2018), approximately 130 agents, troopers, deputies and officers served warrants at 13 locations in Kokomo and the Macon, GA area. As a result of the searches and the entire investigation, over 17 pounds of methamphetamine, over two pounds of cocaine, two ounces of heroin, 122 grams of fentanyl, six ounces of marijuana, two money counters, 12 vehicles, $37,000 and 24 firearms were confiscated.
This case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service, Unites States Postal Inspection Service, United States Marshal Service, Hendricks County Sheriff’s Department, Vigo County Drug Task Force, Indiana State Police, Indianapolis Metropolitan Police Department, Miami County Prosecutor’s Office, Terre Haute Police Department, Warsaw Police Department, Indiana National Guard Counter Drug, Howard County Sheriff’s Department, Howard County Prosecutor’s Office and the Kokomo Police Department.
DEA Assistant Special Agent in Charge Greg Westfall stated, “OCDETF Operation Law and Order demonstrates DEA’s commitment to enforcing the drug laws of the United States, and restoring order by bringing to justice those who poison our communities with drugs and terrorize our communities with violence. Our message is clear, individuals who continue this type of criminal behavior, You Are Next.”
“These arrests reflect the continuing impact federal, state and local partnerships have on illegal drug trafficking,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “We will continue to aggressively investigate criminal organizations that target our communities with their drug-related violent activity and ensure they are held accountable.”
“Drugs and guns often go hand in hand with criminals using firearms to further their criminal drug enterprise. ATF will continue to work with our law enforcement counterparts to stem the flow of illegal weapons and remove violent criminals from our community,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division
Gabriel Grchan, Special Agent in Charge of the IRS Criminal Investigation, said, “Drug traffickers know their illegal profits are as good as gone when IRS-CI comes knocking. At the end of the day, these criminals care only about money and nothing else, yet the damage to our communities is devastating. IRS-CI is proud to stand with our partners today as we shut down illegal drug traffickers in Indiana communities.”
“The Kokomo Police Department has made and will continue to make the safety and quality of life of our citizens a priority,” said Chief Robert A. Baker. “We are committed to the pursuit of investigations that involve individuals who supply narcotics and controlled substances. We will remain vigilant to pursue investigations of those who perpetuate the victimization of addicted persons in this community.”
According to Assistant United States Attorney Michelle P. Brady who is prosecuting this case for the government the defendants, face decades in prison if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are considered innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution sentencing demonstrates the office’s firm commitment to partner with federal and local law enforcement agencies to prosecute individuals bringing methamphetamine, cocaine and heroin into our communities. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.3)
Justice Department Announces Additional Prosecutors and Immigration Judges for Southwest Border CrisisRead the Press Release
Attorney General Jeff Sessions today announced the dedication of additional prosecutors to handle the prosecutions of improper entry, illegal reentry, and alien smuggling cases, and additional immigration judges to handle the adjudication of immigration court cases that result from the crisis at the Southwest border.
Thirty-five new Assistant United States Attorney (AUSA) positions have been allocated to U.S. Attorney’s Offices along the Southwest border. The breakdown of those positions is as follows:
- Southern District of Texas: Eight (8);
- Southern District of California: Eight (8);
- Western District of Texas: Seven (7);
- District of Arizona: Six (6); and,
- District of New Mexico: Six (6).
“The American people made very clear their desire to secure our borders and prioritize the public safety and national security of our homeland,” said Attorney General Jeff Sessions. “Promoting and enforcing the rule of law is essential to our republic. By deploying these additional resources to the Southwest border, the Justice Department and the Trump Administration take yet another step in protecting our nation, its borders, and its citizens. It must be clear that there is no right to demand entry without justification.”
Due to a recent increase in the number of apprehensions at the Southwest border, the new AUSA positions announced today will assist in the prosecutions of illegal reentry (8 U.S.C. § 1326), alien smuggling (8 U.S.C. § 1324), and improper entry (8 U.S.C. § 1325) pursuant to the Justice Department’s “Zero-Tolerance Policy” announced by Attorney General Sessions on April 6, 2018 and its prior April 11, 2017 directive to AUSAs to prioritize charging immigration offenses.
In addition to the new AUSA positions, Attorney General Sessions and Executive Office for Immigration Review (EOIR) Director James McHenry announced the utilization of 18 current supervisory immigration judges to adjudicate cases in immigration courts near the southwest border. The supervisory immigration judges will hear cases in-person and use video teleconferencing (VTC) to handle cases at immigration courts and represent a roughly 50 percent increase in the current number of immigration judges:
- Eloy (AZ) Immigration Court;
- Florence (AZ) Immigration Court;
- Adelanto (CA) Immigration Court;
- Imperial (CA) Immigration Court;
- Otay Mesa (CA) Immigration Court;
- Otero (NM) Immigration Court;
- El Paso (TX) Service Processing Center;
- Harlingen (TX) Immigration Court;
- Pearsall (TX) Immigration Court; and
- Port Isabel (TX) Immigration Court.
“The Justice Department, under Attorney General Jeff Sessions, has made significant reforms and progress in tackling the overwhelming backlog in the immigration court system,” said EOIR Director James McHenry. “We must not let attempts to undermine our lawful immigration system deter that progress, and the men and women at EOIR are proud to play a small role in the Attorney General’s response to the crisis at our Southwest border.”
Between March and September 2017, EOIR mobilized over one hundred immigration judges to Department of Homeland Security detention facilities across the country, including along the Southwest border. In October, EOIR projected that the mobilized immigration judges—hearing both in-person and VTC cases—completed approximately 2,700 more cases than expected if the immigration judges had not been detailed.
Judge Sentences Aliquippa Man to 15 Years in Federal Prison for Drug and Firearms OffensesRead the Press Release
PITTSBURGH – A resident of Aliquippa, Pennsylvania, has been sentenced in federal court to 180 months’ imprisonment and eight years supervised release on his conviction of narcotics and firearms offenses, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Ahmad Flannigan, 37, of Aliquippa, PA.
According to information presented to the court, on June 2, 2017, law enforcement officers executed a search warrant at the defendant’s home in Aliquippa. Among other things, the officers recovered a total of approximately nine ounces of crack cocaine; four ounces of powder cocaine; and drug trafficking paraphernalia, including digital scales. The officers also seized three firearms from the defendant’s home, which the defendant was prohibited from possessing because of his prior felony convictions.
Prior to imposing sentence, Judge Hornak stated that this sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya S. Goodman and Caitlin A. Loughran prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, the New Brighton Police Department, the Wilkinsburg Police Department, and the Cranberry Police Department for the investigation leading to the successful prosecution of Flannigan.
Indictment Unsealed Charging Four Defendants in Interstate Cocaine-Trafficking ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced the unsealing of an 11-count Indictment charging JORGE ORNELAS, age 50, of Houston, TX; TEKA LAFRANCE, age 47, of New Orleans, LA; JERRELL ENCALADE, age 34, of Boothville, LA; and ALBERT VEREEN JR., age 36, of Port Sulphur, LA, with conspiring to traffic cocaine hydrochloride and cocaine base (“crack”), along with numerous substantive drug offenses.
The following chart summarizes the charges alleged in the Indictment, along with the penalties that each defendant faces if convicted of the alleged offense.
Count
Charge
Defendants
Penalties
1
Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Hydrochloride and Cocaine Base – Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), 841(b)(1)(C) and 846
All
ORNELAS and LAFRANCE: 10 years to life imprisonment, at least 5 years supervised release, $10,000,000 fine
ENCALADE and VEREEN: 5 to 40 years, at least 4 years supervised release, $5,000,000 fine
2
Distribution of Cocaine Base – Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C)
VEREEN
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
3
Distribution of Cocaine Base – Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C)
VEREEN
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
4
Distribution of Cocaine Base – Title 21, United State Code, Sections 841(a)(1) and 841(b)(1)(C)
VEREEN
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
5
Distribution of Cocaine Base – Title 21, United State Code, Sections 841(a)(1) and 841(b)(1)(C)
VEREEN
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
6
Distribution of Cocaine Base – Title 21, United State Code, Sections 841(a)(1) and 841(b)(1)(C)
VEREEN
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
7
Possession with Intent to Distribute Cocaine Hydrochloride – Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C)
VEREEN
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
8
Distribution of Cocaine Base – Title 21, United State Code, Sections 841(a)(1) and 841(b)(1)(C)
ENCALADE
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
9
Distribution of Cocaine Hydrochloride – Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C)
LAFRANCE
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
10
Possession with Intent to Distribute 500 Grams or More of Cocaine Hydrochloride – Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B)
LAFRANCE
5 to 40 years, at least 4 years supervised release, $5,000,000 fine
11
Possession with Intent to Distribute Cocaine Hydrochloride and Cocaine Base – Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C)
ENCALADE
0 to 20 years, at least 3 years supervised release, $1,000,000 fine
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Plaquemines Parish Sheriff’s Office (PPSO), Drug Enforcement Administration (DEA), Alcohol, Tobacco and Firearms (ATF), New Orleans Police Department (NOPD), Kenner Police Department (KPD), Customs and Border Protection (CBP), and Houston Police Department (HPD). Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Honduran National Pleads Guilty to Illegally Reentering the United States 11 TimesRead the Press Release
KANSAS CITY, Mo. – A Honduran national pleaded guilty in federal court today to illegally reentering the United States for the eleventh time.
Jose Salazar-Aguilar, 33, a citizen of Honduras, pleaded guilty before U.S. Magistrate Judge Sarah W. Hays to illegally reentering the United States after having been deported for an aggravated felony. This is Salazar-Aguilar’s second conviction for this offense.
Salazar-Aguilar was arrested by Kansas City, Mo., police officers on Feb. 19, 2017, for driving while under the influence and resisting arrest. After he was released on bond, federal agents apprehended him during a traffic stop on Feb. 27, 2017.
Salazar-Aguilar was convicted in Oregon in 2003 of the felony offense of delivery of a controlled substance, after which he was deported. Salazar-Aguilar also has prior felony convictions for possession of a controlled substance, forgery and illegally reentering the United States after having been deported for an aggravated felony.
Salazar-Aguilar has been deported from the United States on 10 previous occasions. He was last removed on Aug. 8, 2013.
Under federal statutes, Salazar-Aguilar is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Kimberlee L. Moore. It was investigated by Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO).
Hickman County Man Sentenced to 30 Years in Prison for Child Pornography CrimesRead the Press Release
James Earl Tuttle, 45, of Lyles, Tennessee was sentenced today by U.S. District Court Judge William L. Campbell, Jr., to 30 years in prison for production of child pornography, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Tuttle was indicted by a federal grand jury on July 6, 2016, and charged with two counts of production of child pornography. He pleaded guilty to one count of the indictment on March 16, 2017.
According to court records, in April 2016, a 15 year-old girl disclosed to her mother that Tuttle had been raping her since she was 13 years old. The family reported the repeated rapes to the Fairview Police Department, and an investigation ensued. Investigators found that on at least two occasions in November 2015, Tuttle also had recorded sexually explicit images of the girl. The investigation revealed that not only had Tuttle raped the child for several years, but he also tried to convince her to have sex with other men for money.
During the execution of a search warrant in April 2016, Tuttle confessed to taking nude pictures of the child and admitted sharing the pictures with others on-line. Tuttle later admitted to raping the girl on multiple occasions, stating that he, “knew it was wrong,” but blamed the child for seducing him when she was 13 years old.
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 the Child Exploitation and Obscenity Section of the Department of Justice, 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.justice.gov/psc.
This matter was investigated by the Fairview Police Department, the Hickman County Sheriff’s Office, and the Federal Bureau of Investigation. Assistant U.S. Attorney S. Carran Daughtrey prosecuted the case on behalf of the United States
Henderson Man Sentenced for Felon in Possession ChargeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, WENDELL ROUSE, JR., 32, of Henderson, North Carolina, was sentenced to 97 months imprisonment followed by 3 years of supervised release.
ROUSE was named in a two-count Indictment on July 25, 2017 charging him with two counts of Possession of a Firearm by a Felon. On January 29, 2018, ROUSE pled guilty to one of those two counts.
Investigation was initiated by the Henderson Police Department (HPD) on June 20, 2017, when officers responded to reports of a gunshot victim. The victim suffered a gunshot wound to the abdomen by a .380 caliber bullet. Seven shell casing of the same caliber were recovered from the scene. Further, the screen door of the residence had been shot out and there were three bullet holes in the side of the residence. Notably, the victim was shot from the outside while he was inside the residence. Three children were also in the residence at the time.
Later the same night, while continuing their investigation, officers heard a gunshot nearby and then observed ROUSE as he walked through the crime scene tape and headed to the victim’s residence. ROUSE was instructed to raise his shirt to reveal his waistband. After hearing those instructions, ROUSE turned away from the officers and started to reach for something on his person. ROUSE was then handcuffed and searched where officers recovered a .380 handgun from his waistband. Ballistics later matched the defendant’s handgun to the bullets recovered from the scene.
In summary, ROUSE is responsible for possessing ammunition as a convicted felon. At sentencing, the court determined that a cross reference to attempted murder under the sentencing guidelines was appropriate in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation of this case was conducted by the Henderson Police Department, the North Carolina Crime Laboratory, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Henderson Man Sentenced to over Six Years in Prison for Stealing Nearly $123,000 Worth of Jewelry from Pawn ShopRead the Press Release
LAS VEGAS, Nev. – A Henderson man who wore a “Jason”-style hockey mask during the robbery of a Las Vegas pawn shop and stole nearly $125,000 worth of jewelry was sentenced today to 78 months in prison and three years of supervised release, announced U.S. Attorney Dayle Elieson.
After a four-day jury trial in September 2017, Jessie Mendoza, 38, was found guilty of one count of conspiracy to interfere with commerce by robbery and one count of interference with commerce by robbery. United States District Judge Larry R. Hicks presided over the trial and sentencing hearing.
According to court documents and trial evidence, Mendoza helped coordinate the robbery of EZ Pawn located at 3010 South Valley View Blvd. in Las Vegas. On September 12, 2016, Mendoza entered the pawn store and smashed the jewelry case with a sledgehammer. Mendoza stood guard at the front door wearing a “Jason”-style hockey mask and threatened the victims by swearing and waiving a firearm. He and his co-conspirators stole $122,936.50 worth of high value rings, jewelry, watches, gems, and other property from display cases. Mendoza was later identified when his DNA was located on the hockey mask and other items of clothing he discarded after the robbery. Law enforcement recovered video surveillance of Mendoza dumping his disguise, and then fleeing with his co-defendants in a switch car.
The case was investigated by the FBI’s Safe Streets Task Force, the Las Vegas Metropolitan Police Department, and the Henderson Police Department. Assistant U.S. Attorneys Cristina D. Silva and Kilby Macfadden prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Hector Rivera Sentenced to Life in Prison Plus 25 Years for Ordering 2004 Murder of Jeweler in Midtown ManhattanRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that HECTOR RIVERA was sentenced today to life in prison plus 25 years for murder-for-hire, murder-for-hire conspiracy, and use of a firearm resulting in death, in connection with his role in ordering the 2004 murder of Eduard Nektalov, a Manhattan diamond dealer. RIVERA was convicted following a six-day trial in November 2017 before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Hector Rivera ordered the execution-style murder of Eduard Nektalov, who was brazenly gunned down on a crowded street in midtown Manhattan nearly 14 years ago. Thanks to the extraordinary work of our law enforcement partners, Rivera will now spend the rest of his life in prison.”
According to the allegations in the Indictment and the evidence presented in court during the trial:
RIVERA was the leader of a violent robbery crew that operated in the Diamond District in midtown Manhattan. In 2004, RIVERA commissioned the murder of Eduard Nektalov because of a business dispute between Nektalov and one of RIVERA’s criminal associates. During the evening rush hour on May 20, 2004, a hitman hired by RIVERA followed Nektalov from his jewelry store on West 47th Street. Less than a block from the store, the hitman shot Nektalov once in the head and twice in the back, in the middle of a crowded sidewalk on Sixth Avenue. Nektalov was pronounced dead within 20 minutes of the shooting. RIVERA paid the hitman and another participant a combined total of $30,000 to carry out the murder.
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Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department. He also thanked the Manhattan District Attorney’s Office and the Bronx District Attorney’s Office for their assistance with the prosecution.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Scott Hartman and Jordan Estes are in charge of the prosecution.
Hartford Man Sentenced to 4 Years in Federal Prison for Distributing Heroin and Crack to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NEFTY RODRIGUEZ, 24, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for distributing heroin and crack cocaine to an overdose victim in 2015.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on August 23, 2015, a 21-year-old Tolland woman was rushed to Rockville Hospital after her mother found her in medical distress as a result of a likely drug overdose. The bloodwork from the hospital confirmed that the woman had heroin and cocaine in her system. The victim, who is now at a hospital in New Hampshire, has no brain activity and is in a permanent vegetative state.
RODRIGUEZ was subsequently identified as the source of the drugs consumed by the victim that resulted in her overdose.
RODRIGUEZ was arrested on August 4, 2017. On January 30, 2018, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin and cocaine base (“crack cocaine”).
This matter was investigated by the Manchester Police Department and the Drug Enforcement Administration’s New Haven Task Force. The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
Guatemalan National Charged with Illegally Reentering the United States After DeportationRead the Press Release
BOSTON – A Guatemalan national was arrested yesterday and charged in federal court in Boston with illegally reentering the United States after being deported.
Adolfo Martinez-Molina, 43, was charged in an indictment unsealed yesterday with one count of unlawful reentry of a deported alien.
Law enforcement in Waltham encountered Martinez-Molina on Sept. 17, 2017, and determined him to be illegally present in the United States. Martinez-Molina was previously deported on Aug. 3, 2016.
Martinez-Molina faces a sentence of no greater than 20 years in prison, up to three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Thomas P. Brophy, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney Kenneth G. Shine and of Lelling’s Major Crimes Unit is prosecuting the cases.
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.
Guatemalan Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Leodegario Guzman Roblero, age 44, and a citizen of Guatemala, was sentenced today to time served (25 days in jail) for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Guzman Roblero admitted that he was removed from the United States to Guatemala on August 26, 2011. Guzman Roblero admitted that he returned to the United States following the removal, without the necessary government permission. On April 7, 2018, ICE Officers arrested Guzman Roblero in Green Island, New York. He had been living in Troy. Guzman Roblero was also removed from the United States to Guatemala on September 29, 2010.
Following sentencing, Guzman Roblero was remanded to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Grant County woman sentenced for her role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – June Catherine Blanchek, of Petersburg, West Virginia, was sentenced today to 63 months incarceration for her role in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Blanchek, age 38, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in July 2017. Blanchek admitted to working with others to distribute more than 50 grams of crystal meth in Grant County between September 2014 and December 2016.
A money judgement of $133,000 was also ordered.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The United States Postal Inspection Service and the West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Grand Jury Indicts Two Alleged Distributors of Spice, K2 in Springfield AreaRead the Press Release
SPRINGFIELD, Ill. – The grand jury today charged Letha Dean and Abdul G. Alsamah on charges that they conspired to possess and distribute synthetic cannabinoids, known as Spice or K2, from retail stores The Crossing II and Mystic Enchantments in Springfield. Dean, 71, of Salisbury, Ill., was arrested and charged by complaint on April 13, and was ordered detained in the custody of the U.S. Marshals Service. Alsamah, 48, currently of Merced, Calif., was arrested on April 26, and made his initial appearance in federal court in the Eastern District of California on April 27. Alsamah is scheduled to appear in federal court in California on May 3, for a hearing regarding detention and removal to the Central District of Illinois.
The indictment alleges that Alsamah and Dean conspired together and with others from November 2014 to at least March 2016, to possess with intent to distribute and to distribute synthetic cannabinoids. The two allegedly distributed the substances from The Crossing II and Mystic Enchantments, retail stores in Springfield. Mystic Enchantments previously operated at 2828 E. Clear Lake Ave., Springfield, in the same building with The Crossing II, a liquor store. At the time of Dean’s arrest, Mystic Enchantments was operating at 1020 W. Lawrence Ave. Alsamah allegedly managed the distribution operation and established the prices for the sale of the synthetic cannabinoids, including by Dean through Mystic Enchantments.
According to publicly disseminated DEA drug fact information, K2 and Spice are two of the many trade names or brands for synthetic cannabinoids which are human-made, mind-altering chemicals developed to mimic the effects of THC, the main active ingredient of marijuana. They are often marketed under the guise of “herbal incense” or “potpourri.” The synthetic cannabinoids are typically marketed in rectangular, heat-sealed packets with brightly colored wording and street names to appeal to a youthful crowd, such as “Scooby Snax,” “Mr. Happy,” California Dream,” “Hayz,” “AK47,” “OMG,” “Down2Earth,” etc.
Alsamah and Dean are the eighth and ninth defendant respectively charged in a continuing task force investigation of the distribution of synthetic cannabinoids in Central Illinois. This task force, part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, is led by the DEA with the Illinois Attorney General Investigations; Illinois State Police; FBI; Decatur Police Department; Springfield Police Department; Illinois Department of Revenue; and IRS-Criminal Investigation. OCDETF is a Department of Justice program that supports multi-jurisdictional task forces of federal, state and local law enforcement agencies to conduct long-term and complex investigations and prosecutions of drug-related crimes. Assistant U.S. Attorney Timothy A. Bass is prosecuting the cases on behalf of the U.S. Attorney’s Office for the Central District of Illinois.
In addition to the conspiracy charge, each defendant is charged with one count of distribution of synthetic cannabinoids and one count of possession with intent to distribute synthetic cannabinoids. If convicted, each offense carries a statutory penalty of up to 20 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Four-times Removed Alien Charged with Illegally Re-entering the U.S.Read the Press Release
PITTSBURGH, PA – An individual found by the U.S. Immigration and Customs Enforcement/ Homeland Security Investigations has been indicted by a federal grand jury in Pittsburgh on charges of Illegal Re-Entry into the United States after Deportation, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on May 1, named Luis Velasco-Ramirez, 33, formerly of Mexico, as sole defendant.
According to the indictment, Velasco-Ramirez, an alien, was removed from the United States by U.S. Immigration and Customs Enforcement on March 17, 2009, March 20, 2009, March 26, 2009, and June 2, 2012, and was again found in the United States, in Pittsburgh on April 4, 2018, by ICE Officers.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The U.S. Immigration and Customs Enforcement/Homeland Security Investigations conducted the investigation leading to the indictment in this case.
Former comptroller of Toledo company indicted for embezzling nearly $500,000 from his employerRead the Press Release
The former comptroller of a Toledo company was indicted embezzling nearly $500,000 from his employer, U.S. Attorney Justin E. Herdman said.
Thomas Paul Mangotic, 30, Whitehouse, was indicted on one count of wire fraud.
Mangotic worked for Richland Industries d/b/a Tools Unlimited in Toledo from 2013 through 2016. Magnotic served as accounts payable manager and then, in 2015, he became Richland’s comptroller, overseeing the company’s financial accounts, according to the indictment.
Mangotic in 2014 began defrauding the company, embezzling fund through a variety of ways, including overpaying his own salary without authorization to do so, using company checking accounts to pay his own personal credit card accounts (including more than $150,000 for his personal American Express bills), and using company credit cards to pay his own personal expenses, including high-end clothing and payments to Microsoft Xbox Live and Apple iTunes, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service. The case is being handled by Assistant U.S. Attorneys Gene Crawford and Jody L. King.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Hospital CEO Charged with Wire and Tax FraudRead the Press Release
PANAMA CITY, FLORIDA – Phillip E. Hill Jr., 42, of Blountstown, Florida, was arraigned today in the U.S. District Court in Panama City after a federal grand jury returned an indictment, unsealed today, charging him with 24 counts of wire fraud and 4 counts of filing false tax returns. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, between 2010 and 2015, Hill used his positions as Chief Executive Officer and department head of Emergency Management Services to embezzle money from Calhoun-Liberty Hospital. According to the indictment, Hill billed the hospital for goods it never received and did so using invoices in the name of “Southeastern Medical Supply,” a sham business connected to a bank account controlled by Hill. It is alleged that Hill also ordered medical supplies from eBay and other vendors and billed the hospital for these supplies at prices far in excess of what Hill actually paid for them. The indictment alleges that Hill used the funds in the Southeastern bank account to pay personal credit card bills, to fund a business he owned and operated, to obtain cash, and to pay personal expenses, including grocery and travel expenses. The indictment also alleges that when a hospital employee asked Hill for contact information for Southeastern, Hill claimed that he did not have the phone number because he had lost his phone, and asserted that the last time he had “talked with” representatives of Southeastern, they were “talking about going out of business.”
The maximum penalty for each wire fraud count is 20 years in prison. The maximum penalty for each count of filing false tax returns is a maximum of 3 years in prison. The trial is scheduled for July 2, 2018, at 8:15 a.m. at the United States Courthouse in Panama City.
This case resulted from an investigation by the Internal Revenue Service—Criminal Investigation, the Florida Department of Law Enforcement, and the Blountstown Police Department. Assistant United States Attorneys Michael Harwin and Karen Rhew-Miller are prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
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.
Former High School Teacher, Swim Coach Indicted for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A former high school teacher and swim team coach has been indicted by a federal grand jury for sexually exploiting seven minor victims.
James Russell Green, Jr., 53, of Blue Springs, Mo., was charged in a nine-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, May 1, 2018. That indictment was unsealed and made public today upon Green’s arrest and initial court appearance. Green remains in federal custody pending a detention hearing.
Green was formerly a teacher at Oak Park High School and several middle schools in the North Kansas City School District and at Blue Springs South High School. Green was also a head swimming coach in those school districts and at Hallbrook Country Club in Leawood, Kan.
Green is charged with secretly recording illicit sexual encounters with at least six of his child victims. Court documents allege he engaged in the sexual contact and exploitation of minors over a period of at least 20 years.
The federal indictment alleges that Green attempted to entice one of his victim’s, identified as Minor Victim 1, to engage in illegal sexual activity between Nov. 1, 2016, and April 9, 2017.
The indictment also charges Green with one count of producing child pornography involving a 13-year-old victim, identified as Minor Victim 2, between Dec. 25, 2013, and March 31, 2014. Green is charged with six counts of attempting to produce child pornography, involving four additional minor victims, in February 2014. The indictment also charges Green with one count of possessing child pornography (including a video he allegedly produced of a seventh minor victim) on April 14, 2017.
Court documents allege that Green produced images and videos of child pornography and engaged (or attempted to engage) in sexual encounters with several minor victims on numerous occasions over a period of 20 years, ending in 2017. Law enforcement officers executed a search warrant at Green’s residence on April 14, 2017, and seized videos that allegedly were secretly recorded by Green with a hidden video camera. These videos, which depict several nude minors (from 14 to 17 years old) undressing and/or preparing to shower, were recorded beginning in the late 1990s until approximately 2014 or 2015. These videos, according to court documents, are the basis for the six attempted production counts of the indictment.
During the search of Green’s residence, according to court documents, investigators also located a device that contained an approximately 45-minute video that was also secretly recorded by Green with a hidden camera. The video graphically depicts Green having a sexual encounter with Minor Victim 2 in his residence. Green allegedly can be heard encouraging the minor victim to recruit other minors for sexual activity. This video recording is the basis for the production count of the indictment.
Investigators also located another video recording on one of Green’s devices, according to court documents. The video, also taken secretly with a hidden camera, graphically depicts Green having a sexual encounter with a different minor victim. This video is one of several images of child pornography that are the basis for the possession count of the indictment.
According to court documents, numerous other images of child pornography were also located on Green’s computer and media storage devices. Some of the images appear to have been downloaded from the Internet, but other images appear to have been sent to Green by minors with whom he was acquainted. Numerous sexually graphic chats that Green saved were also discovered on some of his media devices, according to court documents. In some chats, Green allegedly solicited sexual encounters with persons who identified themselves as minors. Pornographic images allegedly were exchanged via chats with apparent underage victims.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges 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 David Luna. It was investigated by the FBI Child Exploitation Task Force and the Blue Springs, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Head of Niagara Falls Housing Authority Sentenced for Stealing Government Funds; Daughter-In-Law Also SentencedRead 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 Stephanie W. Cowart, 59, of Grand Island, NY, who was convicted of theft concerning programs receiving federal funds, was sentenced to a two year term of probation and a $2,000 fine by U.S. District Judge Richard J. Arcara. In addition, Cowart’s daughter-in-law, Fredia Cowart, 28, of Niagara Falls, NY, was sentenced to one year probation for her conviction on a misdemeanor charge of theft of government funds. Stephanie and Fredia Cowart have also paid full restitution totaling approximately $17,000.
Assistant U.S. Attorney Russell T. Ippolito, who handled the case, stated that between 1997 and July 21, 2016, Stephanie Cowart served as Executive Director of the Niagara Falls Housing Authority (NFHA), an organization that has received federal funding. Between October 2013 and January 2015, Stephanie Cowart, being an agent of a state authority, and being aided by Allen and Fredia Cowart, stole $6,000 from the NFHA.
The Niagara Area Foundation (NAF) was established in 2000 by citizens of Niagara County who were employed in the private and non-profit sectors, to provide support and charity-oriented philanthropic initiatives for residents in Niagara County. Allen and Fredia Cowart, on behalf of People and Possibilities, Inc., sought and obtained a $6,000 grant from NAF, with the assistance of Stephanie Cowart. The money was to be used for “A Better Me,” a project that was to “teach children and youth the importance of proper etiquette, what bullying is and what they can do about it and to teach educational empowerment tools.” The NAF grant proceeds for the “A Better Me” project were deposited directly into the NFHA’s operating account. The NFHA then paid Allen and Fredia Cowart for work purportedly done on the project. However, Allen and Fredia Cowart never actually conducted any presentations related to the “A Better Me” project.
In addition, between October 2013 and June 2014, aided by his mother, Allen Cowart defrauded the NFHA and the New York Office of Children and Family Services (NYOCFS). Allen Cowart falsely claimed that he was performing the work of two teachers under the Advantage After School Program and was paid more than two times the normal hourly pay rate for one teacher position. The Advantage After School Program is funded, in part, through a contribution of federal Temporary Assistance to Needy Families (TANF) funds to New York State.
Allen Cowart was appointed to the temporary position of Teacher, under the Advantage After School Program, October 1, 2013 for the duration of the school year. The salary associated with this appointment was $23 an hour. However, Stephanie Cowart directed that effective October 23, 2013, her son was to be paid an hourly rate of $50. During the time period that Allen Cowart was paid a $50 hourly pay rate, he received $11,583 more than he would have, had he been paid the $23 hourly pay rate.
Allen Cowart was previously convicted and is scheduled to be sentenced on July 9, 2018.
“In stealing public funds, the defendant put her own interests ahead not only of taxpayers but of the very people she was supposed to be helping,” said U.S. Attorney Kennedy. “Fortunately, not all public servants are similarly motivated, and those who abuse their positions of trust, such as Cowart, can be brought to justice by those who, like our state and federal law enforcement officers who worked this case, faithfully serve the public with honor and integrity.”
“Public corruption is the FBI’s top criminal investigative priority because it poses a fundamental threat to the way government and communities operate every day,” said Kevin P. Lyons, Acting Special Agent-in-Charge of the FBI’s Buffalo Division. “When Stephanie Cowart used her power as the Executive Director of the Niagara Falls Housing Authority to steal money entrusted to her, she failed the people she was hired to serve.”
Today’s sentencings are the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons; the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary; and the Office of New York State Comptroller Thomas P. DiNapoli, Division of Investigations.
Former Felon Sentenced to 6 1/2 Years in Prison for Unlawful Possession of Firearms Including Automatic RifleRead the Press Release
LAS VEGAS, Nev. – A five-time felon who posted photos on Instagram of himself shooting firearms, including an automatic rifle, was sentenced today to 77 months in federal prison and three years of supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Jack Benjamin Hessiani, 39, of Ventura, California, was convicted of one count of felon in possession of a firearm following a three-day jury trial in December 2017. United States District Judge Larry R. Hicks presided over the trial and sentencing hearing.
According to evidence presented at trial and related court documents, Hessiani posted on his Instagram account photos of himself holding and firing machine guns at the Battlefield Vegas gun range in Las Vegas. At the gun range, he signed a waiver falsely representing that he did not have any criminal history that would prevent him from legally using firearms. In fact, he had five prior felony convictions, to include California felony convictions for Threats to Commit a Crime Resulting in Death; Stalking; and Inflicting Corporal Injury on Spouse / Cohabitant / Dating Partner.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Department of Labor Office of the Inspector General. Assistant U.S. Attorneys Phillip N. Smith, Jr. and Alexandra Michael prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Five U.S. Navy Service Members Indicted for Seeking Big Insurance Payouts for Bogus InjuriesRead the Press Release
Assistant U. S. Attorneys Andrew P. Young (619) 546-7981 and Emily W. Allen (619) 546-9738
NEWS RELEASE SUMMARY – May 2, 2018
SAN DIEGO – The United States unsealed an indictment today that charges U. S. Navy service members Christopher Toups, Jason Toups, Kelene McGrath, Ernest Thompson, and Richard Cote with fraud, false claims and conspiracy to defraud the United States. The charges arise from a scheme wherein the defendants filed fraudulent claims to obtain unearned benefits from the Traumatic Servicemembers Group Life Insurance Program (“TSGLI”).
According to the indictment, the TSGLI program is an insurance program that compensates service members who suffer serious and debilitating injuries while on active duty. The program is funded by fees paid directly by individual service members and the Department. The five defendants, four former and one active members of the United States Navy, each fraudulently claimed that they were entitled to benefits of $100,000 for serious injuries they claimed to have suffered—but which in fact never occurred. To support their applications, each defendant submitted fabricated applications that included forged signatures and altered hospital records. Four of the five defendants received the $100,000 payouts before the government uncovered the scheme and froze the final payment.
“The TSGLI program is designed to protect hundreds of thousands of honest and hard-working service members. This indictment sends a message to those who seek to defraud the government out of the dollars meant to care for our seriously injured military members that they will be held accountable,” said U.S. Attorney Adam L. Braverman.
Defendants Jason Toups, Kelene McGrath, Ernest Thompson and Richard Cote were arraigned on the indictment before U.S. Magistrate Judge Ruben B. Brooks. Christopher Toups is expected to make his initial appearance before a federal judge in Georgia. Their next court appearance is scheduled for June 1 at 1:30 p.m. before Judge U.S. District Judge Janis L. Sammartino.
DEFENDANTS Case Number 18cr1674-JLS
Richard Cote Age: 43 Oceanside, CA
Kelene McGrath Age: 41 Jacksonville, FL
Christopher Toups Age: 40 Woodstock, GA
Jason Toups Age: 35 Gulfport, MS
Earnest Thompson Age: 44 Murrieta, CA
SUMMARY OF CHARGES
Count 1:
Conspiracy to Commit Wire Fraud – Title 18, U.S.C § 1349
Maximum penalty: 20 years’ imprisonment and fine of higher of $250,000 or double loss amount
Counts 2-7:
Wire Fraud - Title 18, U.S.C § 1343
Maximum penalty: 20 years’ imprisonment and fine of higher of $250,000 or double loss amount
Counts 8-12
Making a Fraudulent and False Claim - Title 18, U.S.C § 287
Maximum penalty: Five years in prison and fine of higher of $250,000 or double loss amount
AGENCIES
Naval Criminal Investigative Service
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
First Defendant Sentenced to 9 Years in Prison Following Drug Bust on Private PlaneRead the Press Release
LEXINGTON, Ky. – Isaac Basilio Rosas, 33, of Los Angeles, was sentenced to 9 years in federal prison, by Chief United States District Judge Karen K. Caldwell, for conspiracy to transport at least five kilograms of cocaine.
Basilio previously admitted that, on April 21, 2017, he and three other passengers transported approximately 80 bricks of cocaine from Van Nuys Airport in Southern California to Bluegrass Airport in Lexington, on a private plane. Each brick weighed approximately a kilogram. Basilio pleaded guilty to the charges in January 2018. Two other passengers of the plane, Robert Carlson and Cedric Fajardo, have also pleaded guilty and are awaiting sentencing.
Under federal law, Basilio must serve 85 percent of his prison sentence. Basilio is a Mexican National and will be deported from the United States after completing his sentence.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; and Steven L. Igyarto, Resident Agent in Charge, Department of Homeland Security, Homeland Security Investigations; and Richard Sanders, Commissioner of the Kentucky State Police, jointly made the announcement.
The Department of Homeland Security and the Kentucky State Police conducted the investigation. Assistant United States Attorney Dmitriy Slavin represented the United States.
Final Schuele Boys Gang Member Convicted of Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Aaron Hicks, a/k/a Boog, a/k/a Boogy, 33, of Buffalo, NY, was convicted after a jury trial of racketeering conspiracy. The charge carries a maximum penalty of 20 years in prison. The defendant was convicted by a prior jury of conspiracy to distribute marijuana, which carries a maximum penalty of 10 years in prison and faces a maximum aggregate of 30 years in prison when sentenced.
Assistant U.S. Attorneys Paul Parisi and Wei Xiang, who handled the prosecution of the case, stated that Hicks was a member of the Schuele Boys Gang which operated in the Schuele Street area of the East Side of Buffalo. The gang is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
As a member, the defendant was the Buffalo-based main point of contact for the gang’s cocaine and marijuana supplier, Julio Contreras of McAllen, Texas. Hicks’s co-defendant, Roderick Arrington, was previously convicted following a jury trial in 2017 of the shooting murder of Quincy Balance, a/k/a Shooter, at the intersection of Northland and Stevens in Buffalo on August 30, 2012. Hicks, Arrington, and other Schuele Boys members believed that Balance was involved in the shooting murder of one of their associates on nearby Carl Street four days earlier. Arrington was sentenced to life in prison for murder in aid of racketeering.
“Working with our federal, state, and local partners, this office has gone on the offense against violent street gangs in Buffalo,” said U.S. Attorney Kennedy. “From the West side to the East side and from North Buffalo to South Buffalo, we are using the RICO statute systematically to dismantle these violent organizations and lock-up their members for lengthy prison sentences. We will continue to be relentless in our pursuit of these criminal enterprises, and we will not rest until those who are attracted to these gangs realize that in joining them, they are simply signing up for a spot on the losing team.”
Hicks is one of 28 Schuele Boys Gang members and associates to be charged in this case and the final defendant to be convicted.
The verdict is the result of an investigation by the FBI Safe Streets Task Force, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the New York State Police, under the direction of Major Edward Kennedy. Additional assistance was provided by the Erie County District Attorney’s Office, the Edinboro University Police Department in Pennsylvania, the West Tennessee Judicial Drug Task Force, the City of McAllen, Texas Police Department, HSI Harlingen, Texas, and the FBI offices in Houston, Texas and Jackson, Mississippi.
Sentencing is scheduled for August 6, 2018, at 12:30 p.m. before U.S. District Judge Richard J. Arcara, who presided over the trial.
Federal Jury Convicts Two Dallas Men on Robbery ChargesRead the Press Release
DALLAS, Texas — Following a four-day trial, a federal jury has convicted Michael Wright, 28, and Rickey Cherry, 28, both of Dallas, of multiple robbery and firearm offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Specifically, on Monday a federal jury convicted Wright on three counts of interference with commerce by robbery, three counts of using, carrying, or brandishing a firearm during and in relation to a crime of violence, and one count of possession of a firearm by a convicted felon. The jury also found Cherry guilty of two counts of interference with commerce by robbery and two counts of using, carrying, or brandishing a firearm during and in relation to a crime of violence. The two men are scheduled to be sentenced on August 22, 2018, by U.S. District Judge Ed Kinkeade. A third defendant, Kameron Robinson, was charged in the same indictment and pleaded guilty to one count of interference with commerce by robbery and one count of using, carrying, or brandishing a firearm during and in relation to a crime of violence. He is scheduled for sentencing before Judge Kinkeade on June 21, 2018.
Evidence presented at trial showed that Wright and Robinson committed one robbery and that Wright committed two additional robberies with Cherry. On January 2, 2015, Wright and Robinson used a handgun to rob an AT&T authorized retailer in Ennis, Texas, of cell phones and tablets. Ennis Police Department discovered the men during their flight from the robbery, prompting a high-speed chase into Ellis County, where police were able to apprehend the men after they wrecked their vehicle and fled on foot. Wright and Cherry used handguns to rob a Radio Shack store in Duncaville, Texas of cell phones and tablets on January 22, 2015, and an AT&T authorized retailer in Grand Prairie, Texas of cell phones and tablets on March 7, 2015.
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 defendants’ prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
The Federal Bureau of Investigation investigated the case with the assistance of Ennis Police Department, Duncanville Police Department, and Grand Prairie Police Department. Section Chief Keith Robinson and Assistant United States Attorneys Gary Tromblay and Brian McKay are prosecuting the case.
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Fayetteville Man Indicted for String of Robberies and Firearm ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that a Federal grand jury in Raleigh has returned a nine-count indictment charging MICHAEL DEVONTE HILL, age 29, of Fayetteville, North Carolina, with one count of stealing a firearm, three counts of Hobbs Act robbery, three counts of using, discharging, and/or brandishing a firearm while committing a Hobbs Act robbery, one count of possessing a stolen firearm, and one count of possessing a firearm as a convicted felon.
The indictment alleges that on July 14, 2017, HILL stole a firearm and on July 25, 2017, he robbed a Circle K store located on Rosehill Road in Fayetteville. During the robbery, HILL discharged the stolen firearm. On July 28, 2017, HILL robbed another Circle K located on Yadkin Road in Fayetteville and brandished a firearm during that robbery. On July 30, 2017, HILL robbed a Circle K located on Owens Drive in Fayetteville and also brandished a firearm during that robbery. On August 2, 2017, at the time of his arrest, HILL possessed a stolen firearm as a convicted felon.
If convicted of these charges, HILL would face a sentence of not less than 60 years’ imprisonment and not more than 5 years of supervised release following any term of imprisonment.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Fayetteville Police Department. Assistant United States Attorney James J. Kurosad is prosecuting the case for the government.
Elkins man sentenced for role in counterfeit money schemeRead the Press Release
ELKINS, WEST VIRGINIA – Marc G. Collett, of Elkins, was sentenced today to 21 months incarceration for fraudulently using counterfeit money to obtain authentic currency and other goods, United States Attorney Bill Powell announced.
Collett, age 36, pled guilty to one count of “Uttering Counterfeit Obligations or Securities – Aiding and Abetting” in April 2016. Collett conspired with other individuals to repeatedly exchange counterfeit money in order to obtain authentic United States currency, debit cards, and merchandise in Harrison County, West Virginia in late 2014.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The United States Secret Service, the Clarksburg, West Virginia Police Department, and the West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Eastern Carolina Behavioral Health CEO Sentenced to Eight Years in Prison for Expansive Multistate Healthcare FraudRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that yesterday afternoon in federal court, SHEPHARD LEE SPRUILL, 47, of Greenville, North Carolina, was sentenced to 96 months in prison on the charge of Health Care Fraud Conspiracy, and 60 months in prison for Perjury, to be served concurrently. Spruill was also ordered to make restitution in the total amount of $5,998,874.86, payable to the North Carolina Medicaid Program, the South Carolina Medicaid Program, and another victim of the scheme. Spruill was further ordered to serve a three year term of supervised release, and to forfeit an additional $939,989.50 in criminal proceeds. Under the terms of his plea agreement, Spruill is also banned from participation in Federal healthcare benefit programs for life.
Spruill’s case arose out of the investigation of Pitt County behavioral health provider Terry Lamont Speller, his biller, Donnie Lee Phillips, II; and another Medicaid provider named Reginald Saunders. Each of these defendants were previously sentenced by Senior U.S. District Judge James C. Fox to 20 years, 9 years, and 3 years, respectively.
According to the Criminal Information and evidence discussed in open court, Spruill, then the leader of Carolina Support Services, an East Carolina behavioral health practice, supplied hundreds of patient names and identifiers to Speller, who in turn had Phillips bill the North Carolina Medicaid Program for millions of dollars in fictitious mental health services. Spruill, Speller, and Phillips split the fraud proceeds, with Spruill receiving his cut of the funds in the form of fictitious, no-document loan repayments. Spruill appeared before a federal grand jury and lied about his involvement with Speller, falsely claiming that he had no business relationship with Speller.
The continuing investigation into Spruill revealed that Spruill also engaged in a fraud upon the South Carolina Medicaid program, billing and being paid millions in fictitious services through another provider he owned.
United States Attorney Robert J. Higdon, Jr. stated, “As we continue to combat drug dealers and violent criminals in our district, do not for a moment believe that we have given a pass to those whose steal from taxpayers through fraud. This case shows our continuing resolve to bring all to justice, even CEOs who commit their crimes with lies instead of guns. This case also sends a message about the integrity of our grand jury system. Those who choose to lie in the grand jury will be held fully accountable.”
“Health care fraud is not a road to easy riches, as this sentence demonstrates” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “Those who steal from taxpayers and vital government health care programs will be held accountable for their actions.”
In a related case, ATOYA BELLAMY, 45, of Morrisville, North Carolina, was sentenced to one year in prison for her role in Spruill’s fraud at Carolina Support Services. BELLAMY previously pleaded guilty to Conspiracy to Commit Health Care Fraud on November 29, 2017. BELLAMY was also ordered to make restitution to the Government.
The investigation of this case was conducted by agents of the North Carolina State Bureau of Investigation assigned to the Medicaid Investigations Division of the North Carolina Attorney General’s Office; The Internal Revenue Service - Criminal Investigation; and the United States Department of Health and Human Services Office of the Inspector General, with the assistance of the Federal Bureau of Investigation. The investigation and prosecution of this matter is being handled in a partnership between the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Assistant United States Attorney William M. Gilmore and Special Assistant United States Attorney Daniel Spillman of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, each represented the United States.
If you suspect Medicaid or Medicare fraud please visit the HHS OIG website at https://oig.hhs.gov/ and click on the Report Fraud button. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Drug Enforcement Administration’s National Take Back Initiative in the Eastern District of OklahomaRead the Press Release
MUSKOGEE, OKLAHOMA – Brian J. Kuester, United States Attorney for the Eastern District of Oklahoma, announced today the results of the Drug Enforcement Administration’s National Take Back Initiative in the Eastern District. The Take Back Initiative was created so people would have an opportunity to safely dispose of unused opioids and other medicines from their homes, where, if not disposed of, they could be stolen and abused by family members and visitors, including children and teens.
“The DEA’s Take Back initiative is not only a day when unwanted or expired prescription medications can be safely disposed of, it is also an opportunity for all of us to be reminded of the dangers of retaining those medications in our homes. This year, on April 28th, the DEA collected nearly 130 pounds of pharmaceuticals in the Eastern District. That is 130 pounds of prescription medications that will not end up in the mouths of children or lead to overdoses or other medical emergency situations. That is 130 pounds of prescription medications that will not pollute any water source because it is being safely disposed of by the DEA,” Kuester said. “I commend the DEA for including the Take Back days and drop-off locations as an important component of their efforts to protect the public.”
The DEA Take Back initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards. For further information about the DEA’s Diversion Control Division you can visit www.deadiversion.usdoj.gov/index.html.
If you missed this year’s first Take Back Day you need not wait for the next one. The Oklahoma Bureau of Narcotics (OBN), also a partner in the effort to reduce prescription drug abuse by offering safe disposal options, offers locations throughout the state as well. OBN’s website, found at www.ok.gov/obndd can assist you in finding a location near you.
Kuester added, “We all play a role in reducing prescription drug abuse. Federal, state, tribal, and local law enforcement agencies are working together to address the problem. With heightened awareness and assistance from the public, we can and will make a difference in our communities.”
Dominican National Charged with Fentanyl Distribution, Social Security Fraud, and Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national was indicted today with fentanyl distribution, Social Security fraud, and aggravated identity theft.
Domingo Garcia Suero, 53, a Dominican national residing in Haverhill, was indicted on five counts of possession with intent to distribute and distribution of a controlled substance, specifically fentanyl, two counts of Social Security account number fraud, and one count of aggravated identity theft. Garcia Suero appeared today before U.S. District Court Magistrate Judge Donald L. Cabell.
The indictment alleges that on five occasions during in the fall of 2017, Garcia Suero sold and possessed fentanyl for sale. Garcia Suero also allegedly filed applications with the Massachusetts Registry of Motor Vehicles to renew his driver’s license and with MassHealth, in which he provided a name and a social security account number belonging to a United States citizen from Puerto Rico.
The charge of possession with intent to distribute and distribution of fentanyl in excess of 40 grams provides for a minimum sentence of five years and no greater than 40 years in prison, at least four years of supervised release and a fine of $5 million. The charge of Social Security fraud provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory minimum sentence of two years to run consecutive to any other sentence. 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; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; Albert Angelucci, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Office; and Haverhill Police Chief Alan DeNaro made the announcement today. Assistance was also provided by the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; the Boston Field Office of the U.S. Department of State's Diplomatic Security Service; and the Massachusetts State Police. Assistant U.S. Attorney Maxim Grinberg of Lelling’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Man Indicted on Multiple Charges in 2016 Home Invasion in Northwest WashingtonRead the Press Release
WASHINGTON – Gregory H. Grooms, 19, of Washington, D.C., was indicted today on felony charges stemming from an armed home invasion that took place in August 2016 in Northwest Washington, U.S. Attorney Jessie K. Liu announced.
Grooms was indicted by a grand jury in the Superior Court of the District of Columbia on 25 counts, including first-degree burglary while armed, armed kidnapping, armed carjacking, armed robbery, assault with a dangerous weapon, possession of a firearm during a crime of violence, and related charges. He remains held pending trial and is expected to be arraigned at the next court date on May 11, 2018. His trial is scheduled for July 18, 2018.
According to the government’s evidence, the armed home invasion occurred on Aug. 13, 2016, at approximately 10:40 p.m., at a residence in the 1800 block of Upshur Street NW. The four victims, including two minor children, were home at the time of the offense. According to the evidence, Grooms and an accomplice, both armed with guns, forced their way into the victims’ residence, threatened the victims, and ordered the victims around the house.
During the incident, one of the victims tried to get the children to safety by dropping one of them from a second-story window. Grooms and his accomplice allegedly took several items, including the victims’ car keys, and left in the victims’ vehicle.
Grooms was later identified by law enforcement through forensic evidence, including a fingerprint from the victims’ vehicle, which was recovered in the area of his last known residence at the time. Additionally, law enforcement linked Grooms to a knife recovered at the crime scene through the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes.
Grooms was arrested on March 15, 2018, and has been in custody ever since.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle. Finally, U.S. Attorney Liu commended Assistant U.S. Attorney Natasha Smalky, who is investigating and prosecuting the case.
Corpus Christi Man Heads to the Pen for Possessing of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 41-year-old Corpus Christi man has been sent to federal prison following his conviction of possessing child pornography, announced U.S. Ryan K. Patrick. Timothy Traut pleaded guilty Feb, 1, 2018.
Today, U.S. District Judge Nelva Gonzalez Ramos sentenced Traut to 120 months in prison. At the hearing, the court heard that Traut possessed images of children he knew and that he superimposed the children’s faces to images of child pornography. The court also read two letters from the parents of those children explaining how the crime impacted their lives.
Traut was further ordered to serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
In March 2017, Queensland Police Services in Australia identified a computer discussing child pornography on an internet website. That computer was later linked to Traut who was using a profile name of “Horndog.” Traut had posted pictures to that website and made comments about the desire to have sexual intercourse with a child pictured in some of those images.
Agents later executed a search warrant at his residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 850 images and approximately 104 videos child pornography. Many of those videos included images of sexually explicit conduct involving prepubescent girls.
Traut has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Convicted Bank Robber Sentenced for Escaping from Federal CustodyRead the Press Release
BOSTON – A man serving a sentence for bank robbery pleaded guilty and was sentenced today in federal court in Boston for escaping from custody.
Joseph Matz, 48, of Boston, pleaded guilty to one count of escape from federal custody before U.S. District Court Judge Richard G. Stearns. Judge Stearns immediately sentenced Matz to 27 months in prison, to be served concurrently with a sentence Matz is already serving in state prison in Virginia, and three years of supervised release.
In 2004, Matz was convicted of bank robbery. In August 2011, Matz was again convicted of bank robbery and sentenced to seven years in prison. Because his second conviction occurred while he was on supervised release from his 2004 conviction, Matz was sentenced to an additional year in prison to be served consecutive with his 2011 bank robbery conviction.
In July 2016, Matz was transferred from federal prison to a Residential Reentry Center in Boston, where he was to serve the remainder of his sentence until his release on Dec. 18, 2016. On Nov. 4, 2016, Matz was allowed to sign out of the Center on a “medical pass,” and was required to return later that day; however Matz never returned to the Reentry Center and was placed on escape status.
On Dec. 1, 2016, Matz was arrested in Richmond, Va., for armed bank robbery. He subsequently pleaded guilty to that charge, and on May 23, 2017, was sentenced to 25 years in state prison with 15 years suspended. Matz is currently in state custody in Burkeville, Va.
United States Attorney Andrew E. Lelling and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit prosecuted the case.
Colorado Man Sentenced for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Adrian Chavez, 24, of Greeley, Colo., was sentenced today in federal court in Santa Fe, N.M., to 48 months in prison for his methamphetamine trafficking conviction. Chavez will be on supervised release for three years after completing his prison sentence.
The DEA arrested Chavez in Aug. 2016, after seizing approximately 2.80 kilograms (6.27 pounds) of crystal methamphetamine from him during an interdiction investigation in Albuquerque. The methamphetamine was contained in five plastic containers inside Chavez’s backpack.
Chavez was indicted on Aug. 23, 2016, and was charged with possession of methamphetamine with intent to distribute on Aug. 12, 2016, in Bernalillo County, N.M.
On Nov. 1, 2017, Chavez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Chavez admitted that on Aug. 12, 2016, he possessed methamphetamine that was concealed inside five plastic containers wrapped with grey duct tape inside his backpack.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Colombian Narco Trafficker Pleads GuiltyRead the Press Release
Tampa, FL – Jorge Eliecer Cifuentes-Cuero (54, Colombia, South America) has pleaded guilty to conspiracy to possess with the intent to distribute five kilograms or more of cocaine while aboard a vessel subject to the jurisdiction of the United States, in violation of the Maritime Drug Law Enforcement Act. He faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to court documents, Cifuentes-Cuero was a principal member of a Colombian and Ecuadorean-based drug trafficking organization. He initially worked as a mechanic and mariner onboard vessels in the Eastern Pacific Ocean, and later, as he accumulated wealth, became an organizer of multi-ton cocaine loads transported by vessel from Colombia and Ecuador to locations in Central and Latin America. Cifuentes-Cuero is responsible for several maritime smuggling ventures in the international waters of the Eastern Pacific Ocean. In January 2013 and July 2014, the U.S. Coast Guard interdicted loads of cocaine, totaling over 1,000 kilograms, that were being smuggled aboard vessels (commonly referred to as “go-fast boats”).
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Thomas Palermo and Special Assistant United States Attorney Rebecca L. Castaneda.
Clairton Man Pleads Guilty to Distributing Cocaine and FentanylRead the Press Release
PITTSBURGH, PA - A resident of Clairton, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Derek Price, 55, pleaded guilty to one count of conspiring with 20 other individuals, between March and June 2017, to distribute narcotics. In connection with the guilty plea, the court was advised that Price purchased fentanyl and cocaine from his codefendants, Elliot Page and Skylar Carter, for further distribution in the Clairton area. Price acknowledged distributing approximately 15 grams of fentanyl and 300 grams of cocaine. He is the fifteenth of 21 defendants charged to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for September 5, 2018, at 10:30 a.m. Price has a prior felony drug conviction, and as such, he is subject to enhanced penalties. The law provides for a maximum total sentence of 30 years in prison, a fine of not more than $2 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Price remains on bond pending the sentencing hearing.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
Chicago Man Sentenced to 37 Years in Federal Prison for Producing and Possessing Child PornographyRead the Press Release
CHICAGO — A Chicago man was sentenced today to 37 years in federal prison for producing and possessing thousands of photographs and videos of child pornography.
SCOTT RESKEY, 62, possessed more than 400,000 images and more than 1,400 videos of child pornography on his laptop and other devices. Reskey also groomed and sexually abused a child under the age of ten. On more than one occasion Reskey directed the girl to engage in sex acts with him, while he filmed it.
Reskey pleaded guilty last year to one count of production of child pornography and one count of possession of child pornography. U.S. District Judge Matthew F. Kennelly sentenced Reskey to 25 years on the production charge and a consecutive 12 years on the possession charge, for a total sentence of 37 years.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Chicago Police Department provided valuable assistance.
“Reskey’s offense conduct is morally abhorrent and among the most serious child pornography offenses imaginable,” Assistant U.S. Attorney Grayson Walker argued in the government’s sentencing memorandum.
The case against Reskey arose from a covert federal investigation of an online community that sent and received child pornography via a website called “PlayPen.” Reskey accessed the site using the name “peanuty123.” In addition to the images and videos, authorities recovered from Reskey’s laptop a document entitled “The Pedophile’s Handbook.” The handbook spans more than 500 pages and explains how to groom and abuse minors.
Reskey was arrested in February 2017. Authorities were able to identify hundreds of the children who were exploited in the images and videos possessed by Reskey. Dozens of those victims submitted statements to the Court in advance of sentencing, detailing the harm caused by the production, distribution and possession of their images by individuals like Reskey.
Cheektowaga Woman Sentenced on Fraud and Identity Theft ChargesRead 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 Danielle Hamilton, 29, of Cheektowaga, NY, who was convicted of conspiracy to commit access device fraud and aggravated identity theft, was sentenced by U.S. District Judge Lawrence J. Vilardo to 36 months in prison. Hamilton was also ordered to pay approximately $300,000 in restitution.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that between October 2013 and January 2014, the defendant and others, including Ricky Butler and Teria Baker, traveled to Walmart stores and other retail establishments in Western New York and Pennsylvania, where they used unauthorized credit cards. The defendants, who knew that the credit cards had been obtained by means of fraud and without the true account holder’s knowledge or authority, purchased and attempted to purchase, $500 store gift cards and other merchandise totaling in excess of $300,000.
Ricky Butler was previously convicted and is awaiting sentencing. Teria Baker was convicted and sentenced to 34 months in prison.
The sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of Acting Inspector-in-Charge Delany E. De Leon-Colon of the Boston Division, and the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Charleston Drug Dealer Sentenced to 66 Months in Prison for Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A Charleston drug dealer was sentenced today to 66 months in federal prison, announced United States Attorney Mike Stuart. Yusuf Ali, 38, previously pled guilty to distribution of 28 grams or more of cocaine base, more commonly known as “crack.” Stuart commended the thorough investigation conducted by the Metropolitan Drug Enforcement Network Team (“MDENT”).
“I applaud MDENT’s tireless work to remove drug dealers from our streets,” said United States Attorney Mike Stuart. “By now, drug dealers should be getting the picture that if you peddle dangerous drugs in Charleston, we’re going to lock you up.”
Ali admitted that in August 2017, he sold crack to a confidential informant on four occasions on Charleston’s East End. On August 29, 2017, officers with MDENT executed a search warrant of Ali’s apartment and found over 125 grams of crack, 44 grams of heroin, and a .380 caliber handgun.
Assistant United States Attorney Matt Davis was responsible for the prosecution. United States District Judge John T. Copenhaver, Jr. presided over these cases.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including crack and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Charges Filed Against Two Lake County Men for Heroin Distribution in RockfordRead the Press Release
ROCKFORD — Two men from Lake County have been arrested for distributing heroin in Rockford.
JAVIER A. PEREZ, 27, of Park City, and JOSE ARMANDO OCHOA-LOPEZ, 27, of Zion, were indicted by a federal grand jury on March 7, 2018, on charges of distributing and conspiring to distribute 100 grams or more of heroin in Rockford in October 2017.
Perez was arrested Tuesday by federal law enforcement and appeared for arraignment before U.S. Magistrate Judge Iain D. Johnston in Rockford today. He was ordered to be held in federal custody until a detention hearing on May 4, 2018, at 9:15 a.m.
Ochoa-Lopez was arrested on March 14, 2018, and remains in federal custody pending trial. Both defendants have pleaded not guilty to the charges.
Each count of the indictment carries a mandatory minimum penalty of five years in prison and a maximum penalty of up to 40 years in prison, in addition to a fine of up to $5 million. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Dan O’Shea, Rockford Police Chief; and Gary Caruana, Winnebago County Sheriff. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes the above agencies as well as the Loves Park and Freeport Police Departments. The Lake County Gang Task Force, consisting of the Lake County Sheriff’s Office, Grayslake Police Department, Wauconda Police Department, Mundelein Police Department, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and U.S. Department of Homeland Security's Homeland Security Investigations also assisted in the investigation.
The government is represented by Assistant U.S. Attorney Talia Bucci.
Carlsbad Woman Pleads Guilty to Federal Wire Fraud Charge Arising Out of $800,000 Embezzlement SchemeRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Eddy County Sheriff Mark Cage announced today that Lori V. Whitaker, 54, of Carlsbad, N.M., entered a guilty plea in federal court in Las Cruces, N.M., to a wire fraud charge. Under the terms of the plea agreement, Whitaker is required to pay $816,630.36 in restitution to her former employer, the victim of her crime. Whitaker also faces a statutory maximum penalty of 20 years of imprisonment at sentencing, which has yet to be scheduled.
Whitaker was indicted in Jan. 2018, and was charged with perpetrating a scheme to defraud her former employer, the Otis Mutual Domestic Water Consumers and Sewage Works Association (Association), out of approximately $800,000.00 over a two-year period. The indictment charged Whitaker with 75 counts of wire fraud and alleged that she fraudulently transmitted funds by means of wire communications between March 27, 2015 and Feb. 3, 2017, as part of a scheme to defraud the Association. The funds involved in the 75 transactions charged ranged from $416.00 to $15,746.64.
In announcing the guilty plea, U.S. Attorney Anderson said, “With today’s guilty plea, Ms. Whitaker begins the process of taking responsibility for violating the solemn trust that was placed in her to manage the affairs of the Association. This guilty plea reaffirms the Justice Department’s commitment to investigate and prosecute fraudulent conduct that adversely impacts the lives of innocent victims.” “A lot of hard-working people in Eddy County put their trust in this defendant, and she repaid that confidence by stealing a sum of money that would have been eye-popping in a large city, let alone rural southeastern New Mexico,” said Special Agent in Charge Wade of the FBI’s Albuquerque Division. “We hope this case sends a clear message that the FBI and our partners will thoroughly investigate and bring to justice those who seek to enrich themselves at the public's expense.”
Eddy County Sheriff Cage said, “Thank you to our federal partners who worked so hard to help us get some closure for the Eddy County citizens affected by this abuse of their trust and their funds.”
According to the indictment, Whitaker was employed by the Association, a non-profit special purpose government association that provided potable water and a wastewater system to more than 4300 people in Otis, N.M., in Eddy County, as its office manager from 2003 through April 2017. As the Association’s office manager, Whitaker was responsible for controlling the Association’s finances, had access to the Association’s payroll account, and received a company credit card intended for use for Association-related expenses.
The indictment charged that from March 2015 through Feb. 2017, Whitaker perpetrated a scheme to defraud the Association through which she embezzled approximately $800,000.00 of the Association’s funds for her personal use. According to the indictment, Whitaker executed the scheme to defraud in two ways. First, Whitaker defrauded the Association by using its credit card account for personal purposes unrelated to the Association’s business. To this end, Whitaker repeatedly used the credit card to obtain cash advances and initiate other charges at casinos, which she was not authorized to do. Second, Whitaker defrauded the Association by paying off credit card balances through frequent, but unauthorized, online transfers from the Association’s payroll account.
During today’s change of plea hearing, Whitaker pled guilty to one count of wire fraud. In entering the guilty plea, Whitaker admitted that from around 2003 until April 2017, while working as the office manager for the Association, she initiated personal charges and cash advances totaling $792,829.09 on her Association credit card at casinos in New Mexico, causing the Association to sustain an aggregate loss of $816,630.36. Whitaker further admitted that she executed charges, cash advances, and payments by transmitting interstate wire communications that traveled to credit-card company servers in Virginia or Georgia.
The case was investigated by the FBI office in Las Cruces with assistance from the Eddy County Sheriff’s Office. Assistant U.S. Attorneys John A. Balla and Richard C. Williams are prosecuting the case.
Burlington County, New Jersey, Construction Firm to Pay $1.5 Million to Resolve Joint State and Federal False Claims ActionRead the Press Release
NEWARK, N.J. – A Southampton, New Jersey, construction company will pay $1.5 million to resolve allegations that it committed multiple False Claims Act violations by contracting for public construction jobs despite paying its workers a lower hourly wage than required under state and federal law, U.S. Attorney Craig Carpenito and New Jersey Attorney General Gurbir S. Grewal announced today.
The settlement resolves a joint state and federal investigation of Ranco Construction’s labor practices conducted by the U.S. Attorney’s Office and the New Jersey Attorney General. The investigation began after a former Ranco employee filed a federal qui tam, or “whistle-blower,” lawsuit against the company.
In that lawsuit, the relator claimed that Ranco routinely entered into construction contracts with various state and federal entities and certified to the government that its employees were paid hourly wage rates set under federal and New Jersey prevailing wage laws.
The relator alleged, however, that Ranco systematically underpaid several of its workers and then falsified company payroll records to disguise the conduct. The relator worked for Ranco for a total of nine years – first as a laborer and then as an electrician – and left the company in 2016. He alleged in his lawsuit that Ranco forced him out for objecting to the company’s allegedly unlawful practices.
“Companies that contract with the federal government undertake an obligation to pay their employees a fair wage,” said U.S. Attorney Carpenito. “When contractors pay substandard wages and then falsely certify their compliance to the government, they not only cheat their employees, they also gain an unfair advantage in the contract bidding process, all at taxpayer expense.”
“The rules are simple: if a construction company wants to do business with the State of New Jersey, it has to pay its workers a fair wage. Ranco took the State’s money but then failed to keep up its end of the bargain,” said Attorney General Grewal. “As part of today’s settlement, we are recovering nearly half-a-million dollars for New Jersey taxpayers. Just as importantly, we are sending an important message – vendors who do business with public entities in New Jersey must act with integrity and honesty, and will be held accountable if they don’t.”
"The integrity of the DoD procurement system is a priority for the Defense Criminal Investigative Service (DCIS)," stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. "This settlement agreement is the direct result of a joint effort by DCIS, the U.S. Attorney's Office and the New Jersey Attorney General to ensure that contractors do not gain an unfair competitive advantage by failing to comply with required federal labor laws."
The relator in the underlying qui tam will receive more than $150,000 as his statutory share of the recovery and to resolve his employment based claims in accordance with the False Claims Act. The civil lawsuit was filed in the District of New Jersey and is captioned United States ex rel. Robert Kleinow and the State of New Jersey ex rel. Robert Kleinow and Robert Kleinow individually v. Ranco Construction, Civ. Action No. 15-7278.
The civil settlement is not an admission of liability or improper conduct by Ranco.
U.S. Attorney Carpenito thanked special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, for their assistance in the investigation.
The government is represented by the Assistant U.S. Attorney David Dauenheimer, Deputy Chief of the U.S. Attorney’s Office Civil Division, and Assistant Attorney General and Section Chief Janine Matton, Deputy Attorney Generals Paul Juzdan, Carla Pereira and Nicholas Kant of the New Jersey Attorney General’s Government & Healthcare Fraud Section.
Counsel for relator: Jennifer M. Carlson Esq., Vineland, New Jersey
Counsel for defendant: Linda D. Hoffa Esq., PhiladelphiaBridgeport Man Who Distributed Heroin to Seymour Overdose Victim is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RICHARD ESTABA, also known as “Raw,” 23, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to one day of imprisonment, time already served, six months of home confinement and four years of supervised release, for distributing heroin to an overdose victim in Seymour.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on July 9, 2017, Seymour Police and emergency medical personnel responded to a residence in Seymour on a report of a suspected drug overdose. In the bathroom of the residence, responders encountered a 29-year-old male who was not breathing and did not have a pulse. The male was pronounced deceased. Investigators seized the victim’s cellphone, multiple folds of suspected heroin marked with two different brand stamps, and other drugs. Subsequent cell phone analysis and witness interviews determined that ESTABA supplied the heroin consumed by the victim shortly before he was found dead.
The Connecticut Office of the Chief Medical Examiner determined that the victim’s death was caused by acute intoxication due to the combined effects of cocaine, etizolam, fentanyl, flubromazolam and heroin.
In August 2017, investigators made a controlled purchase of 10 wax folds of heroin from ESTABA. The folds were marked with a brand stamp that was found on some of the wax folds at the victim’s residence.
ESTABA was arrested on September 20, 2017. On that date, he possessed approximately 400 folds of heroin and $1,300 in cash.
On January 24, 2018, ESTABA pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Seymour and Shelton Police Departments. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.