Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
1 May 2018
Maryland Woman Who Stole More Than $300,000 from Her Employer Sentenced to 4 Years in PrisonRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Keisha Findley, age 42, of Upper Marlboro, Maryland to four years in prison, followed by three years of supervised release, for wire fraud and aggravated identity theft. Judge Grimm also ordered restitution be paid in the amount of $333,779.53.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to her plea agreement, Findley performed accounting and customer service functions for her employer, Company A. Among her job responsibilities, Findley received checks from customers and entered receipt of checks into an accounting database. Findley kept track of accounts receivable and had access to the accounts receivable database.
In May 2014, without authorization, Findley opened a bank account online in the name of Company A, describing the company as a sole proprietorship owned by the company’s chief executive officer, Victim B. A signature card was submitted to the bank with a purported signature by Victim B and the last four digits of Victim B’s social security number. An automated teller machine check card was issued by the bank with the names of Company A and Victim B on its face.
Beginning in May 2014 and continuing through December 2015, Findley intercepted checks sent by Company A’s customers. She then removed the customer checks from Company A’s offices and deposited them into the bank account she had opened. Findley used the check card both to make deposits into the account and to make withdrawals. In total, Findley deposited checks stolen from Company A totaling $333,779.53. Findley used money from the fraudulent bank account for her own purposes, including personal car and rent payments. In addition, Findley made cash withdrawals of over $170,000 from the account.
United States Attorney Robert K. Hur praised the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Joseph Baldwin, who prosecuted the case.
Maryland Chiropractor Sentenced to Prison for Filing False Tax Returns and Obstructing IRSRead the Press Release
A former Salisbury, Maryland chiropractor was sentenced today to 15 months in prison for filing fraudulent income tax returns and attempting to obstruct the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur for the District of Maryland.
According to the evidence presented in court, Dr. Warren Gregory Belcher, 60, operated a chiropractic business for nearly 20 years. During that time, he received income for chiropractic services from insurance companies, patients and other third parties, including another chiropractor in Baltimore. From 2009 through 2015, Belcher filed individual income tax returns that fraudulently claimed that he had earned no business income, when, in fact, the evidence at trial established that he received total payments of more than $350,000 during that time period. Belcher filed his false 2015 tax return after being notified that he was the target of a federal grand jury investigation. He filed an additional false tax return for 2016 while under indictment and awaiting trial.
The evidence introduced at trial included dozens of letters that Belcher sent to insurance companies and other third parties in which he threatened that the companies could be subject to civil and criminal penalties for reporting to the Internal Revenue Service (IRS) payments they made to him for his services. Belcher also made threatening statements to an accountant to prevent the accountant from reporting his income to the government. Belcher himself also submitted fraudulent forms to the IRS in an effort to falsely represent that companies that had reported his income to the IRS had not actually paid him that income.
For the years 2009 and 2011, the IRS mailed Belcher notices informing him that his returns underreported his income. The IRS also assessed additional taxes and penalties against Belcher for his fraudulent returns, including a $5,000 penalty for filing a frivolous tax return. Belcher responded to these IRS notices by sending letters to the IRS asserting that the IRS was violating the law by assessing and collecting his taxes.
In addition to the term of imprisonment, U.S. District Judge Richard D. Bennett ordered Belcher to pay restitution to the IRS in the amount of $63,763.58and serve one year of supervised release.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Sean R. Delaney and Tax Division Trial Attorney Melissa S. Siskind, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Marion County man indicted on child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia man was indicted by a federal grand jury today on a child pornography charge, United States Attorney Bill Powell announced.
James Timothy Cobb, age 56, was indicted on one count of “Possession of Child Pornography.” Cobb is accused of possessing child pornography in Marion County in September 2014.
Cobb faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the cases on behalf of the government. The Federal Bureau of Investigation investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Marengo County Man Receives 42 Month Sentence for Possession of Ammunition After Felony ConvictionRead the Press Release
The United States Attorney, Richard W. Moore, announces that Gerald Johnson, a 25 year old, resident of Demopolis, Alabama was sentenced to 42 months of incarceration followed by three years of supervised release for possession of ammunition after being convicted of Possession of a Controlled Substance, a felony, on July 16, 2012.
On October 25, 2017, a Demopolis Police officer attempted to conduct a traffic stop on the vehicle Johnson was driving for a traffic infraction. Johnson refused to stop and instead attempted to flee and avoid the stop. Johnson drove recklessly through the city for a few minutes then stopped the vehicle jumped out and fled into a nearby house. The officer followed Johnson into the house and apprehended him. Johnson was searched incident to arrest and ammunition was seized from his pocket. Johnson pled guilty on January 25, 2018.
The Demopolis, Alabama Police Department investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutors assigned to the case were Assistant United States Attorneys Gina S. Vann and Lawrence Bullard.
Manhattan Man Charged with Murder of 17-Year-OldRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging GARY TURNER with the April 24, 2018, murder of Samuel Ozuna, 17, outside the George Washington Carver Houses in New York, New York. TURNER was arrested this morning and was presented before U.S. Magistrate Judge Debra Freeman. TURNER will be arraigned on May 8, 2018, at 2:30 p.m., before U.S. District Judge Jesse M. Furman, to whom the case has been assigned.
U.S. Attorney Geoffrey S. Berman said: “Just a few days ago, as alleged in the indictment, Gary Turner murdered 17-year-old Samuel Ozuna. Thanks to the outstanding efforts of the NYPD, Turner is now in custody and charged with this terrible crime. We will continue our daily work with the NYPD to keep the streets safe and to vigorously investigate and prosecute those who wreak violence upon our community.”
NYPD Commissioner James P. O’Neill said: “Violence will never be tolerated in New York City. I commend all the professionals whose dogged investigative work enabled the NYPD and our law enforcement partners to swiftly identify, apprehend and bring this alleged killer to justice.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
On April 24, 2018, GARY TURNER shot and killed Samuel Ozuna in the vicinity of 60 East 104th Street in Manhattan. TURNER killed Ozuna in part to maintain and increase his position in a racketeering enterprise operating in and around the George Washington Carver Houses.
* * *
TURNER is charged with using a firearm to commit murder in aid of racketeering, which carries a maximum sentence of death, or life in prison, and a mandatory minimum term of five years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Lauren Schorr and Jacob Warren are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to More Than 16 Years for Drug Distribution ChargeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Senior United States District Judge W. Earl Britt sentenced FRANZ DIDYER RAMOS-FERNANDEZ, 29, of Pasadena, Texas, to 195 months of imprisonment followed by 6 years of supervised release.
RAMOS-FERNANDEZ and co-defendant Fernando Enrique Cardona-Zavala were named in a five-count Indictment filed on June 27, 2017. On September 14, 2017 RAMOS-FERNANDEZ pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute a Quantity of Methamphetamine, a Quantity of Cocaine, and a Quantity of Marijuana.
The investigation revealed that RAMOS-FERNANDEZ was the head of a drug trafficking organization (DTO) selling crystal methamphetamine (hereinafter referred to as Ice), cocaine, and other drugs in the Wilmington, North Carolina, area. Cardona-Zavala was identified as one of RAMOS-FERNANDEZ’ primary dealers and he was sentenced on November 30, 2017.
According to a confidential source (CS), RAMOS-FERNANDEZ was importing and distributing significant quantities of multiple drugs throughout the Wilmington, North Carolina region. RAMOS-FERNANDEZ utilized a sophisticated network of local bars, nightclubs and apartments to store and sell his organization’s drugs. With the assistance of the CS, undercover agents (UC and UC2), and a confidential source of information (SOI), several controlled purchases and seizures of narcotics from RAMOS-FERNANDEZ and Cardona-Zavala took place involving crystal methamphetamine and cocaine.
According to the SOI, on March 17, 2017, RAMOS-FERNANDEZ hinted at the possibility of the SOI driving to Miami, Florida, and to Texas for RAMOS-FERNANDEZ, which could earn the SOI $5,000 to $10,000 per trip. The SOI further advised law enforcement of pictures RAMOS-FERNANDEZ recently posted on “Snap Chat” indicating that individuals at a local restaurant in Wilmington owed RAMOS-FERNANDEZ significant sums of money, noting that “they” sold drugs out of that location.
Between May and June 2017, RAMOS-FERNANDEZ relocated to the Houston area and made contact with the DEA in Houston. After a federal warrant was issued in North Carolina for RAMOS-FERNANDEZ’ arrest in late June 2017, DEA agents in Wilmington requested that DEA agents in Houston arrange for a meeting with RAMOS-FERNANDEZ. Following RAMOS-FERNANDEZ’ arrival at the DEA office in Houston on July 6, 2017, he was placed under arrest. On the same date, DEA agents conducted an unprotected interview of RAMOS-FERNANDEZ, during which he admitted to selling Ice to an undercover DEA agent in Wilmington. Additionally, RAMOS-FERNANDEZ provided details about an international Mexican DTO that had cells in Texas, North Carolina, and Philadelphia.
Based on the investigation, RAMOS-FERNANDEZ is accountable for the possession and distribution of multiple kilogram quantities of methamphetamine, cocaine and marijuana. RAMOS-FERNANDEZ possessed a firearm in connection with the offense. He is also deserving of a role enhancement for his position as a manager or supervisor of the criminal activity which involved five or more participants.
The Drug Enforcement Administration (DEA) along with local, Wilmington based law enforcement agencies conducted the criminal investigation of this case. Assistant United States Attorney Bradford Knott handled the prosecution of this case for the government.
Man Pleads Guilty to $1.2 Million ATM Skimming SchemeRead the Press Release
RICHMOND, Va. – An Alexandria man pleaded guilty today to bank fraud in connection with a $1.2 million ATM skimming and cloned card scheme.
According to court documents, Roberto De Miranda Martinez, 43, was apprehended in the process of installing a card reading ATM skimming device and camera on an ATM in Colonial Heights. In skimming schemes, the reader picks up data from bank customers using the ATM and then the perpetrators use the data to clone duplicate cards to obtain funds from the customer’s account. An FBI investigation has uncovered approximately $1.2 million in losses from the scheme.
De Miranda Martinez pleaded guilty to conspiracy to commit bank fraud, and bank fraud. He faces a maximum penalty of 30 years in prison when sentenced on August 1. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, Jerald W. Page, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, Colonel Jeffrey W. Faries, Chief of Colonial Heights Police, and Ron Camacho, Chief of Chambersburg (PA) Police Department, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-49.
Local Business Owner Convicted of Conspiring to Defraud the VARead the Press Release
HOUSTON – A 55-year-old Pearland resident has entered a guilty plea to conspiracy to commit wire fraud, announced U.S. Attorney Ryan K. Patrick.
Henry Guillory admitted that beginning on Nov. 21, 2012, he was engaged in a conspiracy to defraud the Department of Veteran Affairs (VA).
The VA awards contracts to qualified companies that disabled veterans own as part of the Service Disabled Veteran Owned Small Business (SDVOSB) program.
Guillory recruited a service disabled veteran to falsely claim majority ownership of a Houston-based company named MEP Sales and Service (MEP), while Guillory, the true majority owner, claimed minority ownership. This was done so as to get MEP certified as a SDVOSB thereby providing MEP the ability to be awarded contracts. Because of their fraudulent claims, MEP was wrongfully awarded 12 VA small business set-aside contracts totaling more than $1.6 million that should have been given to legitimate veteran-owned small businesses. All 12 of these set-aside contracts were for maintenance and/or construction work at the DeBakey VA Medical Center.
U.S. District Judge Alfred H. Bennett accepted the plea and set sentencing for July 12, 2018, at which time Guillory faces up to five years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
VA - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Daniel C. Rodriguez is prosecuting the case.
Lewiston-Auburn Men Indicted for Health Care FraudRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced today that a federal Grand Jury sitting in Portland handed down an indictment charging Abdirashid Ahmed, 38, of Lewiston and Garat Osman, 32, of Auburn, with health care fraud involving the MaineCare program and soliciting and receiving health care kickbacks from May 2015 through December 2017.
According to the indictment, Ahmed solicited kickbacks from a MaineCare provider in exchange for referring beneficiaries to the provider. Ahmed and Osman then allegedly brought beneficiaries to the provider and served as Somali interpreters during the visits. The indictment recites that fraudulent bills were submitted to MaineCare that overstated the health and interpreter service provided and MaineCare reimbursed the provider based upon the fraudulent billing. And, according to the charges, the provider then paid Ahmed and Osman the monies that MaineCare paid on the fraudulent interpreter claims.
If convicted, each person faces up to 10 years in prison, three years of supervised release, and a $250,000 fine. If convicted, each person may also be ordered to pay restitution to MaineCare.
The investigation is being conducted by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of the Inspector General, and the State of Maine Attorney General’s Medicaid Fraud Crime Unit.
Both defendants were arrested this morning and are expected to make initial appearances in U.S. District Court in Portland later today.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Laredo Federal Jury Convicts Florida Woman for Meth ImportationRead the Press Release
LAREDO, Texas – A 28-year-old woman has been found guilty of importing 15.62 kilograms of crystal methamphetamine, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for five hours following a two-day trial before convicting Mayra Aguirre, of Bradenton, Florida.
On Oct. 9, 2017, Aguirre attempted to enter the United States via the Lincoln-Juarez Bridge driving her recently-purchased silver 2012 Dodge Durango. Her sister and young toddler were with her. Officers became suspicious after she gave inconsistent replies to standard questions and could not provide proof of vehicle registration.
She was referred to secondary inspection, at which time officers detected a powerful chemical odor emanating from the interior of the vehicle. The odor did not dissipate and initially made some officers nauseous. An inspection revealed obvious signs of mechanical tampering with the discovery of non-factory bolts, glue and unusual welding under the carpeting. A subsequent search revealed 15.62 kilograms of methamphetamine stored within 29 plastic bags hidden inside a false “trap door” panel manually attached to the inside of vehicle.
At trial, the jury also heard that the drugs have an estimated value of up to $500,000 in Florida.
The defense attempted to convince the jury the methamphetamine was placed in her client’s vehicle when it was stolen in Mexico a month prior to her arrest. They did not believe her claims and found her guilty as charged.
Sentencing will be set a later date. At that hearing, Aguirre faces up to life in federal prison and a possible $10 million fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Michael Eaton, Christopher Dos Santos and Francisco J. Rodriguez are prosecuting the case.
Lancaster Man Pleads Guilty to Fentanyl Trafficking Conspiracy ChargeRead the Press Release
CONCORD - Tanner Rich, 26, of Lancaster, pleaded guilty in federal court to participating in a conspiracy to distribute fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, after a traffic stop by the Campton Police Department, Rich was found in possession of over 50 grams of fentanyl. Rich subsequently admitted that he had agreed with another person to buy the drugs and that he was planning to deliver the drugs to that individual.
Rich is scheduled to be sentenced on July 31, 2018.
“Fentanyl poses a substantial public safety threat to all parts of the Granite State,” said U.S. Attorney Murray. “We work together with our law enforcement partners each day to stop the distribution of this deadly drug. I commend the work of the Campton Police Department whose efforts may have saved lives by stopping the distribution of this dangerous substance.”
This matter was investigated by the Campton Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
###
Kearney Woman Sentenced for $4.3 Million Meth, Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kearney, Mo., woman was sentenced in federal court today for her role in a $4.3 million conspiracy to distribute large quantities of methamphetamine and heroin throughout Jackson, Clay, Ray, Clinton and Buchanan counties.
Sabrena Lynn Morgan, 41, of Kearney, was sentenced by U.S. Chief District Judge Greg Kays to nine years in federal prison without parole. The court also ordered Morgan to pay the government a money judgment of $1,490,000 based upon her drug responsibility.
On June 9, 2017, Morgan pleaded guilty to participating in a conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug-trafficking crime and maintaining a premises for the purpose of storing, distributing and using methamphetamine.
In 2010, the Buchanan County Drug Strike Force and the DEA initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri and northeast Kansas. Gregory Bullock, 49, Jose Luis Ruiz-Salazar, 39, and his brother, Gabriel Ruiz-Salazar, 35, all of Kansas City, Mo., have admitted to being the primary sources that supplied co-conspirators with large amounts of methamphetamine during the conspiracy. Conspirators distributed methamphetamine throughout Jackson, Clay, Ray, Clinton and Buchanan counties in Missouri.
Morgan admitted that she was among the conspirators who received large amounts of methamphetamine from the Ruiz brothers and others. She distributed the methamphetamine to others, who in turn re-distributed it. Morgan was responsible for the distribution of more than five kilograms of methamphetamine. Law enforcement officers recovered a pink pump-action shotgun from Morgan’s residence after her arrest.
Bullock was sentenced to 15 years and five months in federal prison without parole and ordered to pay the government a money judgment of $365,000 based upon his drug responsibility. Gabriel Ruiz-Salazar was sentenced to 15 years and eight months in federal prison without parole. Jose Ruiz-Salazar awaits sentencing.
According to court documents, conspirators sold $4,359,600 worth of methamphetamine and heroin from 2010 to 2015. That estimate is based on a conservative street price of $1,200 for an ounce of 50 percent pure methamphetamine and the total conspiracy distribution of at least 100 kilograms of methamphetamine, and a conservative street price of $2,500 per ounce of heroin and an overall conspiracy distribution of approximately three pounds.
Morgan is among 21 co-defendants who have been sentenced after pleading guilty to their roles in the conspiracy to distribute methamphetamine.
Elgin Eugene Dothage, also known as “Butch,” 41, of Kearney, Mo., was sentenced to 20 years in federal prison without parole. The court ordered the federal sentence to be served consecutively to a nine-year sentence for his conviction in an unrelated state case. Ryan A. Battagler, 39, of Kearney, was sentenced to 12 years in federal prison without parole.
Jason Lee Kirtley, 45, of Excelsior Springs, Mo., was sentenced to 12 years and 11 months in federal prison without parole and ordered to forfeit to the government $28,800, which represents the proceeds of drug trafficking. Steven Lee Schreier, Jr., 33, of Excelsior Springs, was sentenced to eight years and four months in federal prison without parole. Jackie R. Love, 61, of Excelsior Springs, was sentenced to six years and three months in federal prison without parole. Anthony Ray Stevenson, 46, of Excelsior Springs, was sentenced to 22 years and six months in federal prison without parole. Paula Rae Scott, 48, of Excelsior Springs, four years and 11 months in federal prison without parole. Marion Eugene Brammer, 54, of Excelsior Springs, was sentenced to six years and three months in federal prison without parole. Rodney Earl King, 52, of Excelsior Springs, was sentenced to five years and two months in federal prison without parole. Darin Gene Berry, 52, of Excelsior Springs, was sentenced to four years and five months in federal prison without parole.
Bryan D. Carroll, 29, of Kansas City, Mo., was sentenced to six years and six months in federal prison without parole. Franklin Charles Carter, also known as “Frankie,” 29, of Grandview, Mo., was sentenced to eight years in federal prison without parole.
Jason Daniel Davis, 44, of Liberty, Mo., was sentenced to 15 years and eight months in federal prison without parole. Taylor Lee Syas, 25, of Polo, Mo., was sentenced to eight years and four months in federal prison without parole. Ronald Louis Roberts, 55, of Lathrop, Mo., was sentenced to 10 years and six months in federal prison without parole.
Brian Michael Bowers, 35, of Richmond, Mo., was sentenced to 12 years and six months in federal prison without parole. Jay Harrison Lee Carder, 31, of Cowgill, Mo., was sentenced to eight years and four months in federal prison without parole. Gary Dewayne Brown, 38, of Cowgill, was sentenced to 12 years and seven months in federal prison without parole. Brittney James Brehm, 39, of Bland, Mo., was sentenced to six years and 11 months in federal prison without parole.
Four co-defendants have pleaded guilty and await sentencing. In addition to Jose Ruiz-Salazar, co-defendants William Dean Campbell, 37, of Excelsior Springs; Joshua Keith Bowers, 34, of Polo; and Caleb Dean Hayes, 37, of Kansas City, Mo., are among 26 defendants indicted in this case who have pleaded guilty.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades, Bradley K. Kavanaugh and Matt Moeder. It was investigated by the Clay County Drug Task Force, the Missouri State Highway Patrol, the Caldwell County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force and the DEA.
Kaneohe Man Found Guilty of Federal Drug Trafficking CrimesRead the Press Release
HONOLULU – A federal jury today found Douglas Farrar, Sr., 54, of Kaneohe, guilty of four counts of federal drug trafficking crimes for his role as the leader of a local drug distribution organization. The verdict came a few hours after a four-day trial.
Kenji M. Price, U.S. Attorney for the District of Hawaii, said that according to information presented in court, between 2013 and 2014, Farrar conspired with others to purchase large quantities of methamphetamine and cocaine from sources in California and ship the drugs back to Hawaii for distribution. He hired others to work for him and help him import and sell the drugs. In one shipment in July of 2014, federal agents seized 32 pounds of methamphetamine and 4 kilograms of cocaine that Farrar had shipped into Hawaii, intending to sell it once it arrived.
Farrar was found guilty of conspiracy to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine and 500 grams or more of cocaine. He was also found guilty of two counts of distributing 50 grams or more of methamphetamine, and one count of attempting to possess with the intent to distribute 50 grams or more of methamphetamine and 500 grams or more of cocaine. Farrar will face a mandatory minimum term of imprisonment of twenty years on each count when he is sentenced on August 20, 2018, by U.S. District Judge Susan Oki Mollway.
The investigation was led by Homeland Security Investigations, with assistance from the IRS and the Honolulu Police Department. Assistant U.S. Attorneys Mark Inciong and Amalia Fenton handled the prosecution.
KC Man Sentenced to 20 Years for Meth, Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine and heroin.
Theodis Dewan Johnson, 42, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 20 years in federal prison without parole.
On Jan. 4, 2018, Johnson pleaded guilty to participating in a conspiracy to distribute more than 2.2 kilograms of methamphetamine as well as heroin from Oct. 21, 2015, until his arrest on Sept. 28, 2016. Co-defendants Erin R. Markley, 36, and Evelyn Leona Cooper, 46, both of Kansas City, Mo., also have pleaded guilty to their roles in the drug-trafficking conspiracy. Markley was sentenced to six years in federal prison without parole and Cooper is scheduled to be sentenced on May 22, 2018.
A confidential informant purchased methamphetamine from Johnson and Cooper, the leader of the conspiracy, on several occasions. When law enforcement officers executed a search warrant at their residence, they found multiple handguns, approximately 76.5 grams of methamphetamine and approximately 17 grams of heroin.
Johnson acted as a narcotics runner, money collector and as protection for Cooper’s narcotics operation. Johnson was directly responsible for the distribution of 705.64 grams of methamphetamine. Johnson was in possession of a loaded Taurus .380-caliber semi-automatic pistol at the time of his arrest.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
KC Man Indicted for Illegal Firearms After Sharing Video of Himself Pointing a Gun at Another ManRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was indicted by a federal grand jury today after he distributed a video of himself holding a gun to the head of a blindfolded man.
Sean A. Winston, 41, of Kansas City, was charged with being a felon in possession of firearms in an indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Winston was in possession of a Rossi .38-caliber revolver and a Springfield Armory .40-caliber semi-automatic handgun on April 10, 2018. The indictment replaces a criminal complaint that was filed against Winston on April 11, 2018.
According to an affidavit filed in support of the original criminal complaint, an individual contacted law enforcement on April 8, 2018, to report that Winston sent him a video, via text message, in which Winston was holding a handgun to the head of a blindfolded man. Police officers contacted family members, who said they also had received the video. The video showed an unidentified man, who was blindfolded and was sitting on a couch with his hands in the air in a surrendering posture. In the video, the affidavit says, Winston said the blindfolded man should be dead. The blindfolded man replied with “I love you, Sean. I love you, Sean.” According to the affidavit, Winston appeared to be angry and agitated in the video.
Winston’s family members said the blindfolded man appeared to be one of Winston’s associates, who was later identified and located. The man acknowledged that he was in the video, but he did not want to want to cooperate with the prosecution.
On April 10, 2018, police officers arrested Winston and searched his residence, where they found both of the firearms.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Winston has prior federal felony convictions for distributing a controlled substance and being a felon in possession of a firearm.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Matthew Moeder. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Announces First Criminal Illegal Entry Prosecutions of Suspected Caravan MembersRead the Press Release
The Department of Justice today filed criminal charges against eleven different suspected members of the so-called “caravan” in the United States District Court for the Southern District of California, announced Attorney General Jeff Sessions and U.S. Attorney for the Southern District of California Adam Braverman. All defendants are alleged to have illegally entered the country in violation of 8 U.S.C § 1325, and one defendant is also alleged to have been previously deported and was charged with 8 U.S.C § 1326 (illegal reentry).
“When respect for the rule of law diminishes, so too does our ability to protect our great nation, its borders, and its citizens,” said Attorney General Jeff Sessions. “The United States will not stand by as our immigration laws are ignored and our nation’s safety is jeopardized. U.S. Attorney Adam Braverman and his team should be commended for quickly filing illegal entry charges for individuals apprehended along the southwestern border. We will continue to work with our partners in each U.S. Attorney’s Offices to aggressively pursue prosecutions of criminal illegal entry.”
“The American Dream has beckoned immigrants from across the globe because of the promise that prosperity and success are within reach for all,” said United States Attorney for the Southern District of California Adam L. Braverman. “Those immigrants have contributed their voices and perspectives to make up our uniquely American experience. But the foundation for the American Dream, and what allows our democracy to flourish, is commitment to the rule of law. These eleven defendants face charges now because they believed themselves to be above the law. Those seeking entry into the United States must pledge fidelity to the law, not break them, or else face criminal prosecution.”
According to the complaints, defendants were apprehended by Border Patrol in the following areas known as: Goat Canyon, 35 Draw, Eucci Grove, and W-8. Goat Canyon, 35 Draw, and Eucci Grove are approximately four miles west of the San Ysidro, California Port of Entry, and W-8 is approximately two miles west of San Ysidro.
The complaints allege that the defendants knowingly and willingly entered into the United States at a time and place other than as designated by Immigration Officers, and eluded examination and inspection by Immigration Officers.
A complaint contains allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Jackson Man Charged in Multi-Million Dollar Fruad Scheme Affecting Hundreds of Victims Across Multiple StatesRead the Press Release
Jackson, Miss. – Arthur Lamar Adams, 58, of Jackson, has been charged by Criminal Information for his role in a large multi-million dollar Ponzi scheme that adversely affected hundreds of victims across multiple states over a number of years, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
Adams will appear before U.S. Magistrate Judge Linda R. Anderson today at 2 p.m. for his initial appearance and arraignment on the Criminal Information.
Adams is charged with two counts of wire fraud involving a scheme to defraud investors, and one count of bank fraud, all in connection with a Ponzi scheme using Madison Timber Properties, LLC, a company wholly owned by Adams.
"Greed is not good. Greed drove this individual to lie, cheat and steal from fellow Mississippians, and led him to prey upon others outside our state, simply to personally benefit himself. While this may be one of the largest Ponzi scheme ever committed in our state, our citizens can rest assured that these criminal actions by this defendant sadly affecting so many people will be met with swift and certain justice. I commend the FBI special agents and prosecutor in this case for their diligent work. We will continue to pursue this case and all the evidence until all crimes have been discovered, all criminals have been brought to justice, and all victims have been assisted," said U.S. Attorney Hurst.
As charged in the Criminal Information, beginning as early as 2011 and continuing through April 2018, Adams devised a scheme to defraud investors by soliciting millions of dollars of funds under false pretenses, failing to use the investors’ funds as promised, and converting investors’ funds to Adams’s own benefit without the knowledge of the investors. Instead of investing his clients’ money, Adams used the invested funds for his own personal benefit and for purposes other than those represented to investors, which also included making payments due and owing to other investors, thus perpetuating the Ponzi scheme. During the fraudulent scheme, Adams fraudulently obtained well in excess of one hundred million dollars from more than 250 investors located in at least 14 different states.
As part of his fraudulent scheme, Adams falsely represented to investors that Madison Timber Properties was in the business of buying timber rights from landowners and then selling the timber rights to lumber mills at a higher price. The object of the scheme was to cause individuals to invest in loans that purportedly were for the purpose of financing contracts for the purchase of timber rights to be sold to lumber mills at a higher price. However, neither Adams nor Madison Timber Properties had such timber rights or contracts with lumber mills, except in only a few instances.
Adams entered into fraudulent investment contracts with investors, most often in the form of promissory notes on behalf of Madison Timber Properties. The loans typically guaranteed investors an interest rate of 12-13%, with the interest to be repaid to investors over the course of 12-13 months. The monthly payments due on these promissory notes were typically due on either the first or the fifteenth of the month.
Adams created false documents causing investors to believe that their investments were secured by sufficient collateral from which they could recover all or part of their investment in the event that Madison Timber Properties defaulted on the loans. Specifically, Adams created false timber deeds purporting to be contracts conveying timber rights from landowners to Madison Timber Properties. Adams forged the signatures of landowners and also created false timber deeds purporting to convey timber rights from Madison Timber Properties to the investors. To further lull investors, Adams had many of the documents notarized to make the investments appear legitimate. Adams also required the investors to agree not to record their timber deeds unless Madison Timber Properties defaulted on the loan agreement by failing to make a payment. In many instances, Adams also provided a "timber cruise summary" purporting to state the value of the timber located on a particular parcel of land. These "timber cruise summary" documents were also false and had been created by Adams to induce investors to give money to Adams under false or fraudulent pretenses.
Investors are requested to gather and retain any documents that they have concerning their investments with Madison Timber Properties, LLC and/or Arthur Lamar Adams. Information about developments in this investigation and further instructions on how to provide information to the pertinent authorities will be provided at the earliest possible date. The FBI and the U.S. Attorney’s Office will be reaching out to identified victims shortly.
We know that investors are anxious to learn whatever they can about the status of their investments and the assets of Madison Timber Properties, LLC. Although we cannot provide further details at this time, please be assured that all those involved are working diligently to investigate this matter and to locate and preserve assets that can be used for restitution to defrauded investors.
The case is being investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
Inmate sentenced to over eight years additional prison time for drug trafficking from prisonRead the Press Release
ATLANTA - Jorge Armando Ramirez-Lira, a/k/a Negro, a/k/a Jorge Beltran-Carillo, a/k/a Edgar Nava-Baltazar, was sentenced to an additional eight years and one month in prison for importing heroin into the U.S. from Colombia and laundering the drug proceeds.
“Ramirez-Lira, who is already in prison for drug trafficking crimes, used contraband cell phones to broker deals to smuggle heroin into the U.S. from Colombia disguised as jewelry and artwork,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to the cooperation between law enforcement officials from both the U.S. and Colombia this operation has been dismantled, leaving Ramirez-Lira with an even longer prison sentence.”
“DEA is fully committed to tirelessly pursuing criminals who sell large quantities of drugs, whether they’re selling them on the streets or inside a prison,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “This criminal was already serving time for drug trafficking and had the audacity to continue trafficking while incarcerated. His criminal acts has landed him even more deserving time in prison. The spirited level of law enforcement cooperation made this investigation a success.”
“Heroin is having a devastating effect on some of our communities in the City of Atlanta and throughout metro Atlanta,” said Atlanta Police Chief Erika Shields. “We’re grateful to our federal partners for the teamwork and assistance they provide our Department in helping heal our neighborhoods by putting the peddlers of this poison behind bars.”
According to U.S. Attorney Pak, the charges and other information presented in court: Ramirez-Lira was a member of a Medellin, Colombia-based international drug trafficking and money laundering organization that conspired to import large quantities of heroin from Colombia into the U.S., including the Atlanta area, and to export cocaine from Colombia into Europe. The drug trafficking organization utilized drug sources throughout South America including in Chile, Colombia, Peru, Ecuador, and Venezuela, and then exported narcotics using commercial parcel carriers and Mexican logistics providers before distributing the narcotics in the U.S. and Europe. The organization laundered drug trafficking proceeds from the U.S. back to Colombia.
Ramirez-Lira, an inmate in the federal correctional institution in Yazoo City, Mississippi, was an operative within the organization whose role was to serve as a broker, ensuring that the organization had wholesale buyers and trafficking networks throughout the U.S. As a broker, from inside federal prison, Ramirez-Lira gained access to multiple contraband cellular telephones, which he used to facilitate the drug importation and distribution. To disguise the heroin shipments, the organization employed an architectural designer, co-defendant Luis Felipe Garcia-Jiminez, who fashioned the heroin into artwork and jewelry. DEA agents in the U.S. and in Colombia, working collaboratively with the Colombian National Police, seized multiple heroin shipments and ultimately identified members of the organization through wiretaps, surveillance, and analysis of financial and other documents.
Members of the organization who have been sentenced to date include:
•Jorge Armando Ramirez-Lira, a/k/a Negro, a/k/a Jorge Beltran-Carillo, a/k/a Edgar Nava-Baltazar was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to eight years and one month in prison, to be followed by ten years of supervised release. Ramirez pleaded guilty to conspiring to import and distribute heroin and money laundering.
•Luis Fernando Ospina, a/k/a Caneco, was previously sentenced to 15 years in prison, to be followed by five years of supervised released. Ospina pleaded guilty to conspiring to import and distribute heroin and money laundering after being arrested in Colombia in October 2013, and extradited to the U.S. in November 2014.
•Carlos Mario Duque-Gallego a/k/a Bunuelo, was previously sentenced to 10 years in prison, to be followed by five years of supervised released. Duque-Gallego pleaded guilty to conspiring to import and distribute heroin after being arrested in the Southern District of Florida in October 2013.
•Jorge Yimis Marin-Giraldo a/k/a Carnal, was previously sentenced to seven years and three months in prison, to be followed by four years of supervised released. Marin-Giraldo pleaded guilty to conspiring to distribute heroin after being arrested in the Southern District of Florida in February 2014.
•Luis Felipe Garcia-Jiminez, a/k/a Pipe, was previously sentenced to five years and 11 months in prison, to be followed by five years of supervised released. Garcia-Jiminez pleaded guilty to conspiring to import and distribute heroin after being arrested in Colombia in October 2013, and extradited to the U.S. in September 2014.
•Joel Lopez was previously sentenced to four years and three months in prison, to be followed by three years of supervised released. Lopez pleaded guilty to conspiring to import heroin and money laundering after being arrested in the Northern District of Georgia in August 2013.
This case is being investigated by the Drug Enforcement Administration in partnership with the Colombian National Police and the Atlanta Police Department.
Assistant U.S. Attorneys Ryan M. Christian and Garrett L. Bradford prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Inmate at Sandoval County Detention Center Sentenced to Federal Prison for Trafficking Heroin While IncarceratedRead the Press Release
ALBUQUERQUE – Ismael Vargas, 30, of Belen, N.M., was sentenced today in federal court in Albuquerque, N.M., to 41 months in prison followed by four years of supervised release for his heroin trafficking conviction. At the time he committed the offense, Vargas was an inmate at the Sandoval County Detention Center.
In Jan. 2016, the DEA arrested Christopher Gonzales, 22, of Albuquerque, N.M., and Fabrienne Rosalinda Morales, 41, of Peralta, N.M., on a five-count indictment. At the time, Gonzales was a corrections officer at Sandoval County Detention Center. The indictment charged Gonzales and Morales with conspiracy. It also charged Gonzales with possession of heroin and Suboxone with intent to distribute, and Morales with distributing heroin and Suboxone. The indictment was superseded on Feb. 9, 2016, to add Vargas, to the conspiracy charge. According to the superseding indictment, the defendants committed the crimes on Aug. 2, 2015, in Sandoval County, N.M.
On March 9, 2017, Vargas pled guilty to Count 1 of the superseding indictment charging him with conspiracy to distribute heroin. In entering the guilty plea, Vargas admitted that on Aug. 2, 2015, while he was an inmate at the Sandoval County Detention Center, he arranged for heroin to be delivered to the jail. Vargas also admitted that he facilitated the payment of money to a corrections officer to get the heroin into the jail.
On Feb. 28, 2017, Gonzales pled guilty to possessing heroin with intent to distribute. In entering his guilty plea, Gonzales admitted that on Aug. 2, 2015, while he was working as an officer at the Sandoval County Detention Center, he brought heroin to the Detention Center with the intention of delivering it to an inmate. Gonzales was sentenced to a five-year term of probation on May 31, 2017. Additionally, Gonzales’ employment as a corrections officer was terminated after he was charged in his case.
On Jan. 13, 2017, Morales pled guilty to distributing heroin. In entering the guilty plea, Morales admitted that on Aug. 2, 2015, she smuggled heroin into the Sandoval County Detention Center and gave it to a corrections officer. Morales was sentenced to 18 months of imprisonment and three years of supervised release on April 17, 2017.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Howard R. Thomas prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Imperial Woman Pleads Guilty to Distributing Sexual Images of ChildrenRead the Press Release
PITTSBURGH – A former Allegheny County resident pleaded guilty yesterday in federal court to a charge of distribution of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Kaitlin Plascjak, age 30, of Imperial, Pennsylvania, pleaded guilty before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on May 5, 2016, Plascjak distributed images containing material depicting the sexual exploitation of minors.
Chief Judge Conti scheduled sentencing for August 31, 2018, at 11 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Allegheny County District Attorney’s Office and the Allegheny County Police conducted the investigation leading to the successful prosecution of Plascjak.
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.justice.gov/psc.
Illegal Aliens Sentenced for Human Smuggling Conspiracy and Unlawful Return after Felony ConvictionRead the Press Release
Gulfport, Miss. – Luis Enrique Moran-Vargaz, 36, an illegal alien from Mexico, was sentenced yesterday by U.S. District Judge Sul Ozerden to 8 months in federal prison, followed by three years of supervised release, for conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Mike Hurst and Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
As a result of this felony conviction, Moran-Vargas will face removal proceedings by the U.S. Department of Homeland Security upon the completion of his prison sentence. Were he to be removed and unlawfully return to the United States during his period of supervised release, he could face additional penalties. Moran-Vargas pled guilty on January 23, 2018, before Judge Ozerden in Gulfport.
Additionally, one of the passengers Moran-Vargaz was transporting, Juan Antonio Martinez-Alonso, 50, also an illegal alien from Mexico, was sentenced yesterday to nine months in federal prison, followed by three years of supervised release, for illegally re-entering the United States after being lawfully removed following a felony conviction. Martinez-Alonso also will face removal proceedings upon his release from prison. Were he to be removed and unlawfully return to the United States during his period of supervised release, he could face additional penalties. Martinez-Alonso pled guilty on January 23, 2018, before Judge Ozerden in Gulfport.
On November 28, 2017, a Dodge Ram pick-up truck driven by Moran-Vargaz, and with Martinez-Alonso as a passenger, was stopped by a City of Gautier Police Officer on Interstate-10 in Jackson County, Mississippi, for speeding in a construction zone. While the Dodge Ram was designed to seat five people, the police officer observed that, in addition to the driver, there were six unidentified passengers for a total of seven occupants in the vehicle. The vehicle occupants provided Mexican identification documents and the six passengers could not be identified by the driver. The U.S. Border Patrol was notified, and a Border Patrol Agent responded to the scene.
None of the vehicle occupants had proper documents, and all were illegally present in the United States. All occupants of the vehicle were arrested, and further investigation revealed that Martinez-Alonso previously had been removed from the United States twice in 2016, after a lawful removal order had been issued. Martinez-Alonso also had been convicted of this same offense in 2016 in the United States District Court for the District of New Mexico.
The case was investigated by the U.S. Department of Homeland Security, the U.S. Border Patrol, and the Gautier Police Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
IT Operations Manager Pleads Guilty to Hacking Former EmployerRead the Press Release
ALEXANDRIA, Va. – A Sterling man pleaded guilty today to intentionally damaging his former employer’s computer network.
According to court documents, Martin Mehran Taheri, 33, worked as an information technology operations manager at a data optimization company located in northern Virginia until November 2016. Following his termination from the company, Taheri repeatedly accessed his former employer’s network without authorization between December 2016 and February 2017. Then, in late July 2017, Taheri logged into his former employer’s network, powered off the company’s servers, and partially cleared an event log. Taheri’s actions rendered his former employer’s websites and commercial services unavailable until power to the servers was restored.
Taheri pleaded guilty to intentionally damaging a computer by knowing transmission. He faces a maximum penalty of 10 years in prison when sentenced on July 27. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Alexander P. Berrang is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-125.
Humansville Man Sentenced for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Humansville, Mo., man was sentenced in federal court today for receiving and distributing child pornography.
Christopher James Lane, 32, of Humansville, was sentenced by U.S. District Judge M. Douglas Harpool to 10 years in federal prison without parole.
On Aug. 31, 2017, Lane pleaded guilty to receiving and distributing child pornography between Sept. 13 and Sept. 15, 2016.
According to court documents, Lane came to the attention of law enforcement because his roommate observed child pornography on his cell phone. Investigators searched Lane’s cell phones and laptop computer and found hundreds of images of child pornography. Law enforcement also located animated child pornography, child erotica, and animated bestiality on the devices.
Lane’s collection, according to court documents, included animated child pornography (anime) that depicted animals having sexual intercourse with children featuring such characters as Inspector Gadget, Lilo and Stitch, and Scooby Doo.
The federal offense occurred after Lane had previously been under investigation for two separate instances of child molestation, at which time law enforcement officers located his Internet history revealing that Lane had logged onto child pornography websites.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Polk County, Mo., Sheriff’s 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."
Honduran Man Indicted for Conspiring to Launder over $1 Million in Bribes and Funds Misappropriated from the Honduran Social Security AgencyRead the Press Release
A federal grand jury in the Eastern District of Louisiana has returned a 12-count indictment charging Carlos Alberto Zelaya Rojas with money laundering violations, impairing the court’s jurisdiction over property subject to forfeiture, impeding an official proceeding, and perjury. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Deputy Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) made the announcement.
According to the indictment, Carlos Zelaya, 47, a citizen of Honduras who was residing in the New Orleans area, conspired with his brother, the former Executive Director of the Honduran Institute of Social Security, and others, to launder over $1.3 million in bribe payments. These bribes were paid by two Honduran businessmen for the benefit of the Executive Director. The funds were then laundered into the New Orleans area through international wire transfers and used to purchase real estate. As part of the conspiracy, Carlos Zelaya also used his brother’s high-ranking official position to profit from lucrative Honduran government contracts and then laundered the misappropriated funds into the New Orleans area. Zelaya was arrested earlier today and had his initial court appearance before U.S. Magistrate Judge Daniel E. Knowles III, who ordered him to remain in custody pending his detention hearing on May 3.
The indictment also charges Carlos Zelaya with spending rental income from properties purchased with the proceeds of foreign corruption while he was under a court order to preserve the funds pending resolution of a federal forfeiture action. Additionally, the indictment charges that Carlos Zelaya impeded an official proceeding when he lied to the U.S. government about the source of the funds used to purchase the New Orleans-area properties, and further, that he committed perjury when he lied to a federal judge in the Eastern District of Louisiana about the rental income.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by ICE Homeland Security Investigations (HSI) New Orleans and Miami. The case is being prosecuted by Trial Attorneys Stephen A. Gibbons, Marybeth Grunstra, and Michael B. Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section with assistance from the U.S. Attorney’s Office for the Eastern District of Louisiana.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, working in partnership with federal law enforcement agencies, dedicated to prosecuting those who facilitate foreign official corruption which affects the U.S. financial system, forfeiting assets purchased with the proceeds of that corruption, and, where appropriate, repatriating the forfeited corruption proceeds for the benefit of the people of the country harmed by the abuse of public office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Honduran Man Indicted for Conspiring to Launder over $1 Million in Bribes and Funds Misappropriated from the Honduran Social Security AgencyRead the Press Release
WASHINGTON – A federal grand jury in the Eastern District of Louisiana has returned a 12-count indictment charging Carlos Alberto Zelaya Rojas with money laundering violations, impairing the court’s jurisdiction over property subject to forfeiture, impeding an official proceeding, and perjury. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Deputy Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) made the announcement.
According to the indictment, Carlos Zelaya, 47, a citizen of Honduras who was residing in the New Orleans area, conspired with his brother, the former Executive Director of the Honduran Institute of Social Security, and others, to launder over $1.3 million in bribe payments. These bribes were paid by two Honduran businessmen for the benefit of the Executive Director. The funds were then laundered into the New Orleans area through international wire transfers and used to purchase real estate. As part of the conspiracy, Carlos Zelaya also used his brother’s high-ranking official position to profit from lucrative Honduran government contracts and then laundered the misappropriated funds into the New Orleans area. Zelaya was arrested earlier today and had his initial court appearance before U.S. Magistrate Judge Daniel E. Knowles III, who ordered him to remain in custody pending his detention hearing on May 3.
The indictment also charges Carlos Zelaya with spending rental income from properties purchased with the proceeds of foreign corruption while he was under a court order to preserve the funds pending resolution of a federal forfeiture action. Additionally, the indictment charges that Carlos Zelaya impeded an official proceeding when he lied to the U.S. government about the source of the funds used to purchase the New Orleans-area properties, and further, that he committed perjury when he lied to a federal judge in the Eastern District of Louisiana about the rental income.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by ICE Homeland Security Investigations (HSI) New Orleans and Miami. The case is being prosecuted by Trial Attorneys Stephen A. Gibbons, Marybeth Grunstra, and Michael B. Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section with assistance from the U.S. Attorney’s Office for the Eastern District of Louisiana.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, working in partnership with federal law enforcement agencies, dedicated to prosecuting those who facilitate foreign official corruption which effects the U.S. financial system, forfeiting assets purchased with the proceeds of that corruption, and, where appropriate, repatriating the forfeited corruption proceeds for the benefit of the people of the country harmed by the abuse of public office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
# # #
18-558
Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Frank Everett Horner, III, of Clarksburg, West Virginia was sentenced today to 24 months incarceration for a firearms violation, United States Attorney Bill Powell announced.
Horner, age 24, pled guilty to “Unlawful Possession of a Firearm by a Drug User” in November 2017. Horner admitted to possessing a .45-caliber pistol and a .25-caliber pistol in January and February 2017 in Harrison County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.Harrison County man indicted on firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Bridgeport, West Virginia man was indicted by a federal grand jury today on firearms charges, United States Attorney Bill Powell announced.
Michael A. Spino, age 29, was indicted on one count of “Unlawful Possession of a Firearm” and one count of “Possession of an Unregistered Firearm.” Spino, having been previously convicted of two felonies, is accused of having an unregistered 12-gauge sawed-off shotgun in January 2018 in Harrison County.
Spino faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia Probation Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Harrison County man indicted on firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia man was indicted by a federal grand jury today on a firearm charge, United States Attorney Bill Powell announced.
Robert Lee Starkey, Jr., age 24, was indicted on one count of “Unlawful Possession of a Firearm.” Starkey, having been previously convicted of a felony, is accused of having .22-caliber revolver in March 2018 in Harrison County.
Starkey faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia Probation Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Guatemalan Woman Pleads Guilty to Illegally Re-entering United States After RemovalRead the Press Release
Gulfport, Miss. – Yesica Paola Rojas-Baten, 19, an illegal alien from Guatemala, pled guilty yesterday before U.S. District Judge Louis Guirola, Jr., to unlawful re-entry by an alien after removal, announced U.S. Attorney Mike Hurst, Thomas Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Rojas-Baten will be sentenced by Judge Guirola on August 2, 2018, at 9:00 a.m. and faces a maximum penalty of two years in federal prison and a $250,000 fine.
On January 30, 2018, two Hancock County Sheriff’s Deputies, working together, but in separate patrol vehicles, conducted traffic stops on two separate Honda Pilot Sport Utility Vehicles (SUVs) that were traveling together. The U.S. Border Patrol was contacted and arrived on the scene shortly thereafter. Both drivers of the SUVs were found to be in the United States illegally and each vehicle contained eight passengers who also were illegal aliens.
All eighteen occupants of both vehicles were arrested and transported to the Border Patrol Station in Gulfport, MS. One of the passengers was Yesica Paola Rojas-Baten, the defendant in this case. Rojas-Baten had been lawfully ordered removed from the United States by the Department of Homeland Security in December 2017, and had illegally returned to the U.S. after being flown from Texas back to her home country of Guatemala.
This case was investigated by Homeland Security Investigations, the U.S. Border Patrol, and the Hancock County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Guatemalan Woman Pleads Guilty to Illegally Re-entering United States After RemovalRead the Press Release
Gulfport, Miss. – Yesica Paola Rojas-Baten, 19, an illegal alien from Guatemala, pled guilty yesterday before U.S. District Judge Louis Guirola, Jr., to unlawful re-entry by an alien after removal, announced U.S. Attorney Mike Hurst, Thomas Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Rojas-Baten will be sentenced by Judge Guirola on August 2, 2018, at 9:00 a.m. and faces a maximum penalty of two years in federal prison and a $250,000 fine.
On January 30, 2018, two Hancock County Sheriff’s Deputies, working together, but in separate patrol vehicles, conducted traffic stops on two separate Honda Pilot Sport Utility Vehicles (SUVs) that were traveling together. The U.S. Border Patrol was contacted and arrived on the scene shortly thereafter. Both drivers of the SUVs were found to be in the United States illegally and each vehicle contained eight passengers who also were illegal aliens.
All eighteen occupants of both vehicles were arrested and transported to the Border Patrol Station in Gulfport, MS. One of the passengers was Yesica Paola Rojas-Baten, the defendant in this case. Rojas-Baten had been lawfully ordered removed from the United States by the Department of Homeland Security in December 2017, and had illegally returned to the U.S. after being flown from Texas back to her home country of Guatemala.
This case was investigated by Homeland Security Investigations, the U.S. Border Patrol, and the Hancock County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Great Falls Man Sentenced to Federal Prison for Firearm OffenseRead the Press Release
GREAT FALLS – Brian Denelson Willman, a 31-year-old Great Falls resident, was sentenced today to 25 months in prison followed by 2 years supervised release after pleading guilty to prohibited person in possession of a firearm on January 10, 2018. U.S. District Judge Brian M. Morris handed down the sentence.
On July 21, 2016, Willman possessed a stolen, Stevens .22 caliber rifle in Great Falls, Montana. The day before, a Great Falls residence was burglarized and six firearms were taken, including a Stevens Arms Company, model Number 26 Crackshot, .22 caliber, single shot rifle, with no serial number. A neighbor took a picture of the car involved and provided the picture and other information to the police. The Great Falls Police Department tracked down the owner of the car and learned that Willman was using the car. After a high speed pursuit, the police arrested Willman. The Stevens .22 caliber rifle was found in the trunk of the car. After his arrest, Willman called a friend from jail and discussed the stolen firearm found in the trunk of the car. At the time, Willman was on absconder status with Montana Probation and Parole. MT P&P received Willman on parole from Arizona through the interstate compact after his conviction for aggravated assault there.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Russell Country Drug Task Force and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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.
Georgia Man Pleads Guilty to Federal Marijuana Trafficking OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that SHAMAR MADDEN, also known as “Sheist,” 38, of Atlanta, Georgia, pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of conspiracy to distribute, and to possess with intent to distribute, 100 kilograms or more of marijuana.
According to court documents and statements made in court, between August 2016 and February 2017, MADDEN, Malek Long and others conspired to use the U.S. Mail to ship substantial quantities of marijuana from California to New Haven, and then distribute the marijuana throughout the area. MADDEN regularly traveled from Georgia to Connecticut to pick up his share of the cash proceeds from the marijuana trafficking enterprise.
On February 22, 2017, MADDEN, who was traveling back to Georgia, was stopped at LaGuardia Airport in New York in possession of $19,740 in cash. On that date, investigators also searched two storage lockers that Long maintained at a self-storage facility in West Haven and seized approximately $404,000 in cash.
Judge Underhill scheduled sentencing for July 23, 2018, at which time MADDEN faces a maximum term of imprisonment of 40 years.
MADDEN is released on a $50,000 bond pending sentencing.
On May 12, 2017, Long, of New Haven, pleaded guilty to the same charge. On December 12, 2017, he was sentenced to 24 months of imprisonment.
This investigation is being conducted by the Federal Bureau of Investigation, U.S. Postal Inspection Service, New Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Former Wells Man Sentenced to Life in Federal Prison on Child Sex Abuse ChargesRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that United States District Judge George Z. Singal today sentenced William Gaudet, 52, formerly of Wells, Maine, to serve life in federal prison for transporting a minor interstate intending to engage in criminal sexual activity and traveling interstate with the intent to engage in illicit sexual conduct. Gaudet was convicted on November 16, 2017, following a four-day jury trial.
According to court records and trial evidence, on two occasions during the summer of 2010, Gaudet traveled between Maine and Pennsylvania with an eight-year-old child intending to engage in sexual activity with her. On both occasions, he sexually assaulted the child. The investigation began in 2014 after the child reported the abuse. In 2012, Gaudet was convicted in New Hampshire Superior Court for sexually assaulting another minor in 2001 and 2005.
Judge Singal ordered that the life sentence run consecutive to the sentence in the New Hampshire case. Under federal law, Gaudet will not be eligible for parole. In imposing the sentence, Judge Singal stated: “The degree of cruelty displayed here is virtually beyond belief... I cannot imagine a more serious offense.”
The investigation was conducted by the Biddeford, Gorham, Kennebunk, Wells, Wakefield (New Hampshire) and Pocono Township (Pennsylvania) Police Departments; the New Hampshire Correctional Facility; the Carroll County (New Hampshire) Attorney’s Office and the Federal Bureau of Investigation.
Former Netflix, Inc. VP Charged in Scheme to DefraudRead the Press Release
SAN JOSE – Michael Kail was arraigned in federal court today on an indictment that charges him with a scheme to defraud his former employer, Netflix, Inc., announced Acting United States Attorney Alex G. Tse, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. A federal grand jury handed down the indictment on April 26, 2018, and U.S. Magistrate Judge Nathanael M. Cousins unsealed the indictment during today’s proceedings.
According to the indictment, Kail, 49, of Los Gatos, accepted kickbacks in exchange for approving payments to at least nine tech companies that were seeking to do business with Netflix. The indictment alleges that between February 2012 and July 2014, Kail, formerly a Netflix Vice President in charge of the company’s Internet Technology department, executed a scheme to defraud Netflix of its right to Kail’s employment without conflicts of interest resulting in bribes or kickbacks, commonly known as honest services fraud. Using the mail and interstate wires, including emails and an online document-signing platform, Kail received over $500,000 from at least three outside companies with which Netflix did business. Kail further sought and received valuable stock options from numerous other Netflix business partners. In exchange for these payments, Kail allegedly approved millions of dollars in contracts for goods and services to be provided to Netflix by these companies. The indictment alleges Kail created and controlled a limited liability company, Unix Mercenary LLC, to receive these kickback payments, which he used to pay personal expenses and to purchase a residence in Los Gatos, Calif.
In sum, the indictment charges nineteen counts of wire fraud, three counts of mail fraud, and seven counts of money laundering, in violation of 18 U.S.C. §§ 1341, 1343, 1346, and 1957. The indictment also seeks forfeiture of Kail’s Los Gatos property.
Kail was released on a $200,000 bond that is secured by the Los Gatos residence. Kail’s next appearance is scheduled for July 10, 2018, before the Honorable Beth Labson Freeman, U.S. District Judge, for a status conference.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Kail faces a maximum sentence of twenty years in prison and a fine of $1,000,000, or twice his gross gain or twice the gross loss to Netflix, whichever is greater, for each count of wire or mail fraud, and ten years in prison and a fine of $250,000 for each count of money laundering. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation.
Former 5linx Owner Pleads Guilty to Wire Fraud and Tax Charge for His Role in Multi-Million Dollar Marketing SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Craig Jerabeck, 57, of Rochester, NY pleaded guilty to conspiracy to commit wire fraud and filing a false tax return before U.S. District Judge David G. Larimer. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorneys Richard A. Resnick and Craig R. Gestring who are handling the prosecution of the case, stated that in 2001, the defendant, along with co-defendants Jeb Tyler and Jason Guck, started 5LINX Enterprise, Inc. (5LINX), a multi-level marketing company headquartered in Rochester. The company offered utility and telecommunications services, health insurance, nutritional supplements, and business services. 5LINX utilized independent representatives to sell products and services, and to recruit additional representatives. Jerabeck was President and Chief Executive Officer, Guck was Vice President and Secretary, and Tyler was also a Vice President. In June 2006 and July 2006, Jerabeck, Tyler and Guck sold 5LINX stock for $5,500,000 to three investment companies, Trillium Lakefront Partners III, L.P.; Trillium Lakefront Partners III, NY L.P.; and Shalam Investment Co., L.L.C. (collectively known as "the Investors").
Between May 2010 and April 2016, 5LINX sold and distributed products for a Florida vendor. As part of his plea agreement, Jarabeck admitted that he, together with Guck and Tyler, personally, and by companies they owned, received approximately $2,310,510 from a Florida vendor, without the knowledge of the 5LINX’s Investors, Board of Directors, or other stockholders. Jerabeck further admitted that he, Guck, and Tyler were each prohibited from receiving such money by their Stockholders Agreements. 5LINX, its investors, as owners between 2006 and January 2014, and as creditors thereafter, and stockholders, were entitled to and should have received the funds instead of Jerabeck, Guck, and Tyler.
In addition, Jerabeck provided false information on his personal tax returns for the years 2011 through 2013, and 2015. The defendant failed to report income he received from 5LINX, and took deductions to which he was not entitled, that is, commissions that were not paid. The false returns resulted in a tax loss to the Internal Revenue Service of approximately $118,628.
As part of his plea, Jerabeck has agreed to forfeit his interest in real property at 90 East Lake Road, in Middlesex, NY.
“For many years, this defendant consistently lied to vendors, creditors, and stockholders, as he systematically lined his pockets with millions of dollars meant for those who invested in his company,” stated U.S. Attorney Kennedy. “In addition, the defendant lied to the Internal Revenue Service and defrauded American taxpayers by failing to pay tens of thousands of dollars owed in taxes. Today’s plea should serve as a reminder to those who seek to enrich themselves through acts of dishonesty and fraud that their gains will be short-lived. This Office, together with our law enforcement partners, will work tirelessly to ensure that the final return paid to those who engage in financial fraud will be justice in the form of a federal prison sentence.”
The defendants were charged in a superseding indictment in September 2017. Charges are pending against Jeb Tyler and Jason Guck. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Sentencing will be scheduled at a later date before Judge Larimer.
Five people sentenced for roles in a firearms conspiracyRead the Press Release
ELKINS, WEST VIRGINIA – Five people were sentenced today to a combined 145 months incarceration for their roles in a firearms theft and sale scheme, United States Attorney Bill Powell announced.
Benjamin Tyler Nazelrod, of Buckhannon, West Virginia, was sentenced today to 24 months incarceration. Nazelrod, age 27, pled guilty to one count of “Conspiracy to Possess Stolen Firearms” in January 2018. He admitted to conspiring with others to receive, possess, barter, sell, conceal and dispose of 21 firearms in Upshur County in October 2016.
Johnny Lee Riley, age 28, of Ellamore, West Virginia, was sentenced today to 46 months incarceration. Ellamore pled guilty to one count of “Possession of Stolen Firearm” in January 2018. Riley admitted to receiving, possessing, bartering, concealing, or selling 10 firearms in Upshur County in October 2016. Riley was also ordered to pay $52,843.97 in restitution.
Bobby Ray Johnson, Jr., age 28, of Buckhannon, West Virginia, was sentenced today to 60 months incarceration. Johnson pled guilty to one count of “Carry a Firearm During a Drug Trafficking Crime” in January 2018. Johnson admitted to having a .40 caliber pistol during a drug trafficking crime in December 2016 in Upshur County.
Danielle Paige Tanner, age 23, of Glen Allen, Virginia, was sentenced today to 15 months incarceration. Tanner pled guilty to one count of “Conspiracy to Possess Stolen Firearms” in December 2017. Tanner admitted to conspiring with others to steal, possess, barter and sell firearms for money and methamphetamines in Upshur County and elsewhere from October 2016 to September 2017.
Aaron Matthew McLain, age 37, of Volga, West Virginia, was sentenced today to five years probation. McLain pled guilty to one count of “Possession of Stolen Firearm - Aiding and Abetting” in January 2018. McLain admitted to receiving, possessing, bartering or selling two firearms in Barbour County in October 2016.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Stephen D. Warner prosecuted the cases on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
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.
U.S. District Judge John Preston Bailey presided.
Federal inmate indicted on charges of threats to the PresidentRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal inmate was indicted by a federal grand jury today on charges involving threatening the President of the United States and threatening to blow up the White House, United States Attorney Bill Powell announced.
Nathan Allen Danforth, age 32, a federal inmate at FCI Hazelton, was indicted on two counts of “Threats Against the President” and two counts of “Threats to Damage Buildings by Use of Explosives.” Danforth is accused of mailing letters containing threats to murder the President, cause the President pain, and to watch the President die a slow, painful death. He is also accused of sending mail, threatening to blow up the White House and the federal courthouse in West Palm Beach, Florida, as well as other federal buildings in the United States. The crimes allegedly took place in November 2017.
Danforth faces up to 10 years incarceration and a fine of up to $250,000 for each of the building counts, and faces up to five years incarceration and a fine of up to $250,000 for each of the threats to the President counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the cases on behalf of the government. The United States Secret Service and Special Investigative Services – USP Hazelton investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
El Salvador man admits to drug trafficking chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jose Santiago Cruz-Delcid, of El Salvador, has admitted to cocaine distribution, United States Attorney Bill Powell announced.
Cruz-Delcid, also known as “Trucko” or “Truckito,”, who had been living in Bunker Hill, West Virginia, age 38, pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine.” Cruz-Delcid admitted to selling cocaine for $2,200 August 2017 in Berkeley County.
Cruz-Delcid faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Shawn M. Adkins and Lara K. Omps-Botteicher are prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the Potomac Highlands Drug & Violent Crimes Task Force, the Northwest Virginia Regional Drug & Gang Task Force , the West Virginia State Police, the Virginia State Police, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated. Other agencies assisting in the investigation are the Winchester City Police Department; and Frederick County, Virginia Sheriff’s Office; Pittsylvania County; Virginia Sheriff’s Office; and the Henry County, Virginia, Sheriff’s Office.
The investigation was funded in part 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.
U.S. Magistrate Judge Robert W. Trumble presided.
Edmond Man and Three Others Charged in Conspiracy to Distribute SteroidsRead the Press Release
OKLAHOMA CITY – CHRISTOPHER THOMAS CAPLINGER, 55, of Edmond, Oklahoma, and three others have been charged with conspiring to distribute anabolic steroids, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma.
On March 20, 2018, a federal grand jury returned a 23-count indictment against Caplinger, DONALD RAY VINCENT, JR., 54, of Edmond; DEBORAH ANN CRAWFORD, 47, of Oklahoma City; and MICHAEL BRANDON SCHOTT, 34, of Newport News, Virginia. In addition to allegations of illegally conspiring to distribute steroids, a Schedule III controlled substance, the indictment charges distribution of steroids to an undercover officer, manufacturing of steroids, maintaining a drug-involved premises, a conspiracy to commit money laundering, and international money laundering. According to the indictment, Capinger, Vincent, and Crawford concealed the proceeds of their illegal activity by depositing money into bank accounts in the names of third parties and storing bulk cash at residences, including approximately $280,000 buried in Caplinger’s back yard. The indictment alleges that from April 2015 until November 2017, Caplinger rented space at 8201 North Classen Boulevard in Oklahoma City for the purpose of manufacturing and distributing steroids. It also alleges that Caplinger and Crawford transferred funds to China to conceal their crimes.
The indictment seeks forfeiture of a total of $790,000 in proceeds, including Caplinger’s residential property in Edmond and more than $372,000 in cash.
Caplinger and Vincent were arraigned today in federal court in Oklahoma City.
If convicted, each defendant faces up to ten years in prison for conspiracy, followed by up to a lifetime on supervised release. Caplinger faces additional ten-year prison terms for six counts relating to the distribution and manufacture of steroids and an additional twenty years for maintaining a drug-involved premises. Caplinger, Vincent, and Crawford also face up to twenty years in prison on various money-laundering counts. All but one of the twenty-three counts carries a fine of up to $500,000.
These charges are the result of an investigation by the Drug Enforcement Agency, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Internal Revenue Service—Criminal Investigations, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Kerry Blackburn is prosecuting the case.
Reference is made to public filings for further information.
Duxbury Man Charged Under Federal Crack House StatuteRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Mark Russell (a.k.a. “Snake”), 60, of Duxbury, Vermont, has been charged, by indictment, with violating the federal “Crack House Statute,” which prohibits making available a place, such as a residence, for manufacturing, storing, distributing, or using any controlled substance (the statute is not limited to crack cocaine). The indictment alleges that Russell, who lives on Route 100 in Duxbury, made his residence available for the purpose of selling, manufacturing, storing, and using controlled substances.
This statute imposes a maximum sentence of twenty years imprisonment, up to a $500,000 fine, and up to three years of supervised release to begin after any term of imprisonment is served. The indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. If convicted, the actual sentence will be advised by the Federal Sentencing Guidelines.
Upon the government’s motion for detention, on April 30, 2018, Magistrate Judge John Conroy ordered that Russell be detained pending trial, or at least until such time that the Federal Public Defender’s Office submitted an acceptable release plan, which could include drug rehabilitation.
This case is being investigated by the Vermont State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U.S. Attorney Joe Perella. Russell is represented by Michael Desautels, Esq., of the Federal Public Defenders Office.
Dark Web Vendor Enters Plea, Faces 10 Years for Internet Distribution of Deadly Carfentanil, Fentanyl, and Other DrugsRead the Press Release
Assistant U. S. Attorney Sherri Hobson (619) 961-0287
NEWS RELEASE SUMMARY – May 1, 2018
SAN DIEGO – Today, in federal court, San Diego resident Sky Justin Gornik, age 39, pleaded guilty to participating in a conspiracy to deliver, distribute and dispense controlled substances through the internet, in violation of Title 21, United States Code, Sections 841(h), 841(b)(1)(A), and 846. Gornik also admitted that he engaged in a conspiracy to launder drug proceeds using digital currencies, in violation of Title 21, United States Code, Sections 1956(a)(1)(A)(i) and 1956(h). He agreed to forfeit millions of dollars in digital or crypto currencies that resulted from illegal drug sales. The guilty plea triggered a 10-year minimum mandatory sentence.
As part of his guilty plea, Gornik admitted that from 2014 to June 7, 2017 (the date of his arrest by federal authorities), he bought and sold controlled substances on the “Dark Web” or “Darknet.” Employing anonymous screen names, Gornik used multiple Darknet marketplaces (including Alpha Bay, Trade Route, Abraxas, Evolution, Outlaw Market, and Dream Market) to buy and sell controlled substances. Specifically, Gornik admitted that he purchased and sold fentanyl and purchased the especially deadly opiate carfentanil, using a variety of digital currencies. Gornik also purchased and sold multiple other controlled substances, including thousands of vials of ketamine, oxycodone pills, Dimethyltryptamine (DMT), Psilocybin and Psilocin, Amphetamine, Buprenorphine, Methamphetamine, and Naloxone. To conceal his criminal activity, Gornik would then blend and transfer the various digital currencies to other virtual wallets and accounts.
According to court documents, agents seized 1.7 grams of carfentanil inside Gornik’s residence on June 7, 2017. Carfentanil is a synthetic opioid approximately 10,000 more potent than morphine and 100 times more potent than fentanyl. The 1.722 grams of carfentanil seized in Gornik’s residence could equate to over 86,000 fatal dosages. Gornik also possessed sheets of fentanyl gelatin tablets (approximately 100 tabs per sheet), which agents seized during the search. According to court documents, Gornik obtained 600-1200 fentanyl gel tablets each week for approximately two years from a Darknet vendor, now identified as Steven Wallace George. George, the Oklahoma Darknet vendor, manufactured the pure fentanyl that he obtained from China into gelatin tablets. George pled guilty in federal court to possession with intent to distribute methamphetamine and distribution of fentanyl and is currently awaiting sentencing (Case No. 17-090-R Western District of Oklahoma).
As part of Gornik’s guilty plea to laundering money and to distributing controlled substances by the internet, Gornik agreed to forfeit millions of dollars in digital or crypto currency including Bitcoins, Stratis, Ethereum, 2350 Monero, digital currency contained in Gornik’s Bittrex accounts, and digital currency contained in Gornik’s Poloniex accounts. Gornik admitted that these digital or crypto currency represented drug trafficking proceeds of the offense and were involved in the offense of money laundering over the Darknet.
The investigation was led by U.S. Postal Inspectors in San Diego with the assistance of Special Agents of Homeland Security Investigations.
“A speck of carfentanil the size of a grain of sand can kill you, making this substance extremely deadly. Here law enforcement agents took 86,000 potentially fatal carfentanil doses out of Dark Web circulation, along with many other dangerous drugs, including fentanyl. We will vigorously prosecute dealers and Dark Web vendors who cavalierly endanger our community’s residents and first responders by selling deadly opioids,” stated U.S. Attorney Adam Braverman. “And Dark Web vendors beware: your cryptocurrencies are not safe from seizure.”
“The Postal Inspection Service is dedicated to protecting the American public and has made battling synthetic opioids in the mail one of its highest priorities. By working closely with other law enforcement partners in operations like this one, we can prevent dangerous drugs from reaching the communities we serve,” said Nichole Cooper, Inspector in Charge of the Los Angeles Division (to include San Diego).
“HSI is committed to working with our law enforcement partners to combat the trafficking of dangerous fentanyl and other deadly opioids on the Dark Web,” said Dave Shaw, Special Agent in Charge for HSI San Diego. “I commend the federal agents who worked tirelessly to uncover Gornik’s illicit financial scheme and transnational drug trafficking activities.”
Gornik pled guilty today before Magistrate Judge Bernard G. Skomal, and will be sentenced by District Court Judge Anthony Battalgia on July 16, 2018 at 9 a.m.
U.S. Attorney Braverman would like to specially thank the United States Postal Inspection Service, Homeland Security Investigations, the Internal Revenue Service, and DOJ Money Laundering & Asset Recovery Section for their efforts.
DEFENDANT Criminal Case No.17CR2796AJB
SKY JUSTIN GORNIK Age: 39 San Diego, California
SUMMARY OF CHARGES
Count 1 (Conspiracy to Deliver, Dispense, and Distribute Controlled Substances By Internet
Maximum penalty: 10 year minimum mandatory to life, fine of $1,000,000, 5 years of supervised release
Count 2 (Conspiracy To Launder Money)
Maximum penalty: 20 years; fine of $500,000, 3 years of supervised release
Criminal Forfeiture As To Count 1
Forfeiture to the United States of all property, real and personal, that constitutes or is derived from proceeds of the offense, and all property, real and personal, that was used to commit or to facilitate the commission of the offense.
Criminal Forfeiture As To Count 2
Forfeiture to the United States of all property, real and personal, involved in the offense.
AGENCIES
United States Postal Inspection Service, San Diego
United States Postal Inspection Services, Cyber Unit, Washington D.C.
United States Postal Inspection Service, Oklahoma
Homeland Security Investigations
Internal Revenue Service, Criminal Investigations
San Diego Police Department
San Diego District Attorney’s Office
U.S. Department of Justice, Criminal Division, Money Laundering & Asset Recovery Section
Dallas man sentenced to 10 years in prison for possessing, transporting drugs in Caddo ParishRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Dallas man was sentenced to 120 months in prison last week for possessing drugs in a vehicle that was stopped in Caddo Parish.
Xavier Martin Guerra, 34, of Dallas, Texas, was sentenced Thursday by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of methamphetamine with intent to distribute. He was also sentenced to five years of supervised release. According to the January 18, 2018 guilty plea, a Caddo Parish Sheriff’s deputy pulled over a vehicle on February 5, 2017 Guerra was riding in while on his way from Dallas Texas. Guerra was found to have an active warrant in Panola County, Texas, for forgery and was arrested. Deputies searched the vehicle and found 311.5 grams of methamphetamine in a plastic drinking cup, a total of 7.4016 grams of methamphetamine in three baggies, a .380 caliber semi-automatic handgun in a laundry basket, a drugs scale, pills and a drug ledger. They also found a cell phone and $4,435 on Guerra. He admitted to possessing the items and stated that the driver was unaware he was transporting drugs.
The DEA and Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Tennille M. Gilreath and Allison D. Bushnell prosecuted the case.
Dallas Man Sentenced to 360 Months in Federal Prison on Child Pornography ChargesRead the Press Release
DALLAS — Yesterday, U.S. District Judge David C. Godbey sentenced Hugh Michael Glenn, 47, of Dallas, Texas, on child pornography offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Glenn was convicted, following a three-day trial, of one count of transporting and shipping child pornography and one count of accessing with intent to view child pornography. Glenn has been in custody since the time of his arrest in September 2016.
The government presented evidence at trial that on August 1, 2016, Glenn transported child pornography by uploading an image of child pornography using Chatstep. Law enforcement obtained Glenn’s laptop computer, which contained the transported image and over 2,000 other images of child pornography. Glenn confessed to law enforcement that he had gone to chatrooms and viewed child pornography on the Internet.
In 2003, Glenn was convicted in the United States District Court for the Eastern District of Texas for transporting child pornography. In that case, he was sentenced to ninety-seven months of imprisonment.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Dallas Police Department investigated this case. Assistant U.S. Attorneys Camille Sparks and Jamie L. Hoxie prosecuted.
# # #
Culpeper Heroin Traffickers Sentenced in Federal CourtRead the Press Release
Charlottesville, VIRGINIA – A pair of Culpeper heroin traffickers who conspired with others to traffic at least 100 grams of the drug into the region from 2016 to 2017, were sentenced yesterday in the United States District Court for the Western District of Virginia in Charlottesville, United States Attorney Thomas T. Cullen announced.
Rondale Faulkner, 31, was sentenced yesterday to nine years in federal prison. George Christopher Faulkner, 29, was sentenced yesterday to seven years in federal prison. Both previously pleaded guilty to one count of conspiracy to distribute heroin.
“As this successful prosecution illustrates, our office is committed to working with our state and local partners to target those who distribute heroin and other dangerous drugs,” United States Attorney Cullen stated today. “Six individuals who were dealing heroin in Culpeper are now in federal prison.”
In all, six members of the conspiracy have been convicted in federal court for distributing more than 100 grams of heroin in the Culpeper region beginning in 20016 and continuing through 2017.
According to information presented at previous hearings, investigators and confidential sources working with the Blue Ridge Narcotics and Gang Task Force made purchases of heroin from members of the conspiracy at various locations throughout Culpeper. During these transactions, several of the defendants, including Rondale and George Faulkner, were observed to be in possession of firearms.
The investigation of the case was conducted by the Drug Enforcement Administration, Town of Culpeper Police Department and the Virginia State Police Blue Ridge Narcotics and Gang Task Force with Assistance from the Culpeper County Commonwealth’s Attorney. Assistant United States Attorney Ronald M. Huber and Special Assistant United States Attorney Rachel Swartz are prosecuting the case for the United States.
Colorado Couple Arraigned in New Mexico on Federal Charges Arising out of Nov. 27, 2017 Crime Spree Resulting in DeathRead the Press Release
ALBUQUERQUE – Daniel Lowell and Trista Schlaefli were arraigned this morning in federal court in Las Cruces, N.M., on an indictment charging them with carjacking and firearms charges resulting in a death. The charges arise out of a Nov. 27, 2017, crime spree during which Lowell and Schlaefli allegedly fled from a U.S. Border Patrol checkpoint, carjacked a vehicle at gunpoint resulting in the death of a victim, and attempted to carjack two other vehicles. During today’s hearings, Lowell and Schlaefli entered not guilty pleas to the indictment and were ordered detained pending trial, which has yet to be scheduled.
U.S. Attorney John C. Anderson, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, New Mexico State Police Chief Pete Kassetas and Chief Patrick Gallagher of the Las Cruces Police Department announced the charges against Lowell and Schlaefli.
The nine-count indictment, filed on April 10, 2018, charges Lowell, 34, of Henderson, Colo., and Schlaefli, 32, of Colorado Springs, Colo., with high speed flight from an immigration checkpoint, carjacking, carjacking resulting in death, attempted carjacking, and possession of at least 15 unauthorized access devices. The indictment also charges Lowell with brandishing a firearm during a crime of violence, attempted carjacking, and being a felon in possession of a firearm and ammunition. It charges Schlaefli with aiding and abetting Lowell in brandishing a firearm during a crime of violence and with attempted carjacking. According to the indictment, Lowell and Schlaefli committed the crimes on Nov. 27, 2017, in Dona Ana County, N.M.
The New Mexico State Police arrested Lowell and Schlaefli on state charges on Nov. 27, 2017, and the FBI arrested the duo on the federal indictment on April 25, 2018. The state charges will be dismissed in favor of federal prosecution in due course. Lowell and Schlaefli remain in federal custody pending trial based on judicial findings that they pose a risk of flight and a danger to the community.
If convicted on the charges in the indictment, Lowell and Schlaefli face the following maximum statutory penalties:
- High-speed flight from an immigration checkpoint – five years of imprisonment and a $250,000 fine.
- Carjacking – 15 years of imprisonment and a $250,000 fine.
- Carjacking resulting in death – life imprisonment and a $250,000 fine.
- Possession of unauthorized access devices – ten years of imprisonment and a $250,000 fine.
- Brandishing a firearm during a crime of violence – mandatory minimum of seven years of imprisonment to be served consecutive to any other sentence imposed.
- Attempted carjacking – 15 years of imprisonment and a $250,000 fine.
- Felon in possession of a firearm – ten years of imprisonment and a $250,000 fine.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of the FBI, the Las Cruces Police Department and the New Mexico State Police with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Border Patrol, and the 3rd Judicial District Attorney’s Office. Assistant U.S. Attorneys Marisa A. Ong and Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Colombian Veterinarian Extradited to the United States to Face Charges of Using Dogs to Transport HeroinRead the Press Release
Andres Lopez Elorez was arraigned this afternoon in federal court in Brooklyn before United States Magistrate Judge Marilyn Go on an indictment charging him with conspiring to import and distribute heroin into the United States. The defendant was arrested in Spain on a provisional arrest warrant issued from the Eastern District of New York and subsequently extradited from Spain to the United States on April 30, 2018. Judge Go ordered Elorez detained pending trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, announced the extradition.
“As alleged in the indictment, Elorez is not only a drug trafficker, he also betrayed a veterinarian’s pledge to prevent animal suffering when he used his surgical skills in a cruel scheme to smuggle heroin in the abdomens of puppies,” stated United States Attorney Donoghue. “Dogs are mans’ best friend and, as the defendant is about to learn, we are drug dealers’ worst enemy.” Mr. Donoghue expressed his appreciation to the United States Marshals Service, the DEA’s New York Division, Miami Division, Bogota Country Office and Madrid Country Office; The Colombian National Police; the Government of Spain and the Spanish Guardia Civil.
“Twelve years ago, our investigation unmasked drug traffickers’ inhumane callousness,” stated DEA Special Agent-in-Charge Hunt. “Over time, drug organizations’ unquenchable thirst for profit leads them to do unthinkable crimes like using innocent puppies for drug concealment, or nowadays pushing lethal amounts of fentanyl onto our streets. This week, the veterinarian allegedly responsible has been brought to New York to face the charges against him. I applaud the United States Marshal Service, the U.S. Attorney’s Office Eastern District of New York and our international law enforcement partners for their commitment to this investigation.”
According to the superseding indictment and facts presented in court, between September 2004 and January 2005, Elorez was a member of a conspiracy, based in Colombia, that smuggled heroin into the United States using various methods to conceal the narcotics from detection by law enforcement. In addition to human couriers transporting the heroin, Elorez and his coconspirators used animal couriers. Elorez, utilizing his skill as a veterinarian, surgically implanted packets of liquid heroin in the bellies of puppies in order to conceal the narcotics from authorities. When the dogs arrived in the United States from Colombia, the heroin was surgically removed from their bodies.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the crimes charged, the defendant faces a mandatory minimum sentence of 10 years’ imprisonment, and up to life imprisonment.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. The Justice Department’s Office of International Affairs handled the extradition in this matter. Assistant United States Attorneys Nathan D. Reilly and Alicia N. Washington are in charge of the prosecution.
The Defendant:
ANDRES LOPEZ ELOREZ
Age: 38
Country of Birth: ColombiaE.D.N.Y. Docket No. 5-CR-835 (S-1) (SJ)
Cigarette Companies to Post Court-Ordered Statements in Tobacco Racketeering Suit on Company Websites and Cigarette PackagesRead the Press Release
Today, the U.S. District Court for the District of Columbia entered a consent order requiring the country’s major cigarette companies to begin posting “corrective statements” on their websites starting on Monday, June 18. The order, part of a long-running lawsuit against the cigarette companies, also requires them to attach the same statements to cigarette packages for two weeks at a time, for a total of twelve weeks over two years. The order will also apply to any social media campaigns by the companies to promote cigarettes.
The statements address the effects of cigarette smoking and the fact that cigarettes are deliberately designed to create and sustain addiction. As a result of a previous court order, the statements are currently running on television five times per week, and previously ran as full-page ads in about fifty newspapers across the country. The statements specifically state, among other things:
- That smoking cigarettes causes numerous diseases and on average 1,200 American deaths every day;
- That the nicotine in cigarettes is highly addictive and that cigarettes have been designed to create and sustain addiction;
- That so-called light, low-tar, and natural cigarettes are just as harmful as regular cigarettes; and
- That secondhand smoke causes disease and death in people who do not smoke.
The corrective statements were ordered as part of a 2006 permanent injunction against cigarette companies, including Altria, its Philip Morris USA subsidiary, and R.J. Reynolds Tobacco, to “prevent and restrain” further deception of the American people regarding tobacco use. The order also applies to ITG Brands, which purchased Winston, Kool, and other cigarettes brands from companies in the case.
Numerous Justice Department attorneys have played a role in this case over the years. In the most recent phase of the litigation, the United States was represented by Trial Attorneys Daniel K. Crane-Hirsch and John (Josh) Burke of the Justice Department’s Consumer Protection Branch, and Linda McMahon of the Commercial Litigation Branch.
Six public health organizations – the American Cancer Society, American Heart Association, American Lung Association, Americans for Nonsmokers’ Rights, National African American Tobacco Prevention Network and the Tobacco-Free Kids Action Fund – joined the Department of Justice case as intervenors in 2005.
Cartersville man pleads guilty to producing child pornographyRead the Press Release
ROME, Ga. - Shawn Ryan Budovic pleaded guilty in federal court to the production of child pornography after he lured and manipulated a minor into exchanging sexually explicit images online.
“Budovic operated as an online predator who targeted very young children for sexual exploitation,” said U.S. Attorney Byung J. “BJay” Pak. “His conduct is especially egregious because he preyed upon a group of siblings, potentially causing irreparable harm to the victims individually and to the family collectively.”
“Individuals responsible for producing child pornography steal the innocence of children and further their re-victimization each time the evidence of that exploitation is shared online,” said Homeland Security Investigations Atlanta Special Agent in Charge Nick S. Annan. “This case shows HSI investigators are actively working to identity and disrupt the trade of these illegal images, and also to identify and seek prosecution of the criminals who produce and possess them.”
According to U.S. Attorney Pak, the charges and other information presented in court: Budovic used the messenger application Kik to meet his former girlfriend when she was a minor. Budovic began an online relationship with the minor, and over time Budovic groomed her to believe that his sexual interest in children was normal. He discussed his sexual interest in young children with his girlfriend and sent her images of child pornography. Eventually, Budovic asked his minor girlfriend for sexually explicit photographs of her younger siblings, who were as young as three, five, and nine years old at the time. At Budovic’s urging, the minor girlfriend ultimately sent him multiple sexually explicit photos of her three-year-old and nine-year-old sisters. Homeland Security Investigations agents found pornographic photos of the children on Budovic’s phone when they executed a search warrant at his home.
Shawn Ryan Budovic, 28, of Cartersville, Georgia, pleaded guilty to the offense of production of child pornography on May 1, 2018. He is facing a sentence of 25 years in prison, which is a binding sentencing recommendation pending approval by the Court. Budovic’s sentencing is scheduled for July 13, 2018.
This case is being investigated by the Department of Homeland Security, Homeland Security Investigations.
Assistant U.S. Attorney Jolee Porter is prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Camden Man in Drug Trafficking Ring Pleads Guilty to Crack Cocaine ChargeRead the Press Release
CAMDEN, N.J. - A Camden man today admitted possessing crack cocaine with the intent to distribute as part of a drug trafficking organization operating in the city of Camden, U.S. Attorney Craig Carpenito announced.
Rajai Gaines, a/k/a “Jigga,” 36, pleaded guilty before U.S. District Judge Renée Marie Bumb to a superseding information charging him with possessing with intent to distribute 28 grams or more of cocaine base.
According to documents filed in this case and statements made in court:
Gaines admitted that he met with two other men to prepare and package more than 300 grams of crack cocaine for distribution. While the meeting was underway, law enforcement officers executed a search warrant at the location, arrested Gaines and the two other men, and seized a large amount of crack, packaging materials, and drug paraphernalia.
The count to which Gaines pleaded guilty carries a mandatory minimum term of five years and a maximum of 40 years in prison. Sentencing is scheduled for Aug. 7, 2018.
Ten members of the drug ring – including Gaines – were initially arrested in June 2017 following a long-term investigation by the FBI, which utilized multiple telephone wiretaps, surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, a GPS vehicle tracker and four court-authorized search warrants, among other investigative techniques, to uncover the operations of the drug trafficking organization. During the course of the conspiracy, members of the drug trafficking organization distributed crack cocaine, fentanyl, and heroin to users and resellers in and around Camden and to persons cooperating with the FBI. The investigation ultimately led to the seizure of more than 300 grams of crack cocaine, quantities of fentanyl and heroin, a firearm, drug paraphernalia, and recent charges against an eleventh member of the organization.
Charges remain pending against alleged leaders of the drug trafficking organization John Gunther a/k/a “Critty,” 34, and Taleaf Gunther a/k/a “Leafy” and “L,” 32, as well as alleged members William Roland a/k/a “Chill,” 36, Mark Campbell a/k/a “D” and Diz,” 38, Malcolm McCoy, 27, and Davon Leak, 19. The charges and allegations against these defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Four other defendants – Karim Johnson a/k/a “Chicky,” 38, Daron Suiter, 23, George Williams, 43, and Latoya Whealton a/k/a “Toya,” 33 – have also pleaded guilty and await sentencing.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation. He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Edward F. Borden Jr. Esq., Cherry Hill, New Jersey
California Man Sentenced for Misprision of a FelonyRead the Press Release
United States Attorney Joseph P. Kelly announced that on May 1, 2018, Juan Jesus Nava, 26, of Oxnard, California, was sentenced to two years and three months (27 months) in prison for misprision of a felony. Following the prison term, Nava will serve one year on supervised release.
On August 25, 2017, a Seward County Sheriff’s Sergeant patrolling I-80 stopped a car driven by Nava for following too closely. Co-defendant Alberto Zamora was the passenger and owner of the car. Both Nava and Zamora gave verbal consent to search. During a search of the car, 15 packages of heroin, weighing approximately 24.5 pounds were found. Photos were obtained showing Zamora driving the car across the United States-Mexico border three days prior to the traffic stop. Nava was held responsible for failing to notify law enforcement officers that Zamora was transporting drugs. Zamora has pled guilty to possession with intent to distribute heroin and will be sentenced in June of 2018.
This case was investigated by the Seward County Sheriff’s Department and the Drug Enforcement Administration, (DEA).