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Thursday 15 March 2018
Joint Federal-State Investigation Results in Second Arrest in Armed Bank Robbery CaseRead the Press Release
SAVANNAH, GA: On March 13, 2018, members of the Federal Bureau of Investigation’s Southeast Georgia Violent Crimes Task Force arrested Robert Kimble, also known as “Bam” and “Ibn Yusuf,” on federal charges of armed bank robbery, brandishing a firearm during a crime of violence, and possession of a firearm by a convicted felon. According to a superseding indictment that the federal grand jury returned last week, Kimble brandished a nine-millimeter semiautomatic pistol and used force, violence, and intimidation to steal $15,647.00 from a Navy Federal Credit Union branch on October 11, 2017.
Kimble is the second of two individuals to be charged with offenses related to the Navy Federal Credit Union robbery. On January 10, 2018, the federal grand jury charged Jerrell Antonio Roberts, also known as “Zaiky Abdul Nabil,” with the same offenses for which Kimble was indicted more recently. Savannah-Chatham Metropolitan Police Department detectives and officers apprehended Roberts within approximately 30 minutes of the robbery. Roberts was arrested in the backyard of Kimble’s home in the Forest Park neighborhood of Savannah after Roberts ran from a vehicle that he had crashed while attempting to flee from police. From Roberts’s vehicle, police officers recovered $15,647.00 in cash and a loaded nine-millimeter semiautomatic pistol.
If convicted of armed bank robbery, Kimble could be sentenced to 25 years in prison and a $250,000 fine. In addition, the defendant faces a consecutive sentence of seven years’ imprisonment for brandishing a firearm during a crime of violence. Possession of a firearm by a convicted felon is punishable by 10 years in prison. All federal sentences must be served without the possibility of parole.
United States Attorney Bobby L. Christine praised the FBI and Savannah Police Department for working together to combat firearms-related violence: “This Office remains committed to protecting the citizens of this community through its partnerships with federal law enforcement and local police to ensure that armed robbers and those who abet them are brought to justice swiftly.”
Savannah Police Chief Mark Revenew stated, “This is an excellent example of our partnership with federal counterparts who join us in our commitment to remove armed criminals from our community.”
U.S. Attorney Christine emphasized that an indictment is only an accusation and is not evidence of guilt. Both defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorney Theodore S. Hertzberg is prosecuting the case on behalf of the United States. FBI Task Force Officer Michael Rowan is leading the federal investigation. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Japanese Fiber Manufacturer to Pay $66 Million for Alleged False Claims Related to Defective Bullet Proof VestsRead the Press Release
Toyobo Co. Ltd. of Japan and its American subsidiary, Toyobo U.S.A. Inc., f/k/a Toyobo America Inc. (collectively, Toyobo), have agreed to pay $66 million to resolve claims under the False Claims Act that they sold defective Zylon fiber used in bullet proof vests that the United States purchased for federal, state, local, and tribal law enforcement agencies, the Justice Department announced today.
The settlement resolves allegations that between at least 2001 and 2005, Toyobo, the sole manufacturer of Zylon fiber, knew that Zylon degraded quickly in normal heat and humidity, and that this degradation rendered bullet proof vests containing Zylon unfit for use. The United States further alleged that Toyobo nonetheless actively marketed Zylon fiber for bullet proof vests, published misleading degradation data that understated the degradation problem, and when Second Chance Body Armor recalled some of its Zylon-containing vests in late 2003, started a public relations campaign designed to influence other body armor manufacturers to keep selling Zylon-containing vests. According to the United States, Toyobo’s actions delayed by several years the government’s efforts to determine the true extent of Zylon degradation. Finally, in August 2005, the National Institute of Justice (NIJ) completed a study of Zylon-containing vests and found that more than 50 percent of used vests could not stop bullets that they had been certified to stop. Thereafter, the NIJ decertified all Zylon-containing vests.
“Bulletproof vests are sometimes what stands between a police officer and death,” said Attorney General Jeff Sessions. “Selling material for these vests that one knows to be defective is dishonest, and risks the lives of the men and women who serve to protect us. The Department of Justice is committed to the protection of our law enforcement officers, and today’s resolution sends another clear message that we will not tolerate those who put our first responders in harm’s way.”
“This settlement sends a strong message to suppliers of products to the federal government that they must be truthful in their claims, particularly with regard to health and safety,” said Carol Fortine Ochoa, Inspector General of the General Services Administration.
This settlement is part of a larger investigation undertaken by the Civil Division of the body armor industry’s use of Zylon in body armor. The Civil Division previously recovered more than $66 million from 16 entities involved in the manufacture, distribution or sale of Zylon vests, including body armor manufacturers, weavers, international trading companies, and five individuals. The settlement announced today brings the Division’s overall recoveries to over $132 million. The United States still has lawsuits pending against Richard Davis, the former chief executive of Second Chance, and Honeywell International Inc.
The settlement announced today resolves allegations filed in two lawsuits, one brought by the United States and the other filed by Aaron Westrick, Ph.D., a law enforcement officer formerly employed by Second Chance who is now a Criminal Justice professor at Lake Superior University. Dr. Westrick’s lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in 2005 in Dr. Westrick’s case. Dr. Westrick will receive $5,775,000.
This case was handled by the Justice Department’s Civil Division, along with the General Services Administration, Office of the Inspector General; the Department of Commerce, Office of Inspector General; the Defense Criminal Investigative Service; the U.S. Army Criminal Investigative Command; the Department of the Treasury, Office of Inspector General for Tax Administration; the Air Force Office of Special Investigations; the Department of Energy, Office of the Inspector General; and the Defense Contracting Audit Agency.
The claims settled by this agreement are allegations only; there has been no determination of liability. The lawsuits resolved by the settlement are captioned United States ex rel. Westrick v. Second Chance Body Armor, et al., No. 04-0280 (PLF) (D.D.C.) and United States v. Toyobo Co. Ltd., et al., No. 07-1144 (PLF) (D.D.C.).
Jackson Man Charged in Large Scale Vehicle Odometer Roll Back SchemeRead the Press Release
Jackson, Miss. – Mark Longgrear, 53, of Jackson, Mississippi was arrested yesterday and charged in a federal criminal complaint with rolling back the odometers of multiple high mileage vehicles and selling such fraudulently altered vehicles with doctored titles, announced U.S. Attorney Mike Hurst and Supervisory Special Agent David W. Sparks with the U.S. Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation.
Longgrear appeared in court today for an initial appearance on the criminal complaint before U.S. Magistrate Judge Linda R. Anderson.
According to the criminal complaint and affidavit, for at least the last four years, Mark Longgrear, operating individually and through his company Southern Auto Buyers LLC, bought more than 50 late model, high mileage vehicles from auctions, dealerships, and/or individuals, thereafter illegally altered the odometers of such vehicles to show lower mileage, forged and fraudulently created paperwork to secure new titles showing false lower mileage for these vehicles, and then sold said vehicles directly to individuals and automobile dealerships at much higher prices. He used internet websites to sell some of these vehicles directly to consumers, and also used employment and wholesale relationships with large Mississippi automobile dealerships in Jackson and Vicksburg to sell these fraudulently altered odometer vehicles to these dealerships, who in turn unknowingly sold them to consumers with this false information.
"Vehicle odometer fraud affects us all, whether directly as consumers purchasing vehicles and being defrauded out of thousands of dollars or as the general public who can be endangered by these potentially unsafe vehicles. I commend the agents and prosecutor for rooting out this far-reaching scheme. In order to protect consumers and safeguard the general public, our office will relentlessly pursue and vigorously prosecute those whom break federal law by rolling back vehicle odometers," said U.S. Attorney Hurst.
Each violation of Sections 32703(2) and 32705(a)(2) of Title 49 carries a penalty of three years in prison and/or a $250,000 fine. The conspiracy charge, 18 U.S.C. § 371, is punishable by 5 years in prison and/or a $250,000 fine.
The case was investigated by United States Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation, with assistance from the United States Postal Inspection Service, and the U.S. Marshals Service. It is being prosecuted by Assistant U.S. Attorney Keesha Middleton.
The public is reminded that a criminal complaint is a formal charge against a defendant. It is merely an accusation and each defendant is presumed innocent unless and until proven guilty in a court of law.
NHTSA has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (720) 963-3127.
Individual Pleads Guilty to Attempting to Provide Material Support to IsisRead the Press Release
Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, pleaded guilty yesterday to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Assistant Attorney General for National Security John C. Demers, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Solano pleaded guilty yesterday to one count of attempting to provide material support to ISIS, in violation of Title 18, United States Code, Section 2339B(a)(1). Sentencing is set for May 30, 2018, at 9:15 a.m. before United States District Judge Paul C. Huck in Miami. Solano faces a statutory maximum sentence of twenty years’ imprisonment and a $250,000 fine.
According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (“CHS”) for the government, that he was upset with the United States and wanted to conduct an attack in Miami. Later, Solano told this CHS that he wanted to join ISIS.
Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall. Solano discussed his plot with the CHS and two undercover FBI employees. According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments. Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack. Unbeknownst to Solano, the device was inert and did not pose a risk to the public. Solano was taken into custody prior to entering the Mall.
Mr. Greenberg and Mr. Demers commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force (JTTF). The case is being prosecuted by Assistant United States Attorney Karen E. Gilbert and Department of Justice Counterterrorism Section Trial Attorney Jolie Zimmerman.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Individual Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, pleaded guilty yesterday to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Solano pleaded guilty yesterday to one count of attempting to provide material support to ISIS, in violation of Title 18, United States Code, Section 2339B(a)(1). Sentencing is set for May 30, 2018, at 9:15 a.m. before United States District Judge Paul C. Huck in Miami. Solano faces a statutory maximum sentence of twenty years’ imprisonment and a $250,000 fine.
According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (“CHS”) for the government, that he was upset with the United States and wanted to conduct an attack in Miami. Later, Solano told this CHS that he wanted to join ISIS.
Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall. Solano discussed his plot with the CHS and two undercover FBI employees. According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments. Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack. Unbeknownst to Solano, the device was inert and did not pose a risk to the public. Solano was taken into custody prior to entering the Mall.
Mr. Greenberg and Mr. Demers commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force (JTTF). The case is being prosecuted by Assistant United States Attorney Karen E. Gilbert and Department of Justice Counterterrorism Section Trial Attorney Jolie Zimmerman.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Indictment Alleges Florida Developer and Real Estate Attorney Scammed Foreign InvestorsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven returned a 20-count indictment yesterday charging ROBERT V. MATTHEWS, 60, and LESLIE R. EVANS, 70, both of Palm Beach, Florida, with various fraud and money laundering offenses stemming from a scheme that defrauded foreign investors
Matthews and Evans were arrested this morning in Florida and appeared in U.S. District Court for the Southern District of Florida, in West Palm Beach. Matthews was detained pending a detention hearing that is scheduled for March 19 at 10 a.m. Evans was released on a $250,000 bond.
According to the indictment, Robert Matthews, a real estate developer who maintained residences in both Florida and Connecticut, was the developer in charge of The Palm House Hotel (“PHH”), a property that he sought to develop in Palm Beach. Evans is a real estate attorney.
The EB-5 visa program is a federal program by which foreign nationals and their families are eligible to apply for lawful permanent resident status (commonly known as a “green card”) if they meet certain requirements by investing in a development project in the U.S. Various entities in the U.S. act as intermediaries between potential foreign investors and investment projects. One such entity, South Atlantic Regional Center, LLC (“SARC”) in Palm Beach, Florida, advertised EB-5 projects to foreign investors, collected funds from foreign investors that were earmarked for certain development projects, and made the funding available to the respective development project.
The PHH was a development project advertised by SARC to EB-5 investors between approximately 2012 and 2014. Robert Matthews purchased the PHH property in August 2006, and then lost the property in foreclosure in 2009. In August 2013, Robert Matthews reacquired control of the property through an entity called Palm House, LLC. However, Robert Matthews’ brother, Gerry Matthews, was listed in incorporation documents as owning 99 percent of Palm House, LLC, and another individual, who had secured additional financing for Robert Matthews, was listed as owning the remaining 1 percent.
The indictment alleges that Robert Matthews, Evans and others defrauded EB-5 investors, SARC and the one-percent owner of PHH by representing that funds from EB-5 investors would be used to develop the PHH; that certain well-known individuals would be on the PHH advisory board and certain well-known entertainers, businesspeople and politicians “will be a part of the club”; and that Gerry Matthews was a member of the Palm House, LLC management team and was the 99 percent owner of the project. EB-5 investors invested in the PHH project by providing money to bank accounts controlled by SARC. SARC, in turn, provided EB-5 money earmarked for PHH use either into an account controlled by Robert Matthews, Evans and their agents, or into Evans’ Interest on Trust Account (“IOTA”) that was used to maintain his clients’ funds.
The indictment alleges that, while Gerry Matthews was the nominal 99 percent owner of Palm House, LLC, Robert Matthews controlled the company. The indictment further alleges that Robert Matthews, Evans and others used EB-5 funding for purposes not related to the PHH project, including for Robert Matthews’ personal gain. In addition, there was no evidence any of the proffered well-known individuals would be on the PHH advisory board or would be members of the club.
As part of this alleged scheme, Robert Matthews, Evans and others moved investor funds through various bank accounts located in Connecticut and Florida. The funds were used to pay Robert Matthews’ credit card debts, to assist in Matthews’ purchase of a 151-foot yacht, and to purchase two properties located in Washington Depot, Connecticut. One of the Washington Depot properties was a property that Robert Matthews had previously lost in foreclosure. Robert Matthews, Evans, Nicholas Laudano and others conspired to purchase the property out of foreclosure by concealing both the relationship between the co-conspirators, and the source of the funds used to purchase the property.
Laudano is a construction contractor who continuously worked on the development of the PHH project between approximately 2006 and 2016. He also has operated several restaurants in Florida and Connecticut.
The indictment charges Robert Matthews with eight counts of wire fraud, and offense that carries a maximum term of imprisonment of 20 years, one count of bank fraud, an offense that carries a maximum term of imprisonment of 30 years, one count of conspiracy to commit bank fraud and wire fraud, an offense that carries a maximum term of imprisonment of 30 years, and 10 counts of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years.
The indictment charges Evans with eight counts of wire fraud, one count of bank fraud, one count of conspiracy to commit bank and wire fraud, and one count of illegal monetary transactions.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
On March 7, 2018, Gerry Matthews, 57, of Middlebury, Connecticut, waived his right to be indicted and pleaded guilty to one count of conspiracy to commit wire fraud. On March 12, 2018, Laudano, 48, of Boynton Beach, Florida, waived his right to be indicted and pleaded guilty to one count of conspiracy to commit bank fraud and one count of illegal monetary transactions. They await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Illegal alien from Mexico arrested in Calcasieu Parish pleads guilty to illegally reentering countryRead the Press Release
LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced that an illegal alien from Mexico pleaded guilty Tuesday to reentering the United States after being deported.
Raul Delacruz-Valdez, 31, of Mexico, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of illegal reentry of a previously deported alien. According to the guilty plea, Louisiana State Police conducted a traffic stop on Delacruz-Valdez’s vehicle on March 20, 2017 in Calcasieu Parish. He was arrested for suspicion of driving while intoxicated. After his arrest, law enforcement agents discovered that he was an illegal alien who had reentered the United States without obtaining permission. He had previously been removed October 18, 2010.
Delacruz-Valdez faces up to two years in prison, one year of supervised release and a $250,000 fine. The court set sentencing for July 26, 2018.
Homeland Security Investigations and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that MARVIN OYUELA LOPEZ, age 31, a citizen of Honduras, pleaded guilty to a one-count indictment for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
At sentencing, which is set for June 14, 2018, OYUELA LOPEZ faces a maximum term of imprisonment of not more than ten (10) years, a fine of $250,000.00, and a mandatory special assessment of $100.00. Additionally, OYUELA LOPEZ is subject to a period of supervised release after imprisonment of up to three years.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran Citizen Indicted for Conspiracy to Defraud the Internal Revenue Service of Payroll TaxesRead the Press Release
Jacksonville, Florida – A federal grand jury has returned a superseding indictment charging Oscar Arnelson Rodriguez-Cruz (40, Honduras) with conspiracy to defraud the Internal Revenue Service (IRS) of federal payroll taxes, specifically the Federal Insurance Contributions Act (FICA), Social Security, and Medicare taxes. He faces up to five years in federal prison. Rodriguz-Cruz was previously charged on January 31, 2018, with multiple counts of wire fraud. Rodriguez-Cruz is a Honduran citizen who is illegally present in the United States.
The indictment alleges that Rodriguez-Cruz facilitated employment in the construction industry of individuals living and working illegally in the United States. Construction contractors and subcontractors entered into an agreement with a shell company established by Rodriguez-Cruz to provide workers, most of whom were illegal aliens, for the contractors and subcontractors. By obtaining and paying the workers through the shell company, the contractors and subcontractors could disclaim responsibility for ensuring that required payroll taxes were paid.
The contractors and subcontractors wrote payroll checks to the shell company for work performed by the workers. Rodriguez-Cruz cashed the checks and distributed cash to construction crew leaders, who then paid the workers in cash. During the period of the scheme, Rodriguez-Cruz allegedly cashed payroll checks totaling $15,670,438. Neither Rodriguez-Cruz nor the contractors and subcontractors remitted payroll taxes to the IRS. According to the IRS, the estimated total amount of payroll taxes due on the total wages is approximately $3,964,621.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Hearing Set for Thomas Lawton Evans Jr. in Federal CourtRead the Press Release
Columbia, South Carolina-------United States Attorney Beth Drake announced today that a hearing for Thomas Lawton Evans Jr., age 37, of Boiling Springs, South Carolina, has been set for Friday, March 16, 2018, at 11:00 A.M. in the federal courthouse, 85 Broad St., in Charleston, SC. The hearing was recently rescheduled from a later date. Evans is currently charged in a three count indictment and is scheduled to be arraigned on those charges March 16, 2018.
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Guatemalan National Who Reentered U.S. after Being Deported for Sex Assault Conviction is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIMAS ESCOBAR, 41, a citizen of Guatemala last residing in New Britain, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 12 months and one day of imprisonment for illegally reentering the U.S. after being deported for a sex assault conviction.
According to court documents and statements made in court, ESCOBAR was admitted to the U.S. as a lawful permanent resident in November 2004.
In October 2011, ESCOBAR was convicted in state court of sexual assault in the second degree and was sentenced to eight years of incarceration, execution suspended after 18 months, and 10 years of probation. He also was subject to mandatory sex offender registration.
In May 2013, ESCOBAR was deported from the U.S. to Guatemala.
On June 7, 2017, Plainville Police alerted ICE to ESCOBAR’s presence in the U.S. On June 14, ICE officers arrested ESCOBAR following a traffic stop in New Britain.
ESCOBAR has been detained since his arrest. On December 21, 2017, he pleaded guilty to one count of reentry of a removed alien.
Judge Thompson ordered the sentence to run concurrently with a two-year state sentence that ESCOBAR is currently serving for a probation violation.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Greenwich Man Pleads Guilty to Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that PASQUALE F. FURANO, 48, of Greenwich, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of tax evasion.
According to court documents and statements made in court, FURANO is the sole owner of Pasquale Furano Landscaping, which generated business income by providing landscaping and snowplowing services to approximately 150 to 200 commercial and residential customers in Fairfield County, Connecticut, and Westchester County, New York. For the 2009 through 2013 tax years, FURANO underreported more than $2.5 million in gross receipts on his federal tax returns. For those five years, FURANO falsely reported total taxable income of $264,697 when his actual total taxable income was $1,751,727. Consequently, he only paid a total of $44,213 in federal taxes when he actually owed an additional $540,182.
The investigation revealed that FURANO evaded the payment of his federal taxes by negotiating approximately 2,436 client checks, totaling approximately $1,295,990.23, at the bank for cash rather than depositing the checks into his business accounts, sometimes cashing up to 38 checks in one day. FURANO also did not disclose to his tax return preparer his receipt of cashed client checks and other deposited client checks.
Judge Meyer scheduled sentencing for June 8, 2018, at which time FURANO faces a maximum term of imprisonment of five years.
On October 16, 2014, IRS special agents conducted a court-authorized search of FURANO’s residence and seized handwritten business records and $613,842 in cash. FURANO has agreed that the seized cash will be applied to his outstanding tax liability. He also has agreed to make restitution to the IRS for the remaining penalties and interest for 2009 to 2013, which, as of February 1, 2018, are estimated to be an additional $480,179. FURANO also has agreed to pay the Connecticut Department of Revenue Services (DRS) $112,360 in sales tax he collected from his customers from 2009 to 2013, but did not pay to the DRS.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Peter S. Jongbloed.
Four Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four previously deported aliens were indicted separately on March 14, 2018, by a federal grand jury for illegal re-entry into the United States by a previously deported alien.
According to United States Attorney David J. Freed, Carmelino Verdugo-Torres, age 30, of Mexico, was previously deported from the United States to Mexico in February 2011. He is alleged to have illegally re-entered the United States sometime after February 2011, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Juan Carlos Munguia, age 29, of Honduras, was previously deported from the United States to Honduras in October 2009. He is alleged to have illegally re-entered the United States sometime after October 2009, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Oscar Cash-Cash, age 29, of Mexico, was previously deported from the United States to Mexico in September 2013. He is alleged to have illegally re-entered the United States sometime after September 2013, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Evaristo Feregrino-Fortanell, age 27, of Mexico, was previously deported from the United States to Mexico in July 2015. He is alleged to have illegally re-entered the United States sometime after July 2015, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Verdugo-Torres, Munguia, Cash-Cash and Feregrino-Fortanell all face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Four Individuals Indicted on Charges of Conspiracy to Possess with Intent to Distribute Meth and Burglary in Jefferson CountyRead the Press Release
St. Louis, MO – Kathleen Marie Hydar, 30; Courtney Anarian Brown, 36; Paris John Earnest Devine, 25; and Raymond Christopher Seay, 39; were indicted today on charges of conspiracy to possess with the intent to distribute over 500 grams of methamphetamine.
According to the indictment, Brown and Devine were further charged with discharging a firearm that resulted in the death of Ramone Thomas, of St. Louis, on October 11, 2017. Ramone Thomas had been a participant in an attempted burglary of a trailer located at 765 Chancellor Lane in Jefferson County, Missouri when he was killed. Devine is further charged with an armed carjacking that occurred on September 28, 2017 in the City of St. Louis.
The owner of that trailer, Chad Coffman, 36, has been charged separately for possession with the intent to distribute over 500 grams of methamphetamine, as well as being a felon in possession of a firearm.
Hydar is charged with one count of conspiracy to possess with intent to distribute methamphetamine; Brown is charged with one count of conspiracy to possess with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime resulting in death; Devine is charged with one count of conspiracy to possess with intent to distribute methamphetamine, one count of discharging a firearm in furtherance of a crime of violence and one count of carjacking; and Seay is charged with one count of conspiracy to possess with intent to distribute methamphetamine.
If convicted, the charge of conspiracy to possess with intent to distribute methamphetamine carries a minimum penalty of 10 years in prison and a $10,000,000 fine; the charge of possession of a firearm in furtherance of a drug trafficking crime resulting in death carries a penalty of death or life in prison and a $250,000 fine; the charge of brandishing a firearm in furtherance of a crime of violence carries a minimum penalty of 7 years in prison and a $250,000 fine; and the charge of carjacking carries a maximum penalty of 25 years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson County Sheriff’s Office, the Major Case Squad and the Jefferson County Prosecutor’s Office. Special Assistant United States Attorney Angie Danis is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Four Indicted for Cocaine TraffickingRead the Press Release
BOSTON – Four Worcester men were indicted today in federal court in Worcester in connection with a cocaine trafficking scheme.
Deibby Garcia, 36; his brother, Japhet Garcia, 33; Erick Cruz, 28; and Jose Gonzalez, 37, all of Worcester, were charged with conspiring to distribute and possess with the intent to distribute more than five kilograms of cocaine, and possession with the intent to distribute in excess of 500 grams of cocaine. Deibby Garcia, Japhet Garcia, and Cruz were arrested on Jan. 17, 2018. Deibby Garcia and Cruz have been detained since, while Japhet Garcia was released on conditions on Feb. 12, 2018. Gonzalez was arrested on Jan. 30, 2018, and has been detained since.
According to court documents, in early December 2017, Japhet Garcia and Gonzalez entered a Worcester postal facility and attempted to retrieve a package, addressed to Gonzalez that had been shipped from Puerto Rico and had been found to contain approximately three kilograms of cocaine.
A court-authorized wiretap of a phone belonging to Deibby Garcia revealed discussions between Deibby Garcia and an unidentified individual concerning the delivery of two packages from Puerto Rico on Jan. 16, 2018. The intercepts further revealed that Deibby Garcia made arrangements with Erick Cruz, a U.S. Postal Service letter carrier, to retrieve the packages once they arrived in Massachusetts.
As alleged in court documents, during the course of communications between Jan. 9, 2018, and Jan. 13, 2018, Cruz texted Deibby Garcia two addresses, both of which were on Cruz’s assigned route as a letter carrier. Deibby Garcia, in turn, forwarded the addresses to what authorities believed to be his cocaine source in Puerto Rico. On Jan. 12, 2018, two packages were sent from Puerto Rico to the addresses provided by Cruz and Deibby Garcia. On Jan. 15, 2018, one package was searched pursuant to a federal search warrant and was found to contain three kilograms of cocaine. The following day, federal agents permitted the second package to be provided to Cruz for delivery under the surveillance of federal agents.
Agents thereafter intercepted discussions between Cruz and Deibby Garcia in which they discussed arrangements for Deibby Garcia to have the second package picked up, and they speculated about what had happened to the package that had been seized and searched by agents. Wiretap intercepts also revealed communications in which Deibby coordinated with Gonzalez to arrange for a woman to pick up the three kilogram cocaine package from Cruz. When the woman was stopped by police after meeting with Cruz, she was found in possession of the second package, which contained another three kilograms of cocaine.
The charge of conspiring to distribute in excess of five kilograms of cocaine provides for a mandatory minimum sentence of 10 years in prison and up to life, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. The charge of conspiring to distribute in excess of 500 grams of cocaine provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Eileen Neff, Special Agent in Charge of the United States Postal Inspection Service, Office of the Inspector General; Massachusetts Attorney General Maura Healey; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the court documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Social Security Employee SentencedRead the Press Release
SOUTH BEND - Sharon Ramos, age 56, of South Bend, Indiana was sentenced before District Court Judge Jon E. DeGuilio for ten counts of making false entries in government records, two counts of conversion of government money, and one count of wire fraud, announced U.S. Attorney Thomas L. Kirsch II.
Ramos, convicted after a four-day jury trial in November 2017, was sentenced to 46 months’ imprisonment and ordered to pay restitution to the Social Security Administration in the amount of $550,383.66.
According to testimony during the trial, from approximately January 2008 and continuing until around December 2013, Ramos devised a scheme to defraud the Social Security Administration by means of materially false and fraudulent pretenses, representations, and promises. Ramos, then an employee of the Social Security Administration, made numerous false and fictitious representations in Supplemental Security Income (SSI) accounts of numerous SSI claimants. These improper entries in the accounts resulted in numerous SSI claimants obtaining payments they were not eligible to receive. As a result, Ramos fraudulently converted money belonging to the Social Security Administration.
Upon conviction, United States Attorney Kirsch said, “When a public employee misuses her position to break the law and violate the public trust, we will hold the employee accountable for her actions by prosecution. This case is an example of the outstanding work done by the Social Security Administration, Office of Inspector General to root out fraud and corruption, and in this case, to hold Ms. Ramos accountable for her conduct.”
This case was the result of an investigation by the Social Security Administration, Office of Inspector General. This case was prosecuted by Assistant United States Attorneys Luke N. Reilander and Frank E. Schaffer.
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Former Siemens Executive Pleads Guilty to Role in $100 Million Foreign Bribery SchemeRead the Press Release
The former Technical Manager of the Major Projects division of Siemens Business Services GmbH & Co. OGH (SBS), a wholly owned subsidiary of Siemens Aktiengesellschaft (Siemens AG), pleaded guilty today to conspiring to pay tens of millions of dollars in bribes to Argentine government officials to secure, implement and enforce a $1 billion contract to create national identity cards.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Geoffrey S. Berman of the Southern District of New York and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington, D.C. Field Office made the announcement.
Eberhard Reichert, 78, of Munich, Germany, was employed by Siemens AG from 1964 until 2001. Beginning in approximately 1990, Reichert was the Technical Manager of the Major Projects division of SBS. Reichert pleaded guilty today in the Southern District of New York to one count of conspiring to violate the anti-bribery, internal controls and books and records provisions of the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud. Reichert was arraigned last December on a three-count indictment filed in December 2011 charging him and seven other individuals. He will be sentenced by U.S. District Judge Denise L. Cote of the Southern District of New York, who accepted his plea today.
“Far too often, companies pay bribes as part of their business plan, upsetting what should be a level playing field and harming companies that play by the rules,” said Acting Assistant Attorney General Cronan. “In this case, one of the largest public companies in the world paid staggeringly large bribes to officials at the uppermost levels of the government of Argentina to secure a billion-dollar contract. Eberhard Reichert’s conviction demonstrates the Criminal Division’s commitment to bringing both companies and corrupt individuals to justice, wherever they may reside and regardless of how long they may attempt to avoid arrest.”
“Eberhard Reichert tried to sidestep laws designed to root corruption out of the government contracting process,” said U.S. Attorney Berman. “As he admitted in Manhattan federal court today, Reichert helped to conceal tens of millions of dollars in bribes that were paid to unfairly secure a lucrative contract from the Argentine government. Today’s plea should be a warning to others that our office is committed to bringing corrupt criminals to justice, no matter how long they run from the law.”
In 1998, the government of Argentina awarded to a subsidiary of Siemens AG a contract worth approximately $1 billion to create state-of-the-art national identity cards (the Documento Nacional de Identidad or DNI project). The Argentine government terminated the DNI project in 2001. In connection with his guilty plea, Reichert admitted that he engaged in a decade-long scheme to pay tens of millions of dollars in bribes to Argentine government officials in connection with the DNI project, which was worth more than $1 billion to Siemens. Reichert admitted that he and his co-conspirators concealed the illicit payments through various means, including using shell companies associated with intermediaries to disguise and launder the funds.
Reichert also admitted that he used a $27 million contract between a Siemens entity and a company called MFast Consulting AG that purported to be for consulting services to conceal bribes to Argentine officials.
In 2008, Siemens AG, a German entity, pleaded guilty to violating the books and records provisions of the FCPA; Siemens Argentina pleaded guilty to conspiracy to violate the books and records provisions of the FCPA; and Siemens Bangladesh Limited and Siemens S.A. – Venezuela each pleaded guilty to conspiracy to violate the anti-bribery and books and records provisions of the FCPA. As part of the plea agreements, the Siemens companies paid a total of $450 million in criminal fines. The U.S. Securities and Exchange Commission (SEC) also brought a civil case against Siemens AG alleging that it violated the anti-bribery, books and records and internal controls provisions of the FCPA. In resolving the SEC case, Siemens AG paid $350 million in disgorgement of wrongful profits. The Munich Public Prosecutor’s Office also resolved similar charges with Siemens AG that resulted in a fine of $800 million. In August 2009, following these corporate resolutions with U.S. and German authorities, Siemens AG withdrew its claim to the more than $200 million arbitration award.
The FBI’s International Corruption Squad in Washington, D.C. is investigating the case. The case is being prosecuted by Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Niketh Velamoor of the Southern District of New York. The Criminal Division’s Office of International Affairs, the SEC, Croatian authorities and the Munich Public Prosecutor’s Office also provided significant assistance.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Siemens Executive Pleads Guilty in Manhattan Federal Court to $100 Million Foreign Bribery SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John P. Cronan, the Acting Assistant Attorney General of the Justice Department’s Criminal Division, announced that EBERHARD REICHERT, a former executive at Siemens Aktiengesellschaft (“Siemens AG”), pled guilty today in Manhattan federal court to conspiring to pay $100 million in bribes to senior Argentine government officials to secure, implement, and enforce a $1 billion contract between Siemens and the Argentine government to produce national identity cards. He is the second individual defendant to plead guilty in the massive scheme. REICHERT, a citizen of Germany, pled guilty to one count of conspiring to violate the Foreign Corrupt Practices Act’s anti-bribery, internal controls, and books and records provisions, and to commit wire fraud, before U.S. District Judge Denise L. Cote. His guilty plea followed his September arrest in Croatia and subsequent voluntary extradition to the United States in December.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Eberhard Reichert tried to sidestep laws designed to root corruption out of the government contracting process. As he admitted in Manhattan federal court today, Reichert helped to conceal tens of millions of dollars in bribes that were paid to unfairly secure a lucrative contract from the Argentine government. Today’s plea should be a warning to others that our office is committed to bringing corrupt criminals to justice, no matter how long they run from the law.”
Acting Assistant Attorney General John P. Cronan said: “Far too often, companies pay bribes as part of their business plan, upsetting what should be a level playing field and harming companies that play by the rules. In this case, one of the largest public companies in the world paid staggeringly large bribes to officials at the uppermost levels of the government of Argentina to secure a billion-dollar contract. Eberhard Reichert’s conviction demonstrates the Criminal Division’s commitment to bringing both companies and corrupt individuals to justice, wherever they may reside and regardless of how long they may attempt to avoid arrest.”
According to the Indictment and statements made at today’s plea hearing:
REICHERT was employed by Siemens AGfrom 1964 until 2001. Beginning in approximately 1990, REICHERT was the Technical Manager of the Major Projects division of Siemens Business Services GmbH & Co. OGH (“SBS”), a subsidiary of Siemens AG.
In 1994, the government of Argentina issued a tender for bids to replace an existing system of manually created national identity booklets with state-of-the-art national identity cards (the DNI project). The value of the DNI project was $1 billion. In order to obtain the project, Siemens committed to paying nearly $100 million in bribes to sitting officials of the Argentine government, members of the opposition party, and candidates for office who were likely to come to power during the performance of the project. In 1998, the Argentine government awarded the DNI project to Siemens, and REICHERT was one of the individuals in charge of the project.
REICHERT and his co-conspirators worked to approve and conceal the illicit payments through various means, including by funneling the payments through shell companies associated with bribe recipients to disguise the true purpose for the payments. REICHERT also admitted to approving a $27 million sham contract between a Siemens entity and a company called MFast Consulting AG that was being used as a vehicle to funnel money to Carlos Sergi, REICHERT’s co-defendant, for bribe payments. Several years after leaving the company, SERGI initiated a Swiss arbitration to collect on the contract. REICHERT testified on SERGI’s behalf and, ultimately, REICHERT’s co-conspirators caused Siemens to pay an additional $8.8 million in 2007 to settle the arbitration.
In May 1999, the Argentine government suspended the DNI project, due in part to instability of the local economy and an impending presidential election. When a new government took power in Argentina, and in the hopes of getting the DNI project resumed, members of the conspiracy committed Siemens to paying additional bribes to the incoming officials, and to satisfying existing obligations to officials of the outgoing administration, many of whom remained in influential positions within the government. When the project was terminated in May 2001, members of the conspiracy nevertheless sought to recover the anticipated proceeds of the DNI project by causing Siemens AG to file a fraudulent arbitration claim against the Republic of Argentina in Washington, D.C. Members of the conspiracy also continued the bribe scheme, in part to prevent disclosure of the bribery in the arbitration but also to ensure Siemens’ ability to secure future government contracts in Argentina and elsewhere in the region. In four installments between 2002 and 2007, members of the conspiracy allegedly caused Siemens to pay approximately $28 million in further satisfaction of the obligations.
Siemens’s corrupt procurement of the DNI project was not exposed during the lifespan of the conspiracy, and, in February 2007, the arbitration tribunal in Washington sided with Siemens AG, awarding the company nearly $220 million on its DNI claims, plus interest. The company, however, never claimed the award money, because after Siemens reached corporate resolutions with the U.S. and German authorities, Siemens AG agreed to forego its right to receive the award.
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REICHERT, 78, of Munich, Germany, faces a maximum sentence of five years in prison and three years of supervised release. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Andres Truppel, who was charged in the same indictment, pleaded guilty in 2015 and is yet to be sentenced. Charges against the other individuals named in the indictment – Uriel Sharef, Herbert Steffen, Ulrich Bock, Stephan Signer, Carlos Sergi, and Miguel Czysch – are pending. The charges and allegations against these other individuals are merely accusations, and these defendants are presumed innocent unless and until proven guilty.
On December 15, 2008, Siemens AG and Siemens Argentina entered guilty pleas to criminal violations of the FCPA. As part of the plea agreement, Siemens AG and Siemens Argentina agreed to pay fines of $448.5 million and $500,000, respectively.
Mr. Berman praised the Federal Bureau of Investigation’s New York and Washington D.C. Field Offices for their work on the case.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Niketh Velamoor and Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section are in charge of the prosecution.
Former Sacramento Area Youth Gymnastics Coach Pleads Guilty to Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. —Derek Swede Godfrey, 48, formerly of Rocklin, pleaded guilty today to possession of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in October 5, 2006, law enforcement agents executed a search warrant at Godfrey’s home in Rocklin. On his computer, agents located more than 400 videos and 5,000 still images depicting the sexual abuse and exploitation of minors. The day after, Godfrey, a youth gymnastics coach, left the United States for the Netherlands where he had dual-citizenship. On January 25, 2007, a grand jury in Sacramento indicted Godfrey, charging him with one count of possession of child pornography.
In 2012, Godfrey was located in Perth, Australia, where he was once again found to be coaching children’s gymnastics. At that time, Australian authorities arrested Godfrey on charges unrelated to the charges in the United States. In April 2016, Australian authorities agreed to extradite Godfrey to the United States to face the charges pending in Sacramento.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Godfrey is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on June 7, 2018. Godfrey faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Partner in Global Consulting Firm Sentenced to Two Years in Federal Prison for Billing $586,000 in Bogus Consulting Work and Travel ExpensesRead the Press Release
CHICAGO — A former Chicago-based partner in a global consulting firm has been sentenced to two years in federal prison for scheming with a client to bilk their companies out of hundreds of thousands of dollars in purported consulting work that was never performed.
NAVDEEP ARORA, a former partner in the Chicago office of McKinsey & Company Inc., plotted with a former internal consultant at State Farm Mutual Automobile Insurance Co. to defraud both companies out of phony consulting fees. Arora also fraudulently obtained money from McKinsey, State Farm and other McKinsey clients in the form of purported work-related travel reimbursements for expenses that were actually incurred on Arora’s personal trips. Arora falsely expensed personal trips to Scottsdale, Ariz.; Vail, Colo.; Las Vegas, Nev.; London, England; Prague, Czech Republic; Munich, Germany; and elsewhere. He took the State Farm employee, MATTHEW SORENSEN, on two personal vacations – to Napa, Calif. and New York, N.Y. – and expensed them to State Farm as business expenses. The costs included flights, hotels, meals, car services and other items.
Arora, 53, of London, England, and formerly of Chicago, was arrested in 2016 at JFK International Airport in New York after arriving on an overseas flight. He pleaded guilty last year to one count of wire fraud. U.S. District Judge Ronald A. Guzman imposed the sentence Wednesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
Arora and Sorensen “concocted a fraudulent scheme to benefit themselves during their employment,” Assistant U.S. Attorney Sunil R. Harjani argued in the government’s sentencing memorandum. “The defendants’ actions have caused both companies to undertake time and expense uncovering this fraud, destroyed a longstanding relationship between these two companies, and caused reputational harm.”
Sorensen, of Bloomington, Ill., also pleaded guilty to a wire fraud charge. Judge Guzman in September 2017 sentenced Sorensen to one year and one day in prison.
Arora and Sorensen had a longstanding business relationship through Arora’s work overseeing the consulting services McKinsey provided to State Farm. At State Farm, Sorensen provided input and recommendations about whether to hire outside consultants for company projects and who to retain.
According to the charges, their fraud scheme began in 2007. Arora and Sorensen used two corporate entities – “Gabriel Solutions” and “Andy’s BCB” – to defraud their employers out of the phony fees. Sorensen billed McKinsey for the bogus work purportedly performed by the companies, while Arora allocated the fees to the State Farm projects to which he was assigned. As a result, McKinsey and State Farm paid $38,265 for consulting services purportedly performed by “Andy’s BCB,” and $452,710 in fees billed by “Gabriel Solutions.”
Sorensen pocketed a large majority of the money, while Arora received a substantial salary and benefits from McKinsey for maintaining its business relationship with State Farm.
Former Oregon Department of Energy Employee Pleads Guilty to Money Laundering ConspiracyRead the Press Release
PORTLAND, Ore. – On Thursday, March 15, 2018, Joseph J. Colello, 57, of Salem, Oregon, pleaded guilty to one count each of conspiracy to engage in monetary transactions in property derived from specific unlawful activity, conspiracy to defraud the IRS and filing a false income tax return.
According to court documents, between June 2012 and March 2015, Colello was employed as a pass-through program manager for the Oregon Department of Energy’s (ODOE) Business Energy Tax Credit (BETC) program. In his role, Colello helped owners of BETCs sell their credits by locating buyers and facilitating transfers.
In 2012, Colello and a coconspirator devised a plan whereby Colello would give the coconspirator the names of BETC sellers and interested buyers—information he had access to as an ODOE employee. Colello would then contact the sellers and buyers to negotiate credit transfers, but made it appear as though the coconspirator had brokered the deals. Colello and the coconspirator agreed to have the coconspirator create a sham company in order to receive commission payments from the sellers of the tax credits and to conceal their earned income from the IRS. Colello and the coconspirator charged sellers a 1-2% fee, undercutting brokers who typically charged a 10% fee for facilitating similar credit transfers. Colello would receive a portion of this fee as a kickback.
Between 2012 and 2015, the coconspirator deposited over $1.3 million in income from the commissions charged to sellers of BETC credits. The coconspirator would transfer a portion of these funds into a personal account from which he would purchase and issue biweekly cashier’s checks payable to Colello. Over the course of the conspiracy, the coconspirator purchased and issued approximately 58 cashier’s checks to Colello or his girlfriend. In total, Colello received more than $300,000 in bribe payments for his role in the scheme.
Colello faces a combined maximum sentence for all three charges of 28 years in prison, more than $1 million in fines and up to three years of supervised release. He will be sentenced on July 2, 2018 before U.S. District Court Judge Michael W. Mosman.
The case was investigated by IRS Criminal Investigation and the FBI and is being prosecuted by Claire M. Fay and Scott E. Bradford, Assistant U.S. Attorneys for the District of Oregon.
Former Nashville Judge Indicted on Additional Federal Obstruction and Theft ChargesRead the Press Release
A federal grand jury returned a superseding indictment against a former Nashville, Tennessee judge on obstruction and other charges stemming from a scheme in which he abused his official position for personal gain. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran for the Middle District of Tennessee made the announcement.
Cason “Casey” Moreland, 60, of Nashville, Tennessee, was originally indicted in April 2017 on five counts of obstruction of justice. The superseding indictment returned yesterday adds five additional counts: two counts related to theft from a program receiving federal funds; two additional obstruction of justice counts relating to witness tampering and destruction of documents; and one count of committing an offense while on pretrial release. Moreland was arrested again on March 1, 2018, pursuant to a criminal complaint charging him with obstruction charges.
According to the superseding indictment, Moreland was a General Sessions Judge in Nashville and Davidson County, Tennessee and heard civil, criminal and traffic cases. Moreland also presided over the General Sessions Drug Treatment Court, which was a specialized court program designed to provide alternatives to incarceration for certain defendants. The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”). Although Moreland did not have an official position with the Drug Court Foundation, he exercised de facto authority over the Drug Court Foundation’s operations. Beginning in Spring 2016, Moreland is alleged to have begun embezzling cash from the Drug Court Foundation. According to the indictment, Moreland directed the Drug Court Foundation’s director to deliver envelopes of the Drug Court Foundation’s cash to his office in exchange for allowing the director to increase the compensation that she received from the Drug Court Foundation.
According to the superseding indictment, Moreland became aware that he was a target of an investigation being conducted by the FBI and a federal grand jury in February 2017. The superseding indictment alleges that after learning of the investigation, Moreland took steps to obstruct and interfere with the investigation by directing the Drug Court Foundation’s director to destroy documents that would show the amount of cash that had been paid to the Foundation and ultimately stolen by Moreland. In February 2018, Moreland is alleged to have attempted to tamper with a witness by suggesting that she lie to the grand jury investigating his conduct.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
This case was investigated by the FBI and is being prosecuted by Trial Attorneys Lauren Bell and Andrew Laing of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee.
Former Nashville General Sessions Judge Indicted on Additional Federal Obstruction and Theft ChargesRead the Press Release
A federal grand jury yesterday, returned a superseding indictment against a former Nashville, Tennessee judge on obstruction and other charges stemming from a scheme in which he abused his official position for personal gain. U.S. Attorney Don Cochran for the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.
Cason “Casey” Moreland, 60, of Nashville, Tennessee, was originally indicted in April 2017 on five counts of obstruction of justice. The superseding indictment adds five additional counts: two counts related to theft from a program receiving federal funds; two additional obstruction of justice counts relating to witness tampering and destruction of documents; and one count of committing an offense while on pretrial release. Moreland was arrested again on March 1, 2018, pursuant to a criminal complaint charging him with obstruction charges.
According to the superseding indictment, Moreland was a General Sessions Judge in Nashville and Davidson County, Tennessee and heard civil, criminal and traffic cases. Moreland also presided over the General Sessions Drug Treatment Court, which was a specialized court program designed to provide alternatives to incarceration for certain defendants. The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”). Although Moreland did not have an official position with the Drug Court Foundation, he exercised de facto authority over the Drug Court Foundation’s operations. Beginning in Spring 2016, Moreland is alleged to have begun embezzling cash from the Drug Court Foundation. According to the indictment, Moreland directed the Drug Court Foundation’s director to deliver envelopes of the Drug Court Foundation’s cash to his office in exchange for allowing the director to increase the compensation that she received from the Drug Court Foundation.
According to the superseding indictment, Moreland became aware that he was a target of an investigation being conducted by the FBI and a federal grand jury in February 2017. The superseding indictment alleges that after learning of the investigation, Moreland took steps to obstruct and interfere with the investigation by directing the Drug Court Foundation’s director to destroy documents that would show the amount of cash that had been paid to the Foundation and ultimately stolen by Moreland. In February 2018, Moreland is alleged to have attempted to tamper with a witness by suggesting that she lie to the grand jury investigating his conduct.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee and Trial Attorneys Lauren Bell and Andrew Laing of the Criminal Division’s Public Integrity Section.
Former Marion County, Kentucky, Resident Sentenced to 57 Months in Prison for Conspiracy to Manufacture and Possess Marijuana with the Intent to DistributeRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the sentencing of John Robert Boone, in United States District Court, by Senior Judge Charles R. Simpson III, to 57 months in prison, having pleaded guilty to manufacture and possession of marijuana with the intent to distribute. There is no parole in the federal system.
"Manufacture, possession, and distribution of marijuana are violations of federal criminal law – plain and simple. As the Chief Federal Prosecutor for the Western District of Kentucky, I want to make it very clear that this office remains committed to enforcing all federal criminal laws associated with marijuana,” stated U.S. Attorney Russell Coleman. “Our Commonwealth is in the throes of a deadly addiction to heroin and illicit drugs and Marijuana is a young person’s gateway to a lifetime of drug abuse and associated crime.”
John Robert Boone a/k/a Johnny Boone, 74, formerly of Marion County, Kentucky, pled guilty to a Superseding Information, containing a single charge, on December 19, 2017. Boone admitted that on May 27, 2008, in Washington County, Kentucky, he conspired with other persons to possess more than 1000 marijuana plants, intending to cultivate and grow the plants and distribute the marijuana when the plants were harvested. In furtherance of the conspiracy, Boone watered and fertilized the plants, and concealed them on a farm in Washington County on Walker Lane near his residence.
According to the Criminal Complaint, in May of 2008, the plants were spotted during an aerial operation in the Springfield and Washington County area of Kentucky, by Kentucky State Police, for the purpose of spotting outdoor marijuana propagation activities.
Boone was a fugitive for nearly eight years until his arrest in Montreal, Canada in December of 2016. He’s remained in the custody of the United States Marshals service since being deported in April of 2017.
This case was prosecuted by Assistant United States Attorney Larry Fentress and was investigated by the DEA and Kentucky State Police.
Former Lumber Executive Sentenced for Embezzling over $800,000Read the Press Release
BECKLEY, W.Va. – A former Chief Financial Officer for a Beckley lumber company who embezzled over $800,000 was sentenced to 41 months in federal prison and ordered to pay full restitution, announced United States Attorney Mike Stuart. James Matthew Miller, 43, previously pled guilty to two counts of wire fraud on December 6, 2017. Stuart praised the investigative work of the Federal Bureau of Investigation.
“Unscrupulous employees – be that rank and file workers or top executives -- can cause substantial financial harm to their employers. The prosecution of these crimes is vital to the success of West Virginia businesses,” said United States Attorney Mike Stuart.
Miller formerly worked as an executive for a lumber company until September 2013. In his role as Chief Financial Officer, his responsibilities included oversight of log inventories from vendors. From approximately December 31, 2007, to August 30, 2013, Miller admitted that he issued payments to a sham vendor, a close friend of Miller’s, and falsely inflated log inventories to conceal the fraud. He created a fictitious log vendor that has never hauled or delivered logs to the lumber company. Miller also admitted that he created false payment requests and then drafted and signed checks from the lumber company to the fake vendor. The fictitious vendor cashed the checks or deposited the checks in his bank account, then provided Miller with the money, minus a small amount Miller permitted the vendor to keep. During the course of the fraud, Miller was responsible for 160 checks totaling $822,396.63 from the company to the sham vendor. Miller admitted that he concealed the fraud and committed wire fraud by submitting company reports based on artificially inflated log inventories, and then emailed the reports to a lumber mill manager in Tennessee and a BB&T in Georgia.
Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution. United States District Judge Irene C. Berger handed down the sentence.
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Former Harris County Deputy Enters Guilty Plea to Federal Child Pornography ChargesRead the Press Release
HOUSTON – A 31-year-old former law enforcement official has entered a guilty plea to production and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Andrew Craig Sustaita, of Spring, was previously a Harris County deputy sheriff at the time of the offense, but is no longer employed there.
A federal grand jury indicted Sustaita Feb. 1, 2017, on charges of possession and production of child pornography. He appeared in court shortly thereafter, at which time the court found him to be a danger to the community and a risk of flight and ordered him into custody.
Today, Sustaita pleaded guilty to both counts as charged.
As part of his plea, Sustaita admitted he posted child erotica images to a known child pornography website and had commented on other similar images on that same site. The investigation led to Sustaita whose online presence included a pay-to-play bestiality website. Further information presented to the court included discussions of the amount and types of images authorities have discovered on two devices attributable to Sustaita. The court heard that one video includes a known young girl showering. Other images contain Sustaita’s genitalia placed on or near the identified young female victim’s head while she appears to be sleeping and others that include Sustaita attempting to expose that child’s genitalia.
Further investigation led to the discovery of the identified victim’s images on a computer in Milwaukee, Wisconsin. Sustaita admitted he had distributed the images via the internet.
U.S. District Judge Sim Lake accepted the pleas and set sentencing for June 6, 2018. At that time, Sustaita faces a mandatory minimum sentence of 15 and up to 30 years in federal prison for sexual exploitation of a child (production of child pornography) as well as another 10-year-maximum sentence for possessing child pornography. The charges are also punishable by a possible $250,000 maximum possible fine. Upon completion of any prison term imposed, Sustaita could also face up to life on supervised release during which the court can impose a number of special conditions designed to protect the children and prohibit the use of the Internet. Sustaita would also be required to register as a sex offender.
The Harris County Sheriff’s Office and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Sherri Zack is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Bookkeeper Failed to Report Money Embezzled from Employers and Pleads Guilty to Filing False Tax ReturnsRead the Press Release
A former bookkeeper pled guilty today in federal court for failing to report to the Internal Revenue Service (“IRS”) millions of dollars that she embezzled from her employers.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Lauren Ransom, 58, of Deerfield Beach, pled guilty to three counts of making and subscribing a false tax return, in violation of Title 26, United States Code, Section 7206(1). The defendant’s sentencing hearing is scheduled for May 22, 2018 at 10:00 a.m., before U.S. District Judge Federico A. Moreno in Fort Lauderdale. At sentencing, Ransom faces a maximum possible statutory sentence of three years in prison for each count, a $100,000 fine for each count and restitution.
According to stipulated facts filed with the court, for 33 years, the defendant worked as a bookkeeper at two South Florida insurance companies. Ransom embezzled money from one of the company’s business accounts where she used her signatory authority on the accounts and wrote unauthorized company checks payable to “Cash” and “Lauren Ransom.” She then cashed these checks or deposited them into her personal checking account. Court information revealed that the defendant used the money to pay for her credit cards, mortgage and auto loans, insurance, and other personal living expenses. Casino records also revealed that the defendant gambled and lost approximately $1,410,276.95 from December 1, 2008 to January 31, 2014 by playing slot machines. The defendant concealed the embezzlement by altering numerous copies of these cancelled checks by “whiting out” and then changing the payee sections to create so-called legitimate business expenses for the insurance companies. The defendant created false hand-written entries in the companies’ cash disbursement journals to further conceal the fraud.
In the stipulated facts filed with the court, Ransom admitted she filed false individual tax returns, Forms 1040, for tax years 2011, 2012, and 2013 because she knowingly failed to report to the IRS the money she had unlawfully obtained through her embezzlement scheme. The false statements resulted in tax losses. As part of the plea agreement filed with the court, the defendant has further agreed to pay the tax losses and restitution to her former employers.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant United States Attorney Randy Katz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Woman Pleads Guilty to Making a False Statement to a Firearms DealerRead the Press Release
U.S. Attorney Duane A. Evans announced that KIMBERLY TREMBLAY, age 31, of Florida, pled guilty today to a one-count bill of information with making a false statement to a federally licensed firearms dealer, in violation of 18 U.S.C. § 924(a)(1)(A).
According to court documents, TREMBLAY made false statements to a federally licensed firearms dealer, in which she indicated that she was the actual buyer of a firearm, and that she was not under indictment in any court for a felony, whereas in fact she acquired the firearm for a convicted felon and was herself under a bill of information for a felony in East Baton Rouge Parish.
TREMBLAY faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
Judge Lance M. Africk set sentencing for June 14, 2018.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorneys Myles Ranier and Nicholas Moses are charge of the prosecution.
Five more people indicted for role in drug conspiracy in which $2.1 million and five firearms were seizedRead the Press Release
Five people were added to a now 39-count indictment for their roles in a conspiracy to distribute at least 220 pounds of marijuana and 345 pills of Oxycodone in Northeast Ohio, law enforcement officials said.
Indicted are Amer Jabir, 37; Ahmad Jabir, 22; Aymen Abdelrahim, 28, and Gerald Knox, 37, all of Cleveland.
Added to the indictment are Jaber Hammouda, 33, of North Olmsted, Amran Jabir, 30, of Chicago; Ahmad Abukhalil, 37, of Lakwood; Mohamed Mansour, 27, of Olmsted Falls, and Alaa Hassan, 23, of Westlake. All nine are charged with conspiracy to possess with intent to distribute least 100 kilograms of marijuana and 345 pills of Oxycodone between 2015 and 2018.
There are additional charges for distribution of marijuana, distribution of Oxycodone, and related charges. Knox is charged with possession of a firearm related to drug trafficking and being a felon in possession of a firearm.
The indictment also seeks to forfeit more than $2.1 million in cash, five firearms, a 2015 Range Rover, a $5,000 casino poker chip and miscellaneous jewelry seized from locations in Cleveland, North Olmsted and Chicago as part of the investigation.
Amer Jabir was the leader of an organization that brought hundreds of pounds of marijuana from grow operations in California to Chicago and then Cleveland. The marijuana was hidden in secret trap compartments in vehicles that were then placed in the back of car haulers, according to court documents.
Some of the pills and marijuana were sold by Aymen Abdhelrahim, from a gas station on West 25th Street where Abdelrahim worked as a clerk, according to court documents.
“This case demonstrates how drugs are moved across the country, from California to a gas station on West 25th Street,” U.S. Attorney Justin Herdman said. “It also exemplifies how drug traffickers use firearms to protect their millions of dollars in drug profits.”
“This group of individuals profited millions of dollars from transporting and selling oxycodone and marijuana in our community,” said FBI Special Agent in Charge Stephen D. Anthony. “They drove fancy cars and utilized an expensive apartment in Chicago to store their illegal narcotics. The FBI applauds the cooperative efforts by all law enforcement agencies involved in this investigation.”
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation, the North Olmsted Police Department, the Westlake Police Department, the Ohio State Highway Patrol, U.S. Customs and Border Protection and the Westshore Enforcement Bureau. It is being handled by Assistant U.S. Attorneys Justin Seabury Gould and Robert F. Corts.
An charge is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Five Individuals Charged with Operating Interstate Prostitution RingRead the Press Release
BOSTON – Five individuals were arrested in three states today and charged in connection with operating a long-running interstate prostitution ring.
Yoon I. Kim, 36, of Haymarket, Va.; Taehee Kim, a/k/a “Hyunsook Kim,” 46, of Haymarket, Va.; Jineok Kim, 38, of Watertown, Mass.; Kyung Song, 52, of Lexington, Mass.; and Susan Bashir, a/k/a “Susan Redmon,” a/k/a “Susan Redmond,” 41, of Stone Mountain, Ga., were charged in a criminal complaint with one count of conspiracy to persuade, induce, entice, or coerce individuals to travel in interstate commerce to engage in prostitution. The defendants were arrested today and appeared in federal courts in Boston, Virginia, and Atlanta.
According to the criminal complaint, beginning in at least November 2015, the defendants operated an interstate prostitution network with multiple brothels in high-end apartments in Cambridge, Mass.; Atlanta, Ga.; and eastern Virginia. They advertised appointments with Asian women primarily on three websites: www.bostonasiandolls.com, www.exoticasiansatlanta.com, and www.redhotflowers69.com. The women advertised on the websites were moved from city to city within the network, working as prostitutes for the organization. Co-conspirators collected the cash earnings from the women working at the brothels and made bulk deposits—sometimes thousands of dollars at a time in cash—at ATMs near the brothels, funneling the money into accounts controlled by other co-conspirators. Co-conspirators also used U.S. Postal money orders and the U.S. Mail to transport proceeds from the prostitution network.
The charge of conspiracy to persuade, induce, entice, or coerce women to travel in interstate commerce to engage in prostitution provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain/loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Cambridge Police Commissioner Branville G. Bard Jr. made the announcement today. Assistant U.S. Attorneys David J. D’Addio and Amy Harman Burkart of Lelling’s Civil Rights Enforcement Team are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fitchburg Man Pleads Guilty to Dealing OxycodoneRead the Press Release
BOSTON – A Fitchburg man pleaded guilty today in federal court in Worcester to dealing Oxycodone.
Marc Merchant, 53, pleaded guilty to three counts of distribution and possession with intent to distribute Oxycodone. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 7, 2018.
On three occasions, Merchant distributed Oxycodone to an undercover agent in transactions that were audio and video recorded. On two instances, Aug. 9, 2016, and Feb. 17, 2017, Merchant distributed 100 pills to the agent, and on March 8, 2017, Merchant distributed 200 pills to the agent. Merchant was arrested on April 3, 2017, and was found in possession of over $4,000 in cash and approximately 40 Oxycodone pills.
The charge provides for a sentence of no greater than 20 years in prison, a minimum of three years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Fitchburg Police Chief Ernest F. Martineau made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office is prosecuting the case.
Felon from Farmington Pleads Guilty to Unlawful Possession of FirearmsRead the Press Release
ALBUQUERQUE – David Lawrence Krueger, 39, of Farmington, N.M., pled guilty yesterday in federal court to violating the federal firearms laws by unlawfully possessing firearms. At sentencing, Krueger faces a maximum penalty of ten years of imprisonment unless the court determines that he is an armed career criminal. In that event, Krueger will face an enhanced sentence of a statutory mandatory minimum penalty of 15 years of imprisonment and a maximum of life imprisonment.
Krueger is being prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing them from communities in New Mexico for as long as possible.
Krueger was arrested on Sept. 28, 2017, on a two-count indictment charging him with being a felon in possession of a firearm on Jan. 25, 2017, in Sandoval County, N.M., and on Feb. 1, 2017, in San Juan County, N.M. Krueger was prohibited from possessing firearms or ammunition because of his prior felony convictions, which include convictions for armed robbery, aggravated robbery, domestic abuse, assault, and battery.
During yesterday’s change of plea hearing, Krueger pled guilty to the indictment. In entering the guilty plea, Krueger admitted selling four firearms to an undercover law enforcement agent on Jan. 25, 2017. Krueger also admitted selling two firearms to an undercover law enforcement agent on Feb. 1, 2017. Krueger acknowledged that he was prohibited from possessing firearms or ammunition because he was a convicted felon. Krueger remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.
Federal Jury Convicts Man of Gun ChargesRead the Press Release
St. Croix, USVI – After a two-day trial, a federal jury on Tuesday found Nathaniel Thomas, Jr., 28, of St. Croix, guilty of being a felon in possession of a Firearm, unlawful possession of a firearm and reckless endangerment, United States Attorney Gretchen C.F. Shappert announced.
Thomas faces up to 10 years in prison for the felon in possession count of conviction, a mandatory minimum of fifteen years and up to twenty years in prison on the unlawful possession count and up to five years in prison on the reckless endangerment count.
According to the evidence presented at trial, Thomas drove a vehicle into the Gas For Less Service Station on St. Croix in the early morning hours on May 15, 2016. He was followed by individuals in a Ford Explorer. Thomas stopped his car, came out and hid between nearby vehicles as the Explorer shifted into reverse. At this point shots were being discharged. When the Explorer started to leave the service station, Thomas chased the Explorer on foot while discharging shots toward the vehicle. He subsequently returned to his own vehicle and left the scene. Individuals in the area ran for cover and hid during the shooting. Over fifty spent shell casings were subsequently recovered from the crime scene, many of which were located on the nearby Queen Mary Highway. After the shooting episode, the Explorer collided with two vehicles and came to rest nearby. Bullet holes were discovered in the windshield, on the driver side, and at the rear of the Explorer. Trial testimony established that Thomas was not authorized to possess a firearm and had previously been convicted of a felony offense.
This case was investigated by the Virgin Islands Police Department and by the Bureau of Alcohol Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Alphonso G. Andrews, Jr.
Fayette County Brothers Sentenced to Federal Prison for Roles in Drug Trafficking ConspiracyRead the Press Release
BECKLEY, W.Va. – Two Fayette County brothers were sentenced to federal prison today on drug charges, announced United States Attorney Mike Stuart. Cheyenne Fragale, 30, and Macon Fragale, 34, both from Boomer, previously entered guilty pleas to conspiracy to distribute and to possess with intent to distribute more than 500 grams of methamphetamine, a quantity of oxycodone, and a quantity of heroin. Cheyenne Fragale was sentenced to 144 months in federal prison, while Macon Fragale was determined to be a career offender and was sentenced to 200 months in federal prison. U.S. Attorney Stuart commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beckley Police Department on these cases.
U.S. Attorney Stuart commended the cooperative investigative efforts of several agencies, led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service also provided assistance throughout the investigation.
“Prison time awaits those who peddle poison in our communities,” said U.S. Attorney Stuart. “These two brothers are not a good example for the model family. Their smorgasbord of drug dealing from meth, to pills to heroin has one spending the next 12 years behind bars and the other even longer. The message is, “Don’t sell drugs.””
Cheyenne and Macon Fragale previously admitted that between May 2017 and June 28, 2017, they took part in a drug trafficking conspiracy with multiple participants. They also admitted that during the course of the conspiracy, they distributed over 2,000 thirty mg tablets of oxycodone and over 500 grams of methamphetamine, as well as heroin. They additionally admitted that they sold the drugs in and around Fayette County. On June 28, 2017, law enforcement executed search warrants at several locations associated with the conspiracy. During the execution of the search warrants, officers seized over 300 grams of crystal methamphetamine, as well as heroin, fentanyl, and over $29,000 in cash. The methamphetamine was later laboratory tested and confirmed to be 94% pure. Cheyenne Fragale admitted that the cash was proceeds from drug dealing. As part of their plea agreements, Cheyenne and Macon Fragale both admitted to all the drug trafficking activity charged in the indictment.
Several individuals implicated as a result of this investigation have entered guilty pleas to drug charges and are awaiting sentencing. Velarian Carter, of Beckley, faces a mandatory minimum of not less than 20 years and up to life in federal prison when he is sentenced on April 17, 2018. Dominic Copney, of Beckley, faces a mandatory minimum of five and up to 40 years in federal prison when he is sentenced on April 17, 2018. Detria Carter, of Beckley, faces a mandatory minimum sentence of not less than five and up to 40 years in federal prison when she is sentenced on April 24, 2018. Donald Scalise, of Montgomery, faces up to 20 years in federal prison when he is sentenced on April 25, 2018. Tiffany Ramsey, of Boomer, faces at least five years and up to 40 years in federal prison when she is sentenced on May 2, 2018. Shawn Akiem Anderson, of Mt. Hope, faces up to 10 years in federal prison when he is sentenced on May 29, 2018. Rory White, of Montgomery, faces at least five years and up to 40 years in federal prison when he is sentenced on June 6, 2018.
Karl Funderburk, of Teays Valley, who previously pled guilty to a gun charge, faces at least 5 years and up to life in federal prison for using and carrying a firearm during a drug trafficking crime when he is sentenced on May 29, 2018.
Shaun Jones of Beckley has entered a guilty plea to possession with intent to distribute more than 100 grams of heroin. Jonathan Moore, also of Beckley, has entered a guilty plea to possession with intent to distribute more than 500 grams of cocaine. Each faces at least five years and up to 40 years in federal prison when they are sentenced on May 29, 2018.
Corey Larkin, of Beckley, previously entered a plea to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine and more than 100 grams of heroin. He also faces at least five years and up to 40 years in federal prison when he is sentenced on June 5, 2018.
Esau Burnette, of Beckley, has entered a plea to conspiracy to manufacture, distribute, and possess with intent to distribute more than 28 grams of cocaine base and a quantity of cocaine. He faces at least five years and up to 40 years in federal prison when he is sentenced on May 30, 2018. James Rodney Staples, of Woodbridge, Virginia, faces at least 10 years in federal prison and up to life when he is sentenced on May 30, 2018 after entering a plea to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin.
Assistant United States Attorney Timothy D. Boggess handled the prosecutions. United States District Judge Irene C. Berger imposed the sentences.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Executive of Yacht Sharing Club Admits to Operating Investment Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANDREW DEME, 52, of Fort Lauderdale, Florida, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a conspiracy charge stemming from an investment fraud scheme.
According to court documents and statements made in court, DEME was the President and sole Director of Waters Club Worldwide, Inc. (“WCW”). In November 2016, WCW completed a merger with Petrus Resources Corporation and the merged company subsequently changed its name to Waters Club Holdings, Inc. (“Waters Club”). DEME became President, Chief Executive Office and Chief Financial Officer of Waters Club. According to a Waters Club document used to solicit investors and business partners, Waters Club sought to “introduce a revolutionary Sharing Economy model to yachting” by “form[ing] a membership-based Club with a fleet of yachts strategically located in the world’s leading cruising regions that members can share and use interchangeably for their yachting vacations.”
In pleading guilty, DEME admitted that promoters he hired made certain misrepresentations to prospective investors in Waters Club, including that money would be used to develop the business and fund the operations of Waters Club, and that promoters were not being paid commissions for recruiting investors. In truth, DEME knew that approximately half of all the money paid by investors for shares of Waters Club was paid to the promoters as sales commissions. Due in part to the payments to promoters, which totaled approximately $605,204, Waters Club lacked the capital to develop its membership-based club, did not pursue an IPO, and the shares purchased by investors were unsalable.
One of the victims of this investment scheme was a Connecticut resident who invested $475,000 in Waters Club.
DEME pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years. Judge Meyer scheduled sentencing for June 7, 2018.
DEME has been released on a $100,000 bond since his arrest on December 5, 2017.
Two Waters Club promoters, Thomas Heaphy, Jr. and Brian Ferraioli, both of New York, previously pleaded guilty to the same charge. Heaphy and Ferraioli recruited at least 12 investors to pay a total of at least $1,289,500 for shares of Waters Club stock. Heaphy’s total gain from the scheme was $307,658, and Ferraioli’s total gain was $297,546.
This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Edmonds Man Sentenced to One Year in Prison for Wire Fraud and Embezzlement from Non-Profit Sea Cadet ProgramRead the Press Release
A 49-year-old Edmonds, Washington man who defrauded the U.S. Naval Sea Cadet Corps (NSCC) of more than $77,000 was sentenced today in U.S. District Court in Seattle to one year in prison, three years of supervised release and $75,525 in restitution, announced U.S. Attorney Annette L. Hayes. In November 2017, MICHAEL NOEL LEIGHTON was convicted following a four-day jury trial of four counts of wire fraud and one count of embezzlement. At the sentencing hearing U.S. District Judge Thomas S. Zilly said “There was a lot of money that was spent improperly for personal items, for this defendant’s own personal use.”
“Fraud always undermines trust – in this case, with respect one of the cornerstones of our communities – our nonprofits,” said U.S. Attorney Annette L. Hayes. “Those who volunteer their time and hard earned funds deserve to know that they will be put to good use. Those who abuse that trust deserve to be held to account, just as this defendant was in this case.”
According to records in the case and testimony at trial, in 2011 LEIGHTON volunteered to become a training officer for a local NSCC unit based in Skagit and Snohomish Counties. In this role LEIGHTON was to organize and implement training opportunities for teen-aged students, called Sea Cadets. The program was funded by federal grants from the U.S. Navy to the NSCC. In addition, the Sea Cadets and their parents paid fees to participate in the programs. LEIGHTON and a family member had control of the bank account for the program. Between October 2011 and December 2012, LEIGHTON withdrew thousands of dollars for his personal expenses including meals, gas and the purchase of firearms and firearms accessories. Such purchases were not allowed under the program.
The Naval Sea Cadet Corps asked LEIGHTON for audit reports and receipts for his spending. In response, LEIGHTON provided fraudulent reports, attempting to cover up his illegitimate spending. When the new volunteer leaders of the group took over they discovered items purchased with the funds were missing. In the storage locker they found a few inexpensive furniture pieces, several uniforms, and camping gear. The expensive cameras, copiers and computers, as well as a number of firearms that LEIGHTON had purchased with NSCC funds were missing.
The case was investigated by the Naval Criminal Investigative Service (NCIS) and was prosecuted by Assistant United States Attorneys Seungjae Lee and Stephen Hobbs.
Dubuque Felon Who Stole a Gun Sentenced to More Than Three Years in Federal PrisonRead the Press Release
A convicted felon who stole a firearm from a vehicle and led police officers on a foot chase through residential backyards was sentenced today to more than three years in federal prison.
Friday Gardner, age 20, from Dubuque, Iowa, received the prison term after a September 28, 2017, guilty plea to one count of possession of a firearm by a felon. At the guilty plea, Gardner admitted he illegally possessed a loaded Taurus PT 740 handgun in April and May of 2017.
Information at the sentencing hearing showed that Gardner stole the gun from a car in Dubuque in April 2017. He was then caught in May 2017 after leading Dubuque police officers on a foot chase through residential backyards. Gardner threw the gun on the ground during the chase, but police found it that day. Gardner was a convicted felon with an active warrant out of Cook County, Illinois.
Gardner was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Gardner was sentenced to 41 months’ imprisonment and must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Gardner is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lyndie M. Freeman and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Guns, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17_CR-1035.
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Dominican National Sentenced for Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Dominican national formerly residing in Methuen was sentenced today in federal court in Boston for federal drug conspiracy.
Jorge Luis Nunez Martinez, who used the name William Matos, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 87 months in prison and three years of supervised release. Martinez will be subject to deportation upon completion of his sentence. In December 2017, Martinez pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin, cocaine, and crack.
In October 2015, a confidential source reported that an individual named Javier Gonzalez Marcano was operating a large-scale drug trafficking organization in and around Lawrence and Lowell. The subsequent investigation revealed that Martinez was a runner for the Gonzalez Marcano drug trafficking organization. In October 2016, Martinez assumed control over the drug trafficking organization when Gonzalez Marcano returned to the Dominican Republic. Martinez and Juan Rodriguez Castro, another runner for the Gonzalez Marcano drug trafficking organization, were arrested in March 2017.
In June 2017, Rodriguez Castro pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin, cocaine, and crack and was sentenced in October to 28 months in prison. Gonzalez Marcano is presently a fugitive.
United States Attorney Andrew E. Lelling and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Miranda Hooker of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Columbia Man Sentenced for Theft of Food Stamp MoneyRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Christopher O’Berry, age 43, of Columbia, was sentenced to 27 months in prison for Theft of Government Money, a violation of Title 18, United States Code, § 641. Senior United States District Judge Joseph F. Anderson, Jr., of Columbia, also ordered O’Berry to pay $1,039,981.75 in restitution to the United States.
Evidence presented at the change of plea hearing established that the Food and Nutrition Service (FNS) is the agency within the U.S. Department of Agriculture responsible for the administration and regulation of the SNAP. SNAP, commonly known as the food stamp program, assists low-income families and individuals purchase food.
Christopher O’Berry operated Cynthia’s Soul Food Deli (formerly Food World) in the Columbia area. The Deli served food, but was also registered to receive SNAP benefits as payment for food items. This arrangement posed two issues. First, SNAP does not pay for prepared food. Second, the Deli did not stock sufficient food to justify the purchases recorded under SNAP. O’Berry allowed beneficiaries to make small purchases through SNAP but processed them as much larger amounts. He would then pay some cash to the beneficiary and keep some for himself.
The investigation traced proceeds of the theft to a Woodforest National Bank account controlled by O’Berry. O’Berry deposited $956,006.90 between May 2011 and December 2014. He then withdrew $158,187 in cash and transferred $714,032 to his own accounts. The rest was used to make minimal purchases for the store.
U.S. Attorney Drake stated, “SNAP is an important source of critical funding to South Carolinians most in need, including the elderly and young families. When the unscrupulous or dishonest defraud the program- and that includes businesses and recipients of SNAP benefits- they are both stealing from the tax payers and eroding a program that does a lot of good.”
The Richland County Sherriff’s Office, the United States Department of Agriculture, Office of the Inspector General, and the Internal Revenue Service investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Columbia Man Pleads to Distribution of Child PornographyRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Dennis Michael Martin, age 51, of Columbia, South Carolina, pled guilty in federal court in Columbia, South Carolina, for Distributing Child Pornography, a violation of 18 U.S.C. § 2252S(a)(5)(B). United States District Judge J. Michelle Childs, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Martin was on supervised release after serving a seventy-eight month sentence for possessing child pornography when the Bureau of Immigration and Customs Enforcement (ICE) received notice from the National Center for Missing and Exploited Children (NCMEC) that Martin might be sharing child pornography on the internet. Further investigation revealed that Martin had been distributing and receiving child pornography for approximately one year while on supervised release. U.S. Attorney Drake stated the maximum penalty Martin could receive is a sentence of imprisonment not less than 15 years nor more than 40 years plus a fine of $250,000 and supervised release of not less than 5 years.
The case was investigated by agents of ICE. Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Columbia Man Pleads Guilty to Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to illegally possessing a firearm.
Lorenzo Dwayne Kemp, 20, of Columbia, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being a felon in possession of firearms.
By pleading guilty today, Kemp admitted that he was in possession of a Smith and Wesson .380-caliber semi-automatic handgun and a Rohm .22-caliber revolver on Oct. 25, 2017.
Columbia police officers located a stolen vehicle, occupied by Kemp in the driver’s seat and another person in the passenger’s seat, on the morning of Oct. 25, 2017. The vehicle’s owner had reported earlier that morning that her 2003 Ford Expedition was stolen from her residence after she left the vehicle running and unlocked prior to going to work so that it would be warm for her commute.
Kemp and the passenger of the stolen vehicle both fled from police officers on foot. After a short pursuit, both men were arrested. As the officer who handcuffed Kemp assisted him off the ground, he noticed a black bag that was directly underneath him. The bag contained both firearms as well as 16 baggies of marijuana, which weighed approximately 28.75 grams.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Kemp has a prior felony conviction for forgery. He was sentenced in that state case on Oct. 23, 2017 (two days prior to his arrest in this federal case) to four years with a suspended execution of sentence and five years of probation.
Under federal statutes, Kemp is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cleveland man indicted twice for firearms crimes; also had crack cocaineRead the Press Release
A Cleveland man was indicted for two separate firearms crimes, as well as one involving drugs, U.S. Attorney Justin E. Herdman said.
Darren M. Monroe, Jr., 30, was indicted on one count of illegal possession of ammunition and by a felon and possession of crack cocaine with intent to distribute. In a separate indictment, he was charged with being illegal possession of a firearm by a felon.
Monroe had five rounds of .22 caliber ammunition and crack cocaine base on November 1, 2016. He also possessed an H&R .22 caliber revolver and ammunition on January 27, 2018, according to the indictments.
Monroe is prohibited from possessing a firearm or ammunition because of three prior felony convictions for drug trafficking, according to the indictments.
The Cleveland Division of Police’s Neighborhood Impact Community Enforcement Unit, the Ohio State Highway Patrol, the RTA Transit Police, the Cuyahoga County Prosecutor’s Office, and ATF participated in the investigations. Both cases are being prosecuted by Assistant U.S. Attorney James P. Lewis.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chief Executive and Four Associates Indicted for Conspiring with Global Drug Traffickers by Providing Encryption Services to Evade Law Enforcement and Obstruct JusticeRead the Press Release
Assistant U. S. Attorneys Andrew P. Young (619) 546-7981, Mark W. Pletcher (619) 546-9714 and Benjamin J. Katz (619) 546-9604
NEWS RELEASE SUMMARY – March 15, 2018
SAN DIEGO – Vincent Ramos, the chief executive of Canada-based Phantom Secure, and four of his associates were indicted by a federal grand jury today on charges that they knowingly and intentionally participated in a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale and service of encrypted communications.
This is the first time the U.S. government has targeted a company and its principals for knowingly and intentionally conspiring with criminal organizations by providing them with the technological tools to evade law enforcement and obstruct justice while committing transnational drug trafficking.
“With one American dying of a drug overdose every nine minutes, our great nation is suffering the deadliest drug epidemic in our history,” Attorney General Jeff Sessions said. “Incredibly, some have sought to profit off of this crisis, including by specifically taking advantage of encryption technologies to further criminal activity, and to obstruct, impede, and evade law enforcement, as this case illustrates. The Department of Justice will aggressively prosecute not just drug traffickers, but those who help them spread addiction and death in our communities. I want to thank the FBI, DEA, Customs and Border Protection, Homeland Security Investigations, Washington State Police, the Bellingham and Blaine Police Departments, and all of our law enforcement partners around the world, including Australia, Canada, Panama, Hong Kong, and Thailand for their hard work on this case. Today's indictment sends a clear message that drug traffickers and criminals cannot hide, because we will hunt them down and find them wherever they are.”
“When criminals go dark, and law enforcement cannot monitor their phones or access evidence, crimes cannot be solved, criminals cannot be stopped and lives can be lost,” said U.S. Attorney Adam Braverman. “As a result of this groundbreaking prosecution, we will disable the communication infrastructure provided by a criminal enterprise to drug traffickers and other violent criminals. Phantom Secure was designed to profit off of criminal activity committed by transnational criminal organizations around the world. We are committed to shutting these criminals down.”
“The indictment of Vincent Ramos and his associates is a milestone against transnational crime,” said FBI Director Christopher Wray. “Phantom Secure allegedly provided a service designed to allow criminals the world over to evade law enforcement to traffic drugs and commit acts of violent crime without detection. Ramos and his company made millions off this criminal activity, and our takedown sends a serious message to those who exploit encryption to go dark on law enforcement. I want to thank our partners at the Department of Justice, as well as our Australian and Canadian law enforcement partners, for their incredible work on this case.”
“Hidden or undetected communication is key for any transnational organized crime network,” said John A. Brown, FBI Special Agent in Charge of the San Diego Field Office. “This case highlights how criminal enterprises, like Phantom Secure, knowingly provided advanced technology and encrypted private networks to transnational criminal operations in order to evade law enforcement. This break-through investigation has undoubtedly disrupted countless criminal organizations from operating their illegal and dangerous operations in the United States and abroad because their communications mechanism has been shut down. This indictment shows the impact law enforcement, working together across the globe, can have on transnational organized criminal groups. The San Diego Division of the FBI would like to recognize and thank our international law enforcement partners, who built this international case with exceptional and dedicated collaboration.”
Ramos was taken into custody in Bellingham, Washington, on March 7. Ramos made his first appearance in the Western District of Washington and will face charges in San Diego. The remaining four defendants are fugitives.
According to court documents, Phantom Secure advertised its products as impervious to decryption, wiretapping or legal third-party records requests. Phantom Secure also guaranteed the destruction of evidence contained within a device if it was compromised, either by an informant or because it fell into the hands of law enforcement. According to court documents, Phantom Secure’s clients used email handles like the following to conduct criminal activities:
The indictment alleges that as a result of its efforts to facilitate international crime, Phantom Secure has generated approximately $80 million in annual revenue since 2008 and facilitated drug trafficking, obstruction of justice, and violent crime around the world.
The international operation to arrest the company’s chief executive and seize Phantom Secure’s infrastructure involved cooperation and efforts by law enforcement authorities in the United States, Australia, Canada, with additional assistance from U.S. and foreign law enforcement in Panama, Hong Kong, and Thailand.
Over the past two weeks, in cooperation with Australian Federal Police and Royal Canadian Mounted Police, more than 250 agents around the globe conducted approximately 25 searches of houses and offices of Phantom Secure associates in Los Angeles, Las Vegas, Miami, and in Australia and Canada, seizing Phantom Secure devices, assets, and evidence of the charged crimes. The coordinated effort led to the seizure of servers, computers, cell phones, and Phantom Secure devices used to operate the Phantom Secure network, as well as drugs and weapons.
Ramos and the others - Kim Augustus Rodd, Younes Nasri, Michael Gamboa and Christopher Poquiz - are charged with participating in and aiding and abetting a racketeering enterprise and conspiring to import and distribute controlled substances around the world. The defendants have been charged with Conspiracy to Commit RICO in violation of 18 U.S.C. § 1962 and Conspiracy to Aid and Abet the Distribution of Controlled Substances in violation of 21 U.S.C. § 841 and 846.
Authorities have seized Phantom Secure’s property, including more than 150 domains and licenses which were being used by transnational criminal organizations to send and receive encrypted messages. Authorities also seized bank accounts and property in Los Angeles, California and Las Vegas, Nevada.
This case stems from an investigation in the Southern District of California of a Phantom Secure client who used Phantom devices to coordinate shipments of thousands of kilograms of cocaine and other drugs throughout the globe. According to court documents, there were an estimated 10,000 to 20,000 Phantom devices in use worldwide before the authorities dismantled the company. This coordinated action means Phantom Secure’s clients can no longer use these devices to commit crimes.
According to Timothy O’Connor, Executive Director of the Criminal Investigations Division New South Wales Crime Commission, “The disruption of the Phantom Secure platform has been one of the most significant blows to organized crime in Australia.”
In addition to our foreign law enforcement partners, the U.S. Attorney’s Office further recognizes the support and assistance of the U.S. Drug Enforcement Administration; Customs and Border Protection; the Department of Homeland Security; Seattle and Las Vegas field office of the Federal Bureau of Investigation; the Washington State Police Department; the City of Bellingham, Washington Police Department; the City of Blaine, Washington Police Department; and the Canada Border Services Agency, among others, without whose help this prosecution could not have been possible.
Speaking on behalf of Australian law enforcement authorities, Australian Federal Police (AFP) Assistant Commissioner Organised Crime, Neil Gaughan said today Australia’s role in this complex and unique investigation began in early 2017 following an exchange of intelligence with the FBI and Royal Canadian Mounted Police (RCMP).
As a result, Australian authorities executed 19 search warrants across four states last week as part of the international action, where more than 1,000 encrypted mobile devices were seized.
“The action taken in the U.S. directly impacts the upper echelons of organized crime both here in Australia and offshore, who until now have been able to confidently control and direct illicit activity like drug importations, money laundering and associated serious criminal offending,” said Assistant Commissioner Gaughan.
“Our thanks go to our international partners – the FBI and RCMP – who have been outstanding in working methodically around the clock together with us on this unique investigation. Without their cooperation, commitment and shared singular drive, Australian law enforcement agencies would not be announcing this significant result today.”
Australian agencies involved in this investigation include the Australian Criminal Intelligence Commission, the New South Wales Crime Commission, state police from New South Wales, Victoria, Queensland, South Australia and Western Australia, the Australian Tax Office and financial intelligence agency AUSTRAC.
“This investigation is a prime example of law enforcement agencies from around the world working together to identify, investigate and charge people involved in transnational criminal activity,” says Assistant Commissioner Jim Gresham, RCMP Criminal Operations Officer, Investigative Services and Organized Crime. “We remain committed to investigating and disrupting these illegal activities that adversely affect each of our communities.”
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANTS
Vincent Ramos (1) Richmond, British Columbia Canada
aka “CEO”
aka “Business”
Kim Augustus Rodd (2) Phuket, Thailand
aka Visith Vongthai
aka “Snowstar”
aka “Global”
Younes Nasri (3) Dubai, United Arab Emirates
aka “Maestro”
aka “Jesse”
Michael Gamboa (4) Los Angeles, CA
aka “Chino”
Christopher Poquiz (5) Los Angeles, CA
aka “Caddy”
aka “Cad”
SUMMARY OF CHARGES
Racketeering Conspiracy to Conduct Enterprise Affairs (RICO Conspiracy), in violation of 18 USC §1962(d)
Maximum Penalty: Life in prison
Conspiracy to Aid and Abet the Distribution of Narcotics, in violation of 21 USC §841 and 846; Title 18 USC §2
Maximum Penalty: Life in prison
AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
Department of Justice, Office of International Affairs
Australian Federal Police
New South Wales Police (Australia)
New South Wales Crime Commission (Australia)
Australian Criminal Intelligence Commission
Royal Canadian Mounted Police
International Assistance Group, Department of Justice, Canada
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Chief Executive and Four Associates Indicted for Conspiring with Global Drug Traffickers by Providing Encryption Services to Evade Law Enforcement and Obstruct JusticeRead the Press Release
Vincent Ramos, the chief executive of Canada-based Phantom Secure, and four of his associates were indicted by a federal grand jury today on charges that they knowingly and intentionally participated in a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale and service of encrypted communications.
This is the first time the U.S. government has targeted a company and its principals for knowingly and intentionally conspiring with criminal organizations by providing them with the technological tools to evade law enforcement and obstruct justice while committing transnational drug trafficking.
“With one American dying of a drug overdose every nine minutes, our great nation is suffering the deadliest drug epidemic in our history,” said Attorney General Jeff Sessions. “Incredibly, some have sought to profit off of this crisis, including by specifically taking advantage of encryption technologies to further criminal activity, and to obstruct, impede, and evade law enforcement, as this case illustrates. The Department of Justice will aggressively prosecute not just drug traffickers, but those who help them spread addiction and death in our communities. I want to thank the FBI, DEA, Customs and Border Protection, Homeland Security Investigations, Washington State Police, the Bellingham and Blaine Police Departments, and all of our law enforcement partners around the world, including Australia, Canada, Panama, Hong Kong, and Thailand for their hard work on this case. Today's indictment sends a clear message that drug traffickers and criminals cannot hide, because we will hunt them down and find them wherever they are.”
“When criminals go dark, and law enforcement cannot monitor their phones or access evidence, crimes cannot be solved, criminals cannot be stopped and lives can be lost,” said U.S. Attorney Adam Braverman. “As a result of this groundbreaking prosecution, we will disable the communication infrastructure provided by a criminal enterprise to drug traffickers and other violent criminals. Phantom Secure was designed to profit off of criminal activity committed by transnational criminal organizations around the world. We are committed to shutting these criminals down.”
“The indictment of Vincent Ramos and his associates is a milestone against transnational crime,” said FBI Director Christopher Wray. “Phantom Secure allegedly provided a service designed to allow criminals the world over to evade law enforcement to traffic drugs and commit acts of violent crime without detection. Ramos and his company made millions off this criminal activity, and our takedown sends a serious message to those who exploit encryption to go dark on law enforcement. I want to thank our partners at the Department of Justice, as well as our Australian and Canadian law enforcement partners, for their incredible work on this case.”
Ramos was taken into custody in Bellingham, Washington, on March 7. Ramos made his first appearance in the Western District of Washington and will face charges in San Diego. The remaining four defendants are fugitives.
According to court documents, Phantom Secure advertised its products as impervious to decryption, wiretapping or legal third-party records requests. Phantom Secure also guaranteed the destruction of evidence contained within a device if it was compromised, either by an informant or because it fell into the hands of law enforcement.
The indictment alleges that as a result of its efforts to facilitate international crime, Phantom Secure has generated approximately $80 million in annual revenue since 2008 and facilitated drug trafficking, obstruction of justice, and violent crime around the world.
The international operation to arrest the company’s chief executive and seize Phantom Secure’s infrastructure involved cooperation and efforts by law enforcement authorities in the United States, Australia, Canada, with additional assistance from U.S. and foreign law enforcement in Panama, Hong Kong, and Thailand.
Over the past two weeks, in cooperation with Australian Federal Police and Royal Canadian Mounted Police, more than 250 agents around the globe conducted approximately 25 searches of houses and offices of Phantom Secure associates in Los Angeles, Las Vegas, Miami, and in Australia and Canada, seizing Phantom Secure devices, assets, and evidence of the charged crimes. The coordinated effort led to the seizure of servers, computers, cell phones, and Phantom Secure devices used to operate the Phantom Secure network, as well as drugs and weapons.
Ramos and the others - Kim Augustus Rodd, Younes Nasri, Michael Gamboa and Christopher Poquiz - are charged with participating in and aiding and abetting a racketeering enterprise and conspiring to import and distribute controlled substances around the world. The defendants have been charged with Conspiracy to Commit RICO in violation of 18 U.S.C. § 1962 and Conspiracy to Aid and Abet the Distribution of Controlled Substances in violation of 21 U.S.C. § 841 and 846.
Authorities have seized Phantom Secure’s property, including more than 150 domains and licenses which were being used by transnational criminal organizations to send and receive encrypted messages. Authorities also seized bank accounts and property in Los Angeles, California and Las Vegas, Nevada.
This case stems from an investigation in the Southern District of California of a Phantom Secure client who used Phantom devices to coordinate shipments of thousands of kilograms of cocaine and other drugs throughout the globe. According to court documents, there were an estimated 10,000 to 20,000 Phantom devices in use worldwide before the authorities dismantled the company. This coordinated action means Phantom Secure’s clients can no longer use these devices to commit crimes.
According to Timothy O’Connor, Executive Director of the Criminal Investigations Division New South Wales Crime Commission, “The disruption of the Phantom Secure platform has been one of the most significant blows to organized crime in Australia.”
In addition to our foreign law enforcement partners, the U.S. Attorney’s Office further recognizes the support and assistance of the U.S. Drug Enforcement Administration; Customs and Border Protection; the Department of Homeland Security; Seattle and Las Vegas field office of the Federal Bureau of Investigation; the Washington State Police Department; the City of Bellingham, Washington Police Department; the City of Blaine, Washington Police Department; and the Canada Border Services Agency, among others, without whose help this prosecution could not have been possible.
Speaking on behalf of Australian law enforcement authorities, Australian Federal Police (AFP) Assistant Commissioner Organised Crime, Neil Gaughan said today Australia’s role in this complex and unique investigation began in early 2017 following an exchange of intelligence with the FBI and Royal Canadian Mounted Police (RCMP).
As a result, Australian authorities executed 19 search warrants across four states last week as part of the international action, where more than 1,000 encrypted mobile devices were seized.
“The action taken in the U.S. directly impacts the upper echelons of organized crime both here in Australia and offshore, who until now have been able to confidently control and direct illicit activity like drug importations, money laundering and associated serious criminal offending,” said Assistant Commissioner Gaughan.
“Our thanks go to our international partners – the FBI and RCMP – who have been outstanding in working methodically around the clock together with us on this unique investigation. Without their cooperation, commitment and shared singular drive, Australian law enforcement agencies would not be announcing this significant result today.”
Australian agencies involved in this investigation include the Australian Criminal Intelligence Commission, the New South Wales Crime Commission, state police from New South Wales, Victoria, Queensland, South Australia and Western Australia, the Australian Tax Office and financial intelligence agency AUSTRAC.
“This investigation is a prime example of law enforcement agencies from around the world working together to identify, investigate and charge people involved in transnational criminal activity,” says Assistant Commissioner Jim Gresham, RCMP Criminal Operations Officer, Investigative Services and Organized Crime. “We remain committed to investigating and disrupting these illegal activities that adversely affect each of our communities.”
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
Vincent Ramos (1) Richmond, British Columbia Canada
aka “CEO”
aka “Business”
Kim Augustus Rodd (2) Phuket, Thailand
aka Visith Vongthai
aka “Snowstar”
aka “Global”
Younes Nasri (3) Dubai, United Arab Emirates
aka “Maestro”
aka “Jesse”
Michael Gamboa (4) Los Angeles, CA
aka “Chino”
Christopher Poquiz (5) Los Angeles, CA
aka “Caddy”
aka “Cad”
SUMMARY OF CHARGES
Racketeering Conspiracy to Conduct Enterprise Affairs (RICO Conspiracy), in violation of 18 USC §1962(d)
Maximum Penalty: Life in prison
Conspiracy to Aid and Abet the Distribution of Narcotics, in violation of 21 USC §841 and 846; Title 18 USC §2
Maximum Penalty: Life in prison
Charlotte Man Sentenced for Identity TheftRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Stanley Fard Harper, age 33, of Charlotte, was sentenced to 24 months in prison for committing Aggravated Identity Theft, a violation of Title 18, United States Code, § 1028A. United States District Judge J. Michelle Childs, of Columbia, also ordered Harper to pay over $57,000 in restitution to various financial institutions.
Harper was an employee of The Lash Group, a health care consulting firm located in Ft. Mill, SC, since 2010. Harper had access to the personal identification information (PII) of Lash’s customer pool. Harper stole this information and used it to open bank and credit card accounts at Founders Federal Credit Union, also located in Ft. Mill.
Harper used Lash client files to set up fraudulent accounts at Founders using his personal cell phone. He would then go to the Founders branch in Ft. Mill, deposit a nominal sum to show activity, then apply for a credit card linked to that account. He would then use a fake North Carolina identification and a fake social security card matching the stolen identity to make cash advances and purchases. He would then deposit additional money into the account to increase the credit limit on his card. He used the fraudulent cards until they were suspended for nonpayment, and then he would get rid of all the documents. He opened thirteen accounts. He received his false identification documents from a website for $60 per set. All of the cash advances and purchases were for personal items.
Harper also opened fraudulent accounts at Charlotte Metro Federal Credit Union, Truliant Federal Credit Union, and Chase Bank USA.
The United States Secret Service investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
#####
Canadian Arrested on Indictment Alleging Illegal Export of Petroleum Equipment to IranRead the Press Release
UPDATE
The defendant in this case, MEHRAN GHANOUNI, was acquited of the charges alleged in the indictment described in the press release below.
A Canadian citizen was arrested on arrival at Sea-Tac airport last night, following his indictment on charges of violating U.S. export laws and making false statements to federal investigators, announced U.S. Attorney Annette L. Hayes. MEHRAN GHANOUNI, 29, operated a number of companies in both the U.S. and Canada. The indictment alleges that between 2014 and 2016, GHANOUNI and his coconspirators exported $2.3 million in parts for petrochemical operations, falsely claiming they were destined for companies in Kuwait, Iraq and the United Arab Emirates. In fact, the coconspirators knew the equipment was to be transshipped to oil companies owned by the government of Iran. Such exports are illegal under federal law. GHANOUNI will make his initial appearance in U.S. District Court in Seattle at 2:00 p.m. today.
“The violation of export control requirements undermines our national security,” said U.S. Attorney Annette L. Hayes. “I commend the investigative work of Homeland Security Investigations and the Office of Export Enforcement that has resulted in this arrest and charges.”
According to the indictment, the co-conspirators attempted to illegally export the equipment on 35 different occasions. The indictment describes a February 1, 2014, export where GHANOUNI’s company, Integrated Control Systems (ICS) claimed the parts were for an oil refinery in Kuwait when in fact they were destined for Iran. In May 2014, ICS claimed parts were destined for a company in Iraq, when in fact they were for an Iranian oil company. In December 2014, U.S. Customs and Border protection seized a shipment of parts ICS was sending overseas suspecting they were headed to Iran. The company again falsely claimed they were for repairs to be made in the UAE for a project in Iraq. Other shipments in January 2015 and February 2016 were also destined for Iran, but were represented as being for companies in Iraq and the UAE. When questioned, MEHRAN GHANOUNI told a special agent with Homeland Security Investigations that his company did not do any business with Iran. GHANOUNI knew that statement was false.
Conspiracy to violate the International Emergency Economic Powers Act Making a False Statement are each punishable by up to five years of imprisonment.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and United States Department of Commerce, Office of Export Enforcement.
The case is being prosecuted by Assistant United States Attorney Thomas Woods with assistance from the Department of Justice National Security Division.
California Men Sentenced to Prison for Cocaine TraffickingRead the Press Release
Jackson, Miss. – Ernestor Ramirez Garcia, 28, of Los Angeles, California, and Richard Cuevas, 35, of Sun City, California, were each sentenced by Senior U.S. District Judge Tom S. Lee to 60 months in federal prison followed by three years of supervised release for transporting cocaine on the interstate, announced U.S. Attorney Mike Hurst.
On October 6, 2016, Garcia and Cuevas were stopped by law enforcement on I-20 in Morton, Mississippi for a traffic violation. During the traffic stop, the officer noticed Garcia appeared to be extremely nervous, and the two men gave inconsistent statements. The officer ran a drug dog around the vehicle and the dog alerted to the presence of controlled substances. Ultimately, the investigation revealed that Garcia and Cuevas traveled from California through Morton, Mississippi with approximately 30 kilograms of cocaine. In total, 21 packages were removed from the vehicle.
The case was investigated by the Morton Police Department and the Drug Enforcement Administration. It was prosecuted by Assistant U.S. Attorney Chris Wansley.
Brothers from Ossian Sentenced to Federal PrisonRead the Press Release
Two brothers from Ossian, Iowa, who sold opioids and illegally possessed numerous guns were each sentenced today to nearly four years in federal prison.
Kaleb Breitsprecher, age 22, received the prison term after an August 25, 2017 guilty plea to distributing heroin and possession of a firearm as an unlawful drug user. Cole Breitsprecher, age 24, received the prison term after a September 1, 2017 guilty plea to distribution of furanyl fentanyl and possession of a firearm as an unlawful drug user.
Evidence at a prior hearing showed that law enforcement purchased drugs from the brothers multiple times in April and May 2017. During one of the controlled buys, Cole Breitsprecher sold an aerosol bottle of liquid containing furanyl fentanyl, a potent analogue of fentanyl. During other controlled buys, Kaleb Breitsprecher sold baggies of heroin. During June 2017 searches at their respective residences in Ossian, law enforcement seized 12 guns. Each brother possessed a Bushmaster rifle with multiple high-capacity magazines. Both brothers admitted to being unlawful users of heroin, fentanyl, and marijuana.
“The Breitsprechers endangered the entire community by unlawfully possessing guns while using drugs,” said United States Attorney Peter E. Deegan, Jr. “They also sold heroin and furanyl fentanyl, presenting a grave risk to everyone who bought these incredibly dangerous opioids.”
The Breitsprechers were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Kaleb Breitsprecher was sentenced to 46 months’ imprisonment. Cole Breitsprecher was sentenced to 46 months’ imprisonment and fined $5,000. Each must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Both men are being held in the United States Marshal’s custody until they can be transported to federal prison.
The case was investigated by the Northeast Iowa Drug Task Force and Iowa Division of Narcotics Enforcement, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2053-LRR.
Follow us on Twitter @USAO_NDIA.
Brooklyn Man Pleads Guilty to Producing Child PornographyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DAVID SHALAM pleaded guilty today before U.S. Magistrate Judge Sarah Netburn to a Superseding Information charging him with the production of child pornography. U.S. District Court Judge Alvin K. Hellerstein will impose sentencing.
Manhattan U.S. Attorney Geoffrey S. Berman said: “David Shalam paid a woman to perform sex acts via internet video, eventually further urging her to engage in acts of sexual molestation of her own minor children of six and eight years old. Depraved acts such as this can have profoundly damaging effects on victims, the aftermath often leading to years of suffering psychological torment and anguish. Today’s plea holds David Shalam accountable for these reprehensible acts.”
According to the allegations in the Superseding Information, and the Complaint filed on March 9, 2017:
Between April and December 2015, SHALAM paid a woman in Romania (referred to in the Complaint as “Jane Doe”) to participate in a series of live video chats over Skype, during which SHALAM directed Jane Doe to engage in specific sexually explicit conduct with her minor children, who at the time were approximately six and eight years old. SHALAM referred to Jane Doe’s real time sexual abuse of her children as “shows,” at least one of which SHALAM recorded.
In conjunction with Romanian authorities, the FBI recovered logs of instant messages between SHALAM and Jane Doe over Skype, during which SHALAM and Jane Doe discussed the kinds of sex acts SHALAM wanted to see performed, when the children would be home from school so that the “shows” could take place, and the cost of each “show.” SHALAM wired payments to Jane Doe through a Western Union branch in midtown, Manhattan, a few blocks from the office where SHALAM worked for a retail clothing company.
* * *
SHALAM, 51, of Brooklyn, New York, pled guilty to one count of sexual exploitation of minors, which carries a mandatory minimum sentence of fifteen years in prison, and a maximum sentence of thirty years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Alison Moe and Mollie Bracewell are in charge of the prosecution.
Boston Man Sentenced for Cocaine DistributionRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.
Dominique Dozier, 31, was sentenced by U.S. District Court Judge Allison D. Burroughs to 50 months in prison and six years of supervised release, during which time Dozier must stay away from the Orchard Gardens Housing Development area. In December 2017, Dozier pleaded guilty to two counts of distribution of cocaine base within 1,000 feet of a school.
On July 13, 2016, Dozier sold four bags of crack cocaine, which he described as “some fat ones,” to a cooperating witness in the lobby of his apartment building, which is near the Edna W. Bynoe Community Park in Roxbury. According to court documents Dozier has been convicted on nine separate occasions for 20 offenses that include violence, threats, weapons, and trafficking of drugs. Dozier is one of 12 defendants arrested and charged in June 2017 following a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to the Edna W. Bynoe Community Park.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement.