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25 April 2018
Illegal alien from Mexico sentenced to 18 months in prison for illegally possessing a firearm in Bernice, LaRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that a Mexican national was sentenced Tuesday to 18 months in prison for being an illegal alien in possession of a rifle.
Gerardo C. Rodriguez, 53, of Samluispotosi, Mexico, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of a firearm by an illegal alien. On December 11, 2016 around midnight, Union Parish Sheriff’s deputies responded to a disturbing-the-peace call at an apartment complex in Bernice, Louisiana. Deputies found Rodriguez intoxicated and passed out in his car with the keys in the ignition. They arrested Rodriguez and towed his vehicle. While in the back of the deputies’ car, Rodriguez tried to kick out the windows and also tried to kick the deputies multiple times when they opened the doors to get him out. At the detention center, deputies noticed a gunshot wound to his thigh and sent him to the hospital for treatment. The next day, Rodriguez told deputies he shot himself accidentally with a .22 caliber pistol while drunk. He also told deputies he owned a rifle seized from his vehicle the day before. Rodriguez admitted to re-entering the United States illegally and possessing the rifle as a convicted felon. Rodriguez was previously convicted of being an illegal alien in possession of a firearm in 2004, after which Rodriguez was removed to Mexico.
Homeland Security Investigations, ATF and Union Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Mike O’Mara prosecuted the case.
Howard Man Ordered to Pay $13,662.57 for Killing and Trapping Migratory BirdsRead the Press Release
United States Attorney Ron Parsons announced that U.S. Magistrate Judge Veronica L. Duffy sentenced a Howard, South Dakota, man convicted of taking, killing, and possessing migratory birds on April 23, 2018.
Armand Joseph Dornbusch, age 63, was sentenced to pay $13,662.57 restitution and $10 to the Federal Crime Victims Fund.
Dornbusch was indicted for taking, killing, and possessing migratory birds by a federal grand jury on January 9, 2018. He pled guilty on March 21, 2018.
On August 12, 2017, the Miner County Sheriff’s Office received a report about metal traps on wooden fence posts. Officers found 21 steel-jawed leg-hold traps containing 4 birds still alive and 8 dead birds, including four hawks and one great-horned owl. Three of the live birds were raptors and underwent surgery at the Great Plains Zoo in Sioux Falls to amputate severely damaged digits on their feet. The treatment was successful and they were eventually released back into the wild. As part of his sentence, Dornbusch lost his hunting privileges for 3 years and forfeited all of the traps.
This case was investigated by the Miner County Sheriff’s Department, South Dakota Department of Game, Fish & Parks, and the U.S. Fish & Wildlife Service. Assistant U.S. Attorney Jeff Clapper prosecuted the case.
Gustavo Falcon Sentenced to 135 Months for Narcotics ConspiracyRead the Press Release
Gustavo Falcon, a member of the Falcon-Magluta criminal organization, was sentenced by United States District Judge Federico A. Moreno today to 135 months in prison for his participation in a narcotics conspiracy.
Randy A. Hummel, First Assistant United States Attorney, U.S. Attorney’s Office for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Amos Rojas, Jr., United States Marshal, United States Marshals Service (USMS), made the announcement.
On February 1, 2018, Falcon pled guilty to conspiracy to possess with intent to distribute and to distribute cocaine, in violation of Title 21, United States Code, Section 846, an offense punishable by up to twenty years in prison. Prior to his arrest in April 2017, Falcon was a fugitive for approximately 26 years.
Falcon’s conviction arises out of his participation in the cocaine trafficking organization headed by his older brother, Augusto Guillermo Falcon, a/k/a “Willie,” and Salvador Magluta. From the early 1980s through mid-October 1991, the Falcon-Magluta organization was an extraordinarily prolific cocaine trafficking organization based in the Southern District of Florida and elsewhere. As an illustration of the scope of the organization’s activities, cocaine ledgers seized from a residence controlled by Magluta that covered the period of January 1, 1990, through October 15, 1991, recorded the distribution of 8,921 kilograms of cocaine for a total price of $142,509,800.
In the mid-1980s, the Falcon-Magluta organization established a base in Southern California. From that base, the organization distributed cocaine in the Southern California area and moved large tractor-trailer loads of cocaine from California to various destinations in the United States, including the Southern District of Florida. On almost a daily basis, the organization’s local distribution operations in Southern California received between $50,000 and $200,000 in cash drug proceeds.
Falcon’s wife’s brother was a Falcon-Magluta organization cocaine trafficker. In 1986, the defendant’s brother-in-law told the defendant that he had a client in California that he needed to supply with cocaine. The defendant gave his brother-in-law the names of two organization members working in the Los Angeles area and told his brother-in-law that one of them would be able to supply any cocaine he needed.
After his arrest in Los Angeles in mid-December 1986, the defendant’s brother-in-law returned to South Florida. In late 1987, Falcon asked his brother-in-law to receive large shipments of cocaine transported from California and introduced him to the organization member responsible for delivering the cocaine to a farm in west Miami-Dade County. The tractor-trailers arrived every one to two months and generally contained 1,000 kilograms of cocaine per load. After the loads were delivered to the farm, the defendant’s brother-in-law then would transport the cocaine to stash houses in the South Florida area.
In late 1989, Falcon contacted a separate organization member and offered him $10,000 per month to stash large quantities of cocaine in his house. After this organization member accepted the defendant’s offer, he received and stored organization cocaine through 1991. A search of that organization member’s house in early January 1992 yielded 3.093 kilograms of cocaine from his attic.
On April 10, 1991, a federal grand jury returned a cocaine trafficking indictment in this case that charged ten Falcon-Magluta organization members. Those charged included Falcon, Willie Falcon, Salvador Magluta, and the defendant’s brother-in-law. After the indictment was unsealed on May 20, 1991, Falcon and others learned of the charges against them. In mid-September 1991, Falcon obtained a false Florida driver’s license in the name of “Luis Andre Reiss.”
In April 2017, the USMS located the defendant in the area of Kissimmee, Florida, where he had been living for a number of years under the “Luis Reiss” alias identity he had established in September 1991. Deputy Marshals captured the defendant on April 12, 2017.
Mr. Hummel commended the investigative efforts of the DEA and USMS and thanked the Miami-Dade Police Department for their assistance with this matter. This case was prosecuted by Assistant U.S. Attorney Christopher Clark.
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.
Four fraudsters sentenced for filing bogus tax returnsRead the Press Release
ATLANTA – Sean Demetrius West and Curry Anthony Love, Jr. were sentenced for their roles in a scheme to claim fraudulent tax refunds using bogus Form 1099s. Darrel Asquith Palmes and Emory Leon Harris, Jr. were previously sentenced for their roles in the scheme.
“This case is a reminder that the government will identify and prosecute individuals who file fraudulent tax returns,” said U.S. Attorney Byung J. “BJay” Pak. “When caught, you are facing a felony conviction, prison, and a judgment for the amount stolen from the Treasury.”
“IRS Criminal Investigation works vigorously to stop the issuance of these fraudulent tax refunds based on bogus Forms 1099. The criminals are inventing new ways to circumvent the system and the sentencings handed down in this investigation show the stiff penalties for doing so,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation.”
According to U.S. Attorney Pak, the charges and other information presented in court: West and Love, along with Harris, the organizer of the scheme, recruited taxpayers to file tax returns using bogus Form 1099s claiming a total of $2,688,591 in fraudulent refunds. Harris and West introduced Palmes, a tax preparer, to the recruited taxpayers. Harris and West provided Palmes with fake 1099s and other documents and Palmes in turn prepared the fraudulent returns. These forms listed fictitious employers for the taxpayers and claimed hundreds of thousands in withholdings already paid to such employers. The fictitious withholdings resulted in claimed refunds ranging from $134,990 to $1,000,000 for each taxpayer involved. Love, who filed his own fraudulent tax return, was the only taxpayer whose return was processed for a refund. The IRS identified and rejected six other fraudulent returns.
●Sean Demetrius West, 44, of Conyers, Georgia was sentenced to 18 months of home confinement and ordered to pay $435,990 in restitution. West pleaded guilty to interference with the administration of IRS laws on July 27, 2016.
●Curry Anthony Love, Jr., 51, of Lithonia, Georgia was sentenced to one year and one day in prison, to be followed by three years of supervised release, and ordered to pay $435,990 in restitution. Love pleaded guilty to making a false statement in a federal income tax return on November 2, 2017.
●Darrell Asquith Palmes, 71, of Lake Worth, Florida, was sentenced to one year in prison, to be followed by one year of supervised release, and ordered to pay $435,990 in restitution on March 1, 2018. Palmes pleaded guilty to interference with the administration of IRS laws on July 24, 2017.
●Emory Leon Harris, Jr., 33, of Atlanta, Georgia, was sentenced to two years in prison, to be followed by one year of supervised release, and ordered to pay $435,990 in restitution on October 24, 2016. Harris pleaded guilty to interference with the administration of IRS laws on July, 26, 2016.
This case was investigated by the Internal Revenue Service Criminal Investigation Division.
Assistant U.S. Attorney Brian Michael Pearce prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Four More Defendants Sentenced for $1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Four more defendants have been sentenced in federal court this week for their roles in a conspiracy to distribute more than $1 million worth of methamphetamine in southern Missouri and in the Kansas City, Mo., area.
Travis Lee Bethel, 46, of Urbana, Mo., was sentenced by U.S. Chief District Judge Greg Kays today to nine years and 10 months in federal prison without parole. The court also ordered Bethel to pay the government a money judgment of $1,060,070.
Jake Ian Nixon, 20, of Springfield, Mo., was sentenced on Tuesday, April 24, 2018, to eight years and four months in federal prison without parole ordered to pay the government a money judgment of $181,000. Two co-defendants, Tara L. Harken, 45, of Marion, Ill., and Kara Rene Baze, 25, of Springfield, were each sentenced on the same day to five years of probation and each ordered to pay the government a money judgment of $302,000.
On Aug. 11, 2017, Bethel pleaded guilty to one count of conspiracy to distribute methamphetamine from Jan. 1, 2014, to Nov. 17, 2016, and one count of conspiracy to commit money laundering.
Co-defendant Kenneth Bryant Lake, 57, of Strafford, Mo., was the original head of the drug-trafficking organization, coordinating vehicle transport shipments of methamphetamine from a Mexican cartel source in Texas to Springfield. Conspirators in Springfield divided the methamphetamine for distribution to the Lebanon, Mo., and Kansas City, Mo., areas. Lake has pleaded guilty and awaits sentencing.
Co-defendant Michael Ryan Nevatt, 28, of Springfield, subsequently became the head of the organization. Nevatt was convicted at trial on April 6, 2018, of all seven counts contained in a Nov. 17, 2016, federal indictment. Nevatt and other conspirators made regular trips, and sometimes travelled several times a week, to pick up multiple-pound supplies of methamphetamine. For example, Nevatt traveled to Texas regularly to pick up 10 pounds of methamphetamine and bring it back to Springfield. Nevatt would later return to Texas with approximately $100,000 in cash to pay for it. On one occasion, Nevatt met sources in Dallas, Texas, to purchase 40 pounds of methamphetamine. Mexican sources also delivered multiple-pound shipments of methamphetamine by truck or car to Springfield.
Bethel assisted Nevatt with distributing more than 50 kilograms of methamphetamine for Nevatt’s organization and with collecting drug proceeds for methamphetamine delivered. Bethel also provided Nevatt and others with salvage title vehicles. These vehicles were traded for methamphetamine and/or paid for with drug proceeds. Bethel also assisted Nevatt with repairs for vehicles, again paid for with methamphetamine or drug proceeds.
Nixon was arrested by Springfield police officers on July 15, 2015, for possession of approximately three ounces of methamphetamine and a .32-caliber handgun. Nixon had been purchasing quarter pound quantities of methamphetamine in Springfield every other day for $3,400. Nixon was arrested on three more occasions in 2016; at the time of each of those arrests, Nixon was in possession of methamphetamine and a firearm. He was arrested again on June 9, 2016, for possession of methamphetamine.
Nixon pleaded guilty on Aug. 8, 2017, to the drug-trafficking and money-laundering conspiracies and to possessing firearms in furtherance of drug-trafficking crimes.
Harken, who is Nevatt’s mother, and Baze, who is the mother of one of Nevatt’s children, both pleaded guilty to traveling across state lines in aid of a racketeering enterprise. Harken and Baze admitted that they facilitated the drug-trafficking and money-laundering conspiracies. Harken moved and stored property purchased with drug proceeds or used in Nevatt’s money-laundering and drug-tracking conspiracy, stored drug proceeds, and rented a storage unit used in the conspiracy. Baze stored drug proceeds and rented facilities, rooms and cars used in the conspiracy.
On Aug. 28, 2015, Baze and Lake were arrested during a search at a hotel room in Springfield. Officers recovered $102,787, a loaded handgun and a small amount of methamphetamine. Nevatt and co-defendant Jarub Ray Baird, 27, of Carthage, arrived in a black Corvette and after a brief chase were apprehended.
Bethel, Nixon, Harken and Baze are among 15 defendants who have been convicted in this case. Baird was sentenced on April 18, 2018, to 11 years and 10 months in federal prison without parole. Scott Bryan Sands, 53, of Springfield, was sentenced on April 12, 2018, to 10 years and 10 months in federal prison without parole. Aaron Randall Stull, 53, of Springfield, was sentenced on Feb. 8, 2018, to eight years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades and Special Assistant U.S. Attorney Ashleigh Ragner. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration, the Internal Revenue Service, the Buchanan County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the U.S. Postal Inspection Service and the Central Oklahoma Metro Interdiction Team.
Former Vermeer Employee, and Others, Charged with FraudRead the Press Release
DES MOINES, Iowa – On April 24, 2018, a federal grand jury returned an indictment charging Scott Randell Whitehead, age 54, and others with defrauding Vermeer Corporation of Pella, Iowa, announced United States Attorney Marc Krickbaum. According to the indictment, Whitehead was Vermeer’s maintenance manager. Whitehead is alleged to have approved $3.6 million in invoices for products from two chemical companies, which were never received by Vermeer. Whitehead is also alleged to have received kickbacks from the two chemical companies. The two chemical companies are All Industrial Chemical of Hallendale Beach, Florida, and National Chemical Company of Davie, Florida. Whitehead is charged with two counts of conspiracy to commit mail and wire fraud.
Also charged are Natalia A. Sheps, age 38; Boris Vaysman, age 63; and Ana Hallon Gallego, age 57. Sheps and Vaysman are alleged to control All Industrial Chemical, which is alleged to have received more than $3.1 million from Vermeer; they are charged with conspiracy and money laundering offenses, based on checks written from Sheps and Vaysman. Gallego is alleged to control National Chemical Company, which is alleged to have received more than $500,000 from Vermeer; she is charged with conspiracy and money laundering, based on the transfer of funds between National Chemical Company’s bank accounts.
All four defendants are scheduled to appear in United States District Court in Des Moines on May 15, 2018. At that time, a trial date and other deadlines will be scheduled. The public is reminded that an Indictment is merely an accusation, and the defendants are presumed innocent unless they are proven guilty.
This matter was investigated by the Federal Bureau of Investigation—Des Moines Resident Agency. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former U.S. Postal Service Employee Sentenced for EmbezzlementRead the Press Release
BOSTON – A former postal employee was sentenced today in federal court in Boston for embezzling over $22,000 from the U.S. Postal Service (USPS).
Dennis Reis, 37, of Taunton, was sentenced by U.S. District Court Judge Denise J. Casper to two years of probation, with the first six months to be served in home confinement, and ordered to pay restitution of $22,773. In January 2018, Reis pleaded guilty to one count of embezzlement and theft of public money, property or records.
Reis started working for the USPS in approximately 2000, and in 2014, became the Lead Sales & Service Associate at the East Taunton Post Office. In that capacity, Reis sold stamps to customers and maintained accountability for the funds and stamp stock. From January 2015 to March 2017, Reis engaged in a scheme to embezzle funds by voiding cash transaction sales of stamps so that the system did not account for the cash paid by customers. Reis then entered a “no sale” transaction into the system, causing the cash drawer to open and taking the cash paid by customers for his own use. Through this scheme, Reis embezzled at least $22,773 from the USPS.
United States Attorney Andrew E. Lelling and Eileen Neff, Special Agent in Charge of the United States Postal Service, Office of Inspector General, Northeast Area Office, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit prosecuted the case.
Former Tulsan Sentenced for $2,000,000 Wire Fraud Scheme and $500,000 Tax Evasion CaseRead the Press Release
Chief District Judge Gregory K. Frizzell sentenced Shawn Christopher Gorrell, 39, formerly of Tulsa, Oklahoma, and now of Belgrade, Montana, to 64 months in prison on each of the 3 counts of wire fraud a jury found Gorrell committed and 60 months in prison on the 3 tax evasion counts. All prison sentences are to run concurrently with one another. The court also ordered Gorrell to pay $2,006,908 in restitution to victims of his wire fraud scheme and a special monetary assessment totaling $600. After release from prison, Gorrell must serve 3 years under the supervision of the United States Probation Office. As a condition of his supervised release, the court ordered Gorrell pay $509,256 in restitution to the Internal Revenue Service for the taxes he owes. The court has also entered a criminal money forfeiture judgment against Gorrell for $2,006,908.
After a one-week trial in January 2018, the jury determined that, between 2007 and 2012, Gorrell fraudulently induced victims to entrust him with over $2 million for investing on their behalf in various ventures that Gorrell touted. In fact, Gorrell used the funds to pay personal expenses, to gamble and to day-trade in his personal trading account. In addition to providing the investors with reassuring statements of venture performance, Gorrell used their funds to make Ponzi-type payments back to them, creating the illusion that the ventures were operating according to his representations. Except for those funds that he paid to investors as purported “returns,” Gorrell spent all of the victims’ invested moneys.
In addition, the jury determined that Gorrell evaded the payment of taxes on the funds that he fraudulently obtained from investors. The funds should have been reported for the tax years 2009, 2011 and 2012, but Gorrell willfully avoided doing so and, at sentencing, the court ordered him to pay the taxes owed.
“Fraudulent investment schemes often do serious damage, and the one perpetrated by Shawn Gorrell was especially catastrophic to his victims,” United States Attorney R. Trent Shores stated. “Gorrell, through his fraudulent activity, wiped out victims’ retirement funds and devastated the lives of their families. In addition, Gorrell failed to comply with the duty of all law-abiding citizens – the accurate reporting of income and payment of taxes. He took a free ride with investor funds, and on the backs of those who pay their taxes. I appreciate the sentence imposed today by Chief Judge Frizzell, which emphasizes the serious nature of Shawn Gorrell’s crimes.”
The Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Oklahoma Department of Securities and Oklahoma Department of Insurance investigated the matter. Assistant United States Attorneys Kevin C. Leitch, Joseph F. Wilson, and Catherine Depew prosecuted the case.
Former Procurement Officer at Federally Funded Nuclear Research and Development Facility Sentenced to Prison for Wire Fraud and Money LaunderingRead the Press Release
A former procurement officer employed at Sandia National Laboratories (SNL), a nuclear research and development facility of the U.S. Department of Energy (DOE), was sentenced to three years in prison for orchestrating a scheme to obtain approximately $2.3 million in federal funds through fraudulent means and for laundering the fraudulently obtained proceeds through her father’s companies.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.
Carla Sena, 56, of Santa Rosa, New Mexico, was sentenced by U.S. District Judge James A. Parker of the District of New Mexico. Judge Parker also ordered Sena to forfeit $643,000, the approximate amount that she laundered through her father’s companies.
Sena pleaded guilty to wire fraud and money laundering in December 2017. According to admissions made in connection with her plea agreement, in late 2010, Sena was tasked with managing the bidding process for the award of a multi-million-dollar contract for moving services at SNL. In anticipation of the bidding process for this contract, she created New Mexico Express Movers LLC (“Movers LLC”), prepared a bid on Movers LLC’s behalf, and submitted the bid to SNL under an acquaintance’s name to conceal her involvement. Sena made several material and fraudulent misrepresentations in Movers LLC’s bid to give the appearance of meeting the mandatory requirements in the bidding process, and she then used her position to ensure that these misrepresentations went undetected. Sena also used her position to access other bidders’ documents and information that she in turn leveraged to ensure award of the contract to Movers LLC.
Sena admitted that as a direct result of her scheme to defraud, Movers LLC received approximately $2.3 million in DOE funds. Of that, Sena transferred via negotiated checks at least $643,000 to legitimate businesses owned by her father with the intent to conceal her subsequent use of the proceeds for personal gain.
The U.S. Department of Energy Office of Inspector General investigated the case. Trial Attorneys Victor R. Salgado and Rebecca Moses of the Criminal Division’s Public Integrity Section prosecuted the case.
Former Lexington Resident Sentenced to 41 Months for Theft from Pension PlansRead the Press Release
LEXINGTON, Ky. – George S. Hofmeister, 65, formerly of Lexington, was sentenced today to 41 months in federal prison, by Chief United States District Judge Karen K. Caldwell, for pension plan theft and money laundering.
Hofmeister previously admitted that he embezzled money from the Hillsdale Hourly and Salaried Pension Plans. Hofmeister was the Trustee of the Plans at the time. Hofmeister also admitted that Plans’ assets were diverted for the benefit of his companies and his family’s trusts. Hofmeister pleaded guilty to the charges in October 2017.
Under federal law, Hofmeister must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and L. Joe Rivers, Regional Director, U.S. Department of Labor, Employee Benefits Security Administration (EBSA), jointly made the announcement. “Employer sponsored retirement plans serve a vital role in providing a financially secure retirement for American workers,” said Director Rivers. “This case underscores EBSA’s commitment to pursing any individual who would divert these funds for their own enrichment.”
The investigation was conducted by the Department of Labor’s EBSA and Office of Inspector General and the Internal Revenue Service. The United States was represented by Assistant United States Attorney Elaine K. Leonhard and former Assistant United States Attorney Robert K. McBride.
Former Detroit Police Officers Sentenced for ExtortionRead the Press Release
Former Detroit Police Department Officers James Robertson and Marty Tutt were sentenced yesterday to 24 months imprisonment (Robertson) and 12 months imprisonment (Tutt) for accepting bribes from automobile collisions shops in exchange for referring stolen and abandoned vehicles recovered in the City of Detroit to the shops, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Timothy Slater, Special Agent in Charge, Federal Bureau of Investigation, Patricia Armstrong, U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division and Chief James Craig, Detroit Police Department. The defendants were actively employed with the Detroit Police Department at the time of the offenses.
James Robertson, age 45, and Marty Tutt, age 30, were sentenced by U.S. District Judge Robert Cleland. Robertson previously pleaded guilty to two counts of extortion. Tutt also previously pleaded guilty to two counts of extortion.
According to the facts alleged in the informations and further developed at the plea hearing and in sentencing briefing, Robertson and Tutt each accepted cash payments from owners/operators of Detroit collision shops in exchange for referring abandoned vehicles to the shops for repairs and for writing police reports.
Robertson and Tutt are the second and third defendants to have been sentenced as a result of this investigation. The others awaiting sentencing or a trial are:
• Jamil Martin, 46, pleaded Guilty to an Information charging 1 count of Extortion
• Charles Wills, age 52, pleaded guilty to two counts of Extortion charged in a Superseding Indictment.
• Deonne Dotson, age 45, is awaiting trial.
All of the Officers were charged with engaging in extortion for using their official positions as Police Officers to refer cars to certain collision shops in exchange for cash payments.
“These defendants are an unfortunate exception to the majority of Detroit Police Officers who are courageous, dedicated public servants,” U.S. Attorney Schneider said.
"The misconduct and abuse of authority displayed by these officers is unfortunate, and contrasts with the commitment to the rule of law demonstrated by the vast majority of the men and women of the Detroit Police Department each day", said Timothy R. Slater, Special Agent in Charge, Detroit FBI.
The investigation was conducted by the FBI, the U.S. Postal Inspection Service, Detroit Police Department and the following agencies from the FBI Detroit Area Corruption Task Force: Michigan State Police and U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operation Division.
The FBI Detroit Area Corruption Task Force is comprised of personnel from the Detroit Division of the FBI; Michigan State Police; Michigan Department of Attorney General; Detroit Police Department; U.S. Internal Revenue Service, Criminal Investigation Division; U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operations Division; U.S. Postal Inspection Service; U.S. Department of Labor, Office of the Inspector General, Office of Labor Racketeering and
Fraud Investigations; U.S. Department of Housing and Urban Development, Office of the Inspector General; U.S. Department of Transportation, Office of the Inspector General; U.S. Department of Homeland Security, Office of the Inspector General; U.S. Department of Education, Office of the Inspector General; and U.S. Environmental Protection Agency, Office of the Inspector General.
The case is being prosecuted by Assistant United States Attorneys Sarah Resnick Cohen and Craig A. Weier.
Former Corrections Officer Pleads Guilty to Contraband Smuggling at Jackson County Detention CenterRead the Press Release
KANSAS CITY, Mo. – A former corrections officer at the Jackson County Detention Center pleaded guilty in federal court today to smuggling contraband cell phones and other items to inmates at the Jackson County Detention Center.
Andre Lamonte Dickerson, 26, of Kansas City, Mo., pleaded guilty before U.S. District Judge Stephen R. Bough to two counts of using a telephone in furtherance of the unlawful activity of acceding to corruption, related to a public servant taking a bribe in return for violating his legal duty.
By pleading guilty today, Dickerson admitted that he told a confidential informant that he would smuggle two packs of cigarettes, a cell phone and a cell phone charger to an inmate in the detention center for $500. Dickerson met the informant at a Church’s Fried Chicken restaurant on June 2, 2017, where he received the payment and the contraband items.
The next day, June 3, 2017, Dickerson entered the inmate’s cell and put the contraband on the bed. They engaged in a conversation regarding potential future contraband transactions. Dickerson asked if the inmate would be interested in paying him a monthly fee of $2,500. In exchange, Dickerson would ensure he would be the only inmate on the fifth floor to receive contraband cigarettes, narcotics and telephones. Other inmates would then shop through him for their contraband.
The inmate smoked one of the packs of cigarettes and exchanged the second pack of cigarettes with other inmates for food from the commissary. On the same day, detention center personnel searched his cell and found the phone and phone charger.
On June 18, 2017, a corrections officer found Dickerson’s cell phone in the fifth floor control station. Text messages contained information recording drug deals between Dickerson and inmates within the Jackson County Detention Center.
Dickerson was arrested on June 27, 2017. At the time of his arrest, Dickerson had two cell phones in his possession while he was on duty in the inmate area of the detention center. Corrections officers are not allowed to have cell phones in their possession while on duty and in the areas of the detention center where inmates are housed.
In a separate but related case, another former corrections officer at the Jackson County Detention Center, Jalee Caprice Fuller, 30, of Independence, Mo., has also pleaded guilty. Fuller admitted that she conspired with others – including co-defendant Carlos Laron Hughley, 32, of Kansas City, an inmate at the Jackson County Detention Center – to smuggle contraband to inmates between May 2 and June 26, 2017. Fuller also admitted that she actually smuggled contraband into the Jackson County Detention Center and delivered the contraband to an inmate.
Hughley, as well as co-defendants Marion Lorenzo Byers, also known as “Cuddy,” 36, and Janikkia Lashay Carter, 36, both of Kansas City, have pleaded guilty.
Under the terms of today’s plea agreement, Dickerson will be sentenced to one year and four months in federal prison without parole. 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 Deputy U.S. Attorney Gene Porter and Assistant U.S. Attorney Brent Venneman. It was investigated by the FBI and the Jackson County, Mo., Sheriff’s Department with assistance from the Missouri Department of Corrections, the Kansas City, Mo., Police Department and the Jackson County Detention Center.
Federal Jury Convicts Twin Brothers for Credit Card Fraud and Identity Theft in Gas Pump Skimmer CaseRead the Press Release
Tampa, Florida – A federal jury has found identical twin brothers Noel Graveran-Palacios (37, Tampa) and Yoel Graveran-Palacios (37, Tampa) guilty of conspiracy, credit card fraud, and aggravated identity theft. Each faces a maximum penalty of 5 years in federal prison for the conspiracy count, 10 years’ imprisonment for each credit card fraud count, and a consecutive 2 years’ imprisonment for each aggravated identity theft count. The sentencing hearings have been scheduled for July 20, 2018.
According to testimony and evidence presented at trial, Noel and Yoel Graveran-Palacios worked together, and with others, to place skimmers on gas pumps in the Tampa Bay area. Using the account numbers stolen from the skimmers, they made counterfeit credit cards and then used them to purchase merchandise at area retailers, including gas, toys, clothes, and gift cards. The twins then used the gift cards to purchase merchandise at home improvement stores, and later returned the items for cash. Trial evidence included hundreds of recovered stolen account numbers, as well as dozens of store surveillance videos featuring the conspirators using the counterfeit credit cards. While the jurors were deliberating, the brothers fled the area together, but were later re-arrested in Texas, near the Mexican border.
This case was investigated by the U.S. Secret Service and the Tampa Police Department, with assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Federal Inmates Sentenced on Weapons ChargesRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that two inmates at the Federal Correctional Institution at Beckley were sentenced for being in possession of weapons. The cases were investigated by the Federal Bureau of Prisons.
“It’s unfortunate that these inmates chose to continue their criminal behavior once inside prison walls,” said United States Attorney Mike Stuart. “It only guarantees they will have a longer stay.”
Daqone Lance, 23, was sentenced to 12 months in prison, to be served consecutively to the sentence he is now serving. Lance pled guilty in January and admitted that on June 3, 2017, a Bureau of Prisons staff member found an object hidden inside the waist band of his pants. The object was a handcrafted weapon consisting of a sock tied to a combination lock.
Michael Camp, 30, was sentenced to 12 months in prison, also to be served consecutively to the sentence he is currently serving. Camp pled guilty in January, admitting that on July 17, 2017, a Bureau of Prisons staff member discovered an object in Camp’s boot. The object was a handcrafted weapon commonly referred to as a “shank.” It was a toothbrush about six inches long and sharpened to a point on one end.
United States District Judge Irene C. Berger presided over the sentencing hearings. Assistant United States Attorney John File handled the prosecution.
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Federal Indictments Unsealed; 14 Former SCDC Employees and Correction Officers Arrested by the FBIRead the Press Release
Columbia, South Carolina-------United States Attorney Beth Drake announced the indictment and arrest of fourteen former employees of the South Carolina Department of Corrections (SCDC) on federal charges related to accepting bribes and bringing contraband into South Carolina prisons.
The federal violations include: Use of Interstate Facilities to Facilitate Bribery, in violation of 18 U.S.C. § 1952; Conspiracy to Commit Wire Fraud Depriving South Carolina of the Right to Honest Services, in violation of 18 U.S.C. § 1349; and Possession with Intent to Distribute Narcotics, in violation 21 U.S.C. § 841.
The individuals charged include: Rachel Burgess (age 39); Joshua Cave (age 29); Jamal Early (age 23), James Harvey (age 54), Douglas Hawkins (age 29), Robert Hill (age 53), Sharon Johnson-Breeland (age 29), Darnell Kleckley (age 33), Holly Mitchem (age 37), Frank Pridgeon (age 64), Catherine Prosser (age 60), Camille Williams (age 65), Miguel Williams (age 41), and Shatara Wilson (age 29). All defendants were arraigned on their respective indictments today.
Since 2016, the Federal Bureau of Investigation (FBI) has partnered with state law enforcement to investigate the smuggling of contraband into prisons by staff at SCDC. The investigation uncovered a number of SCDC employees who accepted bribes to smuggle into prison various contraband, such as cell phones, narcotics, or tobacco. Additionally, joint investigations over the last year, targeting the use of contraband cell phones in our state prisons, have led to the federal convictions of multiple defendants in two other prosecutions in the upstate and most recently, just last week, in Columbia. See links below.
Inmate and Conspirator Convicted of Using Contraband Cellphone to Deal Drugs and Obtain a Mail Bomb from the Dark Web
https://www.justice.gov/usao-sc/pr/inmate-and-conspirator-convicted-using-contraband-cellphone-deal-drugs-and-obtain-mail-0
Twitter: https://twitter.com/USAO_SC/status/989170992755986432
Jury Convicts Spartanburg Brothers in Federal Court of Drug and Money Laundering Charges (sentencing hearing is scheduled for Friday, April 27th, 2018, at 9:30 am at the G. Ross Anderson, Jr. Federal Building United States Courthouse, 315 South McDuffie Street, Anderson, SC 29624)
https://www.justice.gov/usao-sc/pr/jury-convicts-spartanburg-brothers-federal-court-drug-and-money-laundering-charges
Twitter: https://twitter.com/USAO_SC/status/953365064345702400
Fifteen Charged in Drug Trafficking Ring that Operated from Inside South Carolina Prisons
https://www.justice.gov/usao-sc/pr/fifteen-charged-drug-trafficking-ring-operated-inside-south-carolina-prisons
This operation was a combined law enforcement effort by the FBI, South Carolina Law Enforcement Division (SLED), SCDC, and U.S. Attorney’s Office. U.S. Attorney Beth Drake commended the partnership: “This operation signals our joint commitment to prosecute those who abuse their position for personal gain at the cost of the safety of our communities and prisons. If you have information about public employees and officials abusing their position, please contact the Columbia (South Carolina) FBI office at (803) 551-4200 or www.fbi.gov/tips.”
This case is assigned for prosecution to Assistant United States Attorney Jay Richardson and Assistant United States Attorney Will Lewis.
The United States Attorney stated that all charges in these indictments are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Nathaniel Potter, age 23, was indicted on November 14, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about September 8, 2017, Potter did unlawfully assault an individual with a dangerous weapon, that is, a knife, and said assault resulted in serious bodily injury.
The charges are merely accusations and Potter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Potter was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Evergreen Man Pleads Guilty and Is Sentenced for Violation of Endangered Species Act Related to African Elephant HuntRead the Press Release
DENVER – Paul Ross Jackson, age 63, of Evergreen, Colorado, pleaded guilty on April 24, 2018, to violating the Endangered Species Act announced U.S. Attorney Bob Troyer and U.S. Fish and Wildlife Service, Office of Law Enforcement (FWS-OLE) Special Agent in Charge Steve Oberholtzer. The defendant was also immediately sentenced to pay the maximum fine of $25,000 by U.S. Magistrate Judge Scott T. Varholak.
According to court documents, including the stipulated facts contained in the defendant’s plea agreement, the defendant violated Zimbabwe’s Parks and Wild Life Act when he shot and killed an African Elephant inside Gonarezhou National Park in the spring of 2015. The defendant, working with a South-Africa based professional hunter, a New-York based export facilitator, and several Zimbabwe-based hunting businesses, gave instructions to have the elephant exported to South Africa, where he hoped to sell in foreign commerce 26 and 27 kilogram ivory tusks. When the government of Zimbabwe initially blocked the defendant’s effort to export the elephant to South Africa, on the ground that the defendant lived in Colorado and not South Africa, the defendant worked with others to try to obtain documentation that he was a resident of South Africa.
In a plea agreement, the defendant agreed to a four-year worldwide hunting ban that prohibits the hunting of any species designated as threatened or endangered by the U.S. Fish and Wildlife Service. The defendant also agreed to work with the United States Fish and Wildlife Service to return the ill-gotten ivory to the government of Zimbabwe.
“When American hunters violate the laws of foreign countries in the unethical pursuit of trophies, they don’t just undermine the conservation efforts that make hunting possible. They break the law,” said U.S. Attorney Bob Troyer. “Our prosecutors, working closely with Fish and Wildlife agents stationed around the globe, are committed to holding poachers accountable so that elephants and other threatened and endangered species can be appreciated by future generations.”
“The U.S. Fish and Wildlife Service is committed to protecting imperiled species around the globe from poaching and trafficking,” said Steve Oberholzer, the Special Agent in Charge of the Mountain-Prairie Region. “When a U.S. citizen unlawfully kills a protected species in another country or attempts to smuggle wildlife products, we work with that nation under our federal statutory authorities to investigate the incident and bring that person to justice. These cooperative law enforcement efforts strengthen and protect America’s borders while ensuring the conservation of cherished wildlife species."
The case was investigated by FWS-OLE.
The defendant is being prosecuted by Assistant United States Attorneys Bryan D. Fields and Suneeta Hazra.####
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Department of Justice Announces Initiative to Terminate “Legacy” Antitrust JudgmentsRead the Press Release
The Department of Justice’s Antitrust Division today announced an initiative to terminate outdated antitrust judgments.
“Today, we are taking a first step toward freeing American businesses, taxpayers, and consumers from the burden of judgments that no longer protect competition,” said Makan Delrahim, Assistant Attorney General for the Justice Department’s Antitrust Division. “We will pursue the termination of outdated judgments around the country that presently do little more than clog court dockets, create unnecessary uncertainty for businesses or, in some cases, may actually elicit anticompetitive market conditions.”
From the early days of the Sherman Act until the late 1970s, the Division often entered into final judgments that did not include an express termination date. In 1979, the Division adopted the general practice of including sunset provisions that automatically terminate judgments, usually 10 years from entry. However, nearly 1300 “legacy” judgments remain on the books of the Antitrust Division, and nearly all of them likely remain open on the dockets of courts around the country. The vast majority of these judgments no longer protect competition because of changes in industry conditions, changes in economics, changes in law, or for other reasons.
To facilitate the termination of these judgments, the Antitrust Division announced that it will review all of its legacy judgments to identify those that no longer serve to protect competition. The Division has assigned each judgment to a Division attorney, who will examine court papers, internal case files, and publicly available information to determine whether each judgment continues to serve competition.
Although the Antitrust Division’s review is ongoing, it already has identified many judgments that it likely will seek to terminate unilaterally after a public comment period. It will begin its efforts by proposing to terminate a set of judgments entered by the federal district courts in Washington, D.C. and Alexandria, Virginia.
The process by which the Antitrust Division intends to seek unilaterally the termination of these outdated judgments is described on a public website (www.justice.gov/atr/JudgmentTermination) that will serve as the primary source of information for the public regarding this initiative. In brief, the process is as follows:
- The Antitrust Division will review its outstanding judgments to identify those that no longer appear to protect competition such that termination would be appropriate.
- When the Antitrust Division identifies judgments it believes are candidates for termination, it will post the name of the related case with a link to the relevant judgment on the public website.
- The public may submit comments regarding each proposed termination to the Division at [email protected] within 30 days of the date the judgment is posted on the public website.
- Following the comment period, if the Antitrust Division still believes termination is appropriate, it will seek to terminate the judgment by filing a motion with the appropriate court; the Division will post court filings and any related orders to the public website.
Members of the public are encouraged to check www.justice.gov/atr/JudgmentTermination often. The Antitrust Division will post updates to the website as it continues its ongoing review of legacy judgments and proposes judgments for termination. In addition, the Division has established a mailing list that will provide notice of new postings to the website, including judgments the Division has identified as appropriate for termination. Members of the public may subscribe to the mailing list at https://public.govdelivery.com/accounts/USDOJ/subscriber/new.
The Division will post a statement that describes the initiative in detail to the public website, and publish it in the Federal Register. Defendants who have information related to possible termination of a legacy judgment, as well as members of the public who have questions about the initiative, are encouraged to contact Dorothy B. Fountain, Chief Legal Advisor, Antitrust Division, U.S. Department of Justice, at [email protected].
DEA aims for record removal of unused pills through its 15th National Prescription Drug Take Back Day InitiativeRead the Press Release
This weekend DEA and its partners will host one of the most popular DEA community programs: National Prescription Drug Take Back Day. On Saturday April 28th, 2018, between 10 a.m. and 2 p.m., the public can dispose of their unused and unwanted prescription medications at one of the 182 collection sites in the Pacific Northwest (PNW), operated by 153 local law enforcement agencies and other community partners.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards.
When the results of the 14 DEA Take Back Days for the PNW are combined, DEA and its state, local, and tribal law-enforcement and community partners removed over 402,928 pounds (201.4 tons) of medication from circulation. Since the program began eight years ago, over 9 million pounds – more than 4,500 tons of prescription medications have been collected nationwide
The public can find a nearby collection site by visiting www.DEATakeBack.com or by calling 800-882-9539. Only pills and other solids, like patches, can be brought to the collection sites—liquids and needles or other sharps will not be accepted.
The service is free and anonymous.
Crew sentenced for illegally purchasing 33 guns and trafficking them from Georgia to New YorkRead the Press Release
ATLANTA - Terrance Rainey, Talante Fisher-Bland, Brittni Dixon, Martavius Askew, and Donnisha Miles have been sentenced for their respective roles in illegally purchasing and trafficking 33 firearms from Georgia to New York.
“Gun trafficking fuels violent crime and is a grave threat to our communities,” said U.S. Attorney Byung J. “BJay” Pak. “The lengthy prison sentences received by these defendants should serve as a serious warning to others tempted to supply criminals with firearms by lying to licensed gun dealers.”
“One of ATF’s top priorities is to deny criminals access to firearms and protect the rights of law abiding citizens,” said Special Agent in Charge Arthur Peralta. “These offenders illegally obtained and then trafficked firearms that could have been used to injure law abiding citizens and destroy the sanctity of our communities; ATF takes these threats very seriously.”
According to U.S. Attorney Pak, the charges and other information presented in court: In August 2016, the defendants engaged in a scheme to unlawfully purchase 33 firearms from a federally licensed firearms dealer that they then trafficked to Rochester, New York. Fisher-Bland recruited Dixon and Askew to purchase guns for Parson and Rainey, a convicted felon. Rainey recruited Miles to purchase guns for him and Parson. The crew purchased the guns from Liquidation Outlet, a gun dealer in Atlanta. The defendants who made the gun purchases lied by swearing on ATF forms that they were purchasing the guns for themselves, when in fact, the guns were intended for other co-defendants who transported the firearms to New York. Law enforcement officers recovered several of the guns from convicted felons and others who used the firearms in committing various crimes in New York.
The defendants pleaded guilty to the following offenses:
●Terrance Rainey, 33, of Rochester, New York, was sentenced to 12 years and seven months in prison, to be followed by three years of supervised release. Rainey pleaded guilty to aiding and abetting the making of false statements to a federally licensed firearms dealer, aiding and abetting the transfer of firearms to an out-of-state resident, and possession of firearms by a convicted felon on January 5, 2018.
●Talante Fisher-Bland, 25, of McDonough, Georgia, was sentenced to two years and three months in prison, to be followed by three years of supervised release. Fisher-Bland pleaded guilty to two counts of aiding and abetting the making of false statements to a federally licensed firearms dealer on January 5, 2018.
●Brittni Dixon, 25, of Jonesboro, Georgia, pleaded guilty to aiding and abetting the making of false statements to a federally licensed firearms dealer and was previously sentenced to four months in prison, to be followed by two years of supervised release on September 14, 2017.
●Martavius Askew, 25, of Meansville, Georgia, pleaded guilty to aiding and abetting the making of false statements to a federally licensed firearms dealer and was previously sentenced to one year and six months in prison, to be followed by two years of supervised release on October 16, 2017.
●Donnisha Miles, 23, of Chicago, Illinois, pleaded guilty to aiding and abetting the making of false statements to a federally licensed firearms dealer and aiding and abetting the transfer of firearms to an out-of-state residence. Miles was previously sentenced to one year and five months in prison, to be followed by three years of supervised release on February 26, 2018.
●A sixth co-defendant, Latrell Parson, 22, of Rochester, New York pleaded guilty to aiding and abetting the making of false statements to a federally licensed firearms dealer, and aiding and abetting the transfer of firearms to an out-of-state resident on January 10, 2018. Parson will be sentenced on May 1, 2018.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Atlanta, Georgia, and Rochester, New York Field Divisions and the Rochester Field Office of the Federal Bureau of Investigation.
Assistant U.S. Attorney Jennifer Keen prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Coleman Convicted Felon Pleads Guilty to Possessing a Firearm After Massacre Threat at Coleman SchoolRead the Press Release
SAN ANGELO, Texas — Lorenzo Hale, 52, of Coleman, Texas, appeared in federal court this afternoon and pleaded guilty before U.S. Magistrate Judge E. Scott Frost to one count of convicted felon in possession of a firearm, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Hale faces a maximum statutory penalty of ten years in federal prison, and a $250,000 fine. Hale will remain in custody pending a sentencing date to be set by the Honorable Sam R. Cummings, Senior United States District Court Judge.
According to the plea agreement factual resume filed in the case, on February 15, 2018, law enforcement was dispatched to a residence in Coleman, Texas, to investigate a complaint about a threat being made. The officer went to that location and met with Hale. Hale stated that he had been threatened. Hale further stated that “If one hair on both my daughters’ head are harmed tomorrow, there will be a massacre. I want you to know I’m reporting it to you like that, there will be a massacre at that school.” Later in the conversation, Hale alluded to a firearm being in the residence.
The next day, a Texas Ranger and the Chief of the Coleman Police Department made contact with Hale’s girlfriend. They told her of Hale’s threat and asked if she would surrender any firearms to law enforcement. She agreed to surrender the firearm located at the residence.
Further investigation revealed that before Hale possessed the firearm, he had been convicted in a court of a crime punishable by imprisonment for a term in excess of one year. Specifically, on December 16, 2005, Hale was convicted of being a Convicted Felon in Possession of a Firearm, in the United States District Court for the Northern District of Texas, San Angelo Division, and sentenced to 51 months imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Coleman Police Department and the Texas Rangers, Texas Department of Public Safety. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Clarks, La man sentenced to 60 months in prison for possessing firearms in furtherance of a drug trafficking crimeRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that a Clarks man was sentenced Tuesday to five years in prison for possession of firearms in furtherance of a drug trafficking crime.
Billy Wayne Rider, 49, of Clarks, Louisiana, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of firearms in furtherance of a drug trafficking crime. He was also sentenced to two years of supervised release. According to the November 7, 2017 guilty plea, law enforcement agents searched Rider’s home on February 2, 2017, and found 11 firearms and six plastic baggies of methamphetamine. The firearms recovered from the residence were: a Marlin, Model XT-22, caliber .22 LR rifle; Savage, Model 15, caliber .22 LR, rifle; Mossberg, Model 835 ulti-Mag, caliber 12 gauge, shotgun; Marlin Firearms Co., Model 60, .22 caliber, rifle; High Standard, model Sport King, .22 LR caliber rifle; Marlin Firearms Co., model X7, 7-08 caliber rifle; Wards Western Field, Model 878, 12 gauge, shotgun; Taurus, Model 80, .38 caliber, revolver; Clarke Technicorp, Clerke 1st, .22 LR caliber, revolver; Remington Arms Co., Model 770, 30-06 caliber, rifle; and a black silencer.
The ATF and Caldwell Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
Bronx Man Sentenced to 60 Months in Tax Refund Conspiracy CaseRead the Press Release
SYRACUSE, NEW YORK – Cerrone Hall, age 30, of the Bronx, New York, was sentenced today to serve five years in prison in connection with mail and wire fraud conspiracy and aggravated identity theft charges, announced United States Attorney Grant C. Jaquith, James Robnett, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigations, New York Field Office, and Shelly Binkowski, Inspector in Charge, U.S. Postal Inspection Service, Boston Division. In addition to his prison term of five years, Cerrone Hall was also sentenced to a 3-year term of supervised release following his release from incarceration and was ordered to pay restitution to the IRS in the amount of $478,320.00.
As part of his previous guilty plea, Cerrone Hall admitted that he conspired to steal federal income tax refunds as part of scheme involving fraudulent tax returns filed using stolen identities from residents of Puerto Rico. The scheme involved an attempt to steal a total of 2.8 million dollars in refunds from fraudulent tax returns filed with the stolen identities The IRS mailed refund checks generated from these false returns to residential locations (chosen by Hall and his co-conspirators) of uninvolved residents in the Syracuse and Binghamton, New York areas. Cerrone Hall and three co-defendants were stopped by police on September 26, 2011, as they were in the process of stealing tax refund checks from mailboxes in Dewitt, New York. Following the discovery of the scheme, the IRS was able to prevent payment of many of the refunds. Cerrone Hall’s three co-defendants have pled guilty and are scheduled to be sentenced in May 2018.
This case was investigated by the Internal Revenue Service-Criminal Investigations, The U.S. Postal Inspection Service, and the Town of Dewitt Police Department, and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Attorney General Sessions Issues Statement on Trump v. HawaiiRead the Press Release
Today Attorney General Jeff Sessions issued the following statement about the travel order arguments being heard today by the U.S. Supreme Court: “President Trump has been steadfast in his commitment to the safety and security of all Americans. The Constitution and Acts of Congress confer on the President broad discretion and authority to protect the United States from all foreign and domestic threats. After multiple agency heads conducted a comprehensive, worldwide review of foreign governments’ information-sharing practices and other risk factors, President Trump determined this travel order is critical to protecting the American people. We look forward to defending the order’s lawfulness today in the Supreme Court.”
Alien Smuggling Ring DismantledRead the Press Release
McALLEN, Texas – With the sentencing of the leaders today, seven members of a smuggling group that harbored and/or transported more than 200 undocumented aliens from the Rio Grande Valley to Houston have all been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick.
Jose Luis Soto-Lopez, 52, and his daughter, Erica Janine Soto, 27, both who resided in Brownsville, were sentenced to 54 and 21 months in federal prison for their roles in an the alien smuggling that Soto-Lopez led. Soto will also serve two years of supervised release, while Soto-Lopez, not a U.S. citizen, is expected to face deportation proceedings following his prison term.
The conspiracy ran from at least Feb. 10, 2014, through Sept. 1, 2016.
Soto-Lopez and Soto recruited individuals to either harbor undocumented aliens in stash houses throughout Hidalgo County or serve as guides for undocumented aliens transported from stash houses to a residence in Houston.
Soto-Lopez and Soto coordinated or were involved in the unsuccessful transport of 48 undocumented aliens, including a 13-year-old child and other minor children, on at least seven different occasions between Feb. 10, 2014, and May 10, 2016 in Brooks, Jim Hogg, Webb and Starr Counties. On four of the seven occasions, load vehicles involved in the smuggling of the undocumented aliens either crashed or resulted in a vehicle bail-out to avoid law enforcement.
The investigation further revealed alien stash houses that Soto-Lopez and Soto ran in Hidalgo County were discovered on at least three occasions from Aug. 9, 2016, through Sept. 1, 2016, resulting in the apprehension of 45 undocumented aliens.
At the time of Soto-Lopez and Soto’s arrest, authorities conducted a search of their residence in Brownsville where they found multiple vehicles and vehicle titles matching vehicles the organization used. The vehicle titles were registered to names and/or addresses not belonging to Soto-Lopez or Soto.
The investigation also revealed Soto had previously been encountered on Jan. 10, 2016, with a ledger consistent with documenting the transport of approximately 113 additional aliens from Oct. 27, 2015, through Jan. 7, 2016. The ledger in Soto’s possession also contained information on rental properties, travel directions and international Western Union or Moneygram transactions consistent with alien smuggling. Based on information contained within the ledger, the organization appeared to be charging $800-$2600 to transport and/or harbor each undocumented alien.
Five other individuals involved in the smuggling organization were all from Mexico and have also been sentenced to varying terms up to 23 months imprisonment. They are also expected to face deportation proceedings.
Border Patrol and Immigration and Custom's Enforcement's Homeland Security Investigations conducted the investigation with the assistance of the Duval County Sheriff’s Office. Assistant U.S. Attorney Roberto Lopez Jr. prosecuted the case.
Albuquerque Resident Pleads Guilty to Federal Bank Fraud and Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Todd McDonald, 39, of Albuquerque, N.M., pled guilty today in federal court to bank fraud and aggravated identity theft charges under a plea agreement with the U.S. Attorney’s Office.
McDonald was arrested in Oct. 2017, on a criminal complaint charging him with theft of mail on Oct. 19, 2017, in Bernalillo County, N.M. According to the complaint, Albuquerque Police Department officers arrested McDonald after finding him asleep in his vehicle in a grocery store parking lot and determining that there was an outstanding warrant for his arrest. The complaint stated that the officers found a counterfeit U.S. Postal Service arrow key, mail, and debit cards and credit cards in the names of other individuals while executing a search warrant on McDonald’s vehicle.
McDonald and co-defendants Christopher Freeburn, 45, and Darlene Baca, 38, both of Albuquerque, subsequently were charged in a 34-count indictment on Nov. 15, 2017. Count 1 of the indictment charged Freeburn and McDonald with participating in a conspiracy to possess stolen mail, possess a postal arrow key, bank fraud, and aggravated identity theft. Counts 2 through 12 charge Freeburn and McDonald with possession of stolen mail. Counts 13 through 17 charged Freeburn with possession of a postal arrow key. Counts 18 through 30 charged McDonald, Baca and Freeburn with committing bank fraud. Counts 31 through 34 charged McDonald and Freeburn with aggravated identity theft in furtherance of bank fraud. According to the indictment, the defendants committed the offenses from March 2016 through Oct. 2017, in Bernalillo County, by stealing mail, which included personal identifying information, for the purpose of submitting online applications for lines of credit and credit cards in the names of other individuals and to make personal purchases for goods and services including hotel rooms and drugs.
During today’s proceedings, McDonald pled guilty to two counts of bank fraud and one count of aggravated identity theft in furtherance of bank fraud. In entering the guilty plea, McDonald admitted that on Feb. 17, 2017, he used another person’s credit cards to book and pay for hotel rooms. McDonald further admitted that on Oct. 20, 2017, he used another person’s credit card and personal identifying information to make purchases at a store in Bernalillo County and pretended to be that person to make the purchases using money that was held by a bank. McDonald acknowledged that he obtained the personally identifying information of the victim from the victim’s mail.
At sentencing, McDonald faces a maximum penalty of 30 years of imprisonment, including a mandatory penalty of two years imprisonment to be served consecutive to any other sentence imposed on the aggravated identity theft charge. A sentencing hearing has yet to be scheduled.
Freeburn pled guilty on Feb. 1, 2018, to conspiracy, five counts of unlawful possession of a counterfeit postal arrow key, ten counts of committing bank fraud and three counts of aggravated identity theft in furtherance of bank fraud. Freeburn’s plea agreement recommends a 60 month term of imprisonment and a fine not to exceed $1 million. A sentencing hearing has yet to be scheduled.
Baca pled guilty on Feb. 28, 2018, to three counts of bank fraud. At sentencing, Baca faces a maximum penalty of 30 years of imprisonment and a fine not to exceed $1 million. A sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Postal Inspection Service and the Albuquerque Police Department, and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
45 Individuals Indicted for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
Concord – United States Attorney Scott W. Murray and Albert Angelucci, the Acting Special Agent in Charge of the Drug Enforcement Administration (DEA), New England Field Division, announced today that 45 individuals have been charged with participating in a fentanyl trafficking conspiracy. Also participating in the announcement was Mary K. Daly, Director of Opioid Enforcement and Prevention Efforts in the Justice Department’s Office of the Deputy Attorney General. The indictments are the culmination of a year-long investigation by the DEA in coordination with federal, state, and local authorities in New Hampshire, Massachusetts, and Maine.
On April 4, 2018, the following individuals were charged with participating in a conspiracy to distribute, and possess with intent to distribute, fentanyl:
- Sergio Martinez, 28, of Lawrence, MA;
- Raulin Martinez, 36, of Lawrence, MA;
- Luz Perez DeMartinez, 25, of Lawrence, MA;
- Jhonny Jose Naut Perez, 53, of Lawrence, MA;
- Suhey Perez, 38, of Lawrence, MA;
- FNU LNU a/k/a “Linet”;
- Wagner Pimentel, 28, of Methuen, MA;
- Luis Angel Polanco Huma, 22, of Lawrence, MA;
- Eduard Amparo, 46, of Lawrence, MA;
- Frailin Manuel Gomez Gil, 26, of Lawrence, MA;
- Julio Pizzini, 24, of Lawrence, MA;
- Jepherson Emmanuel Cabrera, 18, of Lawrence, MA;
- Edward Brailey Delacruz, 24, of Methuen, MA;
- Luis Antonio Salomon Polanco, 20, of Lawrence, MA;
- Juan Rafael Tejeda-Jimenez, 27, of Lawrence, MA;
- Fernand V. Miranda, 23, of Haverhill, MA;
- Alexander Noonan, 20, of Haverhill, MA;
- Steven Guerrero, 18, of Lawrence, MA;
- Jared Ortega-Peguero, 25, of Lawrence, MA;
- Juan Dimel Gil Castillo, 23, of Lawrence, MA;
- Ramon Gill Huma, 25, of Lawrence, MA;
- Julio Colon, 24, of Lawrence, MA;
- Jason Cheever, 41, of Goffstown, NH;
- Joshua Smith, 29, of Plaistow, NH;
- Paul Aaron, 31, of Lowell, MA;
- Steven Lessard, 31, of Lowell, MA;
- Miguel Alvarez, 27, of Haverhill, MA;
- Edward Brito, 31, of Lawrence, MA;
- Trevor Ahearn, 28, of Haverhill, MA;
- Julio Saldana, 18, of Lawrence, MA;
- Jesus Rivera, 20, of Lawrence, MA; and
- Jorge Rodriguez, 21, of Methuen, MA.
On April 9, 2018, in a coordinated operation involving over 100 federal, state, and local law enforcement officers, 15 of the above-listed individuals were arrested. Seven were already incarcerated and two have since been located. Jhonny Jose Naut Perez, Frailin Manuel Gomez Gil, FNU LNU a/k/a “Linet,” Jepherson Emmanuel Cabrera, Edward Brailey Delacruz, Alexander Noonan, Jason Cheever, and Joshua Smith have not yet been taken into custody.
If convicted, each of these defendants faces a mandatory minimum of ten years in prison and a maximum sentence of life, as well as a fine of up to $10 million.
The investigation, which culminated in the execution of various search warrants on April 9, 2018, led to the seizure of over 30 kilograms of suspected fentanyl, two firearms, and over $500,000 in cash. In court documents, the government has alleged that the investigation targeted a drug trafficking organization led by the Martinez brothers, Sergio and Raulin. The conspiracy was extensive and organized. The Martinez brothers allegedly used a vast network of dispatchers and distributors to serve customers large and small with knowledge that a substantial amount of drugs were going to New Hampshire. They allegedly maintained a residence in Lawrence, Massachusetts, staffed by dispatchers who took drug orders over various “customer phones.” This residence was called “the base.” Dispatchers allegedly then communicated with distributors located throughout the Merrimack Valley to arrange for customers to meet them. The Martinez brothers also allegedly employed individuals responsible for making sure distributors were consistently supplied with 200-gram bags of fentanyl and were returning drug proceeds made from the sales.
On April 18, 2018, the following individuals were charged in related indictments with conspiracy to distribute, and possess with intent to distribute, fentanyl:
- Meghan Bowers, 30, of Candia, NH;
- Dennis Chaney, 30, of Rochester, NH;
- David Fagan, 32, of Manchester, NH;
- Jonathan Felch, 36, of Goffstown, NH;
- Albert Gordon, 44, of Manchester, NH;
- Norman Limoges, 51, of Berlin, NH;
- Leon Mandigo, 31, of Auburn, NH;
- Robert McLain, 26, of Groveton, NH;
- Alicia Morin, 30, of Belmont, NH;
- Samuel Morris, 28, of Belmont, NH;
- Amy Reardon, 32, of North Haverhill, NH;
- Darlene Tirone, 42, of Hampton, NH; and
- Meredith Willey, 37, of Groveton, NH.
As of April 24, 2018, twelve of these individuals were in custody. Leon Mandigo has not yet been taken into custody.
If convicted, most of the defendants charged on April 18, 2018, also face a mandatory minimum of ten years in prison and a maximum sentence of life, as well as a fine of up to $10 million.
Limoges, Reardon, and Willey face a mandatory minimum of five years in prison and a maximum sentence of 40 years, as well as a fine of up to $5 million. Bowers and Gordon face a maximum of 20 years in prison and a fine of up to $1 million.
“Fentanyl is responsible for the lion’s share of overdose deaths in the Granite State,” said U.S. Attorney Murray. “The law enforcement community in New England is united in the effort to end the opioid crisis. This investigation is just one example of our commitment to stopping the distribution of fentanyl in New Hampshire. Public safety is our top priority and we will continue to work hard each day to protect our communities by identifying and prosecuting those who are responsible for distributing fentanyl and other deadly drugs.”
"Fentanyl and its analogues kill more Americans than any other drug," Attorney General Sessions said. "President Trump has made ending our national opioid crisis a top priority for this administration. We at the Department of Justice embrace that goal and we are pursuing it aggressively. The quantities of fentanyl that were allegedly trafficked in this case are shocking. And so I want to thank DEA and our other federal partners as well as the state and local law enforcement officers from three different states for their hard work on this case. We will prosecute this case to the fullest extent of the law and continue to take dangerous drugs—and drug dealers—off of our streets so that every American can be safe in their community."
“The Granite State is faced with a fentanyl crisis unlike ever before and DEA’s top priority is combatting the opioid epidemic,” said DEA Acting Special Agent in Charge Albert Angelucci. “DEA is committed to aggressively pursuing Drug Trafficking Organizations who are coming from out of state to distribute this poison to the citizens of New Hampshire in order to profit and destroy people’s lives. This investigation demonstrates the strength of collaborative local, county, state and federal law enforcement efforts and our strong partnership with the U.S. Attorney’s Office.”
The indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The cases are being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe, and Debra M. Walsh.
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39 People Charged with Large-Scale Cocaine TraffickingRead the Press Release
PITTSBURGH, PA - A federal grand jury in the Western District of Pennsylvania returned two separate, but related, superseding indictments charging 39 defendants with committing numerous drug trafficking, money laundering, financial structuring and firearms crimes, United States Attorney Scott W. Brady announced today.
"This cocaine organization is one of the largest in the history of Western Pennsylvania: it spread across the country, from Los Angeles to Pittsburgh, with sources to Mexican cartels, and brought hundreds of kilos of cocaine which were distributed through a network," stated U.S. Attorney Brady. "The goal of investigations by the U.S. Attorney’s Office is to prosecute and dismantle entire drug trafficking organizations as was done here. By taking down an entire multi-state organization at once, the impact on our region is felt immediately."
"Drugs tear at the inner fabric of our community," said FBI Special Agent in Charge Bob Johnson. "They bring violence to our streets. They waste young lives and wreak havoc on families. That's why the FBI is committed to preventing criminal enterprises from continuing to damage our community."
"The Pennsylvania State Police, along with our local and federal partners, are committed to dismantling large-scale drug trafficking organizations throughout the Commonwealth and the country, such as the Lightfoot Drug Trafficking Organization," said Sergeant Jeffrey P. Dombrosky, Western Section Supervisor of the PSP Bureau of Criminal Investigation, Drug Law Enforcement Division. "We are fully committed to an aggressive drug enforcement campaign against those that choose to traffic illegal drugs and poison our communities."
"I would like to thank Scott Brady, the U.S. Attorney, for his and his staff’s diligence and hard work in the prosecution of drug offenses in Fayette County," added Fayette County District Attorney Richard Bowers. "He has made a major impact in protecting the residents of Fayette County by the arrests of drug dealers today."
THE INDICTMENTS
The 13-count superseding indictment named the defendants as:
• Don Juan Mendoza, age 38, formerly of Lawrenceville, GA,
• Edward Alford II, age 30, of Donora, PA,
• Devon Bell, age 25, of Brownsville, PA,
• Pedro Blanco, age 40, formerly of Miami, FL,
• Douglas Cochran, age 39, of Washington, PA,
• Anthony Crews, age 44, of Monessen, PA,
• John Duchi, Jr., age 29, of Donora, PA,
• Sean Dungee II, age 32, of Donora, PA,
• Brett Fincik, age 43, formerly of Belle Vernon, PA,
• Kevin Ford, age 32, of Clairton, PA,
• Monty Grinage, age 39, formerly of Pittsburgh, PA,
• Kaylin Homa-Lightfoot, age 24, of Verona, PA,
• Chace Johnson, age 19, of California, PA,
• Malik Lawson, age 22, of Donora, PA,
• Deaubre Lightfoot, age 27, formerly of Monessen, PA,
• Jamie Lightfoot, Jr., age 25, formerly of Verona, PA,
• Todd Moses, age 33, of Decatur, Georgia, and originally from Donora, PA,
• Thomas Ohler, age 36, of Greensburg, PA,
• Eric Pinno, age 53, of Pittsburgh, PA,
• Brian Powell, age 39, formerly of Jacksonville, FL,
• Eugene Reddick, age 35, of Clairton, PA,
• Troy Rowe, age 28, formerly of Columbia, SC,
• Richard Russ, age 57, of Sarasota, FL,
• William Shaw, Jr., age 33, of Brownsville, PA,
• Herbert Sheppard, age 44, of Monessen, PA,
• Roddell Smalls, age 44, of Pittsburgh, PA,
• Quentin Vaden, age 35, of Washington, PA, and
• Jamie Lightfoot, Sr., age 46, currently incarcerated at FCI Loretto.
According to the superseding indictment, from January 2016 through December 2017, Mendoza, Alford, Bell, Blanco, Cochran, Crews, Duchi, Jr., Dungee, Fincik, Ford, Grinage, Deaubre Lightfoot, Lightfoot, Jr., Lightfoot, Sr., Moses, Ohler, Pinno, Powell, Reddick, Rowe, Shaw, Sheppard, Smalls, and Vaden conspired to possess with intent to distribute five kilograms or more of cocaine.
On November 5, 2017, Mendoza, Blanco, Powell, and Rowe are charged with possession with intent to distribute 5 kilograms or more cocaine, and 50 kilograms or more of marijuana, as well as possession of a firearm in furtherance of a drug trafficking crime. Lightfoot, Jr. is also charged with possession of a firearm in furtherance of the drug trafficking crime on November 5, 2017. On that same date, Mendoza and Blanco, both convicted felons, are charged with being in possession of a firearm. Grinage, also a convicted felon, is charged with being in possession of a firearm on December 12, 2017. Federal law prohibits a convicted felon from possessing a firearm. From May 2017 through November 2017, Homa-Lightfoot and Johnson are charged with maintaining a drug involved premises.
The superseding indictment also charges five defendants with conspiring to commit money laundering. Lightfoot, Jr. and Moses are charged from January 2016 through November 2017; Lightfoot, Jr., Pinno and Russ from January 2017 through June 2017; and Lightfoot, Jr. and Lightfoot, Sr. from January 2017 through June 2017. Lightfoot, Jr. and Russ are also charged with conspiring to commit structuring from January 2017 through June 2017. Moses is charged with structuring from September 1, 2017 to September 5, 2017.
For the drug charges, the law provides for a total sentence of not less than 10 years and not more than life in prison, a fine of not more than $10,000,000 or both, at each count. For the firearms charges, the law provides for a combined maximum sentence of not less than 5 years in prison, and not more than life in prison, a fine of not more than $250,000, or both, at each count. For maintaining a drug premises, the law provides for a total maximum sentence of not more than 20 years in prison, a fine of not more than $500,000, or both. For the money laundering charges, the law provides to a maximum sentence of not more than 20 years in prison, a fine of not more than $500,000, or both, at each count. For the structuring charges, the law provides for a maximum sentence of not more than 5 years in prison, a fine of not more than $250,000, or both, at each count.
A separate, but related, one-count superseding indictment named the following defendants:
• Brandon Thomas, age 38, formerly of Donora, PA,
• Tyler Benefield, age 33, of Vanderbilt, PA,
• Regina Davis, age 48, of Donora, PA,
• Adam Farabaugh, age 28, of Canonsburg, PA,
• Josh Gillingham, age 35, of Fayette City, PA.
• Renee Kinder, age 45, of Donora, PA,
• Robert Margoni, age 28, of New Eagle, PA,
• Tyler Mucci, age 31, of Monongahela, PA,
• Jeff Newstrom, age 30, of Masontown, PA,
• Ricky Pietroboni, age 40, of Monongahela, PA, and
• Michael Tirpak, age 35, of Elizabeth, PA.
According to the superseding indictment, from March 2017 through December 2017, the defendants conspired to possess with intent to distribute a quantity of cocaine.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine of not more than $2,000,000 or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the indictment in these cases. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
24 April 2018
“King of Death” Heroin Supplier Sentenced to Life in PrisonRead the Press Release
NORFOLK, Va. – A New Jersey man was sentenced today to life in prison for leading, organizing, and supplying a heroin and fentanyl trafficking conspiracy that resulted in more than a dozen overdoses and at least two deaths.
According to court documents, Kenneth Stuart, aka “Bones,” 44, of Newark, served as the out-of-state source of supply for a Virginia based heroin and fentanyl drug distribution ring led by Chesapeake ringleader, Erskine Dawson, Jr. aka “June,” “Junior.” From March to December 2016, Stuart supplied between three and ten kilograms of heroin and fentanyl, which equates to approximately 7,500 to 25,000 individual doses. The narcotics, which were often concealed in stuffed animals, were trafficked by Stuart and several others at his direction from New Jersey to Virginia. The heroin and fentanyl was distributed in wax baggies stamped “King of Death,” “Last Call,” “Mad Max,” and “Chef Curry,” among many others. Stuart informed his co-conspirators about new labels and his desire to have them promoted.
Stuart, who had 10 prior out-of-state drug convictions, was aware that at least two Virginians died from his fentanyl and that several others had suffered non-fatal overdoses. After hearing of at least one fentanyl death, Stuart laughed about it and told a co-conspirator that “another one bit the dust.” One co-conspirator told him “people go to life in prison for this,” yet Stuart instructed his co-defendants to continue selling his product and two months later another Virginian died from his drugs.
On Sept. 7, 2016, H.D. consumed fentanyl supplied by Dawson via Stuart and co-conspirator Clark and suffered a fatal overdose. On Nov. 14, 2016, G.M. consumed heroin supplied by Dawson via Stuart and co-conspirator Clark and suffered a fatal overdose. On Dec. 8, 2016, the DEA in partnership with officers from the Virginia Beach and Chesapeake police departments executed search warrants on motels in Virginia Beach, Chesapeake, and Norfolk, made arrests, and seized cash, guns, and over 1,800 wax baggies of heroin and fentanyl.
As of today eight people involved with this trafficking organization were indicted, convicted, and sentenced. Stuart’s seven co-conspirators have been sentenced to a combined 122 years in prison.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, James A. Cervera, Chief of Virginia Beach Police, and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Daniel T. Young, William D. Muhr, and Andrew C. Bosse prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-61.
West Des Moines Man Sentenced to Prison for Bank EmbezzlementRead the Press Release
DES MOINES, Iowa – On Friday, April 20, 2018, United States District Judge Stephanie M. Rose sentenced Brian M. Madison, of West Des Moines to 18 months in prison for bank embezzlement, announced United States Attorney Marc Krickbaum. Madison was ordered to pay $259,000 in restitution, serve five years of supervised release following his prison term, and pay $100 to the Crime Victims’ Fund.
Madison stole $259,000 from his employer, TruBank. The fraud was detected as a result of a cash audit at the bank due to a corporate merger. Madison embezzled $259,000 between September 2011 and March 2016 by moving cash from the teller drawer he used, into an unmonitored teller drawer. Madison modified cash count sheets to intentionally omit the unmonitored teller drawer, so those conducting routine cash counts would not have known to look for the money.
This case was investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Waldorf Man Sentenced to 4 Years in Prison for Running Oxycodone Pill MillRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On April 23, 2018, United States District Judge Marvin J. Garbis sentenced Thomas Dalton, age 31, of Waldorf, Maryland to four years in prison, followed by three years of supervised release, for conspiracy to distribute and possession with the intent to distribute a mixture or substance containing a detectable amount of oxycodone.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Chief Gary Gardner of the Howard County Police Department; Charles County Sheriff Troy Berry; St. Mary’s County Sheriff Tim Cameron; Chief Hank Stawinski of the Prince George’s County Police Department; Calvert County Sheriff Mike Evans; Chief Peter Newsham of the Washington DC Metropolitan Police Department; Commissioner Darryl De Sousa of the Baltimore Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Colonel Gary T. Settle, Superintendent of the Virginia State Police.
According to his plea agreement, between November 2013 and May 2015, Dalton and his co-conspirator, Alex Mori, age 31, of Nanjemoy, Maryland, owned and operated First Priority Heath Care, LLC in Elkridge, Maryland, a purported pain management clinic, which facilitated the distribution of oxycodone to customers who had no legitimate medical need for the substance. Dalton and Mori hired and supervised employees, directed financial transactions for the business, and divided the profits. Dalton ran the day-to-day operations of First Priority.
Dalton and Mori worked to recruit individuals to visit First Priority so that they would profit from the cash fees charged for an office visit. Some of these individuals entered First Priority with fictitious complaints of pain in order to obtain prescriptions for oxycodone. Often, such individuals would fill their prescriptions and give some or all of the oxycodone tablets they received to a distributor, typically receiving either cash or oxycodone tablets for their services. The distributors then sold the pills for a profit. Dalton and Mori also bought and sold oxycodone pills for profit, including from people who obtained prescriptions from First Priority. Dalton also created false medical records for persons who sought to obtain pills at First Priority.
According to the plea agreement, wiretap conversations showed Dalton discussing the operation of First Priority and the distribution of oxycodone with co-conspirators, including Mori. These intercepts showed that Dalton conspired to distribute oxycodone with full knowledge that it was being abused by addicts and others without a legitimate medical need for the drug.
Dalton was intercepted on numerous calls interacting with co-conspirators, including communications where he arranged for distributors and their “runners” to visit First Priority to obtain oxycodone prescriptions; agreed to make false medical records for runners; agreed to “front” the cost of runners’ office visits to First Priority; and agreed to buy and sell oxycodone pills.
According to the plea agreement, it was reasonably foreseeable to Dalton that the conspiracy would distribute at least 488,010 milligrams of oxycodone.
Co-defendant Mori pleaded guilty to conspiracy to distribute and possess with the intent to distribute a mixture or substance containing a detectable amount of oxycodone and has been sentenced to four years in prison.
United States Attorney Robert K. Hur praised the DEA; OIG HHS; the Howard County, Prince George’s County, Baltimore City, Washington DC Metropolitan, and Virginia State Police Departments; and the Baltimore County, St. Mary’s County, and Calvert County Sheriff’s Departments for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Kenneth Clark, who prosecuted the case.
Union County, New Jersey, Tax Preparer Admits Tax FraudRead the Press Release
NEWARK, N.J. – A Union, New Jersey, woman today admitted preparing fraudulent income tax returns on behalf of her clients, causing losses of over $320,000, U.S. Attorney Craig Carpenito announced.
Toni Ciullo, 43, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging her with one count of aiding and assisting others in the preparation of false and fraudulent tax returns.
According to documents filed in this case and statements made in court:
Ciullo was an owner and operator of Full Spectrum Consulting LLC in Union. For tax years 2010 through 2014, Ciullo used a number of fraudulent practices, including increasing claimed losses and credits for certain businesses, increasing her clients’ unreimbursed employee expenses and medical and dental costs, and creating fictitious businesses, all so her clients would receive higher refunds than those to which they were actually entitled. Ciullo admitted that the bogus returns resulted in a tax loss to the government of approximately $322,537.
The charge to which Ciullo pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 7, 2018.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, with the investigation. He also thanked special agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, for their assistance.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office in Newark.
Defense counsel: David Holman Esq., Office of the Federal Public Defender, Newark
U.S. Attorney’s Office Partnering with Community Organizations to Reduce RecidivismRead the Press Release
In recognition of “Second Chance Month,” the United States Attorney’s Office for the Northern District of Iowa is collaborating with local partners to reduce recidivism by helping individuals leaving prison. In a presidential proclamation, President Trump designated April 2018 as “Second Chance Month,” urging communities to raise awareness about crime prevention and providing those offenders who have served their time “an opportunity for an honest second chance.”
The United States Attorney’s Office for the Northern District of Iowa has been deeply involved with many community partners in crime prevention and reentry efforts for the past several years. Some recent initiatives surrounding “Second Chance Month” include:
- A partnership with the Sixth Judicial District Department of Correctional Services, Neighborhood Transportation Service, the RISE program, Cedar Rapids Police Department, the FBI, and neighborhood leaders, in which individuals coming from state prison into the Cedar Rapids area attend a mandatory gathering where they learn about resources available to them in the community as well as the consequences of continued criminal activity.
- A partnership with the FBI and the State Training School, Iowa Department of Human Services, to meet with juvenile offenders at the Eldora State Training School. During this meeting, these juveniles learn about resources available to them as they become adults. They also learn about the unfortunate paths that some State Training School alum took, leading to lifelong interactions with the adult criminal justice system.
- Hosting several recent “Reentry Simulations,” which provide participants an opportunity to “step inside the shoes” of someone being released from prison, to allow them to see the obstacles that exist in an ex-offender’s transition from prison back to the community. Recent simulations included area employers, education professionals, treatment professionals, and community members.
United States Attorney Peter Deegan indicated that the United States Attorney’s Office continues to be supportive of community reentry efforts, noting that, “Our number one goal as prosecutors is to increase public safety. A successful transition from prison back to the community is a critical component in reducing recidivism and keeping our communities safe.” Deegan encouraged community members and organizations to get involved, noting that “Second Chance Month provides a great opportunity for employers, local organizations, and community members to find out what role they can play in the effort to reduce recidivism and provide an opportunity for an honest second chance.”
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- A partnership with the Sixth Judicial District Department of Correctional Services, Neighborhood Transportation Service, the RISE program, Cedar Rapids Police Department, the FBI, and neighborhood leaders, in which individuals coming from state prison into the Cedar Rapids area attend a mandatory gathering where they learn about resources available to them in the community as well as the consequences of continued criminal activity.
Two Sentenced to Federal Prison on Drug ChargesRead the Press Release
Jackson, Miss. – Donte L. Evans, 43, of Biloxi, and Cedric Collum, 52, of Jackson, were sentenced by U.S. District Judge Henry T. Wingate yesterday for their roles in a drug distribution conspiracy, announced U.S. Attorney Mike Hurst and Thomas M. Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans.
Evans was sentenced to five years in federal prison followed by four years of supervised release for conspiracy to possess with intent to distribute cocaine. He received a quantity of cocaine for distribution from a co-conspirator who traveled from Jackson, Mississippi to Biloxi, Mississippi. Evans also sold quantities of cocaine in Gulfport, Mississippi. He pled guilty on January 24, 2018.
Collum was sentenced to five years in federal prison followed by three years of supervised release for possession with intent to distribute cocaine. He purchased a quantity of cocaine from a co-conspirator in Jackson, Mississippi. Following the purchase of the cocaine, a traffic stop was conducted by the Jackson Police Department and the cocaine was recovered. Collum pled guilty on January 5, 2018.
This case is the result of an extensive investigation, dubbed AOperation Pipeline,@ targeting illegal narcotics distribution in central Mississippi. The distribution network encompasses the states of California, Texas and Mississippi.
The case was a joint investigation by Homeland Security Investigations and the Mississippi Bureau of Narcotics, with assistance from the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mississippi Highway Patrol, the Jackson Police Department, and the Hinds County Sheriff’s Department. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Three Press Conferences AnnouncedRead the Press Release
TUESDAY – April 24, 2018
MEDIA ADVISORY
WHEN: Wednesday, April 25, 2018 at 10:00 AM
WHERE: Pasquotank County Public Safety Building
200 East Colonial Avenue
Elizabeth City, NC 27909
WHEN: Wednesday, April 25, 2018 at 12:15 PM
WHERE: Ahoskie Police Department
705 West Main Street
Ahoskie, NC 27910
WHEN: Wednesday, April 25, 2018 at 3:30 PM
WHERE: Henderson Police Department
200 Breckenridge Street
Henderson, NC 27536
Re: Announcements of Take Back North Carolina Initiative
RALEIGH – The United States Attorney’s Office announces three press conferences to discuss the beginning of a new initiative to combat violent and drug crime in the Eastern District of North Carolina. This initiative will bring the full weight and resources of the federal court system in the fight against crime in those counties in partnership with District Attorneys’ Offices and federal, state, and local law enforcement. The initiative will also focus on the alarming level of opioid use and the deaths associated with it.
The first news conference in Elizabeth City will focus on, Chowan, Perquimans, Pasquotank, Camden, Currituck, Gates and Dare Counties.
The second news conference in Ahoskie will focus on Bertie, Halifax, Hertford and Northampton Counties.
The third news conference will focus on Granville, Vance, Warren, and Franklin Counties.
In addition to United States Attorney Robert J. Higdon, Jr. we anticipate members from the District Attorney’s Office and local, state, and federal law enforcement to be present at each event.
The U.S. Government and Pennsylvania Settle with MarkWest for Air Emission Violations at Natural Gas FacilitiesRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency, and the Pennsylvania Department of Environmental Protection announced a settlement today with MarkWest Liberty Midstream Resources, LLC and Ohio Gathering Company, LLC (MarkWest), which is expected to reduce emissions of volatile organic compounds (VOCs) by more than 700 tons per year from company facilities in eastern Ohio and western Pennsylvania. The settlement addresses alleged violations of the Clean Air Act and the Pennsylvania Air Pollution Control Act for failure to obtain permits and keep records associated with maintenance activities that resulted in VOC emissions. As part of the settlement, MarkWest will also perform three supplemental environmental projects (SEPs) and pay a $610,000 civil penalty.
Under the terms of the settlement, MarkWest is expected to spend approximately $2.6 million to install and operate technologies that minimize VOC emissions at its facilities throughout eastern Ohio and western Pennsylvania in the Utica and Marcellus shale formations. MarkWest will also implement two SEPs involving the installation and operation of ambient air monitoring stations located upwind and downwind of MarkWest compressor stations in eastern Ohio and western Pennsylvania; one SEP requiring the dissemination and demonstration of a proprietary MarkWest technology for reducing VOC emissions; and one community environmental project for emissions monitoring equipment under an agreement between MarkWest and the commonwealth of Pennsylvania. The total value of the SEPs under this settlement is more than $2.4 million.
“This Clean Air Act settlement will reduce harmful emissions from facilities located across western Pennsylvania and eastern Ohio,” said Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division. “Today’s action also demonstrates our commitment to working with federal, state and local partners to ensure the health and safety of the American people.”
“Our legacy to future generations will be defined, in part, by our commitment to protecting the environment,” said U.S. Attorney Scott W. Brady of the Western District of Pennsylvania. “This settlement agreement with MarkWest demonstrates the commitment of the U.S. Attorney’s Office to improving the quality of the environment and ensuring cleaner air for the residents of western Pennsylvania.”
“I’m pleased to announce that through this agreement, MarkWest will make improvements to more than 300 facilities in western Pennsylvania and eastern Ohio,” said EPA’s Assistant Administrator Susan Bodine for the Office of Enforcement and Compliance Assurance. “We estimate that these improvements will reduce VOC emissions from these facilities by more than 90 percent, helping bring cleaner air to surrounding communities.”
“Research, monitoring data, and compliance information help DEP refine and improve the effectiveness of our oversight, craft stronger regulations, and focus on minimizing air contaminants,” said Secretary Patrick McDonnell for the Pennsylvania Department of Environmental Protection. “The new methodology to measure emissions from pigging developed through this case will help us work with all operators in Pennsylvania to reduce emissions.”
MarkWest operates facilities in eastern Ohio and western Pennsylvania designed to gather and transport natural gas and natural gas condensates through pipelines. As part of regular maintenance activities, MarkWest uses devices called “pigs,” which are sent through the gathering pipeline to remove debris and push through accumulated liquids, in an operation known as “pigging.” Pigging a pipeline involves inserting and removing pigs from the pipeline, which requires the operator to depressurize and vent pipeline gas from equipment designed to launch and receive pigs. MarkWest is alleged to have failed to apply for, and comply with, the required permits and/or recordkeeping requirements under the Clean Air Act and the Pennsylvania Air Pollution Control Act for venting activities that released VOC emissions.
VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone, which is not emitted directly into the air, but is created by chemical reactions between oxides of nitrogen and volatile organic compounds in the presence of sunlight. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems.
This settlement is part of the EPA’s National Enforcement Initiative (NEI): Ensuring Energy Extraction Activities Comply with Environmental Laws.
The consent decree has been lodged with the U.S. District Court for the Western District of Pennsylvania and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will available for viewing at www.justice.gov/enrd/Consent-Decrees.
For more information on the settlement, please visit: https://www.epa.gov/enforcement/markwest-clean-air-act-settlement-information-sheet
Tennessee Man Pleads Guilty to Transportation Across State Lines of Money and Securities Taken by FraudRead the Press Release
BOWLING GREEN, Ky. –A Red Boiling Springs, Tennessee man pleaded guilty four counts of interstate transportation of stolen property yesterday, in United States District Court, before United States District Judge, Greg N. Stivers, to defrauding investors of $194,000 as part of a scheme to develop a call center in Tompkinsville, Kentucky, announced United States Attorney Russell M. Coleman. There is no parole in the federal prison system.
John Cook, age 57, pleaded guilty yesterday to four counts of interstate transportation of stolen property. According to a plea agreement entered in open court, Cook admitted that in September 2013, he solicited $194,000 in investment funds from four individuals in Monroe County, Kentucky, for the purpose of developing a call center. In exchange for the investment funds, Cook provided a written promissory note explaining that the money would be used for the call center and described an unrealistic return on investment.
Cook created Minority Holdings and Management LLC (“Minority Holdings”) in September 2013. The promissory notes were issued by Cook in the name of Minority Holdings. Cook also opened a bank account for Minority Holdings at the bank of Putnam County in Tennessee.
Cook cashed the checks, deposited the checks in the Minority Holdings accounts, or converted checks to cashier’s checks. Cook used a lot of the investment money to operate the Donoho Hotel located in Red Boiling Springs, TN. Cook spent a minimal amount of investment funds on call center related expenses. However a majority of the expenses of the account were used for the Donoho Hotel payroll and for his personal expenditures. There has been little to no development of a call center in Tompkinsville.
Cook transported and caused to be transported from Kentucky to Tennessee, stolen, converted, and fraudulently obtained checks and monies from investors that he knew he was stealing, converting and taking by fraud at the time. All payments exceeded $5,000. All payments were solicited in Monroe County in the Western District of Kentucky.
Cook is scheduled for sentencing before Judge Stivers on July 31, 2018 at 9:00 a.m. CDT in Bowling Green.
This case was prosecuted by Assistant United States Joshua Judd and was investigated by the Federal Bureau of Investigation (FBI).
State and Federal Law Enforcement Agencies to Hold Press Conference at U.S. Attorney's Office in Columbia on Wednesday, April 25, 2018Read the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced that a press conference will be held on Wednesday April 25, 2018 at 3:30 P.M. at the U.S. Attorney’s Office, located at 1441 Main Street, Suite 500, Columbia, South Carolina 29201.
Participating in the press conference will be members of the Federal Bureau of Investigation (FBI), the South Carolina Department of Corrections (SCDC), the South Carolina Law Enforcement Division (SLED), and the U.S. Attorney’s Office.
NOTE: Press inquiries regarding logistics should be directed to Lance Crick, 864-282-2105. All media must present government-issued photo ID (such as a driver’s license). All media should be in place 15 minutes prior to start. Paid parking will be available behind the building.
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St. John Man Sentenced to Five Years in Prison for Receipt of Child PornographyRead the Press Release
HAMMOND – Daniel Labuda, 39 years old, of St. John, Indiana, was sentenced by District Court Judge Joseph S. Van Bokkelen on his plea of guilty to receipt of child pornography, announced U.S. Attorney Thomas L. Kirsch II.
Labuda was sentenced to 60 months imprisonment followed by five years supervised release and ordered to pay $48,000 in restitution.
According to court documents, between November 2012 and January 2013, Labuda downloaded and received child pornography from various foreign websites. Over the course of the years he collected over 390,000 still images and over 1,900 videos of child pornography including numerous visual depictions of prepubescent minors engaging in sexually explicit conduct and child pornography depicting torture and violence against children. Labuda attempted to hide this criminal activity by using anonymizing software and encryption.
This case was investigated by the FBI and prosecuted by the Department of Justice’s Child Exploitation and Obscenity Section Trial Attorney Leslie Fisher and Assistant U. S. Attorney for the Northern District of Indiana Abizer Zanzi.
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St. Francis Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Gregory Paul Quigley, a/k/a Greg Paul Quigley, age 53, was indicted on April 17, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 19, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Quigley was convicted of Abusive Sexual Contact in July 2016. As a result of this conviction, he is required to register as a sex offender. It is alleged that between November 16, 2017, and March 15, 2018, Quigley, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Quigley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Quigley was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sioux Falls Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parson announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 19, 2018, by U.S. District Judge Roberto A. Lange.
David Marrowbone, age 55, was sentenced to 17 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Marrowbone was indicted by a federal grand jury on January 17, 2018. He pled guilty on February 20, 2018.
Between October 23, 2017, and November 25, 2017, Marrowbone, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, did knowingly fail to register and update his registration.
This case was investigated by the U.S. Marshals Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Marrowbone was immediately turned over to the custody of the U.S. Marshals Service.
Shiprock Man Sentenced to More than Three Years’ Prison for Assault on Officer during High-Speed ChaseRead the Press Release
PHOENIX – Yesterday, Kendale Johnson, 28, of Shiprock, N.M., was sentenced by U.S. District Judge Steven P. Logan to 37 months’ imprisonment. Johnson had previously pleaded guilty to aiding and abetting an assault on a federal officer with a dangerous weapon.
On July 4, 2017, an Arizona DPS Officer, who was cross-commissioned with the Navajo Division of Public Safety, attempted to pull Johnson over for speeding on a stretch of State Route 98 near Kaibeto, Ariz., on the Navajo Nation Reservation. Johnson refused to pull over and instead instigated a high-speed chase that continued for at least 10 miles at speeds of 80-90 miles per hour. During the chase, Johnson and a passenger in his vehicle threw several rocks back at the pursuing patrol vehicle. Johnson initially escaped, but he was swiftly located and taken into custody. Johnson is a member of the Navajo Nation.
The investigation was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney William G. Voit, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08175-SPL
RELEASE NUMBER: 2018-049_Johnson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Saturday is National Take Back Day -- a great opportunity to safely dispose of unwanted prescription drugsRead the Press Release
On Saturday, April 28, from 10 a.m. to 2 p.m. State and local law enforcement agencies and the Drug Enforcement Administration will give the public its 15th opportunity in seven years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. Bring your pills for disposal to any participating precinct, office or department. (The DEA cannot accept liquids or needles or sharps, only pills or patches.) The service is free and anonymous, no questions asked.
“We know of many cases where leftover pain pills have led to an opioid addiction,” U.S. Attorney Justin Herdman said. “Properly disposing of these pills is one important step anyone can take to get involved in turning the tide on the opioid epidemic that has caused so much pain here in Ohio.”
Last fall Americans turned in 456 tons (912,000 pounds) of prescription drugs at more than 5,300 sites operated by the DEA and almost 4,300 of its state and local law enforcement partners. Overall, in its 14 previous Take Back events, DEA and its partners have taken in more than 9 million pounds—more than 4,500 tons—of pills.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The Substance Abuse and Mental Health Services Administration’s National Survey on Drug Use and Health shows year after year that the majority of misused and abused prescription drugs are obtained from family and friends, including someone else’s medication being stolen from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
For more information about the disposal of prescription drugs, disposal locations or about the April 28 Take Back Day event, go to www.DEATakeBack.com.
Revere Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Revere man was sentenced today in federal court in Boston for failure to register as a sex offender.
Steven Veno, 55, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to time served and five years of supervised release, the first year of which must be served in home detention. In January 2018, Veno pleaded guilty to one count of failing to register as a sex offender.
Veno is required to register as a Level 2 sex offender in Massachusetts based on Massachusetts state court convictions for rape of a child in 1993. The federal Sex Offender Registration and Notification Act requires Veno to register in any jurisdiction where he lives or works.
Law enforcement officers learned that over the past several years Veno had been traveling from Massachusetts to Florida, where he lived and worked for periods of time without registering as a sex offender in that community.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.
This case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Portola Valley Resident Sentenced in Bank Fraud SchemeRead the Press Release
SAN FRANCISCO – Mark Migdal was sentenced today to 18 months in prison for conspiracy to commit bank fraud and providing false statements to banks in connection with short sale and loan modification requests, announced Acting United States Attorney Alex G. Tse, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Vince Chhabria, U.S. District Judge, following Migdal’s entry of a guilty plea on July 25, 2017.
According to his guilty plea, between June 2009 and April 2016, Migdal, 72, of Portola Valley, Calif., conspired to defraud two federally-insured banks, now Bank of America and EverBank. Migdal admitted the conspirators sought the banks’ approval for a short sale of two condominiums owned by Migdal in Kihei, Maui. Midgal conspired to convince the banks to allow the properties to be sold in short sales to an individual who was, in reality, deceased. A short sale is a sale in which a lender allows a property to be sold at a price that is less than the amount owed on the loan. Thereafter, Migdal controlled and rented the properties using the deceased person’s identity, and later transferred the properties back to himself. Migdal further admitted that, between June 2009 and January 2010, he provided false statements to another federally-insured bank, JP Morgan Chase Bank, in an attempt to obtain mortgage modifications on his residence in Portola Valley, Calif., and a condominium owned by him in Mountain View, Calif.
On April 27, 2017, a federal grand jury issued a superseding indictment charging Migdal with one count of conspiracy to commit bank fraud, in violation of 18 U.S. C. § 1349; two counts of bank fraud, in violation of 18 U.S.C. § 1344(1) and (2); one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A; and two counts of making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014. Pursuant to his guilty plea, Migdal pleaded guilty to the conspiracy count, and the two counts of making false statements to a federally insured institution. The remaining counts were dismissed.
In addition to the term of imprisonment, Judge Chhabria ordered Migdal to serve three years of supervised release and to pay restitution in the following amounts: $239,519 to Fannie Mae, successor to the deed of trust held by EverBank; $202,491 to Bank of America; and $18,205 to JP Morgan Chase. In addition, Migdal was also ordered to pay a $1,000,000 fine and to forfeit substitute assets totaling $539,784.98.
The case is being prosecuted by Assistant United States Attorneys Colin Sampson and Erin Cornell. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation.
Portland Man Pleads Guilty to 17 Counts of Video Voyeurism at Local Daycare FacilityRead the Press Release
PORTLAND, Ore. – On Monday, April 23, 2018, Jay Walter Jaacks, 50, of Portland, pleaded guilty to 17 misdemeanor counts of video voyeurism for placing a concealed video camera in the adult restroom of a Portland daycare facility.
"This defendant’s actions are inexcusable and grossly invaded the privacy of employees and fellow parents at a daycare facility where he took his own children," said Billy J. Williams, U.S. Attorney for the District of Oregon. "I hope this prosecution will deter others from illegally violating the privacy of others for their own personal satisfaction."
"The safety, privacy, and security of everyone working and doing business within our Federal workplaces are paramount to our efforts," said Federal Protective Service Region 10, Deputy Regional Director, Patrick Zitny. "The successful prosecution of this case is a tribute to the efforts and close coordination between the Federal Protective Service and the U.S. Attorney’s Office."
On or about July 29, 2016, Jaacks concealed a video camera in a small cosmetics bag and placed it in the adult restroom of a daycare facility in Portland. The video camera captured 17 adults, both daycare employees and other parents, in various stages of undress. A daycare employee found the camera and immediately notified law enforcement. Law enforcement officials seized the camera before Jaacks could retrieve it.
Jaacks faces a maximum sentence of one year in prison, a $100,000 fine, and one year of supervised release on each count. He will be sentenced on Monday, July 30, 2018 before U.S. District Court Judge Marco A. Hernandez.
The U.S. Department of Homeland Security Federal Protective Service (FPS) investigated this case. It is being prosecuted by Scott Kerin, Assistant U.S. Attorney for the District of Oregon.
Pittsburgh Man Sentenced to 5 Years in Prison for Distributing Heroin that Resulted in DeathRead the Press Release
PITTSBURGH, PA – Anthony McCullough was sentenced to 60 months in prison for conspiring to distribute heroin in January 2015, United States Attorney Scott W. Brady announced today.
McCullough, age 57 of Pittsburgh, was sentenced by United States District Judge Mark R. Hornak. Judge Hornak also ordered McCullough to serve three years of supervised release following his release from prison. As part of McCullough’s conviction and sentence, he accepted responsibility for causing the overdose death of one of his customers in January 2015 and agreed to pay restitution to the customer’s family for expenses related to the death.
The information presented to the Court in support of the conviction and sentence revealed that, during the evening of January 25, 2015, P.W., age 47, suffered a fatal drug overdose in a hotel room in the Oakland section of Pittsburgh. He died from heroin he and his friend purchased earlier that day. Detectives with the Pittsburgh Bureau of Police, in conjunction with members of the Drug Enforcement Administration, promptly investigated who was responsible for supplying the heroin that killed P.W. The investigation led to an undercover purchase of heroin from McCullough two days later. McCullough and Eddie Skrine, McCullough’s direct supplier, were arrested at that time and were subsequently indicted and convicted in federal court in Pittsburgh.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police, the Drug Enforcement Administration, the Allegheny County Sheriff’s Office, and the Allegheny County Medical Examiner’s Office conducted the investigation leading to the conviction and sentence in this case.
Philadelphia Bank Teller Charged with Stealing Customer IdentitiesRead the Press Release
Elizabet Tskhadiashvili of Philadelphia, was charged April 20 by criminal information* with bank fraud and aggravated identity theft, announced United States Attorney William M. McSwain.
The information alleges that Tskhadiashvili, a teller at a Philadelphia branch of TD Bank, obtained bank customers’ personal identifying and account information from approximately January through March 2017, which she then provided to two other individuals who used the information to make withdrawals from the accounts of those customers.
“Thousands of dollars in withdrawals were made,” said U.S. Attorney McSwain. “Personal and account information of bank customers must be protected, first and foremost by bank employees themselves.”
If convicted the defendant faces a maximum possible sentence of 32 years.
The case was investigated by Homeland Securities Investigations, and is being prosecuted by Assistant United States Attorney Judy Smith.
Partner and Co-Founder of Private Equity Fund Found Guilty of Insider TradingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that BENJAMIN CHOW, a/k/a “Ben Chow Zhou Bin,” a/k/a “Benjamin Bin Chow,” a/k/a “Bin Zhou,” was convicted today by a federal jury of conspiracy to commit securities fraud and seven counts of securities fraud in connection with an insider trading scheme relating to the securities of Lattice Semiconductor Corporation (“Lattice”). CHOW’s conviction followed a 10-day trial before U.S. District Judge Gregory H. Woods of the Southern District of New York. Sentencing has been scheduled for August 20, 2018, before Judge Woods.
U.S. Attorney Geoffrey S. Berman said: “As a unanimous jury found, Benjamin Chow tipped his friend about the potential acquisition of Lattice Semiconductor Corporation by private equity firms he managed. Chow’s illegal tips reaped multimillion-dollar profits for his friend. This illegal tipping erodes public confidence in our markets as well as being unlawful. Protecting the integrity of our financial markets remains a top priority of this Office.”
According to the Indictment filed against CHOW, other filings in Manhattan Federal Court, and the evidence admitted at trial:
From approximately March to November 2016, CHOW provided a friend and business associate (“CC-1”) with material, nonpublic information relating to a potential merger between Lattice and private equity firms managed by CHOW, one based in Beijing, China (“Firm-1”), and one based in Palo Alto, California (“Firm-2”). CC-1 in turn used such information to make millions of dollars in profitable securities trades through accounts opened in the names of family members and associates of CC-1.
Specifically, as Managing Director of Firm-1 and later Managing Partner of Firm-2, CHOW obtained material nonpublic information regarding potential merger agreements between Lattice and Firm-1, and later, Firm-2. Information concerning the potential merger agreements was subject, among other things, to nondisclosure agreements executed between Lattice and Firm-1, and later between Lattice and Firm-2.
In violation of these agreements, on multiple occasions, through meetings in Beijing, China, voice messages, and text exchanges, CHOW provided CC-1 with material nonpublic information regarding the potential merger between Lattice and Firm-1, and later, Firm-2. On multiple occasions, CC-1 made profitable trades in Lattice shortly after receiving the material nonpublic information from CHOW, yielding a total of at least approximately $5 million in profits for CC-1.
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CHOW, 45, of Los Altos, California, was convicted of one count of conspiring to commit securities fraud, which carries a maximum prison sentence of five years in prison, and seven counts of securities fraud, each of which carries a maximum sentence of 20 or 25 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the exceptional work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Max Nicholas, Scott Hartman, and Elisha J. Kobre are in charge of the prosecution.
Owners of Virginia Subcontracting Firm Sentenced to Prison for Tax EvasionRead the Press Release
A Virginia husband and wife were each sentenced today for tax evasion and conspiring to structure currency transactions, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Business owner Jeffrey Dalton was sentenced to 27 months in prison, and his wife and co-owner of the business, Karen Dalton, was sentenced to six months in prison.
According to the evidence presented at trial, Jeffrey and Karen Dalton owned Blue Ridge Stainless Inc. (BRS), a subcontracting business that provided labor to renovate large retail department and grocery stores. The Daltons operated BRS out of their home in Hillsville, Virginia. The Daltons filed their 2009 through 2014 personal tax returns with the Internal Revenue Service (IRS) reporting the income earned from BRS, but failed to pay the taxes, penalties, and interest owed. Despite an IRS revenue officer repeatedly contacting the Daltons over a period of years about their delinquent taxes and pending IRS liens, the Daltons refused to pay their outstanding tax liabilities, used nominees to conceal their ownership of property, and filed false documents with the IRS. After the IRS levied the Daltons’ personal bank accounts, they used funds from the BRS business bank account to start a cattle business and pay their children’s wedding expenses.
The evidence at trial also proved that during a six-month period in 2015 the Daltons repeatedly withdrew cash from BRS’s business bank account in amounts less than $10,000 to evade federal bank-reporting requirements, and structured more than $250,000 in withdrawals.
In addition to the terms of imprisonment imposed, U.S. District Court Judge James P. Jones ordered Jeffrey and Karen Dalton to serve two years of supervised release.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Daniel McGraw and Sean Beaty, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.