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24 April 2018
Operation Riptide Results in 17 Convictions, over 100 years in PrisonRead the Press Release
NORFOLK, Va. – Approximately 14 months ago over 150 law enforcement agents and officers executed a massive takedown, arresting dozens of individuals for their respective roles in selling drugs and guns in Norfolk.
Today, the 17th and final federal defendant, Kenneth Robinson, 51, of Norfolk, was sentenced to 37 months in prison. The Operation Riptide defendants have collectively been sentenced to a total of over 106 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began Operation Riptide in the Fall of 2016, and in collaboration with the Norfolk Police Department, Virginia State Police, and prosecutors from the U.S. Attorney’s Office and the Virginia Attorney General’s Office, identified more than 30 individuals throughout Hampton Roads who were illegally selling firearms, heroin, and/or other narcotics. Operation Riptide resulted in the recovery of over 60 firearms (including at least 3 assault rifles, 2 sawed off shotguns, and over 50 hand guns, 18 of which had obliterated serial numbers or were stolen), over 175 grams of heroin, 65 grams of powder cocaine, 337 grams of crack cocaine, over three pounds of marijuana, and two bulletproof vests.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the ATF’s Washington Field Division, Colonel Gary T. Settle, Superintendent of Virginia State Police, and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr.
This case was investigated by the ATF’s Norfolk Field Office, the Norfolk Police Department, and the Virginia State Police with the assistance of the Virginia Beach and Chesapeake Police Departments, the Norfolk and Chesapeake Sheriff’s Offices, and the Virginia National Guard.
Special Assistant U.S. Attorney John F. Butler, Assistant U.S. Attorneys Andrew C. Bosse, Kevin M. Comstock, Joseph E. DePadilla, Kevin Hudson, William B. Jackson, William D. Muhr, and Daniel T. Young, Assistant Attorney General James F. Entas, Office of the Attorney General for the Commonwealth of Virginia, and Norfolk Assistant Commonwealth Attorney Catherine Paxson are prosecuting these cases.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 2:17-cr-21, 22, 24, 25, 26, 27, 28, 31, 32, 34, 35, 36, 37, 54, 64, 128.
Name, AKA
Age, Hometown
Pleaded Guilty to the Following Charge(s)
Sentence
Darryl Moore,
aka “Little Darryl”
28, Norfolk
Felon in Possession of a Firearm
60 months
Kejuan Dante Perry,
aka “KP”
25, Chesapeake
Distribution of a Controlled Substance; Possession of Firearms in Furtherance of a Drug Trafficking Crime
87 months
Maurice Owen Johnson,
aka “Dink”
28, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
120 months
Leonard Lee Brickhouse,
aka “Leo Brixx”
24, Norfolk
Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
66 months
Evrick Speight
aka “P”
23, Virginia Beach
Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
100 months
Jason Gilliard,
aka “Hoodro Wilson”
32, Virginia Beach
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin
50 months
Lamare Pierre Jordan,
aka “L”
30, Norfolk
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
84 months
James Andre Martin,
aka “Big Buff”
44, Norfolk
Distribution of a Controlled Substance; Felon in Possession of a Firearm
105 months
Keone Devon Perry
23, Chesapeake
Transfer of Firearm to Prohibited Person
18 months
Carl Lee Walton,
aka “CJ”
22, Virginia Beach
Felon in Possession of a Firearm
36 months
Demetrius Lamont, Davis
aka “Meat”
39, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
90 months
James Curtis Lamb
28, Chesapeake
Felon in Possession of a Firearm
84 months
Adrean Lamont Hall
25, Virginia Beach
Felon in Possession of a Firearm
46 months
James Edward Hill
43, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
93 months
Joseph Maurice Dobey
38, Norfolk
Distribution of a Controlled Substance; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
137 months
Michael Ovall Jackson
34, Norfolk
Conspiracy to Distribute and Possess with Intent to Distribute 28 Grams or More of Cocaine Base
60 months
Kenneth Robinson
51, Norfolk
Felon in Possession of a Firearm
37 months
Navy Sailor Arrested for Stealing Grenades from ShipRead the Press Release
Assistant U.S. Attorney Michelle Pettit (619) 546-7972
NEWS RELEASE SUMMARY – April 24, 2018
SAN DIEGO – Gunner's Mate Second Class Aaron Booker was arraigned in federal court today on charges that he possessed 20 stolen concussion hand grenades that went missing from San Diego-based guided-missile destroyer USS Pinckney.
Booker, who had been stationed in San Diego when the alleged crime took place, was taken into custody this morning at his new post in Great Lakes, Illinois by the Naval Criminal Investigative Service. The United States is seeking removal of Booker to face charges in San Diego.
According to a complaint, USS Pinckney personnel discovered 20 grenades missing from their storage crates during a routine inventory of explosives on February 8, 2017. Designated personnel are required to conduct regular temperature checks in the locker that houses the crates, but no personnel should have accessed the crates themselves outside of an inventory. Booker was a member of the ship’s Weapons Department, and between November 2016 and January 2017, he conducted temperature checks for that locker on five separate occasions. The United States alleges that Booker removed these grenades from their storage crate and transported them off the ship. He officially detached from the ship on February 14, 2017, at which point he left San Diego and drove to his new duty station in Great Lakes, Illinois.
On April 20, 2017, an off-duty law enforcement officer discovered a black backpack on the side of the road leaning against a guardrail on Interstate 15 in northwest Arizona. The bag was a standard military issued backpack with “GM2 BOOKER” handwritten on a tag inside the bag, and it contained 18 of the grenades that were missing from USS Pinckney. Law enforcement is searching for the two missing grenades.
According to the complaint, Booker acknowledged to investigators that he drove that route before reporting to his new duty station in early March. However, he provided conflicting statements related to if and how he had seen or touched the grenades.
“A backpack full of grenades on the side of the road is obviously extremely dangerous and could have had resulted in injuries or death,” said U.S. Attorney Adam L. Braverman said. “The theft of explosives is a very serious offense, particularly if it is carried out by an insider with access to military weapons and secrets.”
“Navy sailors are trusted with maintaining dangerous and sensitive equipment onboard naval vessels to ensure the Navy is always prepared to protect and defend the interests of the United States,” said Belinda Saunders, Special Agent in Charge of the NCIS Southwest Field Office. “It is a violation of that trust for any service member to steal from the United States Navy for any reason. This case is particularly troubling given the explosive nature of what was stolen, which could have seriously injured others.”
Booker is scheduled to appear for a detention hearing in the Northern District of Illinois before he is transferred to San Diego.
DEFENDANT Case No. 18MJ1873
Aaron Booker Age: 31 Waukegan, Illinois
SUMMARY OF CHARGE
Possession of Stolen Explosives, in violation of Title 18, United States Code, Sections 842(h) and 844(a)(1)
Maximum penalties: 10 years in prison and a $250,000 fine
INVESTIGATING AGENCY
Naval Criminal Investigative Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Meisum Bakery Inc. and Owner Sentenced for Food Stamp FraudRead the Press Release
BOSTON – Meisum Bakery Inc. and its owner, Xi Xian Lei, were sentenced today in federal court in Boston in connection with a more than $740,000 food stamp fraud scheme that Lei and his employees operated out of a Chinatown bakery.
Meisum Bakery Inc. was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year of probation and Lei was sentenced to one year and one day in prison and one year of supervised release. Lei and Meisum Bakery were also ordered to pay $747,134 in restitution. In November 2016, Meisum Bakery Inc. and Lei pleaded guilty to one count of conspiracy to commit SNAP (Supplemental Nutritional Assistance Program) benefits fraud and two counts of SNAP fraud.
SNAP, administered by the U.S. Department of Agriculture (USDA), provides eligible households with government subsidies for food and allows holders to exchange their SNAP benefits for food at authorized retail food stores.
From about October 2010 through April 2012, Lei and Meisum Bakery employees purchased SNAP benefits from legitimate SNAP beneficiaries for cash at a discounted value of approximately 50 cents for every SNAP dollar; however, neither Meisum Bakery Inc. nor Lei was authorized to accept SNAP benefits as payment for goods at the bakery. Lei and Meisum Bakery employees subsequently redeemed the SNAP benefits by using the beneficiaries’ EBT (Electronic Benefit Transfer) cards to buy goods and earn credit at stores that were authorized to accept SNAP benefits.
During the course of the conspiracy, Meisum Bakery Inc. and Lei defrauded the USDA of more than $740,000 in SNAP funds.
United States Attorney Andrew E. Lelling; Bethanne M. Dinkins, Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General, Office of Investigations, Northeast Region; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement today. Assistant U.S. Attorneys Robert Richardson and Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Media AdvisoryRead the Press Release
CEDAR RAPIDS, IA – Opioid and prescription drug abuse is at an all-time high in the United States. Part of the opioid epidemic facing the country is the prevalence of counterfeit pills being sold as prescription drugs over the Internet. These pills often contain substances other than what is promised and lead to overdoses and deaths.
On April 26, 2018, at 10:00 a.m., the United States Attorney’s Office will hold a press conference to highlight and discuss the danger of these counterfeit pills. U.S. Attorney Peter E. Deegan, Jr. will be present at the press conference along with law enforcement officials from other agencies.
Event Details
When: Thursday, April 26, 2018
Where: Cedar Rapids Federal Courthouse (United States Attorney’s Office), 111 7th Ave. SE
Time: 10:00 a.m.
A press release will be provided and interview opportunities will be available. Please RSVP to Tony Morfitt at [email protected] if you plan to attend.
Follow us on Twitter @USAO_NDIA.
McKenzie Man Sentenced to 10 Years Imprisonment for Being a Felon in Possession of a Firearm in Connection with a Felony Drug OffenseRead the Press Release
Jackson, TN – Robert Hutchinson, Jr. 45, was sentenced to 10 years in federal prison for being a felon in possession of a firearm. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on September 23, 2016, a Carroll County Sheriff’s deputy executed a traffic stop on a 2002 red Saturn near Dollar General in Trezevant, TN. When asked for identification, Hutchinson told the officer he had left everything at home on the table. When asked for his name, Hutchinson gave the officer a false name – which was the name of another individual whom the officer happened to know. Hutchinson was asked out of the vehicle and patted down for officer safety. Officers located a 9 mm Beretta pistol in Hutchinson’s pocket, along with twelve bags of suspected methamphetamine and marijuana.
U.S. Attorney D. Michael Dunavant said: "As a convicted felon in possession of a firearm in furtherance of drug trafficking, the defendant in this case presents a danger to public safety in multiple ways. The statutory maximum sentence imposed in this case achieves justice by removing him from the community, and makes West Tennessee a safer place. If you are a dangerous felon with a firearm who is selling poison, you will be held accountable."
On April 24, 2018, the Honorable S. Thomas Anderson, Chief Judge, United States District Court, sentenced Hutchinson to the statutory maximum sentence of 10 years incarceration and 3 years supervised release. His sentence included a sentencing enhancement for possessing the firearm in connection with another felony offense, which was the possession of methamphetamine with intent to deliver.
Carroll County Sheriff Andy Dickson stated, "I appreciate the cooperation between the federal prosecutors, FBI, and local officers in getting career criminals off our streets."
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This case was investigated by the Carroll County Sheriff’s Office, 24th Judicial Violent Crime and Drug Task Force; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution.
Assistant U.S. Attorney Taylor Eskridge prosecuted this case on the government’s behalf.
McHenry Man Charged in Federal Court with Bankruptcy CrimeRead the Press Release
ROCKFORD — JOSEPH F. RUIZ, 54, of McHenry, was indicted today by a federal grand jury in Rockford for concealment of an asset in a bankruptcy case.
As alleged in the indictment, Ruiz filed a Chapter Seven Bankruptcy Petition on January 25, 2013. The indictment alleges that Ruiz fraudulently concealed a personal injury claim from the bankruptcy trustee. The personal injury claim allegedly arose out of injuries suffered by Ruiz on March 19, 2009.
The charge in this case carries a maximum potential penalty of up to five years in prison, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from that offense, whichever is greater. The Court may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The investigation was conducted by the United States Postal Inspection Service.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Acting Postal Inspector in Charge, Chicago.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Maryland Man Pleads Guilty to Money Laundering Charge in Scam Targeting Companies in U.S. and AbroadRead the Press Release
WASHINGTON - Emeka Ndukwu, 46, of Upper Marlboro, Md., pled guilty today to conspiring to launder the proceeds of scams that tricked seven companies in the United States and abroad into wiring more than $900,000 into accounts controlled by various co-conspirators.
The announcement was made by U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.
Ndukwu, a dual citizen of the United States and Nigeria, pled guilty in the U.S. District Court for the District of Columbia to one count of money laundering conspiracy. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, Ndukwu faces a likely range of 46 to 57 months in prison and a fine of up to $200,000. Additionally, as part of the plea, Ndukwu agreed to the forfeiture of a 2014 Mercedes-Benz GL450 and the entry of a forfeiture money judgment in the amount of $429,848, representing the share of the criminal proceeds that Ndukwu personally obtained.
The Honorable Timothy J. Kelly scheduled sentencing for July 19, 2018.
According to documents filed at the time of the plea, Ndukwu participated in an ongoing conspiracy from 2013 through 2017 to receive and launder the proceeds of various cyber frauds, primarily arising from business e-mail (“BEC”) compromise schemes. In a typical BEC scheme, a co-conspirator tricks a company into transfering large sums of money into accounts controlled by others participating in the scheme. Using fake e-mails, often containing forged sender addresses, co-conspirators impersonate someone connected to the victim company and deceive an employee of that company into wiring funds. Soon after the wire transfers are completed, the co-conspirators drain the bank accounts and launder the criminal proceeds.
This particular conspiracy targeted at least seven companies in the United States and overseas, including victims in Texas, Illinois, the United Arab Emirates, the United Kingdom, India, Japan, and China. The victims were fraudulently induced into sending $916,056 in wire transfers to accounts controlled by Ndukwu and other co-conspirators. The funds were then laundered through transactions conducted in Washington, D.C. and other jurisdictions, including layering through shell company accounts and accounts controlled by co-conspirators.
According to the court documents, Ndukwu used false aliases and forged Nigerian passports to facilitate these schemes, and he used encrypted messaging to communicate with co-conspirators. Ndukwu was indicted in December 2017 and has been in custody since his arrest that month. A co-defendant, Chuka Mbonu, 33, of Nigeria, remains at large.
The case is being investigated by the FBI’s Washington Field Office, with assistance from the U.S. Marshals Service for the U.S. District Court for the District of Columbia. Assistant U.S. Attorneys Christopher B. Brown and Michael J. Marando are prosecuting the case, with assistance from Paralegal Specialist C. Rosalind Pressley. Former Assistant U.S. Attorney Natalia Medina participated in investigating the case.
Manchester Woman Sentenced to 78 Months in Prison for Conspiracy to Distribute CocaineRead the Press Release
CONCORD - Elizabeth Salinas-Roldan, 43, previously of Manchester, New Hampshire, was sentenced in federal court to 78 months in prison for conspiracy to distribute cocaine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between May and July 2016, the defendant arranged with others to distribute cocaine to a cooperating individual in transactions that were audio and video-recorded.
Salinas-Reardon, who previously pleaded guilty on January 3, 2018, will be on supervised release after serving her sentence.
“The U.S. Attorney’s Office is committed to working closely with our law enforcement partners to identify and prosecute drug traffickers,” said U.S. Attorney Murray. “I am grateful to the law enforcement officers whose hard work led to this successful prosecution.”
“Ms. Salinas-Roldan dealt cocaine in her own backyard, profiting from the addiction of others. Her case is just one example of our ongoing efforts to rid communities across the Granite State of drug trafficking enterprises. Today’s sentence should send a message to others who are thinking about getting into the drug trafficking business. Don’t do it!” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI’s Safe Streets Gang Task Force will be relentless in hunting down anyone who chooses to engage in the distribution of illegal narcotics, and the violence that comes along with it.”
This matter was investigated by the FBI’s Safe Streets Gang Task Force, which consists of FBI Special Agents and members of the Manchester Police Department, the Hudson Police Department, the New Hampshire State Police, the Nashua Police Department, and the New Hampshire Department of Corrections Probation and Parole. It was also supported 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 is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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MS-13 Member Pleads Guilty to RICO Conspiracy Involving MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty yesterday in federal court in Boston to racketeering conspiracy involving the murder of a 16-year-old boy in East Boston.
Rigoberto Mejia, a/k/a “Ninja,” 32, a Salvadoran national, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for July 24, 2018.
During the multi-year investigation of MS-13, Mejia was identified as a “homeboy,” or full member, of MS-13’s Trece Locos Salvatrucha (TLS) clique. Evidence further showed that on Jan. 10, 2016, Mejia and other MS-13 members murdered a 16-year-old boy whom they believed to be a member of the rival 18th Street gang. Mejia’s alleged co-conspirators stabbed the victim multiple times while Mejia shot the victim.
After a multi-year investigation, Mejia was one of dozens of alleged leaders, members, and associates of MS-13 named in a superseding indictment targeting the gang’s criminal activities in Massachusetts. Mejia is the 44th defendant to be convicted as part of the ongoing prosecution. To date, all eight defendants who have gone to trial have been convicted, and 36 others have pleaded guilty.
Under the terms of the proposed plea agreement, Mejia will be sentenced to 330 months in prison. He will also be subject to deportation upon the completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement today.
The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leader of Conspiracy Trafficking Fentanyl, Heroin, Cocaine Sentenced to 21 Years in PrisonRead the Press Release
BIRMINGHAM – A federal judge today imposed a nearly 21-year sentence on the leader of a Birmingham-based conspiracy to distribute multiple kilograms of fentanyl, heroin and cocaine in Jefferson County in 2015 and 2016, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
ANTHONY LEVY “Amp” WARD, 37, of Chelsea, is the eighth of nine defendants sentenced in the case. The final defendant, JOSE AGUSTIN GUTIERREZ, 32, of Phoenix, Ariz., is scheduled for sentencing May 22.
U.S. District Judge L. Scott Coogler sentenced Ward to 20 years and 10 months in prison on multiple counts of conspiracy to distribute or possess with intent to distribute at least a thousand grams of heroin or at least five kilograms of cocaine and two counts of attempted possession with intent to distribute fentanyl. He also sentenced Ward on multiple counts of using a telephone to commit a drug trafficking crime, one count of carrying a firearm in furtherance of drug trafficking, and being a convicted felon in possession of a firearm. Ward pleaded guilty to the charges last year.
“A tiny fraction of a gram of fentanyl can be lethal and Ward was found with 17,000 pills cut with this illicit narcotic,” Town said. “It was his intent to make this poison available to an alarming number of people, which could have resulted in an equally alarming number of fatal and non-fatal overdoses. Judge Coogler’s sentence today justly sends the message that the death and destruction of this criminal behavior will not be tolerated, will not be excused, and will be severely punished.”
“For years, Anthony Ward has distributed poison in the form of cocaine, heroin and fentanyl to individuals in the Birmingham area,” Hamilton said. “There is no telling how many families have been destroyed by Ward’s actions. But with this sentence, the residents of Birmingham have one less drug dealer to worry about for years to come. I hope that those who looked up to ‘Amp’ will see the futility in the life Ward has lived thus far. Otherwise, DEA will not hesitate in giving them the opportunity to live in federal prison, too.”
The amount of fentanyl trafficked in the conspiracy was about 7.1 kilograms, or more than 350,000 doses of the drug.
Ward and the other defendants in the case are responsible for paying a $1.7 million judgment in the case as proceeds of illegal activity.
Throughout the investigation, agents seized 8.8 kilograms of cocaine intended to be delivered to Ward from Arizona, and 4.662 kilograms of pure fentanyl delivered from Mexico. Agents seized 254.9 grams of pure fentanyl from China that Ward had mailed to an address, other than his own, in the Birmingham area.
Besides Ward and Gutierrez, other defendants convicted in the conspiracy are: Anthony Levy Alexander, 58, and Betty Levy Alexander, 51, Ward’s father and aunt, Ferlando Carmise Mims, 20, Onandas Carmece Beard, 20, and Corey Darnelle Haynes, 38, all of Birmingham, and Jesus Ubaldo Montoya, 24, and Marahai Ardizo Enriquez, 26, both of Phoenix. The sentences for the seven previously sentenced defendants range from about two to 15 years in prison.
The DEA investigated the case in conjunction with the Birmingham and Hoover police departments and the U.S. Marshals Service. The U.S. Attorney’s Office for the Northern District of Alabama prosecuted the case.
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Kearney-Area Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joseph P. Kelly announced that Juan Adolpho Arredondo, who lived in the Kearney area prior to his arrest, was sentenced on April 24, 2018, by the Honorable United States Judge John M. Gerrard, in Lincoln, Nebraska, to 10 years in prison for possessing with intent to distribute 50 grams or more of methamphetamine. The sentence includes a five-year term of supervision after Arredondo is released from prison, and a forfeiture of more than $5,000 seized by law enforcement upon Arredondo’s arrest in Buffalo County in January 2017.
This case was investigated by the Buffalo County Sheriff’s Department and Central Nebraska Drug and Safe Streets Task Force.
Kanawha County Man Sentenced to 151 Months in Federal Prison for Distributing Child PornographyRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man was sentenced today to 151 months in federal prison for distributing child pornography, announced United States Attorney Mike Stuart. Christopher Chad Winnell, 36, of Marmet, will serve a term of 25 years on federal supervised release following his release from prison and will also be required to register as a sex offender. Winnell previously entered a guilty plea to two counts of distribution of child pornography. Stuart praised the work of Homeland Security Investigations, the West Virginia State Police, and the Royal Canadian Mounted Police.
“These crimes are horrific,” said United States Attorney Mike Stuart. “Winnell’s exploitation of children, including infants, is deplorable. We can all rest easier knowing that this guy has been removed from our community and will be spending a good number of years behind bars.”
Winnell admitted that on December 20, 2014, he engaged in an email conversation from his residence discussing the exchange of child pornography. Winnell further admitted that the email discussion resulted in the exchange of child pornography images involving infants. Winnell also admitted that on November 7, 2015, he used a messaging service to share an image of child pornography involving an infant with multiple individuals. The investigation determined that the image was received by at least one individual in Canada. The investigation further revealed that Winnell possessed hundreds of images and videos of child pornography stored in an online account.
Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution. The sentencing hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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###KC Man Sentenced to 15 Years for Illegal Firearm Used in ShootingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing the firearm he used to shoot another person.
Rico V. Gilliam, 34, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 15 years in federal prison without parole.
On Nov. 2, 2017, Gilliam was found guilty at trial of two counts of being a felon in possession of a firearm. Evidence introduced during the trial indicated that Gilliam was in possession of a Glock .40-caliber semi-automatic handgun on Oct. 17, 2014, and again on Nov. 6, 2014.
Kansas City police officers responded to a residence at about 9:15 a.m. on Oct. 17, 2014, to investigate a shooting. The victim told officers that Gilliam, who had come into the victim’s home, fired two shots at him during an argument that occurred about 3 a.m. One shot had struck him in the leg. He also said Gilliam pointed the gun at him and threatened to shoot him in the face if he did not leave his own residence. The victim and his girlfriend then walked to a nearby car lot. They jumped a fence and hid inside a Jeep until they called the police later that morning. Investigators interviewed several witnesses who confirmed the victim’s account.
On Nov. 6, 2014, officers located Gilliam inside a Kansas City, Mo., apartment. The apartment’s resident and several guests left the building while officers attempted to contact Gilliam. Another apartment also was evacuated. A tactical squad negotiated with Gilliam through a loudspeaker to come out of the residence. After approximately 30 minutes, Gilliam left the residence and was arrested. Officers searched the apartment and found the Glock handgun in the attic.
Gilliam, while incarcerated, directed a female friend to draft an affidavit and falsely claim that she placed the Glock handgun in the attic. Additionally, during some of the other intercepted jail calls Gilliam repeatedly threatened to beat up several women he spoke to.
According to court documents, while incarcerated Gilliam beat another inmate so severely that he had to be hospitalized and placed on a ventilator. On another occasion during his incarceration, Gilliam heated up cleaning chemicals in a microwave and threw the heated chemicals on another inmate, who was admitted to the hospital due to his injuries.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Gilliam has two prior felony convictions for armed criminal action and prior felony convictions for unlawful use of a weapon, burglary, attempted robbery and robbery.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes and Special Assistant U.S. Attorney Kim Moore. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jamestown Brothers Plead Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Matthew S. Jones, 33, and Beau K.C. Jones, 31, both of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and distribution of, methamphetamine. Matthew S. Jones pleaded guilty to a conspiracy involving five grams or more of methamphetamine and faces a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine. His brother, Beau K.C. Jones, pleaded guilty to a conspiracy involving 50 grams or more of methamphetamine and faces a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Laura Higgins, who is handling the case, stated that the defendants were arrested on December 1, 2016, after a shipment of more than 360 grams of methamphetamine was delivered, via the U.S. mail, to the brothers at Matthew S. Jones’ residence at 70 Colfax in Jamestown. Shortly after the delivery, Beau K.C. Jones was arrested during a car stop by police and the parcel containing the methamphetamine was discovered in the backseat of his vehicle. Matthew S. Jones was arrested later that day during a separate car stop. A safe was found in the trunk of his car containing an additional quantity of approximately 80 grams of methamphetamine.
The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Sentencing for Matthew S. Jones is scheduled for July 30, 2018. Sentencing for Beau K.C. Jones is schedule for August 7, 2018.
Jackson Man Pleads Guilty to Tax Fraud in Connection with MDOC Bribery ScandalRead the Press Release
Jackson, Miss. – Guy E. "Butch" Evans, 64, of Jackson, pled guilty today before United States District Judge Henry T. Wingate to aiding and abetting tax fraud, announced U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and IRS-Criminal Investigation Acting Special Agent in Charge Ted A. Magee.
Evans was an insurance broker who served as Mississippi Department of Corrections’ (MDOC) insurance broker of record to provide health and dental policies for MDOC employees. Evans received commissions from the insurance companies that provided the policies he sold to MDOC employees and paid a portion of his commissions to MDOC Commissioner Christopher B. Epps. Epps received approximately $19,200.00 in cash payments from Evans during the 2013 tax year. Evans made the payments to Epps with the full knowledge that Epps would not report the money on his return. Epps requested cash payments during face-to-face meetings with Evans and would hoard or structure the cash payments received so they would go undetected for tax purposes. Epps and Evans discussed withholding a portion of the cash payments as a "fee" to cover the Defendant’s tax obligations on the unreported monies but ultimately failed to pay the tax owed.
Evans is scheduled to be sentenced by Judge Wingate on July 10, 2018 at 9:30 a.m., and faces a maximum sentence of 5 years in federal prison and a $100,000 fine.
U.S. Attorney Hurst praised the efforts of the FBI, IRS, Leake County Sheriff’s Office, and other law enforcement agencies who assisted in the investigation of this case. Assistant U.S. Attorneys Mary Helen Wall, Kristi Johnson and Abe McGlothin are prosecuting the case.
Iredell Co. Man Sentenced to 19 Years on Drug and Gun ChargesRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Frank D. Whitney has sentenced Jackson Suddreth Tyler, 22, of Troutman, N.C. to 228 months in prison, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered Tyler to serve six years under court supervision after he is released from prison.
U.S. Attorney Murray is joined in making today’s announcement by Wayne Dixie Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Sheriff Darren Campbell of the Iredell County Sheriff’s Office.
According to filed court documents and court proceedings, on January 24, 2017, the Iredell County Sheriff’s Office received a 911 call for service at a residence located in Troutman. Upon arrival at the residence, law enforcement found Tyler and a deceased male who had sustained a gunshot wound. Law enforcement determined that approximately an hour had passed before the 911 call was made in regards to the shooting.
According to court records, Tyler told law enforcement he had not shot the victim. Tyler indicated that the victim had entered the residence armed with a pistol and wearing a mask, and that the victim had shot himself. Contrary to Tyler’s statement about the victim shooting himself, law enforcement determined that a different firearm was used to kill the deceased.
While executing a search warrant at the residence, law enforcement determined that Tyler was manufacturing ecstacy pills and firearms. Law enforcement seized from the residence large capacity magazines and 33 firearms, two of which were stolen and one with an obilerated serial number, gun parts, and 6,051 rounds of ammunition, as well as items used in manufactuing MDMA (ecstacy) pills, and more than two kilograms of MDMA pills. Law enforcement also located underneth the victim a firearm and an empty magazine. Also, according to court records, law enforcement determined that during the delay between the time the deceased was shot and 911 was called, the scene had been disturbed and items were removed from the home.
Tyler pleaded guilty in October 2017 to possession with intent to distribute MDMA and discharging a firearm during and in furtherance to a drug trafficking crime.
In sentencing Tyler, Judge Whitney said that Tyler was involved in a “deadly combination of criminal events,” noting the dangerousness of guns and drugs.
U.S. Attorney Murray thanked the ATF and the Iredell County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Jennifer Dillon of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Indiana Man Sentenced on Child Pornography ChargeRead the Press Release
United States Attorney Ron Parsons announced that an Elkhart, Indiana, man was sentenced on April 17, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Brendan Leiter, age 26, was sentenced to 3 years of imprisonment, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Leiter was one of ten men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2016 Sturgis Motorcycle Rally, targeting persons seeking to pay to have sex with underage girls or boys obtained through the Internet. The conviction stemmed from Leiter communicating with someone he believed to be a minor for the purpose of engaging in sexual acts, and requesting the minor send him a nude image of herself.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Leiter was immediately remanded to the custody of the U.S. Marshals Service.
Husband and Wife Sentenced to Prison for Arson of Apartment BuildingRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced today that two people were sentenced to prison for their involvement in the arson of an 8-unit apartment building in Milwaukee in December 2014. The fire resulted in injuries to multiple people, including tenants and three firefighters with the Milwaukee Fire Department. On April 12, 2018, United States District Court Judge Pamela Pepper sentenced Levita Brewer to 120 months (10 years) in prison to be followed by five years of supervised release. On October 11, 2017, United States District Court Judge J.P. Stadtmueller sentenced Stepfonz Campbell to 92 months (7 years, 8 months) in prison to be followed by five years of supervised release.
The evidence reflected that in early December 2014, Brewer and Campbell, who are married, traveled from Tennessee to Milwaukee, where they had lived just a couple months earlier. Around 10:00 p.m. on December 2, 2014, Brewer poured gasoline in the common hallway of an occupied apartment building on West Eggert Place. Their motive in setting the fire was to retaliate against the landlord, who previously had evicted them.
As the fire progressed, multiple tenants were forced to break through windows and jump to the ground to escape the fire. Three firefighters who entered the building in the midst of the fire found themselves trapped in extreme heat on the second floor. They jumped from a second-story window to the ground and suffered significant injuries. At the sentencing hearings, the federal prosecutor discussed the significant physical and emotional injuries tenants and firefighters endured as a result of the arson.
According to United States Attorney Krueger: “The defendants committed a most heinous act of violence, setting fire to the homes of innocent people. We commend the bravery of the firefighters and tenants who survived this near-fatal arson. The United States Attorney’s Office is committed to combatting violent crime, including arsons, and will continue to seek substantial prison sentences for those who harm members of our community. This successful prosecution resulted from excellent collaboration between federal, state, and local law enforcement, the Milwaukee Fire Department, as well as officers from the Jackson, Tennessee, Police Department.”
“These arsons could have turned tragic very quickly,” said ATF Special Agent in Charge Kurt Thielhorn of the St. Paul Field Division. “Three firefighters suffered tremendously from their injuries incurred while responding to the blaze; we are thankful they are still with us. Let this case show that thoughtless acts like these will be brought to justice. We’re proud to work alongside the Milwaukee Police Department, Milwaukee Fire Department, and Wisconsin Department of Justice during this investigation. It is due to their diligence in the pursuit of justice that the truth was uncovered of who was responsible for these reckless acts.”
By virtue of its statutory authority under Title XI of the Organized Crime Control Act of 1970, ATF initiates investigations and assists in state and local bomb and arson investigations. Over nearly 40 years, ATF has developed scientifically proven investigative capabilities, expertise and resources and has proved that the cooperative effort between trained State and local officers and ATF results in more effective investigations.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wisconsin Department of Justice Division of Criminal Investigation, the Milwaukee Fire Department, the Milwaukee Police Department, and the Jackson, Tennessee, Police Department. The case was prosecuted by Assistant United States Attorneys Margaret B. Honrath and William J. Lipscomb.
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For additional information contact:
Public Information Officer Dean Puschnig, (414) 297‑1700
Hammond Man Who Advertised Minors for Sex on Backpage.com Sentenced to Life in PrisonRead the Press Release
HAMMOND – Ronnie Cosby, 42 years old, of Hammond, Indiana, was sentenced on April 23, 2018, by District Court Judge Philip Simon to life imprisonment following his convictions of one count of sex trafficking a minor, two counts of transporting a minor for prostitution and two counts of producing child pornography, announced U.S. Attorney Thomas L. Kirsch II.
U.S. Attorney Kirsch said, “Mr. Cosby engaged in horrific acts of sex trafficking involving minors. As demonstrated by the conviction and sentence in this case, such acts carry severe consequences for those who commit them. Sex trafficking and crimes involving minor victims will never be tolerated. My office and our law enforcement partners will continue to come after individuals who commit these horrible crimes to the fullest extent permitted by law.”
According to publicly available information in the case, between December 2014 and February 2015, Cosby caused two minor females to engage in prostitution at his apartment in Hammond, Indiana, and other nearby locations. Cosby met one victim, a 14 year-old homeless girl, on Badoo, an online dating website, and within hours began prostituting her out of his apartment in Hammond, Indiana. Cosby met the second victim, a 15 year-old high school student, through a friend, and within a day offered her sexual services online to men in exchange for money. Cosby transported this second minor victim from Hammond to a hotel in Lansing, Illinois, where he and another working at his direction kept her under constant surveillance while arranging for men to come to the hotel to have sex with her. Cosby took sexually explicit images of both minor victims using his mobile phone and uploaded the images to Backpage.com, a website he used to offer them up to strangers interested in paying for sex. Cosby also texted images of both victims to friends and repeat prostitution customers to drum up additional business.
In a coordinated law enforcement operation last month, the Justice Department seized Backpage.com, the Internet’s leading forum for prostitution ads, including ads depicting the prostitution of children.
This case was investigated by Homeland Security Investigations and the Hammond Police Department with the assistance of the Federal Bureau of Investigation and members of the Northwest Indiana Human Trafficking Working Group. This case was prosecuted by Assistant United States Attorneys Abizer Zanzi and Jill Koster.
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Glendale Woman Sentenced to Prison in Bank Fraud/Stolen Identity Fraud SchemeRead the Press Release
PHOENIX– Yesterday, Veronica Castro, 44, of Glendale, Ariz. was sentenced by U.S. District Judge G. Murray Snow to 20 months in prison and was ordered to pay $1,145,392 in restitution. Castro had previously pleaded guilty to conspiracy to commit bank fraud along with co-defendant Yomtov Scott Menaged. Menaged was previously sentenced to 17 years’ imprisonment for his role in the bank fraud and other associated schemes.
Castro was a long time employee of Menaged who owned and operated retail furniture stores in the Phoenix area. Castro helped Menaged operate an elaborate identity theft scheme involving purported customers of the various retail furniture stores. Menaged obtained personal identification information of recently deceased individuals and used their information to submit false credit card applications to banks. Castro created false and fraudulent credit applications and receipts listing the same names and personal identification information to submit to the banks in an attempt to conceal the fraud after payments were issued on the fraudulent accounts. In fact, no real furniture purchases ever took place. The scheme resulted in a more than $1 million loss to the bank.
The investigation in this case was conducted by Department of Homeland Security, Homeland Security Investigations and Internal Revenue Service-Criminal Investigation. The prosecution was handled by Monica B. Edelstein, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-000680-PHX-GMS
RELEASE NUMBER: 2018-047_Castro
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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.
Fulton County Man Arrested for Distribution of Child PornographyRead the Press Release
ALBANY, NEW YORK – Charles Guyer, age 59, of Johnstown, New York, was arrested today on a charge of distributing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Guyer made an initial appearance in Albany before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending further proceedings.
The complaint filed against Guyer alleges that in March and April 2018, he used file-sharing software to distribute child pornography over the Internet. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted on all charges, Guyer faces a minimum 15 years and up to 40 years in prison, a maximum $250,000 fine, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by HSI, with assistance from the Johnstown Police Department, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Fourth Federal Inmate at Fort Dix Admits Possessing Images and Videos of Child Sexual Abuse While in PrisonRead the Press Release
CAMDEN, N.J. – A Brookhaven, Pennsylvania, man today admitted possessing hundreds of images and videos of child sexual abuse while imprisoned at Federal Correctional Institution Fort Dix for previous offenses involving the distribution and possession of child pornography, U.S. Attorney Craig Carpenito announced.
Brian J. McKay, 47, pleaded guilty before Senior U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
McKay admitted that he possessed two micro SD Cards which together contained a total of approximately 593 images and 645 videos of child pornography, some of which depicted children being sexually abused and sadistic and masochistic sexual conduct involving infants and toddlers. In connection with his plea, McKay also admitted that he distributed child pornography to another inmate.
McKay and seven other inmates were arrested in April 2017 and February 2018 following an FBI investigation involving multiple covert recordings and several cooperating inmates. The investigation revealed that McKay and other inmates utilized contraband cellphones, micro SD cards, and access to the internet to obtain, view, and distribute child pornography within the prison. A co-defendant organized and helped facilitate this criminal activity by maintaining cloud accounts that were used as repositories for child pornography.
At sentencing, McKay faces a mandatory minimum term of 10 years in prison and a lifetime of supervised release. Sentencing is scheduled for Aug. 6, 2018.
Three other inmates – Erik M. Smith, 36, of Iron Mountain, Michigan, Anthony C. Jeffries, 32, of Orange, Virginia, and Jordan T. Allen, 31, of Plain City, Ohio – have also pleaded guilty to possession of child pornography and await sentencing.
Charges remain pending against Christopher D. Roffler, 30, of Virginia Beach, Virginia; Jacob S. Good, 26, of Fredericksburg, Virginia; William H. Noble, 52, of Lowell, Massachusetts; and Charles Wesley Bush, 38, of Knoxville, Tennessee, all of whom were serving sentences for prior child pornography offenses while committing the alleged crimes in this case. The pending charges and allegations are merely accusations, and these defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officials of the Bureau of Prisons at Federal Correctional Institution Fort Dix for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: John B. Brennan Esq., Camden
Former Finance Director of Nonprofit Serving Underprivileged Youth Charged with FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the arrest of MICHELLE FOLEY, a former employee of a Manhattan-based nonprofit organization that provides arts and mentoring programs to underserved youth. FOLEY is charged with bank, wire, and access device fraud in connection with her theft of funds from the organization. FOLEY will be presented today in Manhattan federal court before the U.S. Magistrate Judge Stewart D. Aaron.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Michelle Foley allegedly used her position at a nonprofit to steal funds intended for disadvantaged youth. Rather than directing the organization’s funds to those in need, Foley allegedly used over $150,000 for her own selfish gain, including a trip to Disney World and a puppy. Today Michelle Foley is charged with serious federal crimes for her alleged conduct.”
According to the allegations in the Complaint sworn out today in Manhattan federal court:[1]
The nonprofit organization, founded in 1998, is based in New York, New York, and provides arts and mentoring programs to low-income, homeless, and neglected children. From at least in or about July 2017 up to and including in or about February 2018, FOLEY abused her position as the organization’s director of finance and operations by stealing more than $150,000 from the organization. FOLEY issued unauthorized checks on behalf of the organization to herself, totaling more than $56,000, and obtained two corporate credit cards, which were linked to the organization’s bank account and which she used to make personal, unauthorized purchases. During the course of her employment, FOLEY charged more than $100,000 to these credit cards, including by making payments for a puppy, home furnishings and appliances, and expenses associated with a trip to Disney World.
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FOLEY, 45, of Wilton, Connecticut, is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison, one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of access device fraud, which carries a maximum sentence of 10 years in prison. 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 outstanding investigative work of the Special Agents for the United States Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Elinor L. Tarlow is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Daycare Worker Pleads Guilty to Conveying A False Bomb Threat and Perpetuating A HoaxRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Jasmine Bradley, age 26, of Macon, GA entered a plea of guilty on April 23, 2018 to Conveying of False Information and Perpetuating a Hoax. Ms. Bradley entered her plea in Macon before District Court Judge Marc T. Treadwell.
Facts stipulated in the plea agreement show that on April 24, 2017, a bomb threat was made using Facebook to the Child Care Network School located at 3490 Northside Drive in Macon, Georgia. Specifically, the message indicated that a bomb had been planted and that someone would “blow up every little face in that center tomorrow.” An investigation led to the discovery that the device used to post the threat belonged to Ms. Bradley. Law enforcement arrested Ms. Bradley while she was at work at the Child Care Network School. She admitted to making threats to that daycare, as well as additional threats to other daycares in Bibb County.
Ms. Bradley faces up to five years imprisonment, a maximum fine of $250,000, or both and will be sentenced at a later date.
“Ms. Bradley’s actions on April 24, 2017, were terrifying to the children, parents, and employees of the Child Care Network School,” United States Attorney Charles Peeler said. “She caused disruption of school and work for many and caused law enforcement to expend precious time and money investigating this false bomb threat. Thankfully, no child was physically harmed due to her actions and she will now face the consequences of her decision by being sentenced in federal court.”
The case was investigated by the Bibb County Sheriff’s Office and the Macon Office of the Federal Bureau of Investigation (FBI). Assistant United States Attorney Shanelle Booker is prosecuting the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former City of Plymouth Official Charged in Illegal Bribery and Kickback SchemeRead the Press Release
United States Attorney Gregory G. Brooker today announced the filing of a felony information charging RONNIE EUGENE TAGGART, 50, for soliciting and receiving bribes and kickbacks in exchange for awarding City of Plymouth contracts. TAGGART will make his initial appearance in U.S. District Court at a later date.
According to the information, from approximately October 2012 through November 2016, TAGGART was the Facilities Supervisor for the City of Plymouth, Minnesota. In his position, TAGGART was responsible for the maintenance of all buildings owned and operated by the City of Plymouth, including the authority to award contracts for City projects such as building maintenance and cleaning, landscaping, and snow removal.
According to the information, from approximately 2014 through November 2016, TAGGART devised a scheme to defraud the City of Plymouth by soliciting and receiving bribes and kickbacks in exchange for awarding City contracts to various contractors outside of the competitive bidding process mandated by Minnesota state law and City of Plymouth procurement policy. TAGGART solicited and received cash kickbacks based on the total value of certain contracts. On other contracts, TAGGART received a flat cash kickback amount from the contractor. TAGGART also solicited and received non-cash bribes from certain City contractors, including items and services for TAGGART’S home, such as thousands of dollars in kitchen appliances, installation of new carpet, a concrete driveway, a garage door, a yard irrigation and sprinkler system, and extensive landscaping and electrical work. All of these items and services were provided to TAGGART at no cost.
According to the information, in order to conceal his failure to comply with the competitive bidding requirements, TAGGART instructed the bribe- and kickback-paying contractors to submit a second, fake quotation to give the false appearance that TAGGART had complied with the state statute and City policy. TAGGART also encouraged the bribe- and kickback-paying contractors to inflate the amount of their bids to cover the cost of the kickbacks and bribes. In total, TAGGART solicited and received bribes and kickbacks worth approximately $58,532.
This case is the result of an investigation conducted by the Federal Bureau of Investigation.
Assistant United States Attorney Joseph H. Thompson is prosecuting the case.
Defendant Information:
RONNIE EUGENE TAGGART, 50
Golden Valley, Minn.
Charges:
- Wire fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the information are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Former Assistant District Attorney Convicted in Manhattan Federal Court of Bribery and Fraud Relating to Gun LicensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of JOHN CHAMBERS for bribery, conspiracy to commit bribery, honest services fraud, and conspiracy to commit honest services fraud. The jury convicted CHAMBERS today on all four counts of the Indictment following a one-week trial before U.S. District Judge William H. Pauley III.
U.S. Attorney Geoffrey S. Berman said: “John Chambers, a former prosecutor, called himself a gun license ‘expediter.’ What a unanimous jury concluded today was that his expediting amounted to little more than bribing his contacts in the NYPD’s License Division. On behalf of his clients, Chambers acted as an intermediary for individuals who sought to circumvent the legitimate gun licensing process, and in some cases had criminal records or were otherwise precluded from owning firearms at all. The willingness of John Chambers to corrupt the gun License Division for his own benefit exposed the people of New York to unnecessary danger. This Office will continue to root out the corruption that undermines the public’s confidence in the law enforcement officers and institutions sworn to serve us all.”
According to the Indictment, other filings in Manhattan federal court, and evidence presented in court during the trial:
JOHN CHAMBERS, a former Assistant District Attorney in Kings County, is an attorney who represents individuals before the NYPD’s License Division, and who markets himself to potential clients as the “Top Firearms Licensing Attorney in NY.” From at least 2010 through 2015, CHAMBERS gave NYPD Sergeant David Villanueva numerous valuable items, including tickets to sporting and entertainment events for Villanueva and his family, free dinners and lunches for Villanueva, sports memorabilia, a wristwatch with a retail price of approximately $8,500, and over $2000 in cash.
In exchange, Villanueva assisted CHAMBERS’s clients in several ways. When licensees who were clients of CHAMBERS were subject to “incident investigations” – investigations by the License Division to determine whether a license should be suspended or revoked as a result of an incident – Villanueva would close these investigations more quickly and with more favorable outcomes than the applicants otherwise would receive. For example, on multiple occasions, Villanueva continued licenses for CHAMBERS’s clients – returning their ability to keep and carry firearms – even when the appropriate disposition would have been a license revocation, based on incidents such as domestic incidents or accidental firearms discharges. Villanueva also would modify the results of incident investigations after they were completed, such as changing a license revocation for multiple drunk driving arrests into a short suspension. Villanueva would also cause CHAMBERS’s clients to receive shorter suspension periods than they would otherwise receive. In addition, Villanueva ensured that renewal applications submitted by CHAMBERS’s clients, which typically take 30 to 40 days for approval, were renewed more expeditiously, sometimes as quickly as within one day. He also upgraded the licenses of clients of CHAMBERS to full concealed carry licenses on an expedited basis and without sufficient documentation to justify the upgrade.
Villanueva also helped CHAMBERS renew gun licenses for clients before the Pistol Section of the Nassau County Police Department, where Villanueva had contacts. Starting in or about 2012, CHAMBERS brought his clients’ renewal applications to Villanueva at One Police Plaza, and Villanueva mailed those applications to the Pistol Section using his NYPD License Division stationery. Villanueva did so knowing that because he was submitting the renewal applications using his NYPD License Division stationery, the renewals would be approved in a significantly faster time for CHAMBERS’s clients than for other applicants. In exchange, CHAMBERS gave Villanueva cash bribes, as well as tickets to sporting and entertainment events for Villanueva and his family. CHAMBERS typically mailed Villanueva the cash by taping it to the inside of a magazine.
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CHAMBERS, 63, who resides in Manhattan, New York, was found guilty of one count of bribery, which carries a maximum term of 10 years in prison, one count of conspiracy to commit bribery, which carries a maximum term of five years in prison, one count of honest services fraud, which carries a maximum term of 20 years in prison, and one count of conspiracy to commit honest services fraud, which carries a maximum of 20 years in prison.
CHAMBERS is scheduled to be sentenced on August 9, 2018.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the NYPD Internal Affairs Bureau, and noted that the investigation is continuing.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Alex Rossmiller and Paul M. Monteleoni are in charge of the prosecution.
Federal Officials Announce National Prescription Take Back DayRead the Press Release
Residents of Louisiana have an opportunity to safely and anonymously rid their homes of unused, unwanted, unneeded, or expired prescription medications, announced United States Attorney Brandon Fremin of the Middle District of Louisiana, and U.S. Drug Enforcement Administration (DEA) Assistant Special Agent in Charge Brad L. Byerley.
The National Prescription Take Back Day is Saturday, April 28, 2018, at more than 5 locations within the Middle District of Louisiana and over 30 locations across Louisiana. During this one-day event, federal and local law enforcement will, once again, partner together to increase awareness of prescription drug abuse and provide an opportunity to reduce the availability of prescription pain medications in local homes.
U.S. Attorney Brandon Fremin stated: “This program seeks to lessen the massive amount of prescription drugs available at the homes of unsuspecting families throughout our district. Reducing this available supply is an important component in our fight against opioid abuse, and it is something that many – if not most – residents can do something about.”
DEA Assistant Special Agent in Charge Brad Byerley stated: “The most common way that prescription drug abusers obtain their drugs is from their own family and friends. We can all do our part to potentially reduce substance abuse by being proactive and participating in the prescription drug take back program. Removing unwanted or expired medications from our home is a step we can all take to keep our families and community both healthier and safer.”
Prescription Take Back days have historically been very successful. For example, in October 2017, the 14th National Prescription Drug Take-Back Day, which involved almost 4,300 national, tribal, state, and local law enforcement partners, resulted in the collection of 912,305 pounds (456 tons) of prescription drugs at more than 5,300 collection sites. The program has resulted in the collection of more than 9 million pounds (more than 4,500 tons) since it began seven years ago.
The Prescription Drug Take Back is part of a nationwide effort sponsored by the DEA. Containers where unwanted and expired prescription medications may be safely disposed will be at locations across the Baton Rouge Metropolitan area on Saturday, April 28th from 10 a.m. to 2:00 p.m. (DEA cannot accept liquids, needles or sharps). The service is free and anonymous, with no questions asked.
A complete list of locations may be found at WWW.DEA.GOV by clicking on Drug Take Back and typing in your zip code.
Many Americans are unsure of how to properly dispose of their unused medications and often flush them down the toilet or throw them away. This poses safety and health hazards. More information on how to properly dispose of unused medicines can be found on the Drug Enforcement Administration website.
Federal Law Enforcement Agent Convicted of Criminal Charges Related to Helping Mexican National Enter the United StatesRead the Press Release
LOS ANGELES – A special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) has been found guilty of four federal offenses related to assistance he provided to a Mexican national with a criminal record to re-enter the United States.
Felix Cisneros Jr., 44, of Murrieta, an 11-year veteran of ICE who is now on indefinite suspension from the agency, was found guilty late Monday afternoon following a four-day trial in United States District Court.
The jury found Cisneros guilty of four felony counts: conspiracy to aid and assist the entry of an alien convicted of an aggravated felony into the United States, acting as agent of another person in a matter affecting the government, falsification of records in a federal investigation, and making false statements.
According to court documents and the evidence presented to the jury, Cisneros agreed to help a friend’s business associate re-enter the United States after traveling to Mexico City in September 2013. The business associate, Santiago Garcia-Gutierrez, was a lawful permanent resident of the United States, but because of prior criminal convictions and an outstanding warrant for his arrest, he was barred from being legally admitted into the United States upon his return. United States Customs and Border Protection (CBP) had seized Garcia’s Mexican passport and his “Green Card” when he attempted to enter the United States two months earlier, but he was paroled in –meaning he was temporarily allowed into the United States – pending the resolution of his criminal case.
As part of the conspiracy, Cisneros persuaded CBP officers to return Garcia’s passport, ensured that Garcia would be allowed to re-enter the United States after the September 2013 trip, and urged CBP to extend Garcia’s parole that allowed him to remain in the United States pending resolution of his immigration status. Cisneros provided assistance to Garcia knowing about his prior convictions.
As part of the conspiracy, Cisneros had queried a law enforcement database, which provided him information about Garcia’s prior convictions, as well as information that Garcia was suspected of participating in criminal activities.
The falsification of records and the false statements charges relate to Cisneros failing to disclose that he had a longstanding relationship with Garcia during a regular background investigation being conducted as part of his employment as an ICE agent.
Cisneros is scheduled to be sentenced by United States District Judge Christina A. Snyder on July 30, at which time he will face a statutory maximum sentence of 20 years in federal prison.
The jury that convicted Cisneros also acquitted him of two counts of obstruction of justice.
The case against Cisneros is the product of an investigation by the Federal Bureau of Investigation; the Department of Homeland Security, Office of Inspector General; and the ICE Office of Professional Responsibility.
This case is being prosecuted by Assistant United States Attorneys Patricia A. Donahue and Sheila Nagaraj of the Public Corruption and Civil Rights Section.
Federal Jury Convicts Wilson Man for Being a Felon in Possession of a FirearmRead the Press Release
GREENVILLE – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that today in Federal court, KELLY SHADROME ANDERSON, a 33-year-old resident of Wilson, was convicted following a two-day trial before Senior United States District Judge Malcolm J. Howard. The jury found ANDERSON guilty of being a felon in possession of a firearm.
The evidence at trial showed that in the early evening on September 24, 2016, the Wilson Police Department responded to a burglary in progress at a residence (716 Harper Street) in Wilson. The resident of the home advised that she was sitting on her front porch with a friend and observed ANDERSON run toward her with a firearm. ANDERSON entered the residence and locked the front door. ANDERSON held a three year old hostage inside the residence. ANDERSON later surrendered and the firearm ANDERSON brandished was found inside the residence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Wilson Police Department. Melissa Kessler prosecuted the case on behalf of the United States.
Federal Jury Convicts Texas Man of Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that Ira Alan Arias, age 42, of Fort Worth, Texas, and Sisseton, South Dakota, was found guilty of three counts of Aggravated Sexual Abuse of a Child, as a result of a federal jury trial in Aberdeen, South Dakota. The verdict was returned on April 18, 2018.
The charge carries a penalty of a mandatory minimum of 30 years up to life in custody and/or a $250,000 fine, a mandatory minimum term of five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Arias was indicted by a federal grand jury on April 4, 2018.
On or about May 3, 2015, Arias forcefully engaged in three sexual acts with the victim, who was 14 years old at the time of the sexual abuse. The sexual abuse occurred in a hotel room in Codington County.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Jeremy R. Jehangiri.
A presentence investigation was ordered and Arias will be sentenced on July 9, 2018. Arias was detained pending and during trial, and he remains in federal custody.
East Texas Hospital Self-Discloses and Resolves Health Care Compliance ConcernsRead the Press Release
PLANO, Texas – Gainesville Hospital District d/b/a North Texas Medical Center will pay the United States $1,320,000 to resolve concerns surrounding payment arrangements with a physician, announced United States Attorney Joseph D. Brown.
“The United States Attorney’s Office for the Eastern District of Texas is pleased that North Texas Medical Center voluntarily self-disclosed potential health care compliance concerns,” said U.S. Attorney Brown. “We continue to encourage health care providers to proactively identify and disclose compliance concerns to our office. This process is almost always more efficient and less costly than defending enforcement actions.”
On Sep. 26, 2017, North Texas Medical Center made a submission pursuant to OIG-HHS’s Self Disclosure Protocol. North Texas Medical Center then made a similar submission to the United States Attorney’s Office for the Eastern District of Texas seeking resolution under the federal False Claims Act.
Based on these self-disclosures, the United States agreed to resolve potential claims arising from remuneration paid by North Texas Medical Center to Dr. Ramin Roufeh that was allegedly above fair market value, not commercially reasonable, and/or not appropriately memorialized in writing. The United States contended that at least one purpose of the remuneration provided by North Texas Medical Center to Dr. Roufeh was to induce the referral of federal health care program patients and that the remuneration induced such referrals in violation of the federal Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b)(2).
This matter was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the United States Attorney’s Office for the Eastern District of Texas. The civil settlement was negotiated by Assistant U.S. Attorney Joshua M. Russ.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
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District Man Pleads Guilty to 2012 Armed Rape of Howard University Student, Sentenced to 48 Years in PrisonRead the Press Release
WASHINGTON – Demarco Myles, 24, formerly of Washington, D.C., pled guilty today to charges stemming from the armed rape of a Howard University student at a dormitory in November 2012, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Myles pled guilty in the Superior Court of the District of Columbia to felony counts of first-degree sexual abuse while armed, burglary while armed, kidnapping while armed, and two misdemeanor counts of assault and second-degree theft. The plea agreement, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 48 years in prison. After accepting the plea, the Honorable Ronna L. Beck sentenced Myles accordingly. Once released from prison, Myles will be placed on supervised release for the rest of his life. He will also be required to register as a sex offender for the rest of his life.
The sentence imposed today will run concurrently with a 40-year prison term that Myles now is serving for a second attack that he committed in October 2012 in Northeast Washington.
According to the government’s evidence, in the early afternoon of Nov. 2, 2012, Myles snuck into the Bethune Annex – a women’s dormitory – in the 2200 block of Fourth Street NW, on the Howard University campus. Once inside, he went from room to room until he found the victim alone in her dorm room. While brandishing a very distinctive looking knife, Myles raped her. During the rape, when the victim was pleading with him to stop and saying that she did not even know who Myles was, Myles grabbed a piece of paper, wrote “Marco” and a cell phone number on it, and thrust it in her face, saying, “Now you know me, [expletive]!” Following the rape, Myles tried to scratch out the phone number, but left the piece of paper behind.
When the Metropolitan Police Department (MPD) arrived moments later in response to a 911 call, they were able to decipher the phone number that had been written down. Using subscriber information concerning that number, and other information they were able to develop, Myles was arrested later that night at his home, where the distinctive knife he had used during the attack was recovered. He has been imprisoned ever since.
One week earlier, on Oct. 26, 2012, and almost to the minute, Myles had broken into the apartment of another woman who lived in the Rhode Island Row Apartments across from the Rhode Island Avenue Metro stop in Northeast Washington. He attempted to sexually assault that woman, as well, but she fled into a walk-in closet and tried to prevent Myles from getting to her. Myles overpowered the woman, however, and, in a rage, stabbed her more than 20 times, leaving her for dead. Although Myles later told police that he thought he had killed that woman, she somehow survived and was able to call 911 to report the attack. For the next week, MPD conducted a manhunt, trying to find the assailant. It was not until Myles struck again – in the Howard University attack – that Myles was arrested.
Myles pled guilty in January 2015 to a total of 10 charges stemming from the attack at the Rhode Island Row Apartments. He was sentenced in June 2015 to a 40-year prison term.
In announcing today’s plea, U.S. Attorney Liu and Chief Newsham commended the work of members of MPD’s Sexual Assault Unit, Criminal Investigations Unit, and Fifth District, who investigated the cases. They acknowledged the efforts of those who worked on the cases from the U.S. Attorney’s Office, including Paralegal Specialists Jason Manuel, D’Yvonne Key, Joyce Arthur, and Brenda Williams; Victim/Witness Advocates Melissa Milam and Elsa Maltese; La June Thames and Katina Adams-Washington, also of the Victim/Witness Assistance Unit; Information Technology Specialist Jeanie Latimore-Brown; Intelligence Specialist Sharon Johnson, and Criminal Investigators Steve Cohen and Durand Odom. They also commended the work of Assistant U.S. Attorneys Lauren Bates, Elizabeth Danello, Colleen Kennedy, Chrisellen Kolb, Jodi Lazarus, and Elizabeth Trosman for assistance on legal issues. Finally, they commended the work of Assistant U.S. Attorneys Andrea Hertzfeld, John L. Hill, Nicholas G. Miranda and Peter V. Taylor, who investigated and prosecuted this case.
Colombian Drug Kingpin Extradited to the United States to Face Charges of Operating a Continuing Criminal EnterpriseRead the Press Release
Daniel Rendon-Herrera, also known as “Don Mario,” will be arraigned this afternoon before United States Magistrate Judge Viktor V. Pohorelsky at the federal courthouse in Brooklyn on charges of leading a continuing criminal enterprise. In May 2009, the U.S. Department of the Treasury’s Office of Foreign Assets Control designated Rendon-Herrera as a “Special Designated Narcotics Trafficker,” pursuant to the Foreign Narcotics Kingpin Designation Act. The defendant was arrested in Colombia on a provisional arrest warrant issued from the Eastern District of New York and subsequently extradited from Colombia to the United States on April 23, 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, James P. O’Neill, Commissioner, New York City Police Department (NYPD), and George P. Beach II, Superintendent, New York State Police (NYSP), announced the extradition. The case resulted from a long-term investigation by the DEA’s New York Organized Crime Drug Enforcement Task Force, which is comprised of agents and officers of the DEA, NYPD and NYSP.
“As alleged in the indictment, Rendon-Herrera led a major Colombian drug trafficking enterprise that imported tons of cocaine into the United States and employed hitmen who carried out acts of violence across North and South America in furtherance of the organization,” stated United States Attorney Richard P. Donoghue. “The United States is committed to cooperating with our international partners to dismantle illicit organizations like Clan Usuga and stem the destructive effects wrought by this violent armed criminal group.” Mr. Donoghue extended his grateful appreciation to the DEA’s offices in Miami and Bogota, HSI’s El Dorado Task Force, the United States Department of State, the Department of Justice’s Office of International Affairs and the Colombian National Police.
“Don Mario was the most feared narco-terrorist in Colombia. He is known as the old man who ignited Clan Usaga’s reign of terror while besieging the United States with hundreds of tons of cocaine,” stated DEA Special Agent-in-Charge Hunt. “This extradition stems from his arrest in the jungles of Colombia nine years ago and was made possible by local, state, federal and international law enforcement efforts.”
“This case demonstrates that those involved in the distribution of narcotics will be vigorously investigated and prosecuted across international lines,” stated HSI New York Special Agent-in-charge Melendez. “Rendon-Herrera and his criminal organization destroyed many lives across two continents through mass distribution and sale of cocaine and targeted murders. Drug trafficking organizations must be dismantled at every level, from the street dealer to the international supplier and right up to drug kingpins like Rendon-Herrera. This extradition is significant for U.S. law enforcement efforts and will disrupt the flow of substantial quantities of drugs from entering our country.”
“Don Mario is one of the most significant drug traffickers of our time, recognized for moving multi-ton shipments of cocaine to the United States at a moment’s notice,” stated NYPD Police Commissioner O’Neill. “The defendant also founded the most influential drug trafficking organization in Columbia ever, responsible for the death of untold numbers by overdose and many more from kidnappings and targeted assassinations, all to protect their illicit trade. Today our country—and the nation of Columbia—will be safer because of relentless and persistent work from all those involved in bringing this kingpin to an American courtroom.”
“I commend the dedicated teamwork of the New York Organized Crime Drug Enforcement Strike Force which was instrumental in the takedown of this dangerous drug trafficker and bringing him to justice,” stated NYSP Superintendent Beach. “Because of the task force’s aggressive strategy to stop this type of criminal behavior, they are preventing the infiltration of dangerous narcotics into our communities and helping to remove the violent criminals who profit at the expense of our communities. We will continue to be vigilant in working together with our law enforcement partners to keep these harmful narcotics off our streets and our neighborhoods safe.”
According to the indictment, Rendon-Herrera was the founder and one of the principal leaders of Clan Usuga (formerly referred to as Los Urabenos), the largest and most influential BACRIM (banda criminal or criminal group) in Colombia. Between approximately June 2003 and December 2014, Clan Usuga was involved in multi-ton shipments of cocaine from Colombia to Mexico and Central America for ultimate importation into the United States. Under Rendon-Herrera’s leadership, Clan Usuga coordinated the production, purchase and transfer of shipments of cocaine, as well as the receipt of shipments of cocaine in Mexico and Central America. Clan Usuga also controlled territory in various areas in Colombia and imposed a “tax” on any drug traffickers operating in regions under Clan Usuga’s control. Specifically, Clan Usuga charged a set fee for every kilogram of cocaine that was manufactured, stored or transported through areas controlled by Clan Usuga.
Clan Usuga also employed “sicarios,” or hitmen, who committed murders, assaults, kidnappings and assassinations. Clan Usuga utilized these acts of violence to collect drug debts, maintain discipline, control and expand drug territory and to promote and enhance the prestige, reputation and position of the organization.
The extradition of Rendon-Herrera is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York, DEA and HSI. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Gina M. Parlovecchio, Margaret Lee and Marcia M. Henry are in charge of the prosecution. The Justice Department’s Office of International Affairs handled the extradition in this matter.
The Defendant:
DANIEL RENDON-HERRERA (also known as “Don Mario”)
Age: 54
Antioquia, ColombiaE.D.N.Y. Docket No. 14-CR-625 (S-3) (DLI)
Charleston Felon Sentenced to Federal Prison for Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston felon who possessed a firearm in December 2016 was sentenced yesterday to 38 months in federal prison, announced United States Attorney Mike Stuart. Jamie Edward Smith, 31, previously pled guilty to being a felon in possession of a firearm. United States Attorney Stuart commended the investigation of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the West Virginia State Police.
“It’s simple -- convicted felons are prohibited from possessing firearms,” said United States Attorney Mike Stuart. “We will aggressively prosecute anyone that choses to violate our federal gun laws.”
Smith admitted that on December 20, 2016, he had a Raven Arms, .25 caliber pistol in his possession. Smith is prohibited from possessing any firearms under federal law because of a 2008 felony conviction for breaking and entering in Fayette County, West Virginia.
Assistant United States Attorney Matt Davis was in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., handed down the sentence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Biotech Company CEO and Two Associates Charged with Securities FraudRead the Press Release
BOSTON –The chief executive officer of PixarBio Corp., a Boston-based biotech company, and two associates were arrested today and charged with securities fraud in connection with a scheme to manipulate trading in the company’s shares.
Frank Reynolds, 55; M. Jay Herod, 51; and Kenneth Stromsland, 45, were charged by criminal complaint with securities fraud. They are scheduled to appear before U.S. District Court Magistrate Judge M. Page Kelley this afternoon.
As alleged in the charging document, beginning in approximately August 2013, PixarBio CEO Reynolds, and two of his associates, Herod and Stromsland, engaged in a scheme to defraud PixarBio investors by making false and misleading statements about the company - its prospects, its financing, and the background and track record of Reynolds - and by engaging in manipulative trading of its shares.
For example, the complaint alleges that in a December 2015 email and memorandum to potential investors, Reynolds promised investors “a HUGE return on investment (ROI) for any investors in PixarBio’s NeuroRelease.” He told investors: “The value of our portfolio on Wall Street is soaring with excitement around our sales partnership. At only $1,000,000,000 right now, as we prepare to replace morphine in the clinic in late 2017 or early 2018, and we expect our valuation to long-term trend UP.” In reality, the government alleges, PixarBio did not have a market value of one billion dollars, or a product to end “thousands of years of morphine and opiate addiction.” Rather, the complaint alleges, the prospective drug, carbamazepine, is not a treatment for opiate addiction at all, but an existing drug for which PixarBio purported to have developed an additional means of delivery, via injection, in a time-release form.
The complaint further alleges that, beginning in or about November 2016, Stromsland and Herod engaged in manipulative trades in PixarBio stock that simulated market interest in the stock and artificially pushed up the trading price. These trades included overlapping orders to buy and sell PixarBio stock at the same price per share (a manipulative technique known as “matched trading”), small purchases to boost the trading price submitted shortly before trading closed at 4:00 p.m. (a technique known as “marking the close”), and orders to buy at a price much higher than the price of the preceding market transaction. The complaint alleges that Herod shared the proceeds of his trading with Reynolds and PixarBio itself.
The charge of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission Office of Inspector General, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
5 Charged in Stolen Check SchemeRead the Press Release
CINCINNATI – A federal grand jury has charged five Cincinnati individuals with conspiring to commit bank fraud and with aggravated identity theft in an indictment unsealed here yesterday.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Service, Hamilton County Sheriff Jim Neal, West Chester Police Chief Joel Herzog, Green Township Police Chief James Vetter, Greensburg, Ind. Interim Police Chief Brendan Bridges, Norwood Police Chief William Kramer and Madeira Police Chief Dave Schaefer announced the charges.
According to the indictment, from February 2017 until April 2018, co-conspirators allegedly stole checks from mailboxes at residences and businesses. Defendants would then cash the stolen checks by pretending to be the lawful payees.
It is alleged that the group also fraudulently re-printed the original checks by inserting the names of new payees on the checks. Co-conspirators would recruit “cashers” who allowed the group to insert the casher’s name on the check in exchange for a portion of the proceeds.
Those charged include, Stephano Henderson (aka Face), 31; Laneal Henderson (aka Phatty Boi), 32; Eugene Clifford, 30; Markalo Harris, 25 and Ebony Lattimore, 30, all of Cincinnati.
The five defendants are each charged with one count of conspiracy to commit bank fraud, a crime punishable by up to 30 years in prison.
Each of the defendants is also charged with at least one count of aggravated identity theft. In addition, Stephano Henderson is also charged with one count of bank fraud.
Aggravated identity theft is punishable by up to two years in prison for each count in addition to time served for other offenses.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement, and Assistant United States Attorney Matthew C. Singer, who is prosecuting the case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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23 April 2018
Wichita Man’s Appearance in Video Leads to Sentence for Gun CrimeRead the Press Release
WICHITA, KAN. – A Wichita man who appeared in a music video with marijuana and guns was sentenced Monday to four years in federal prison, U.S. Attorney Stephen McAllister said.
Shundell C. Barkus, 23, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm by a user of controlled substances. In his plea, he admitted that he and other defendants appeared in a rap video filmed at a residence in the 1500 block of North Green in Wichita. In the video, they were seen smoking marijuana while they possessed firearms. A search warrant served at the residence found 2.5 pounds of marijuana and a variety of firearms.
McAllister commended the Wichita Police, the FBI and Assistant U.S. Attorney Lanny Welch for their work on the case.
Co-defendants include:
Dondre E. Broom, 23, Wichita., Kan., who was sentenced to four years in federal prison.
De’Adrian A. Johnson, 23, Wichita., Kan., who was sentenced to six months in prison.
Imanuel S. Norwood, 20, Wichita, Kan., who is awaiting trial.
Mario J. Smith, 29, Wichita, Kan.,who is set for sentencing June 27.
Keandre D. Summers, 22, Wichita, Kan., who is awaiting trial.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. All U.S. Attorney’s Offices have been directed to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Wichita Man Sentenced for Distributing Child PornRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Monday to five years in federal prison for distributing child pornography, U.S. Attorney Stephen McAllister said.
Joshua A. Haskins, 42, Wichita, Kan., pleaded guilty to one count of distributing child pornography and one count of using the internet to target a 12-year-old child for sexual exploitation. In his plea, he admitted he posted child pornography on his Twitter account. Twitter reported the images to CyberTipline (report.cybertip.org), a web site where electronic service providers and the public can report child pornography.
Haskins also used his account on a photo-sharing website based in Russia to upload a picture of the Instagram account of a 12-year-old girl. He included the girl’s name and her electronic email address, urging other users to “talk her into nudes” and “send me pics if u do.”
McAllister commended Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Wetzel County man admits to child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Daniel P. Sprowl, of New Martinsville, West Virginia, has admitted to possessing child pornography, United States Attorney Bill Powell announced.
Sprowl, age 54, pled guilty to one count of “Possession of Child Pornography.” Sprowl admitted to possessing images of child pornography involving children under the age of 12 in November 2016 in Wetzel County.
Sprowl faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Western Kentucky Physician Convicted of Illegal Distribution of Controlled SubstancesRead the Press Release
Prescribed opiate pain medications outside the course of professional medical practice and without a legitimate medical purpose to multiple patients
BOWLING GREEN, Ky. – A Franklin, Kentucky, physician was convicted today on 15 counts of illegal distribution of controlled substances by way of prescribing opiate pain medications outside of the course of professional medical practice and without a legitimate medial purpose, announced United States Attorney Russell M. Coleman.
“Kentucky families rely on our doctors to ‘do no harm,’ however, in this case, a Western Kentucky doctor was no more than a drug dealer in a white coat,” stated United States Attorney Russell Coleman. “As much as we respect the medical profession, this is a warning to physicians who purposefully overprescribe pain pills without a legitimate medical purpose - you will lose your medical license and ultimately serve time in federal prison.”
Roy D. Reynolds, age 69, was convicted following a nine day trial, before United States District Court Judge Greg N. Stivers. Reynolds was taken into federal custody following the announcement of the verdict.
Reynolds was a doctor practicing in Franklin, Kentucky, in Simpson County during the time of the illegal activity. Reynolds was the treating physician to patient Jackie Hughes at the time of Hughes’s death and prescribed opioids including oxycodone, hydrocodone, and Xanax to an additional four patients, without a legitimate medical purpose, who were not considered good candidates for opioids. The patients had medical histories of mental illness, doctor-shopping, and additional risk factors for opiate abuse and addiction.
According to evidence presented at trial, from 2010 to 2013, the covered period of the illegal activity, Dr. Reynolds prescribed more Oxycodone than any other primary care prescriber in Simpson County and ranked among the top 5% of prescribers in the Commonwealth of Kentucky. Specifically, in 2011, Reynolds prescribed 132,372 oxycodone pills (second most prescribed oxycodone pills by a primary care physician in Simpson County was 9,765) and in 2012 Reynolds prescribed 139,667 pills (second most oxycodone pills prescribed by a primary care physician in Simpson County was 11,794). In February of 2013, Reynolds lost his DEA license to prescribe opiate pain medications. However, during the first five week period, Reynolds prescribed more opiate pain medications than any other Simpson County physician prescribed during 2013.
In 2011, Reynolds’ patient, Jackie Hughes, had a history of illegal drug usage and psychiatric issues which were documented in the patient charts. Further, Hughes had a KASPER report also suggesting opiate abuse and diversion. Although Hughes made various somatic complaints, Dr. Reynolds never objectively documented a legitimate source of pain. Reynolds supplied Hughes with opioids and benzodiazepines for over ten years – when an opiate centric treatment plan was contraindicated because of risk factors inherent with a history of drug abuse.
Nonetheless, Dr. Reynolds placed Hughes on a regimen of chronic opiate therapy, and did not monitor or enforce patient accountability, (did not perform urine screens or pill counts), and did not attempt to wean Hughes off opiates. Between February 2009 and April 2011, Dr. Reynolds repeatedly prescribed oxycodone, a Schedule II controlled substance, and Xanax, a Schedule IV controlled substance, to Hughes outside the course of professional medical practice and without a legitimate medical purpose.
Reynolds is scheduled to be sentenced by U.S. District Judge Stivers, on July 31, 2018, at 9:30am CST, in Bowling Green.
This case is being prosecuted by Assistant United States Attorneys David Weiser and Rob Bonar with assistance from paralegals Mary Kennedy and Jane Bauer, and is being investigated by the Federal Bureau of Investigation (FBI), Kentucky State Police, and the Kentucky Office of Inspector General, Division of Audits and Investigations, Drug Enforcement and Professional Practice Branch.
West Virginia Felon Charged with Illegally Possessing a Gun and AmmunitionRead the Press Release
PITTSBURGH - A resident of West Virginia has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of unlawful possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on March 21 and unsealed today, named Joseph Albert Cummins, 24, of Elkins, West Virginia.
According to the indictment presented to the court, on or about November 17, 2017, Cummins, a convicted felon, unlawfully possessed a firearm and ammunition.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Special Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The Department of Homeland Security, Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennsylvania State Police, and Ross Township Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Walpole Man Pleads Guilty to Sexually Exploiting Two ChildrenRead the Press Release
BOSTON – A Walpole man pleaded guilty today in federal court in Boston to producing child pornography.
Steven Bennett, 52, pleaded guilty to two counts of sexual exploitation of children. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for July 18, 2018. Bennett has been in custody since his arrest in May 2017.
On May 25, 2017, as a result of an April 2017 investigation into various individuals seeking nude pictures of underage girls via Craigslist, authorities executed a federal search warrant at Bennett’s home. Bennett admitted that he secretly video recorded two minor females who were known to him. Subsequent forensic analysis of several devices seized from Bennett during the search revealed more than 100 videos of the girls in the nude.
The charges of sexual exploitation of children each provide for a mandatory minimum sentence of 15 years and up to 30 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting 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 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/.
W. Warwick Man Sentenced for Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – A West Warwick man who possessed more than 600 videos and 175,000 images of child pornography was sentenced today to 60 months in federal prison and ordered to pay restitution to two of his victims.
Matthew E. Pasetti, 36, was arrested in December 2015 after members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force and agents from Homeland Security Investigations (HSI) executed a court authorized search of his residence, and a brief forensic examination of a digital storage device in Pasetti’s possession disclosed that it contained child pornography.
Pasetti pleaded guilty on October 14, 2016, to possession of child pornography and distribution of child pornography.
At sentencing, U.S. District Court Judge John J. McConnell also ordered Pasetti to serve 10 years of supervised release upon completion of his term of incarceration and to pay restitution totaling $5,000 to two victims identified in the videos and photographs and whose identity is known.
The U.S. Sentencing Guidelines imprisonment range in this matter is 151-188 months. The government recommended the court impose a sentence of 60 months imprisonment.
Matthew Pasetti’s sentence is announced by United States Attorney Stephen G. Dambruch, Superintendent of the Rhode Island State Police Colonel Ann C. Assumpico and Acting Special Agent in Charge of HSI for New England Michael S. Shea.
According to court documents, in October 2015, members of the ICAC Task Force identified an Internet Protocol (IP) address that was sharing child pornography. An ICAC and HSI investigation determined that the IP address was registered to Matthew Pasetti at his West Warwick residence. A court authorized search of Pasetti’s residence on December 2, 2015, by ICAC Task Force members and HSI agents resulted in the seizure a laptop computer and several digital storage devices. A forensic examination of the electronic equipment resulted in the discovery of approximately 600 videos and 175,000 images depicting child pornography.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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United States Attorney Gretchen C.F. Shappert takes the Oath as the Court-appointed United States Attorney for the Virgin IslandsRead the Press Release
St. Croix, USVI- This afternoon, the Honorable Wilma A. Lewis, U.S. District Court Chief Judge, administered the oath of office to United States Attorney Gretchen C.F. Shappert at the Almeric L. Christian Federal Courthouse on St. Croix. Ms. Shappert was appointed by U.S. Attorney General Jeff Sessions to serve as the Interim United States Attorney, effective on January 5, 2018 for a term of 120 days. Following today’s oath, Shappert becomes the court-appointed United States Attorney, pursuant to 28 U.S.C. § 546(d), effective May 5, 2018. "It is a tremendous privilege and honor to serve as the United States Attorney in the Virgin Islands," said Shappert. "I am committed to upholding the Constitution and the laws of the United States." Ms. Shappert stressed her dedication to the priorities of the Attorney General, including apprehending and prosecuting violent offenders and drug traffickers, and working with federal and territorial law enforcement to enhance public safety.
Prior to her appointment in the Virgin Islands, Ms. Shappert served as the Assistant Director for the Indian, Violent and Cyber Crime Staff in the Executive Office for U.S. Attorneys (EOUSA) of the Department of Justice. Before joining EOUSA, she served as the United States Attorney for the Western District of North Carolina from 2004-2009 and as an Assistant United States Attorney (AUSA) from 1990-2004. As the United States Attorney and as an AUSA, she prosecuted a wide range of criminal defendants including outlaw motorcycle gangs and violent drug organizations. Ms. Shappert also served as an Assistant District Attorney, an Assistant Public Defender, and in private practice prior to her federal service. She received her B.A. from Duke University in 1977 and her J.D. from Washington & Lee University School of Law in 1980.
U.S. Attorney’s Office Highlights Re-Entry Programs During Second Chance MonthRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that 86 individuals in the Buffalo and Rochester areas, who were recently released from prison following a period of incarceration, have completed job readiness training programs aimed at securing future employment and preventing recidivism and a return to prison:
• 21 individuals were certified in operating a forklift at Buffalo Material Handling; • 25 individuals were certified in asbestos removal at Environmental Education Associates; and
• 40 individuals completed a 10 hour Occupational Safety and Health Administration (OSHA) construction safety and health course through Core Safety Group.President Donald Trump declared April 2018 as Second Chance Month. According to a proclamation issued by President Trump, this month “our Nation emphasizes the need to prevent crime on our streets, to respect the rule of law by prosecuting individuals who break the law, and to provide opportunities for people with criminal records to earn an honest second chance. Affording those who have been held accountable for their crimes an opportunity to become contributing members of society is a critical element of criminal justice that can reduce our crime rates and prison populations, decrease burdens to the American taxpayer, and make America safer.”
“Working with our partners in federal, state, and local law enforcement, we here at the United States Attorney’s Office have re-doubled our efforts to restore respect for the rule of law in every corner of our community by aggressively prosecuting those who violate the law,” noted U.S. Attorney Kennedy. “As a result, our prosecutions are up, and crime is down. At the same time, however, we also recognize that respect is a two-way street. To show our respect for the community and all of its members—including even those whom we may have previously prosecuted—we decided to put our money where our mouth is. We took $20,000 from our own budget to pay for job training for convicts getting released from prison. The return on our investment has been remarkable, as those who are able to find meaningful employment are far less likely to commit future crimes, thereby becoming a future burden on taxpayers. The average price tag to incarcerate someone is roughly $40,000 to $60,000 per year. Through this program, we are saving both money and lives, while at the same time strengthening the bonds of mutual respect that hold us together as a community.”
The programs receiving funds are monitored by Jason Flores, the Crime Prevention and Re-Entry Coordinator for the U.S. Attorney’s Office in Buffalo.
Trash Titan Charles B. "Chuck" Rizzo Sentenced to 66 Months in Prison for Bribery and FraudRead the Press Release
The former CEO of garbage hauler Rizzo Environmental Services (RES), Charles B. “Chuck” Rizzo, 46, of Bloomfield Hills, was sentenced to 66 months in prison and ordered to pay $4 million in forfeiture based on his convictions for conspiring to commit bribery and wire fraud, in connection with millions of dollars of municipal garbage contracts in Macomb County and with the embezzlement of hundreds of thousands of dollars from RES, United States Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Timothy R. Slater, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
Rizzo had been convicted of conspiring to pay bribes to Clinton Township Trustee Dean Reynolds and Macomb Township Trustee Clifford Freitas in order to secure and maintain favorable municipal garbage contracts for RES. Rizzo was convicted of giving Reynolds over $50,000 in cash bribes, plus over $50,000 in free legal services in order to get a 10-year garbage contract extension from Clinton Township worth over $15 million. Rizzo also had been convicted paying Freitas $7,500 for his assistance in securing the Macomb Township garbage contract and offering to pay Freitas a bribe of $35,000, plus a salary increase, if Freitas voted to put the RES garbage bill on the Macomb Township water bill, which would reduce RES’s cost of doing business.
Besides standing convicted of bribery conspiracy, Rizzo also was sentenced for conspiring to commit wire fraud. Rizzo had embezzled over $900,000 from RES while Rizzo served as the CEO of the company. At the time, RES’s owners included a New York private equity firm. The investors in the private equity firm included the Boy Scouts of America and the Montana and Arizona state employee pension funds. Rizzo’s fraud conspiracy took place between 2014 and 2016, and Rizzo used a variety of schemes to steal money from RES for his own enrichment. Rizzo used a fake legal settlement agreement, fraudulent consulting deals, cash kickbacks, shell companies, and methods to defraud the other owners of RES, who owned over 80% of the company, while Rizzo owned a small minority share. As one part of the embezzlement scheme, Rizzo received weekly envelopes containing thousands of dollars in cash kickbacks from a company that submitted fraudulently inflated invoices to RES. Through this one scheme alone, Rizzo stole over $500,000 in cash.
As part of his sentence, the Court ordered Rizzo to forfeit $4 million in criminal proceeds to the United States government. This money represents the proceeds of Rizzo’s criminal activity in securing municipal garbage contracts by paying bribes and embezzling money.
United States Attorney Schneider stated, “The Court’s sentence today demonstrates that bribe payers will face severe sanctions for spreading corruption through municipal government—penalties just as severe as those faced by the public officials who take the bribes.”
"Criminal actions, such as those committed by Charles B. Rizzo, have resulted in widespread harm to the trusting relationships among community members and their chosen leaders”, said Timothy R. Slater, Special Agent in Charge, Detroit FBI. “Safeguarding and protecting the public’s trust is not done alone. I would encourage anyone who has information about such criminal activity to call the FBI Public Corruption Task Force at (313) 965-2323”.
"With power comes great responsibility. When you willingly choose to use your power to steal hundreds of thousands of dollars and commit bribery, know that IRS-CI will be there to hold you accountable" said Manny Muriel, Special Agent in Charge of the Internal Revenue Service's Criminal Division. "IRS - CI Special Agents will comb through any rubbish to find evidence of a crime - in this case, shell companies and phony legal settlement agreements, especially one as egregious and offensive as this."
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, R. Michael Bullotta, and Adriana Dydell
Three MS-13 Members Convicted of RICO Conspiracy and Murder by Federal Jury in BostonRead the Press Release
BOSTON – A federal jury in Boston convicted three members of MS-13 of racketeering conspiracy and murder today. They are the 41st, 42nd, and 43rd defendants, respectively, to be convicted in this case.
Noe Salvador Perez Vasquez, a/k/a “Crazy,” 27, a Salvadoran national; Luis Solis Vasquez, a/k/a “Brujo,” 27, a Salvadoran national; and Hector Enamorado, a/k/a “Vida Loca,” 39, a Honduran national; were found guilty of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and of committing or knowingly participating in murder as part of the racketeering conspiracy. Perez also was found guilty of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and conspiracy to possess with intent to distribute and to distribute marijuana. U.S. District Court Judge F. Dennis Saylor IV scheduled Perez’s sentencing for July 17, 2018; Enamorado’s sentencing for July 23, 2018; and Solis’s sentencing for July 25, 2018.
According to testimony and exhibits introduced at trial, MS-13 is a violent transnational criminal organization whose branches, or “cliques,” operate throughout the United States, including in Massachusetts. At trial, Perez was identified as a leader of the Everett Locos Salvatrucha (ELS) clique; Solis was identified as a full member, or homeboy, with the Eastside Locos Salvatrucha (ESLS) clique; and Enamorado was identified as a homeboy with the Chelsea Locos Salvatrucha (CHS) clique. In furtherance of its mission, MS-13 members are required to commit acts of violence, specifically against rival gang members; kill informants; and support and defend fellow MS-13 members in attacks. MS-13 rewards members who commit acts of violence with promotions within the gang and punishes members who break gang rules.
On Dec. 14, 2014, Perez, Solis, and Enamorado worked together to murder a 29-year-old male victim at an apartment in Chelsea, Mass. According to testimony and exhibits introduced at trial, Enamorado and the victim had engaged in a gang-related fight the night before the murder, and when Enamorado encountered the victim again the following night, Enamorado called Perez to ask him for a gun. Perez delivered the murder weapon, a .380 caliber pistol, to Enamorado in Chelsea. Solis armed himself with a gun and went with Enamorado into the apartment to provide backup and necessary support for the attack. Enamorado used Perez’s gun to fatally shoot the victim three times. Enamorado also shot and wounded a second victim who was inside the apartment at the time of the murder.
On July 5, 2015, a 16-year-old mid-level member of the ELS clique was stabbed to death in a park in Lawrence, Mass. by two members of his clique. Perez, a leader of ELS, and other MS-13 members targeted the 16-year-old for murder because they believed, incorrectly, that he was cooperating with law enforcement. Perez planned and encouraged the murder. After the two ELS clique members stabbed the 16-year-old to death, Perez promised to promote them to homeboy status.
After a three-year investigation, Perez, Solis, and Enamorado were three of 61 persons named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. They are the 41st, 42nd, and 43rd defendants, respectively, to be convicted in this case.
Because the defendants committed or knowingly participated in murder as part of the racketeering conspiracy, they each face a maximum penalty of life in prison, up to five years of supervised release, and a fine of up to $250,000. The charge of conspiracy to distribute five or more kilograms of cocaine provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years of supervised release, and a fine of up to $10 million. The charge of conspiracy to distribute marijuana provides for a sentence of no greater than five years in prison, a minimum of two years of supervised release, and a fine of up to $250,000. The defendants will be subject to deportation upon the completion of their sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; Somerville Police Chief David Fallon; and Wes Adams, State’s Attorney, Anne Arundel County (Maryland), Anne Arundel County State’s Attorney’s Office, made the announcement today.
Three Conspirators Sentenced in $16.6m Fraudulent Medical Device SchemeRead the Press Release
Three defendants who marketed and sold light-emitting medical devices as a cure-all to consumers, primarily targeting the elderly, were sentenced on April 20, 2018 by a federal judge in Rapid City, South Dakota, the Department of Justice announced.
Robert “Larry” Lytle, 83, of Rapid City, who was the leader and organizer of the scheme, was sentenced to 12 years in prison, followed by 2 years of supervised release. Ronald D. Weir Jr., 39, of Sioux Falls was sentenced to 24 months in prison, followed by 3 years of supervised release. Irina Kossovskaia, 63, a Canadian resident, was sentenced to 15 months in prison, followed by 2 years of supervised release. U.S. District Judge Roberto A. Lange will issue a final restitution order within 90 days.
Lytle pleaded guilty on January 26, 2018, in the District of South Dakota to one count of conspiracy to introduce misbranded medical devices into interstate commerce with the intent to defraud and mislead, and one count of criminal contempt. As part of his plea agreement, Lytle admitted that beginning in 2005 he entered into an agreement with others to sell medical devices with false and misleading labeling in order to defraud consumers, and that he continued to do so in violation of a federal court order. He also acknowledged that he obtained at least $16,669,015 over the course of the scheme. Lytle made an initial restitution payment of $637,000 and has turned over several thousand dollars’ worth of gold and silver coins to be applied to restitution. Irina Kossovskaia and Ronald D. Weir Jr. previously pleaded guilty for their roles in the fraud. The government agreed to dismiss criminal contempt charges against a fourth individual, Fredretta Eason.
Lytle and his co-conspirators including Kossovskaia and Weir (who operated QLaser distributorships) marketed and distributed QLaser devices to (mostly elderly) consumers across the United States by falsely claiming that the devices could safely and effectively treat a panoply of medical conditions at home, including cancer, emphysema, diabetes, autism, HIV, and heart disease. Lytle created false and misleading product labeling that was designed to create the false impression that these claims had been scientifically proven. In truth, no published clinical or scientific studies supported the use of QLaser devices to treat those and other serious conditions, and the U.S. Food and Drug Administration (FDA) never approved the devices for such uses. To lend credibility and authority to his claims, the potential QLaser purchasers were told “Dr. Lytle” was a “retired” dentist and medical laser expert while omitting the fact that his license to practice dentistry had been permanently revoked for engaging in fraud and material deception.
Lytle and his co-conspirators forged ahead with the fraud even after a federal court ordered them to stop selling and refund all QLaser purchasers in a series of injunctions issued in 2015. In violation of the injunctions, Lytle made false statements to the court and FDA investigators, sent collection letters to QLaser purchasers rather than pay them court-ordered restitution, smuggled hundreds devices out of South Dakota to upstate New York to prevent their seizure, and received a steady stream of income from continued QLaser sales made by Kossovskaia, Weir, and others.
“These defendants exploited elderly victims suffering from chronic, serious medical conditions,” said Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Protecting Americans from this abhorrent behavior will remain one of the Justice Department’s highest priorities.”
“These defendants were motivated by greed, and they targeted vulnerable people by giving them false hope while fleecing them,” said U.S. Attorney Ron Parsons of the District of South Dakota. “The sentences today should serve as a deterrent to anyone contemplating similar schemes.”
"Unconscionable schemes involving ineffective and worthless medical devices take advantage of the despair and desperation of people who are impaired by chronic debilitating pain and disease. We place the highest priority in ensuring that these types of schemes are investigated and prosecuted aggressively", said U.S. Postal Inspector in Charge Craig Goldberg of the Denver Division, which covers multiple states including South Dakota. "The sentencing of these three perpetrators sends a clear message to those that profit from the misfortunes of others that we will not allow the US Mail to be used to harm our citizens."
The U.S. Postal Inspection Service investigated this case. The case was prosecuted by Trial Attorney Ross S. Goldstein of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Kevin Koliner and retired former Assistant U.S. Attorney Ted McBride of the U.S. Attorney’s Office for the District of South Dakota.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of South Dakota, visit its website at https://www.justice.gov/usao-sd.
The DEA Partners with State and Local Law Enforcement to Take Back Unwanted Prescription Drugs on April 28Read the Press Release
DETROIT – 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 7 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.
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.
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Tampa Woman Sentenced to Prison for Social Security FraudRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Arritta Spence (48, Haines City) to one year and three months in federal prison for theft of government funds. As part of her sentence, the court also entered a money judgment of $117,234.40, the proceeds of the offense. Spence pleaded guilty on December 4, 2017.
According to court documents, Spence received Supplemental Security Income (SSI) benefits from the Social Security Administration (SSA) and served as the representative payee for five of her minor children. In addition, she also received Supplemental Nutrition Assistance Program (SNAP) and Medicaid benefits through the Florida Department of Children and Families (DCF).
Spence failed to notify the SSA and the DCF about changes in her household composition and her available resources, which resulted in overpayment to Spence and her children. Specifically, she failed to report significant income from her casino winnings. On March 4, 2010, Spence won $20,568.78 at the Seminole Hard Rock Hotel and Casino in Tampa. Between January 2011 and March 2014, she won an additional $108,776.90 at that casino. Because Spence failed to report her casino winnings and other changes in resources and household composition to the SSA and the DCF, she and her children were over paid approximately $100,000 in SSI, SNAP, and Medicaid benefits.
This case was investigated by the Social Security Administration Office of the Inspector General, the Florida Department of Financial Services Division of Public Assistance Fraud, and the Department of Health and Human Services Office of Inspector General. It was prosecuted by Assistant United States Attorney Rachel K. Jones.