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24 April 2018
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.
END
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.
Tampa Man Sentenced to More Than Four Years in Prison for Using Counterfeit Credit CardsRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Michael Washington (34, Tampa) to four years and three months in federal prison for wire fraud and aggravated identity theft. The court also entered a forfeiture money judgment in the amount of $143,532, the total proceeds of the fraud. Washington pleaded guilty on February 2, 2018.
According to court documents, on July 2, 2016, Washington was arrested at the Seminole Hard Rock Hotel and Casino in Tampa with nine counterfeit credit cards, encoded with account numbers from Canadian Imperial National Bank (CIBC) in his possession. He fraudulently used the CIBC account numbers to encode and emboss the credit cards that he then used to purchase goods, including cartons of cigarettes from the Tribal Smoke Shop, and gift cards from retail stores in Florida. Washington sold the gift cards for cash, for approximately 60% of their face value.
Washington sold more than 490 gift cards that he had purchased with counterfeit CIBC cards, with a value exceeding $44,000. The total loss for the nine counterfeit credit cards and the fraudulent purchases, including the cigarettes, was $143,532.47.
This case was investigated by the U.S. Secret Service, the Florida Department of Law Enforcement, the Hillsborough County Sheriff’s Office, and the Seminole Tribe Police Department. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Three Conspirators Sentenced in $16.6m Fraudulent Medical Device SchemeRead the Press Release
WASHINGTON - 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.
St. Augustine Resident Indicted for FEMA FraudRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Deltra Long (66, St. Augustine) with theft of government funds and false claims against the government. If convicted, she faces a maximum penalty of 5 years in federal prison on the theft count, and up to 10 years’ imprisonment on the false claims count. The indictment also notifies Long that the United States intends to forfeit $10,022.36, which is alleged to be traceable to proceeds of the offense.
According to the indictment, between November 5, 2016, and April 21, 2017, Long made a false application for Federal Emergency Management Act (FEMA) funds after a house that she owned in St. Augustine was damaged by Hurricane Matthew. Qualified recipients of FEMA funds for disaster assistance are limited to the primary residence of a homeowner who lives in the premises at the time of the qualifying event. Long allegedly sought funds to restore rental property, which she did not occupy when Hurricane Matthew made landfall in Florida on October 3, 2016.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Homeland Security Office of Inspector General and the U.S. Small Business Administration Office of Inspector General. It will be prosecuted by Assistant United States Attorney Jay Taylor.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. You may also visit www.justice.gov/usao-mdfl.
Springfield Man Sentenced to 35 Years for Drug Trafficking MurderRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man and a Seymour, Mo., man were sentenced in federal court today for their roles in a drug-trafficking conspiracy that resulted in the murder of a co-conspirator.
Anthony Edward Donovan, 21, of Springfield, and Nathaniel Austin Lee, 20, of Seymour, were sentenced in separate hearings before U.S. District Judge Roseann Ketchmark. Donovan was sentenced to 35 years in federal prison without parole. Lee was sentenced to 15 years in federal prison without parole.
Donovan and Lee both pleaded guilty to participating in a conspiracy to distribute methamphetamine in Greene County, Dallas County, Webster County and Christian County, Mo., from April 28, 2015, to April 26, 2016. They both also pleaded guilty to using a firearm in furtherance of a drug-trafficking crime, resulting in the murder of Oscar Adan Martinez-Gaxiola on April 25, 2016, in Webster County.
According to court documents, co-defendant Yovanny Aroldo Mendivil-Balderama, 23, a Mexican national, and Martinez-Gaxiola obtained large amounts of methamphetamine from either Arizona or Mexico and transported it to Missouri. They supplied methamphetamine to co-defendant Brooke Danielle Beckley, 21, of Nixa, for distribution in the Springfield area. Beckley met Mendivil-Balderama and Martinez-Gaxiola in January 2016, and Beckley and Mendivil-Balderama started a sexual relationship shortly afterwards.
On April 6, 2016, law enforcement officers seized from Beckley’s hotel room approximately 1.9 kilograms of methamphetamine, a loaded 20-gauge shotgun with a sawed off barrel and stock, four rounds of additional shotgun ammunition, a .22-caliber pistol, a drug ledger and $3,662.
The loss of the 1.9 kilograms of methamphetamine created a $44,000 debt that Beckley owed to both Mendivil-Balderama and Martinez-Gaxiola. According to court documents, text messages between Mendivil-Balderama and Beckley revealed they both wanted to kill Martinez-Gaxiola as a way to reduce, or extend, the debt and to prevent Martinez-Gaxiola from possibly killing Beckley. Mendivil-Balderama suggested in a text to Beckley that he had “an idea of how we can do so you do not have to pay me everything.” Beckley, in a text on April 21, 2016, asked what he needed her to do. Mendivil-Balderama responded, “I just need someone to help me get rid of someone I need gone like now.” Subsequent text messages suggested that the person that needed to be “gone” was Martinez-Gaxiola.
Beckley then recruited Donovan to assist in killing Martinez-Gaxiola, and offered to pay him $6,000. Donovan recruited Lee to assist in the murder and allow for the use of Lee’s property in rural Webster County, Mo., in exchange for part of the $6,000. Lee then recruited Joshua Applegate (who was a minor under federal law at the time of the offense, and therefore charged as an adult in state court rather than in the federal indictment).
On April 24, 2016, Beckley, Donovan and Lee practiced for the murder of Martinez-Gaxiola by discharging various firearms at the Lee residence. On April 25, 2016, Mendivil-Balderama traveled with Martinez-Gaxiola to the Lee residence on the pretext that Beckley would pay the drug debt. Beckley, Donovan, Lee and Applegate were waiting at the residence; Donovan and Lee were armed with handguns. Upon arrival, Mendivil-Balderama got out of the vehicle first. When Martinez-Gaxiola exited the vehicle, Donovan and Applegate opened fire and Martinez-Gaxiola fell to the ground. Eventually, Donovan went up to where Martinez-Gaxiola lay and shot him once in the head. Martinez-Gaxiola was armed with a handgun but did not discharge it during his murder.
Lee’s neighbors reported the shots fired at the residence (it is estimated that the co-conspirators expended 30 to 60 rounds of ammunition during the murder). Webster County deputies responded to the location. Hearing the emergency sirens, the co-conspirators attempted to conceal Martinez-Gaxiola under a piece of tin siding, and then fled area. When the deputies arrived, they found Martinez-Gaxiola, who was still alive but critically hurt and who died before transportation to the hospital. Law enforcement officers captured all the co-conspirators by the end of the day on April 25, 2016.
Donovan and Lee are the final co-defendants to be sentenced in this case. Mendivil-Balderama pleaded guilty to the same charges and was sentenced on March 8, 2018, to 50 years in federal prison without parole. Beckley pleaded guilty to the same charges and was sentenced on Feb. 26, 2018, to 40 years in federal prison without parole.
Co-defendant Jourdan Ashley McGinnis, 29, of Nixa, pleaded guilty to his role in the drug-trafficking conspiracy. McGinnis was sentenced on Dec. 18, 2017, to seven years and 10 months in federal prison without parole.
This case was prosecuted by U.S. Attorney Timothy A. Garrison and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Christian County, Mo., Sheriff’s Department, the Greene County, Mo., Sheriff’s Department, the Lawrence County, Mo., Sheriff’s Department, the Webster County, Mo., Sheriff’s Department, the Seymour, Mo., Police Department, the Rogersville, Mo., Police Department, the Springfield, Mo., Police Department and the Combined Ozarks Multijurisdictional Enforcement Team (COMET).
Serial Bank Robber Pleads Guilty to Robberies Throughout Northern CaliforniaRead the Press Release
OAKLAND – Wesley Allen Krohn pleaded guilty today to two counts of armed bank robbery, four counts of bank robbery, and one count of attempted bank robbery in federal court, announced Acting United States Attorney Alex G. Tse, Special Agent in Charge John Bennett of the FBI’s San Francisco Field Division, and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Division.
According to the plea agreement, Krohn, 34, of San Jacinto, Calif., admitted to committing two armed bank robberies in Pleasant Hill and Walnut Grove, as well as committing four unarmed bank robberies in Rohnert Park, Brentwood, Suisun City, and Elk Grove. Krohn further admitted to attempting a bank robbery in Lodi. On some of the robberies, Krohn entered the banks wearing a fake beard and a baseball hat in an attempt to disguise himself, approached the victim tellers, and presented a note that demanded money. In one robbery, Krohn raised what appeared to be a pistol, pointed it in the direction of the teller, and ordered her to open the bottom two drawers.
Krohn admitted to robbing the following banks:
- $9,000 from Exchange Bank in Rohnert Park, California, on December 3, 2015
- $496 from Tri Counties Bank in Brentwood, California on December 21, 2015
- $650 from Wells Fargo Bank in Pleasant Hill, California on December 22, 2015
- $1,439 from Bank of Rio Vista in Walnut Grove, California on December 31, 2015
- $884 from US Bank in Suisun City, California on January 9, 2016
- $2,144 from Tri Counties Bank in Elk Grove, California on January 19, 2016
Krohn also admitted to attempting to rob US Bank in Lodi, California on January 19, 2016.
As part of his plea agreement, Krohn also agreed to pay restitution in the amount of $14,623 to the above-listed banks.
Krohn was arrested on December 8, 2017, by FBI Agents and has been in custody since that date.
Krohn’s sentencing hearing is scheduled for August 6, 2018, at 2:00 p.m., before the Honorable Haywood S. Gilliam, Jr., U.S. District Court Judge, in Oakland. Krohn faces a maximum statutory sentence of 25 years in prison for each count of armed bank robbery and 20 years in prison for each count of bank robbery and attempted bank robbery. The actual sentence, however, will be determined at the discretion of the Court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines.
Assistant U.S. Attorney Christina McCall is prosecuting the case with the assistance of Vanessa Quant and Katie Turner. The prosecution is the result of an investigation by the FBI, the United States Attorney’s Offices for the Northern and Eastern Districts of California, the Sacramento County Sheriff’s Department, and the police departments of Rohnert Park, Brentwood, Pleasant Hill, Suisun City, Elk Grove, Lodi, and Clear Lake.
Roswell Felon Pleads Guilty to Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Valarie Martinez, 32, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms laws by being a felon in possession of a firearm and ammunition.
Martinez was arrested in Feb. 2018, on a criminal complaint charging her with being a felon in possession of a firearm and ammunition on Jan. 16, 2018, in Chaves County, N.M. According to the complaint, Roswell Police Department (RPD) officers arrested Martinez after locating a bag containing a firearm and ammunition that Martinez discarded while fleeing from the scene of a suspected breaking and entering of a dwelling. Martinez was prohibited from possessing firearms or ammunition because of her prior felony convictions.
During today’s proceedings, Martinez pled guilty to a felony information charging her with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Martinez admitted that on Jan. 16, 2018, she was in possession of a firearm and ammunition. Martinez acknowledged that she was prohibited from possessing firearms or ammunition because of her status as a convicted felon.
At sentencing, Martinez faces a maximum penalty of ten years in federal prison. She remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the RPD and is being prosecuted by Assistant U.S. Attorneys Brock E. Taylor and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
Ron Molano Taitano Sentenced for Possession of Contraband in Prison and Violations of Supervised ReleaseRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant RON MOLANO TAITANO, age 32, from Mangilao, was sentenced today to an 18 month term of imprisonment and a three year term of supervised release for possession of contraband in prison. The Court also sentenced Taitano to an 11 month term of imprisonment for violations of supervised release involving failure to report for drug testing and failure to report to the U.S. Probation Office. The Court ordered the terms of imprisonment to run consecutive to each other.
On July 27, 2017, Taitano pled guilty to two counts of an Indictment, which charged Possessing Contraband in Prison, in violation of Title 18, United States Code, Section 1791. The first count involved Taitano possessing methamphetamine inside of his slippers upon his return to the Department of Corrections on January 14, 2017. Taitano had previously asked the Court for permission to assist his family with a medical appointment. The Court granted an eight-hour furlough from prison for that purpose. Additionally, on February 12, 2017, Taitano possessed a cellphone and sim card, both prohibited objects, while an inmate at the Department of Corrections. Taitano’s ongoing incarceration at the Department of Corrections was due to the revocation of his supervised release in an earlier federal case, which resulted in convictions for Bank Fraud, Attempted Bank Fraud, and Possession of Stolen United States Mail.
The investigation was conducted by the United States Marshals Service and the Drug Enforcement Administration. The case was prosecuted by Belinda Alcantara, Assistant United States Attorney for the District of Guam.
Rio Rancho Man Sentenced to Twelve Years for Federal Child Pornography and Cyberstalking ConvictionRead the Press Release
ALBUQUERQUE – Armando Camarena, 34, of Rio Rancho, N.M., was sentenced on April 20, 2018, in federal court in Albuquerque, N.M., to 12 years in federal prison followed by a lifetime of supervised release for his conviction on child pornography and cyberstalking charges. He also will be required to register as a sex offender after he completes his prison sentence.
Homeland Security Investigations (HSI) arrested Camarena in July 2014, based on a criminal complaint charging him with distributing and possessing visual depictions of minors engaged in sexually explicit conduct. According to the criminal complaint, HSI initiated the investigation leading to Camarena’s arrest after receiving a lead from HSI in Idaho Falls, Idaho, which reported that a 14-year-old girl had received child pornography, child erotica and threatening messages on her iPod from an individual the child met through social media. Investigation revealed that the child pornography and threats were sent from an IP Address used by Camarena. On July 30, 2014, HSI and the Albuquerque Police Department (APD) executed a federal search warrant at Camarena’s residence and seized computer images consistent with child pornography. Camarena was taken into custody at that time.
Camarena was indicted on Aug. 12, 2014, and was charged with receipt of child pornography, possession of child pornography, and cyberstalking. The indictment alleged that Camarena committed the crimes in Sandoval County, N.M., between Dec. 2013 and July 2014.
On Sept. 20, 2017, Camarena pled guilty to the indictment. In his plea agreement, Camarena admitted that in Dec. 2013, he used a social media application to initiate contact with a juvenile victim residing outside New Mexico. When the juvenile victim sought to terminate contact with Camarena in Jan. 2014, Camarena sent the juvenile victim a series of messages in which he threatened to kill and inflict serious bodily injury on the victim and the victim’s family with the intention of causing them substantial emotional distress.
In his plea agreement, Camarena also admitted that in July 2014, he possessed child pornography on his cellular telephone, which he downloaded and received from the internet. Camarena acknowledged that law enforcement officers seized his cellular telephone when they executed a federal search warrant at his residence on July 30, 2014.
This case was investigated by SPEED, the Sexual Predator and Exploitation Enforcement Detail, which is comprised of officers from HSI-Albuquerque office, APD and the Bernalillo County Sheriff’s Office, with assistance from HSI-Idaho and the Idaho Fusion Center.
The case was prosecuted by Assistant U.S. Attorney Jack E. Burkhead as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Promoter Who Defrauded Investors in Concerts and WWE Events that Never Took Place Sentenced to Nearly Five Years in Federal PrisonRead the Press Release
LOS ANGELES – A promoter who bilked investors, promoters and performers who invested in concerts and World Wrestling Entertainment events – stealing at least $1.7 million from the victims – was sentenced today to 57 months in federal prison.
Gabriel Martin Reed, 47 – a former Malibu resident who currently lives in McKinney, Texas – was sentenced by United States District Judge Philip S. Gutierrez.
Reed pleaded guilty in November to one count of wire fraud and admitted that he defrauded his victims by making false promises and then using their money for personal expenses.
Reed, who conducted business under the name Gabe Reed Productions, took money from victims after falsely telling them that events would take place, certain performers had agreed to participate in those events, and their funds would be used to organize and promote the events. Instead of using the money for concerts and other events as promised, Reed used investor funds to pay his rent, utility bills and travel expenses.
According to court documents, for almost nine years, Reed represented himself as a promoter and organizer of hard rock and wrestling events. Reed solicited investors by touting what he claimed were longstanding relationships with well-known musicians, showing props from alleged previous tours, and fabricating records related to music events. According to a sentencing memorandum filed by prosecutors, Reed operated a sophisticated scheme, which included creating bogus email addresses and distributing fabricated artist contracts, bank statements, and correspondence to convince his victims that their funds were being legitimately invested.
When he pleaded guilty, Reed specifically admitted defrauding one Los Angeles investor, who agreed to put $100,000 into a 2016 concert tour Reed was calling “Titans of Rock.” However, many of the promised artists had not agreed to participate in the purported tour.
Prosecutors have asked Judge Gutierrez to order Reed to pay restitution to his victims. The court will schedule a hearing, likely early this summer, to determine the amount of restitution.
The case against Reed was investigated by the Federal Bureau of Investigation.
This case was prosecuted by Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.
Previously Deported Dominican Republic National Pleads Guilty to Illegal Reentry into the United StatesRead the Press Release
St. Thomas, USVI – Gustavo Adolfo Jimenez Polanco, 30, a Dominican Republic national, pleaded guilty today in district court to illegal reentry into the United States, United States Attorney Gretchen C.F. Shappert announced. Polanco remains in custody pending his sentencing scheduled for August 23, 2018.
According to the plea agreement, Polanco appeared at the Cyril E. King Airport on February 10, 2018 and was questioned regarding a Florida Driver’s License that he presented to the primary inspector at the U.S. Customs and Border Protection checkpoint. The primary inspector referred him to secondary inspection where it was determined that Polanco was a Dominican Republic national who had been deported from the United States on July 1, 2014.
Under federal law, Polanco faces a maximum sentence of 10 years in prison, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case was investigated by the Department of Homeland Security. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
Prescription Drug “Take Back Day” in the Eastern District of WashingtonRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Saturday, April 28, 2018, from 10:00 a.m. to 2:00 p.m., is National Prescription Drug “Take Back Day.” The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Last autumn, Americans nation-wide turned in 456 tons (912,000 pounds) of prescription drugs at more than 5,300 sites operated by the DEA and nearly 4,300 of its state and local law enforcement partners. Of those numbers, Washington State collected 15,473 pounds of prescription drugs at approximately 71 collection sites operated by the DEA and 59 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.
The disposal service is free and anonymous, no questions asked. Liquids, needles, or sharps cannot be accepted at the sites, only pills or patches.
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.
Law enforcement agencies scheduled to participate as collection sites include: Kennewick Police Department; Pasco Police Department; Pullman Police Department; Richland Police Department; Walla Walla County Sheriff’s Office; Walla Walla Police Department; West Richland Police Department; and Yakima Police Department. In Spokane County a year-round disposal site is located in the Spokane Valley Police Department lobby, 12710 E. Sprague Avenue, Monday through Friday, 8:00 – 5:00.
For more information about the disposal of prescription drugs and the April 28, 2018 Take Back Day event, go to www.DEATakeBack.com
Ohio County man sentenced to nearly five years for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Quashad Maurante Pugh, of Wheeling, West Virginia, was sentenced today to 57 months incarceration for distributing cocaine, United States Attorney Bill Powell announced.
Pugh, also known as “Q” and “Quavo,” age 23, pled guilty to one count of “Possession with Intent to Deliver Cocaine Base within 1,000 Feet of a Protected Location” in February 2018. Pugh distributed cocaine near Jensen Playground in October 2017 in Ohio County.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.New Jersey Man Pleads Guilty in Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH – A resident of Paterson, New Jersey, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney Scott W. Brady announced today.
Jose Aponte, age 47, of pleaded guilty before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from 2013 to September 2017, Aponte conspired with others to possess with intent to distribute and distribute 100 grams or more of heroin.
Judge Schwab scheduled sentencing for September 27, 2018 at 10:30 a.m. The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $20 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
New Haven Gang Associate Sentenced to 13 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RODRIGO RAMIREZ, also known as “Rico,” 36, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 156 months of imprisonment, followed by five years of supervised release, for his role in a violent New Haven street gang.
According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of Jeffrey Benton and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members. RAMIREZ was an associate of RSGB.
On April 20, 2011, Benton recruited RAMIREZ to assist in the robbery of money and marijuana from Kevin Lee of New Haven. On that date, Benton, RAMIREZ, Luis “Chewie” Padilla and Miles “Molly Rock” Price drove to the vicinity of Lee’s residence. Benton, Padilla and Price walked to the residence and Ramirez stayed in the car. Benton handed Price a .45 caliber handgun as they approached the back door. After Lee answered the door, Lee tried to grab Price’s gun and lunged at Price with a knife. Padilla then shot Lee once in the stomach, once in the back, and finally in the head.
RAMIREZ also traveled to Maine at Benton’s request to assist in RSGB’s crack cocaine distribution enterprise.
On September 2, 2014, RAMIREZ was arrested on federal narcotics distribution charges in Maine. His case was transferred to the District of Connecticut for further prosecution and, on June 16, 2015, he pleaded guilty to one count of engaging in a pattern of racketeering activity and admitted his involvement in the murder of Kevin Lee and in a conspiracy to distribute crack cocaine in Maine. RAMIREZ has been detained since his arrest.
As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine. The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.
Benton, Padilla and Price pleaded guilty to various offenses stemming from this investigation, and admitted to participating in the murder of Kevin Lee. Benton also admitted that he participated in three other gang-related murders and one attempted murder, and Padilla admitted that he participated in two other gang-related murders and two attempted murders.
On October 4, 2017, Benton was sentenced to 480 months of imprisonment, and on March 7, 2018, Price was sentenced to 144 months imprisonment. Padilla awaits sentencing.
U.S. Attorney Durham noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter Markle and Jocelyn Kaoutzanis. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Mobile Resident Receives 120 Months for Trafficking CocaineRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Chief United States District Judge Kristi K. DuBose sentenced Marcus Dooms, 32, a resident of Mobile, Alabama and Houston, Texas, to 120 months imprisonment for trafficking cocaine. The judge ordered that Dooms undergo four years of supervised release after finishing his term of imprisonment, receive substance abuse testing and treatment, and pay a $100 mandatory special assessment.
On November 22, 2016, a federal grand jury for the Southern District of Alabama indicted Marcus Dooms, his mother Ann Dooms, and co-defendant Ashley Newton for conspiring to distribute cocaine. On August 23, 2017, Marcus Dooms pleaded guilty to the conspiracy charge. Earlier, Ann Dooms and Ashley Newton pleaded guilty and were sentenced to jail for the offense.
Around 12:52am on January 6, 2016, Louisiana State Police Senior Trooper Ryan Zimmerman stopped a 2004 Toyota Camry at mile marker 38 eastbound on Interstate 12 in Tangipahoa Parish for a traffic violation. The driver and registered owner of the vehicle, Ashley Newton, said she was traveling from Houston, Texas to Mobile, Alabama. A consensual search of the vehicle revealed a total of approximately 2.96 kilograms of cocaine inside a blue Swiss Gear backpack behind the right front seat.
On January 6, 2016, Newton was questioned by Louisiana State Police and Drug Enforcement Administration agents about drug trafficking. Newton said she would get a call from Ann Dooms, meet her at a location away from her house in Mobile, and retrieve a bag of money. Newton said she would then take the money to Marcus Dooms in Houston. Newton said she would meet Marcus Dooms at a predetermined location -- usually a gas station in Houston -- to give him the money. Marcus Dooms would then take the money and call Newton later that day to pick up the cocaine for her to transport back to Mobile. Newton said she delivered the cocaine to Ann Dooms’s house in Mobile and other locations in Mobile.
On January 6, 2016, law enforcement officials interviewed Ann Dooms. She said she would contact her son in Houston, Marcus Dooms, once she had the cocaine. Ann Dooms said that Marcus Dooms would call local dealers in Mobile, who would then come to her house and retrieve the cocaine. Ann Dooms said she had distributed cocaine at least three or four times over the past few months. Ann Dooms said she collected money from drug dealers. Once she had the money, she would then contact Ashley Newton, who would then meet Ann Dooms and take the money to Marcus Dooms in Houston.On January 6, 2016, law enforcement officials contacted Marcus Dooms. He gave the name of his drug dealer contact in Mobile. Marcus Dooms said Newton brought him approximately $85,000 and that he, in turn, gave the money to his supplier.
Currently, Marcus Dooms faces state charges in an unrelated criminal case in Mobile County for allegedly trafficking heroin, trafficking methamphetamine, trafficking cocaine, possession / receiving a controlled substance, possession of marijuana in the first degree, receiving stolen property in the third degree, and use / possession of drug paraphernalia.
The Drug Enforcement Administration, the Louisiana State Police, and the Mobile County Sheriff’s Office investigated the federal case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Medical Doctor Who Illegally Wrote Prescriptions – including for Highly Addictive Opioids – Sentenced to Five Years in PrisonRead the Press Release
LOS ANGELES – A doctor who operated a medical clinic in Lynwood was sentenced today to 60 months in federal prison for illegally issuing prescriptions for powerful narcotics and sedatives without a medical purpose, mostly for young “patients” who paid cash.
Dr. Edward Ridgill, 65, a resident of Indio, California, was sentenced by United States District Judge S. James Otero.
During today’s hearing, Judge Otero said, “With all due respect to Dr. Ridgill, he is not a doctor. He has a license to practice, [but] he is not practicing medicine.” The judge also noted Ridgill’s prior history of improperly writing prescriptions, which “reveals he has not learned his lesson from the past.”
Today’s sentencing follows a one-week trial late last year in which a federal jury found Ridgill guilty of 26 felony counts of illegally distributing controlled substances. Prosecutors presented evidence that Ridgill illegally prescribed the opioid painkiller hydrocodone, which is often sold under the brand name Norco; alprazolam, best known by the brand name Xanax; and carisoprodol, a muscle relaxer often sold under the brand name Soma. Young “patients” traveled from places as far away as Victorville, Palmdale and Desert Hot Springs to Ridgill’s clinic in order to obtain prescriptions from Ridgill, where his “illegal drug business enabled him to work a mere three hours a day at his Lynwood office in exchange for significant amounts of cash,” according to a sentencing memorandum filed by prosecutors.
During the trial, the jury heard that, in 2014 alone, Ridgill wrote nearly 9,000 prescriptions, and the vast majority of those prescriptions were for hydrocodone, alprazolam and carisoprodol, typically for the maximum strength. Jurors also heard testimony about undercover DEA operatives who received prescriptions from Ridgill in exchange for cash. In 2014 alone, Ridgill physically deposited more than $175,000 in cash. According to court documents, the testimony showed that Ridgill’s “initial physical exams were cursory, and far from the fulsome type of exam required to justify prescribing high doses of controlled substances.”
A medical expert who reviewed a host of records related to this case determined that Ridgill “prescribed massive amounts of the same three controlled substances charged in this case – hydrocodone, alprazolam, and carisoprodol – to individuals who sometimes traveled long distances to obtain repeated prescriptions from defendant, at relatively young ages to be validly seeking such high dosages of pain medication, in large volumes over short periods of time.”
Law enforcement authorities executed federal search warrants on Ridgill’s residences and medical office in March 2015. At that time, authorities recovered multiple pre-written prescriptions for controlled substances, as well as cash lining patient files and stuffed in the drawers containing those files, which prosecutors argued demonstrated that Ridgill operated a cash-for-drugs business.
The jury deliberated for approximately 30 minutes in December 2017 before finding Ridgill guilty of 26 counts of distributing controlled substances outside the course of professional practice and without a legitimate medical purpose. Specifically, Ridgill was convicted of 13 counts of distributing hydrocodone, nine counts of distributing alprazolam, and four counts of distributing carisoprodol.
The investigation into Ridgill was conducted by the Drug Enforcement Administration’s Tactical Diversion Squad, HIDTA (the Los Angeles High Intensity Drug Trafficking Area), the Los Angeles Police Department, the Torrance Police Department and IRS Criminal Investigation.
The prosecution of Ridgill was handled by Assistant United States Attorneys Catherine S. Ahn and Catharine A. Richmond of the General Crimes Section.
Marion County man sentenced for manufacturing methamphetamineRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jesse Nelson Yoho, of Fairmont, West Virginia, was sentenced today to 33 months incarceration for his role in making methamphetamine, United States Attorney Bill Powell announced.
Yoho, age 37, pled guilty to one count of “Possession of Pseudoephedrine to be Used in Manufacture of Methamphetamine” in November 2017. Yoho admitted to possessing Pseudophedrine with the intent of making methamphetamine in Marion County in April 2015.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Three Rivers Drug &Violent Crime Task Force investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Marion County man admits to firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – William D. Fulmer, of Rivesville, West Virginia, has admitted to an unlawful firearm possession charge, United States Attorney Bill Powell announced.
Fulmer, age 62, pled guilty to one count of “Unlawful Possession of a Firearm.” Fulmer, who had previously been convicted of crimes in Venango County, Pennsylvania, admitted to having a .308 caliber rifle in July 2017 in Marion County.
Fulmer faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Marengo County Resident Receives 120 Months in Crack Cocaine CaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Chief United States District Judge Kristi K. DuBose sentenced Gerald Barber, 40, a resident of Marengo County, Alabama, to 120 months imprisonment in a crack cocaine case. The judge ordered that Barber undergo eight years of supervised release after finishing his term of imprisonment, receive substance abuse testing and treatment, and pay a $200 mandatory special assessment. He has five prior felony drug convictions.
On August 31, 2017, a federal grand jury for the Southern District of Alabama indicted Barber on one count of possession with intent to distribute crack cocaine. On November 28, 2017, a federal grand jury for the district returned a superseding indictment against Barber, charging him with two counts of possession with intent to distribute crack cocaine. On January 24, 2018, a federal jury in Selma, Alabama found Barber guilty on both counts. Chief Judge DuBose presided over the jury trial, which started on January 23, 2018.
At trial, the jury heard evidence that in the early morning of March 11, 2017, Barber, aka “G-Money,” was driving a white 2002 Chevrolet Blazer in Camden, Alabama when Camden Police Officer John Ferguson pulled the vehicle over for speeding and having no tag light. Barber had no identification, proof of insurance, license, or registration. He lied to the officer about his identity. Officer Ferguson noticed that Barber was visibly nervous and saw traces of a green leafy substance in the vehicle. Officer Ferguson called for backup, patted down Barber outside the Chevrolet Blazer for officer safety and possible narcotics, and found an “eight-ball” of crack cocaine concealed underneath Barber’s shorts. Officer Ferguson arrested Barber and transported him to the Prince Arnold Detention Center in Wilcox County. At the jail, the defendant falsely identified himself and signed a waiver of counsel form in his brother’s name.
The jury also heard evidence that in the afternoon of April 12, 2017, Uniontown Chief of Police Willie Walton was on routine patrol in Uniontown, Alabama when he saw an individual standing by the driver’s side window of a white Chevrolet Blazer on Johnson Street. Chief Walton testified that he recognized the individual as a crack cocaine addict and was suspicious of a drug sale between the individual and the vehicle’s driver. Barber was driving the same Chevrolet Blazer. A passenger was also inside. As Chief Walton approached, the individual ran away and the Chevrolet Blazer sped off. Chief Walton activated his lights and sirens and tried to stop the vehicle, which had an expired tag.
A high-speed chase ensued, which at times reached 70 - 80 miles per hour. During the chase, Chief Walton saw an unidentified object (never recovered) thrown out the vehicle’s driver’s side window on Washington Street. Barber tried to evade Chief Walton by racing up Martin Luther King Drive in a residential area where children were playing. As Chief Walton pursued, Barber made a left turn onto Lucian Street and threw approximately $8,000 worth of crack cocaine out the driver’s side window. The narcotics landed on the front lawn of a home on Lucian Street. Chief Walton continued to pursue the fleeing vehicle and radioed dispatch. Uniontown Police Department Sergeant Nash Gipson responded and set up a roadblock. Barber almost collided with Sgt. Gipson. The chase ended shortly thereafter on Franklin Street.Chief Walton and Sgt. Gipson arrested Barber outside his vehicle. Chief Walton testified that he saw a “crack rock” in the driver’s seat where Barber had been sitting and that Barber shouted an expletive upon his arrest, yelling, “I’ve got more money than all y’all m*****f****** out there!” Chief Walton also told the jury that Barber appeared high, his mouth was foaming, and pieces of crack cocaine appeared to be in his mouth.
The passenger, whom the police had detained for officer safety, said that Barber threw a black bag out of the vehicle during the chase. With the passenger’s help, police found the bag at Lucian Street. Chief Walton examined it and found sixteen plastic baggies containing roughly 80.8 grams of crack cocaine in varying quantities. When Chief Walton later searched Barber’s Chevrolet Blazer, he found two digital scales, two Pyrex measuring glasses, one Toastmaster hand mixer, and two mixer attachments, all containing cocaine residue.
The Drug Enforcement Administration, the Uniontown Police Department, and the Camden Police Department investigated the case. Assistant United States Attorneys Sinan Kalayoglu and George F. May prosecuted the case.
Man Sentenced for Recruiting Homeless to Cash Counterfeit ChecksRead the Press Release
NEWPORT NEWS, Va. – An Atlanta man was sentenced today to 116 months in prison for recruiting individuals from local homeless shelters to cash counterfeit business checks worth nearly $105,000.
According to court documents, David Mero, 58, traveled from Georgia to Virginia and other states on at least three occasions between September 2015 and June 2016, and recruited at least six homeless individuals to cash at least 40 counterfeit business checks. Mero and his conspirators compromised these accounts by stealing the account holders’ mail from local business parks, then lured homeless individuals into the scheme by offering to hire them as day laborers for construction jobs. After transporting these homeless great distances from shelters to which they were required to return, Mero told them they would be cashing checks instead of performing the work initially offered. Mero obtained their identifying information and sent it to other conspirators, who used the information to make the counterfeit checks payable to the homeless recruits. Mero gave checks to the homeless and directed to cash them at nearby banks before returning them to their shelters. On at least one occasion, Mero held a homeless recruit at gunpoint after he refused to cash checks in furtherance of the scheme. Faced with threats to both himself and his family, the homeless man attempted to cash four counterfeit check at Mero’s direction. Mero was arrested in Texas in June 2016 while engaged in this activity. He was previously prosecuted in 2009 in the U.S. District Court for the District of South Carolina for conspiring to carry out this same scheme.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Michael C. Grinstead, Acting Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Kaitlin C. Gratton prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-13.
Long-Time U.P. Gasoline Vendor Sentenced to Prison for Bankruptcy FraudRead the Press Release
MARQUETTE, MICHIGAN - U.S. Attorney Andrew Birge announced today that David Louis Vernier, age 64, of Ishpeming, was sentenced to 45 months in federal prison followed by 3 years of supervised release for committing bankruptcy fraud. The sentence was imposed by Chief Judge Robert J. Jonker of the U.S. District Court.
David Vernier, the father of Brooke Vernier, came to the attention of special agents of the FBI as they investigated the younger Vernier’s involvement in a $145,000,000 check-kiting scheme that she executed in 2012. Brooke Vernier, the owner of numerous gas stations in the U.P., circulated a huge number of bad checks amongst seven different corporate bank accounts at three different banks in 2012, thus temporarily leading the banks’ accounting systems to erroneously conclude that her accounts held more money than was actually there. When the fraud was discovered, the banks had suffered a loss of more than $1.7 million. She was subsequently convicted of conspiracy to commit bank fraud, sentenced to 18 months in federal prison, and ordered to pay $1,780,232 in restitution to the banks.
Now David Vernier, Brooke’s father, is also headed to federal prison. FBI agents learned that David Vernier ran a number of gas stations in the U.P. in the 2000s, but had fallen into debt. In October 2010, he filed for bankruptcy, claiming to have no real property, no income, no interests in any businesses and more than $3 million in debts. The FBI’s investigation revealed that Vernier was actually involved in running his daughter’s businesses and being paid by them. The FBI also found that he had lied not only in his original bankruptcy petition, but also during subsequent bankruptcy proceedings and in testimony he gave in a related deposition. The investigation showed that he was fraudulently attempting to discharge his more than $3 million in debts while, at the same time, secretly retaining his assets and interests in various businesses.
Vernier’s request to have his debts discharged were denied by Chief Judge Scott W. Dales of the U.S. Bankruptcy Court in May 2012 because Vernier had failed to retain business records that would have allowed the Bankruptcy Court to thoroughly analyze his financial condition. In denying Vernier’s request for bankruptcy relief, Judge Dales asked, "does anybody have a good handle on who owns what . . . or is everything just hopelessly scrambled?" During Vernier’s sentencing on April 19, 2018, Chief Judge Jonker concluded that Vernier scrambled his finances and destroyed records as part of a conscious business plan to defraud his creditors. Chief Judge Jonker also found that Mr. Vernier’s wrongdoing was sustained over a long period of time.
U.S. Attorney Birge commented that: "The bankruptcy process is intended to help honest but unfortunate debtors work with creditors to resolve crushing debt and hopefully get a new financial start on life. But Mr. Vernier tried to abuse the process and get his debts modified or set aside while hiding his true assets and business interests. That’s just another form of fraud. And the consequences for fraud in the federal system are serious, as he can now attest."
During the sentencing hearing, Vernier gave a 40-minute long statement to Chief Judge Jonker. Based on this statement, Chief Judge Jonker concluded that Vernier, despite pleading guilty to bankruptcy fraud, had not accepted responsibility for his crimes.
The case against Brooke Vernier and the subsequent case against David Vernier were investigated by the FBI and prosecuted by Assistant U.S. Attorney Maarten Vermaat.
END
Lloyd Aguon Sentenced to Additional Six Months in Federal Prison for Failing to Appear to Serve SentenceRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant LLOYD JOHN AGUON, age 41, from Umatac, was sentenced today to an additional six months in prison for failure to self-surrender to the United States Marshals Service (USMS) to begin serving his sentence, as previously ordered. On October 25, 2017, Aguon was sentenced in District Court to an 18-month term of imprisonment for being a Felon in Possession of Firearms and Ammunition. He was released on his own recognizance pending a Bureau of Prisons (BOP) determination as to where he would serve his federal prison sentence. Aguon was also ordered to report regularly to the USMS until such time. He further agreed to self-surrender to the USMS once BOP determined his prison location.
On November 21, 2017, the USMS notified Aguon to self-surrender on November 30, 2017, following BOP’s final placement decision. However, Aguon failed to appear as scheduled. Deputies then attempted to locate Aguon at his residence in Umatac. Over the course of an hour, Aguon failed to respond to the deputies’ knocking and announcing their presence. He finally exited once the power was turned off. The United States Attorney’s Office charged Aguon with Failure to Appear, in violation of Title 18, United States Code, Section 3146(a)(2). This federal law makes it unlawful for individuals sentenced to a term of imprisonment and ordered to surrender to the USMS to knowingly and intentionally fail to surrender as ordered.
The investigation was conducted by United States Marshals Service. The case was prosecuted by Belinda Alcantara, Assistant United States Attorney for the District of Guam.
Little Rock Man Sentenced to 10 Years in Prison After Attempting to Engage a Minor in Sex ActsRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Acting Homeland Security Investigations New Orleans Special Agent in Charge Thomas M. Annello, announced today the sentencing of David Frazier, 56, of Little Rock, to attempted enticement of a minor to engage in sex acts.
United States District Judge J. Leon Holmes sentenced Frazier to 10 years imprisonment, followed by eight years of supervised release, on Monday.
“Today’s decade-long sentence sends the message that individuals who prey on innocent children over the internet are being monitored, and when caught, will be prosecuted and punished,” Hiland said. “We will use every tool in our arsenal to unmask and bring to justice the individuals who believe they can hide behind the perceived anonymity of the internet to harm children.”
On June 6, 2017, the Arkansas State Police received a complaint from a person who answered a Craigslist advertisement titled “I know your secret.” This person had communicated with the individual who posted the ad. The individual asked the person to communicate through the KIK application and stated his username was “yplover.” During the KIK communications, “yplover” began expressing an interest in having sex with a 7-year-old. “Yplover” explained in graphic detail what he would like to do to the child. The conversation concerned the person and she reported it to law enforcement. During the conversations, “yplover” sent two images of himself. The images depicted David Frazier.
On June 21, 2017, a law enforcement officer, acting in an undercover capacity (“UC”), answered an identical ad on Craigslist titled “I know your secret.” The UC made contact with the individual—identified as Frazier—who posted the ad. Frazier asked the UC to communicate via KIK. Frazier stated that his username was “yplover.” During the communications on Craigslist and KIK, Frazier expressed a desire to have sex with a child. The UC told Frazier that she had an 8-year-old daughter and that she wanted to watch Frazier and the 8-year-old engage in sex.
Frazier asked the UC to send a photograph of her “daughter.” The UC sent a photograph of herself as an 8-year-old. Frazier advised that he thought the UC’s “daughter” was cute and turned him on when the UC sent a picture of her. Frazier said he had thought about printing out the picture and doing a “tribute.” The UC asked Frazier to describe a “tribute.” Frazier later sent the UC a video of himself masturbating onto the picture.
Frazier continued to state in great detail the sex acts he wanted to perform on the UC’s purported 8-year-old daughter. Frazier then asked the UC what the rules would be if he were to meet the UC’s daughter. Frazier and the UC discussed items that the daughter would like as a gift. Frazier mentioned the three of them hanging out together. The UC said, “Then what would happen?” Frazier said, “Something that would let me get close to her.” Frazier continued, “Once she’s comfortable around me, she could sit on my lap while we watch a movie. Something totally innocent…Disney or something.” The UC told Frazier that she liked princess movies. Frazier then said, “We have to do something to move things further…sort of a jump start.” Frazier suggested, “Maybe let her ‘accidentally’ see some porn.” Frazier asked, “How would she react if she saw me naked lol.” Frazier suggested getting a room, and letting the UC bring her there.
Frazier was arrested by HSI agents on September 6, 2017, at his place of employment, pursuant to a warrant based on a criminal complaint charging him with attempted enticement of a minor. During a search of his office, officers located a gun safe, which was later determined to contain two computer thumb drives, a computer hard drive, a bottle of lubricant, a selfie stick, and a sexual stimulation device.
After reviewing Frazier’s cellular telephone and the storage devices found in the gun safe, agents discovered multiple images of child pornography. Agents also located chat messages between Frazier and an individual claiming to be a 14-year-old; in these chats Frazier asks the minor to send a sexually explicit photograph.
A forensic analysis completed on the electronic devices seized from Frazier resulted in the discovery of 23,000 images and videos of child pornography.
“Individuals who seek to sexually exploit minors steal the innocence of childhood and potentially destroy lives,” said Acting Homeland Security Investigations New Orleans Special Agent in Charge Thomas M. Annello. “This case shows HSI investigators are actively working to identity and disrupt child predators, and also to seek prosecution of these criminals wherever they may be found.”
The investigation was conducted by Homeland Security Investigations, the Arkansas Attorney General’s Office—Special Investigations Division, and Benton County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Kristin Bryant.
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Leader of MS-13’s Hollywood Clique Pleads Guilty to Federal Narcotics and Weapons ChargesRead the Press Release
LOS ANGELES – A longtime member of the MS-13 transnational street gang, who is described in court papers as the “shot-caller” of the gang’s Hollywood clique, pleaded guilty today to federal narcotics and weapons violations.
Jose Ricardo Alfaro, aka “Shyboy,” 40, of Hollywood, pleaded guilty today to conspiracy to distribute cocaine and being a felon in possession of ammunition.
Alfaro was arrested in May 2017 during a major operation that targeted MS-13 following the filing of a racketeering indictment that charged nearly three dozen gang members and associates, including a dozen other “shot-callers” who led a majority of the gang’s cliques in the Los Angeles region. Alfaro was not charged in the racketeering indictment, but he was arrested after authorities executed a search warrant and discovered ammunition in his vehicle. Subsequent investigation revealed Alfaro’s role in orchestrating drug trafficking and firearms activities.
In a plea agreement filed in federal court, Alfaro admitted that he and other co-conspirators acquired methamphetamine, cocaine and heroin, and they “communicate[d] using multiple cellular telephones and coded language to organize and discuss their drug-dealing business.”
Alfaro admitted that he was involved in the distribution of at least 3.5 kilograms of cocaine, and that he and his co-conspirators used firearms as part of the narcotics conspiracy. “For example, on or about April 9, 2017, [Alfaro] and a co-conspirator discussed acquisition of AK-47 and AR-15 assault rifles,” according to the plea agreement.
Alfaro pleaded guilty before United States District Judge Dale S. Fischer, who scheduled a sentencing hearing for August 20.
As a result of today’s guilty pleas, Alfaro faces a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 50 years.
Alfaro committed the drug and weapon offenses while on supervised released in relation to a prior RICO case that targeted MS-13.
In relation to last year’s racketeering indictment, a trial is scheduled for March 26, 2019.
The investigation into MS-13 is a multi-agency effort being conducted by the Los Angeles Metropolitan Task Force on Violent Gangs, which is led by the Federal Bureau of Investigation and the Los Angeles Police Department.
This case against Alfaro is being prosecuted by Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section.
Kent State University professor charged with making false statements to law enforcementRead the Press Release
A Kent State University professor was charged in federal court with lying to the FBI.
Julio Pino, 57, of Kent, was charged via a criminal information with one count of making a false statement to law enforcement.
The charge was announced by U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
According to the criminal information filed in U.S. District Court in Cleveland:
Pino was a Facebook friend of a St. Louis resident identified in the information at J.E. Pino posted numerous statements and images on social media regarding J.E. and J.E.’s child custody issues between May 2015 and January 2016.
Among these conversations, on or about September 11, 2015, Defendant and J.E. had the following communications:
J.E. wrote, “I’m playing the game backwards. and winning! . . . I will kill 100s of people if they take my rights as a father away!”
Pino stated, “Yes, in military terms this is known as ‘the Parthian shot’.”
J.E. wrote, “hell, 10000’s! . . . It’;s [sic] time for Men to act like men again. . . . See the thing I’ve got on my side is God. That allows me certain rights. One of those rights is to strike down evil with furious vengeance! . . . People don’t even know how crazy I am yet! That’s because no ones ever tried to take my [relative]. They’re about to meet to [the] Monster they’ve created.”
Pino responded, “Devour them, [J.E.].”
J.E. wrote, “Thank You! I will! :)
J.E. wrote on his Facebook wall a series of threatening communications in December 2015 through January 2016 directed against a St. Louis Family Court Judge adjudicating J.E.’s child custody case. On Jan. 11, 2016, J.E. also wrote on his own Facebook wall, “I (expletive) love Julio Pino, even if he does eventually do something that most consider horrible, I’ll still love him because I know him in a deeper way than most of you even could.”
Law enforcement authorities in St. Louis arrested J.E. on Jan. 11, 2016, for making threatening communications against the judge.
The FBI was involved in investigating J.E.’s threats against the judge. FBI agents on Jan. 18, 2016, interviewed Pino in Miami about his social media posts and comments concerning his interactions with J.E. and discussions with J.E. about J.E.’s child custody issues. The FBI agents recorded this interview in connection with an ongoing investigation concerning, among other things, Pino’s interactions with J.E. as described above.
Federal grand jury subpoenas from the Northern District of Ohio were issued during the course of that investigation. In response to questions from FBI agents concerning whether he ever had conversations with J.E. on the social media accounts, Pino, knowing full well the content of his social media interactions with J.E., stated he “never heard of [J.E. or] maybe I heard of him through the news,” he did not recall conversations with J.E. and that his conversations with J.E. were “invented conversation[s].” When asked again if he remembered the conversation with J.E., Pino responded, “I never heard of him, well maybe I heard of him through the news,” and then later stated, “the other way around it is certainly possible that he could have heard of me and made up this conversation, invented it.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Om Kakani and Michelle Baeppler.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Justice Department Announces $1 Million to Florida Law Enforcement and First Responders who Supported the Parkland High School ShootingRead the Press Release
The Department of Justice’s Bureau of Justice Assistance (BJA) today awarded a $1 million grant to the Florida Department of Law Enforcement to pay salary and overtime expenses for first responders who came to the scene of the deadly shootings at Marjory Stoneman Douglas High School on Feb. 14, 2018.
In responding to the tragedy, the State of Florida, the City of Parkland, and Broward County incurred several million dollars in costs including securing crime scenes and operating command centers and state and local officials continue to incur expenses. The magnitude and urgency of the event resulted in a coordinated response of local, state, and federal law enforcement agencies and first responder personnel from more than 18 agencies. This award will defray some of these costs.
“The school shooting in Parkland shocked and horrified the nation, but the community and law enforcement at all levels have shown resilience and determination,” Attorney General Sessions said. “As I told our state and local partners back in February, the Department of Justice stands ready to help them in any way we can. Today we offer $1 million to support the police who have been working overtime in the aftermath of this tragedy. They can be sure about this: we have their backs.”
The BJA invited the Florida Department of Law Enforcement, which administers the Edward Memorial Justice Assistance Grants Program for the state, to apply for the funds. The law authorizing the Byrne JAG Program permits funding to address “precipitous or extraordinary increases” in crimes such as mass violence. The program is the largest source of federal funding for state, local, and tribal public safety activities and is one of several programs administered by the Department of Justice that support law enforcement operations and improve officer safety.
For more information about the BJA, please visit https://www.bja.gov/default.aspx.
Huntington Drug Dealer Sentenced to Prison for Federal CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man caught with heroin in August 2017 was sentenced today to 60 months in prison for a federal drug crime, announced United States Attorney Mike Stuart. Joseph Mitchell, 44, previously pled guilty to possession with intent to distribute heroin. Stuart praised the efforts of the Marshall University Office of Public Safety and the FBI Huntington Safe Streets Task Force.
“Heroin dealers have run rampant in Huntington for far too long,” said United States Attorney Mike Stuart. “My office, along with our law enforcement partners, will use every tool in our arsenal to send drug dealers to prison.”
On August 2, 2017, an officer with the Marshall University Office of Public Safety conducted a traffic stop on a vehicle driven by the defendant in the 500 block of 20th Street in Huntington. Upon searching the vehicle, the officer discovered approximately 11.5 grams of suspected heroin and a digital scale. As part of the plea agreement, Mitchell admitted that he intended to sell the heroin. Mitchell also admitted to the other drug activity charged in the indictment.
Assistant United States Attorney Stephanie S. Taylor handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Harrison County man admits to drug distribution and firearm chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jordan T. Ratliff, of Clarksburg, West Virginia, has admitted to methamphetamine distribution and firearm charges, United States Attorney Bill Powell announced.
Ratliff, age 26, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Unlawful Possession of a Firearm.” Ratliff admitted to distributing methamphetamine in December 2017 in Harrison County. Ratliff, who had previously been convicted of crimes in Monongalia County, admitted to having a .40 caliber semi-automatic pistol in February 2018 in Harrison County.
Ratliff faces up to 20 years incarceration and a $1,000,000 fine for the drug count, and faces up to 10 years incarceration and a fine of up to $250,000 for the firearm count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bridgeport Police Department Mountain Highway Interdiction Team investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Glendale Man Sentenced to 120 Months for Distribution of Child PornographyRead the Press Release
PHOENIX – Last week, Ronald Amaguin Dallas, 28, of Glendale, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 120 months’ imprisonment. Dallas had previously pleaded guilty to distributing child pornography.
Over the course of at least a year, Dallas downloaded and distributed child pornography through bit torrent file sharing. After undercover agents downloaded child pornography from Dallas’s IP address, they obtained a warrant to search his home. During the search, agents seized several devices containing video files and hundreds of images depicting child pornography.
This investigation was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys Brandon M. Brown and Gayle Helart.
CASE NUMBER: CR-17-01248 (SPL)
RELEASE NUMBER: 2018-045_Dallas
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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.
Former University of Iowa Student Pleads Guilty to Computer Fraud ChargeRead the Press Release
DAVENPORT, Iowa – On April 16, 2018, Trevor J. Graves, age 20, a former University of Iowa student, appeared in federal court before United States Magistrate Judge Stephen B. Jackson, Jr., and pleaded guilty to transmission of a command to damage a protected computer, announced United States Attorney Marc Krickbaum. Graves’ sentencing is scheduled for August 23, 2018, at 9:00 a.m. before United States District Court Chief Judge John A. Jarvey.
According to the plea agreement, Graves admitted from March 7, 2015 to November 15, 2016, the University of Iowa, Iowa Courses Online (ICON) computer network was a protected computer and he knowingly and intentionally caused the transmission of a command to the University of Iowa computer network that caused damage and impairment to the integrity or availability of certain data, program, system or information.
Specifically, Graves placed a key logger on University of Iowa computers and fraudulently obtained professors user names and passwords. Graves accessed the ICON system and without authorization changed course grades for himself and five other students. The University of Iowa information technology (IT) costs associated with their internal investigation, response to the discovery of the network breach, and remedial steps taken to update the University of Iowa IT security was approximately $67,900.
This investigation was conducted by the Federal Bureau of Investigation, University of Iowa Department of Public Safety, and University of Iowa, Information Services Technology. This case is being prosecuted by the United States Attorney’s Office Southern District of Iowa.
Former Procurement Director of Staten Island District Attorney’s Office Pleads Guilty to Embezzling Government FundsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, William Nelson, former Director of Procurement at the Richmond County District Attorney’s Office (RCDA), pleaded guilty to theft of government funds relating to his embezzlement of over $440,000 from the RCDA. The plea was entered before United States Magistrate Judge Cheryl L. Pollak.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Mark G. Peters, Commissioner, New York City Department of Investigation, announced the guilty plea.
According to the indictment and facts presented during the guilty plea, for approximately 10 years between 2006 and 2016, Nelson stole over $440,000 from the RCDA as part of a long-term scheme to defraud the RCDA of funds. Specifically, Nelson used two RCDA American Express credit cards to purchase items such as jewelry, clothing, toys, sporting goods and memorabilia, alcohol, video games and movies, electronics, knives, handbags, collectibles, event tickets, meals, lodging, airfare, excursions, and online services that he then used for his own benefit and the benefit of others. Nelson also used the online payment system PayPal to directly transfer thousands of dollars from the RCDA credit cards to his own personal bank account. In furtherance of his scheme, Nelson took steps to hide his embezzlement, which included concealing the itemized credit card statements, mischaracterizing the nature of the purchases, and using his authority as Director of Procurement to approve payments of his fraudulent personal expenditures.
As part of his plea agreement, Nelson is required to pay forfeiture in the amount of $441,262.30, as well as restitution in the same amount to the RCDA. When sentenced, the defendant faces up to 10 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Maria Cruz Melendez is in charge of the prosecution.
The Defendant:
WILLIAM NELSON
Age: 44
Staten Island, New YorkE.D.N.Y. Docket No. 17-CR-394 (RJD)
Former Postal Worker Indicted for Stealing Electronics from Priority Mail Processing FacilityRead the Press Release
A former postal worker has been charged with federal crimes for stealing mail, announced U.S. Attorney Annette L. Hayes. JAMIE GUHLKE, 55, of Federal Way, Washington pleaded not guilty to three counts of theft of mail by an officer or employee at her initial appearance on the indictment on April 16, 2018. Trial on the charges is scheduled in front of Judge James L. Robart on June 25, 2018.
According to records filed in the case, in 2015, while still employed as a mail handler at the United States Postal Service Priority Mail Annex in Kent, Washington, GUHLKE stole as many as 44 packages mailed by an online electronics distributor to customers across the country. The packages contained digital devices, including Apple iPads and Samsung Galaxy tablets. The thefts interfered with operations at the Priority Mail Annex, which is responsible for processing the vast majority of Priority Mail that originates in Washington State. Law enforcement traced two of the devices to a local pawn shop, and determined that other items were sold via the online marketplace ‘OfferUp’. One additional device was found in GUHLKE’s possession. When GUHLKE left work on August 27, 2015, her car was stopped by Special Agents of the United States Postal Service – Office of Inspector General. Visible inside the car on the front passenger seat was the stolen device. Following the traffic stop, GUHLKE was barred from postal service property and her employment was terminated.
The case was investigated by the U.S. Postal Service - Office of Inspector General (USPS-OIG) and is being prosecuted by Assistant United States Attorney Siddharth Velamoor.