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Monday 12 March 2018
Mexican Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Cruz Juvenal Vasquez-Rojo, age 40, and a citizen of Mexico, was sentenced today to time served (50 days in jail), for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Vasquez-Rojo admitted that he was removed from the United States to Mexico on October 29, 2010 and again on April 7, 2011. On January 22, 2018, he was encountered and arrested by an ICE Officer in Schenectady, New York.
Following his sentencing, Vasquez-Rojo was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Metro-East Contractor Pleads Guilty to Home Remodeling Fraud Scheme and Failure to File Tax ReturnsRead the Press Release
Andrew Kirchhoefer, 42, of Belleville, Illinois, doing business as Liberty International Operations Group, Inc. and Gateway Constructions Solutions, Inc., pled guilty to a charge of wire fraud in a scheme to defraud homeowners through contracts to do remodeling construction jobs in Missouri and Illinois, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Kirchhoefer also pled guilty to failure to file a corporate federal income tax return. He faces a statutory maximum prison sentence of up to 21 years, a fine of up to $350,000, and up to three years of supervised release. Sentencing is scheduled for June 15, 2018.
As part of the plea, Kirchhoefer admitted that from October 2014 through February 2016 he entered into home remodeling contracts with home owners and requested large up front down payments where he subsequently had little or no work done on the projects.
The prosecution is the result of an investigation by IRS Criminal Investigations and the Missouri Attorney General’s Office. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Mass. School Employee Admits to Traveling to RI to Engage in Sex with 15-year-oldRead the Press Release
PROVIDENCE – An instructional technology support specialist employed at a Shrewsbury, MA, middle school today admitted in federal court in Providence to travelling to Rhode Island in July 2016 with the intent to engage in illicit sexual activity with a 15-year-old girl.
Alexander Viola, 29, of Shrewsbury, was arrested on July 12, 2016, after he traveled to Cranston, RI, expecting to meet with and engage in illicit sexual conduct with the 15-year-old, with whom he had been communicating on the Internet and via text messages. The person he solicited was actually a Rhode Island State Police trooper assigned to the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force.
Viola’s guilty plea to travel with intent to engage in illicit sexual conduct 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 Homeland Security Investigations for New England Michael S. Shea.
Appearing today before U.S. District Court Chief Judge William E. Smith, Viola admitted that for about 10 days, beginning in early July 2016, he communicated online and via text messages with a person he believed to be a 15-year-old girl. Viola turned the conversations to a sexual nature. On July 12, 2016, after leaving his place of employment and after making a brief stop at his residence, he traveled to Cranston, RI, to a previously agreed upon meeting place, with intent to meet with the 15-year-old girl and to engage in sexual activity. Upon his arrival, Viola was arrested by members of the ICAC Task Force. He was released following an appearance in Rhode Island state court.
Viola pleaded guilty as charged in a federal indictment returned on November 17, 2016. No plea agreement has been filed in this matter. He is scheduled to be sentenced on June 8, 2018. Travel with intent to engage in illicit sexual conduct is punishable by statutory penalties of up to 30 years in federal prison and up to lifetime supervised release.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Marlborough Business Owner and Chief Financial Officer Plead Guilty to Bank Fraud ConspiracyRead the Press Release
BOSTON – A Marlborough business owner and chief financial officer pleaded guilty today in federal court in Worcester in connection with a scheme to commit bank fraud.
James R. Faro, 61, of Dover, and John J. Crowley, 62, of Boca Raton, Fla., each pleaded guilty to conspiring to commit bank fraud. U.S. District Court Judge Timothy S. Hillman scheduled their sentencings for June 8 and June 13, 2018, respectively. Faro and Crowley were charged by Information in January 2018.
Faro is the former owner and president of Sea Star Seafood Corporation, a company previously headquartered in Marlborough that distributed frozen seafood products. Crowley is the former chief financial officer for Sea Star.
From October 2010 until August 2012, Sea Star maintained an asset-backed loan agreement whereby a bank agreed to loan Sea Star up to $6 million pursuant to a revolving line of credit. Sea Star pledged its assets – most notably its inventory and accounts receivable – as collateral for the loan.
Between November 2010 and August 2012, Faro and Crowley conspired to intentionally overstate the value of Sea Star’s outstanding accounts receivable that it reported to the bank. By doing so, Faro and Crowley fraudulently increased the level of assets against which Sea Star could borrow from the bank. In August 2012, Sea Star informed the bank that it had discovered a “discrepancy” of over $3 million in its reported versus actual assets. Sea Star discontinued its business operations approximately one week later.
The charge of conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office is prosecuting the case.
Man Pleads Guilty to $1.3 Million Cigarette Tax FraudRead the Press Release
RICHMOND, Va. – A Glen Allen man pleaded guilty today to engaging in an illegal cigarette tax fraud that caused a loss of over $1.3 million to the Commonwealth of Virginia.
According to court documents, Sunil Thawrani, 49, from January 2015 to March 2017, Thawrani used several credit cards to purchase large quantities of cigarettes from stores such as Costco, Sam’s Club and BJ’s Wholesale Club. During each purchase, Thawrani and co-conspirators completed the Form ST-10, or the Commonwealth of Virginia Sales and Use Tax Certificate of Exemption, stating that the purchased cigarettes were purchased for resale in the regular course of business and that he and his co-conspirators would pay the proper taxing authority all taxes. Thawrani subsequently resold those cigarettes in bulk amounts at his wholesale business, Noor Wholesale of Farmville, Inc., aka Sunny’s Wholesale. Thawrani and co-conspirators sold the majority of the cigarettes purchased at Sunny’s Wholesale in bulk amounts to individuals who then resold the cigarettes outside of the Commonwealth of Virginia as untaxed cigarettes. Thawrani and co-conspirators did not collect or pay the applicable Virginia Retail Sales and Use Tax for the cigarettes sold to out of state individuals, causing an actual loss to the Commonwealth of Virginia in the amount of over $1.3 million.
Thawrani pleaded guilty to conspiracy to commit wire fraud and faces a maximum penalty of five years in prison when sentenced on June 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. Assistant U.S. Attorney Gabrielle Michalak is prosecuting the case.
This case was investigated by the Washington/Baltimore HIDTA Northern Virginia Financial Initiative and the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-17.
MS-13 Member Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A member of MS-13’s Enfermos Criminales Salvatrucha (ECS) clique in Chelsea, Mass., was sentenced today in federal court in Boston for racketeering conspiracy.
Domingo Tizol, a/k/a “Chapin,” 23, a Guatemalan national who resided in Chelsea, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 10 years in prison and three years of supervised release. Tizol will be subject to deportation upon completion of his sentence.
On May 26, 2015, Tizol and another MS-13 member Bryan Galicia-Barillas, a/k/a “Chucky,” attacked a suspected gang rival on Bellingham Street in Chelsea. Tizol punched and hit the victim while Barillas stabbed the victim multiple times. The victim survived the attack but suffered life-threatening injuries.
Tizol and Barillas were two of 61 defendants indicted in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. Barillas previously pleaded guilty and is awaiting sentencing.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
Lee County Couple Pleads Guilty to Firearms ChargesRead the Press Release
Fort Myers, Florida – Herman Fleming (26, Lehigh Acres) and Sondre’jah Wilbon (24, Fort Myers) today pleaded guilty to federal firearms charges arising out of a straw purchasing incident. Both individuals face a maximum penalty of five years in federal prison. Sentencing dates have not yet been set.
According to court documents, Fleming and Wilbon traveled to a gun show at the Lee County Civic Center on April 2, 2017. Fleming, who was then facing state felony charges, was prohibited from receiving a firearm under federal law. An undercover Bureau of Alcohol, Tobacco, Firearms and Explosives agent standing next to the couple at a display booth observed Fleming handling various firearms and heard him tell Wilbon which three guns (an assault-style rifle and two pistols) he wanted to buy. Fleming then provided Wilbon with cash and left the area to avoid raising suspicion.
In the paperwork required to make the purchase, Wilbon lied and claimed she was the intended recipient of the firearms. The two were arrested while leaving the gun show. Law enforcement found the rifle in the trunk of Fleming’s car and the receipts for the guns in his pocket. The two pistols were subject to a three-day waiting period by law and never left the possession of the firearms dealer.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Las Vegas Resident Sentenced in Multimillion Dollar Prize Promotion Scams Targeting Elderly VictimsRead the Press Release
LAS VEGAS, Nev. – An individual who ran multimillion dollar prize promotion scams was sentenced on March 12, 2018, to serve 87 months in prison by a federal judge in Las Vegas, Nevada, the Department of Justice announced.
Glen Burke, 58, of Las Vegas, was sentenced to 87 months in prison, followed by three years of supervised release. U.S. District Judge Jennifer A. Dorsey also ordered Burke to pay $2,785,508.36 in restitution, reflecting the consumer loss from one of Burke’s schemes.
Burke pleaded guilty in December 2017 to criminal contempt of court and conspiracy charges arising from his operation of two predatory schemes that defrauded thousands of victims, many of whom were elderly, out of more than $20 million. Burke conducted those fraudulent campaigns in violation of a 1998 court order obtained by the Federal Trade Commission (FTC) permanently banning him from telemarketing and making misrepresentations to consumers. A co-defendant, Michael Rossi, 52, also of Las Vegas, also pleaded guilty in connection with one of Burke’s schemes. Rossi is scheduled to be sentenced on June 25, 2018.
“This case exemplifies the Department’s commitment to halt schemes that target seniors, which the Attorney General announced in an historic elder fraud sweep a few weeks ago,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “We are sending a clear message: Perpetrators of telemarketing fraud will be prosecuted and law enforcement will not stop until fraudulent mass mailing practices are halted.”
Burke pleaded guilty to criminal contempt of court for violating a court order prohibiting him from making misrepresentations to consumers. The charge stemmed from Burke’s operation of a mass-mailing fraud scheme that misled consumers into believing that they had won large cash prizes, often millions of dollars. Burke specifically mailed consumers solicitations that used fake names and, in many cases, looked like they came from law firms or financial institutions, advising consumers to pay a fee – usually $20 to $30 – to claim their promised winnings. Once consumers paid, however, Burke never sent any consumer a promised prize.
Burke, along with Rossi, also pleaded guilty to conspiracy to commit mail and wire fraud for running a fraudulent telemarketing operation. Telemarketers working for Burke and Rossi falsely told victims that they had won one of five valuable prizes, typically: a Chevy Camaro; a Boston Whaler boat; a diamond-and-sapphire bracelet; $3,000 cash; or a cruise that could be exchanged for $2,300. To claim the prize, consumers were told to pay hundreds, or in some cases thousands, of dollars. Once they paid, victims received a nearly worthless piece of costume jewelry or nothing at all.
In January 2013, the FTC filed a civil contempt case against Burke for violating the 1998 court order. The district court found Burke in civil contempt and ordered him to pay contempt sanctions of over $20 million, reflecting consumer loss from both the telemarketing and mass-mailing schemes.
Acting Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service and thanked the FTC for its valuable assistance. The case was prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Consumer Protection Branch of the Department of Justice’s Civil Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
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L.A. Man Sentenced to nearly 4 Years in Federal Prison for Illegally Manufacturing Assault Rifles and Silencers He Intended to SellRead the Press Release
LOS ANGELES – A Los Angeles man who admitted he illegally manufactured and sold firearms – specifically short-barreled AR-15-style assault rifles and silencers – was sentenced this afternoon to 46 months in federal prison.
Axel Fernando Galvez, 37, who resides in Watts, was sentenced today by United States District Judge Christina A. Snyder.
Once he completes the prison term, Galvez will be on supervised release for three years, during which time he will be subject to search at any time by law enforcement authorities. Judge Snyder also ordered Galvez to pay a $12,500 fine.
Galvez pleaded guilty in December to two counts of unlicensed manufacturing and dealing in firearms. When he pleaded guilty, Galvez admitted that he purchased firearm components from different sources to disguise the quantity he was buying. Galvez then finished the parts and assembled the assault rifles at a South Los Angeles machine shop where he worked.
On August 28, 2017, Galvez sold five of these assault rifles, through an intermediary, to an undercover operative with the United States Postal Inspection Service. Galvez believed that the undercover operative was a convicted felon and was going to resell the weapons in Egypt and the Philippines.
In further discussions with the undercover operative, Galvez negotiated the sale of another 100 homemade assault rifles, offering a bulk discount.
Galvez also admitted in court that he manufactured five silencers for firearms.
A second man charged as a result of this investigation – Marcos Ernesto Chavarria, 31, of Inglewood – previously pleaded guilty to conspiring to distribute methamphetamine. Judge Snyder is scheduled to sentence Chavarria also on April 2, at which time he will face a statutory maximum sentence of 20 years in federal prison.
During the investigation into Galvez, the Postal Inspection Service worked jointly with the Los Angeles Police Department Parcel Task Force. The Bureau of Alcohol Tobacco, Firearms and Explosives, as well as the Los Angeles Joint Regional Intelligence Center, provide substantial assistance.
This case is being prosecuted by Assistant United States Attorney Andrew Brown of the Major Frauds Section.
Kingwood Man Gets More Prison TimeRead the Press Release
HOUSTON – A 54-year-old resident of Kingwood has received a second federal sentence for failing to appear in court, announced U.S. Attorney Ryan K. Patrick. Oscar Cantalicio Ortiz pleaded guilty Dec. 4, 2017.
Today, U.S. District Judge Kenneth Hoyt handed Ortiz another 12 months and one day to be served consecutively to the already-imposed 262 months for his conviction of bank fraud.
Ortiz was originally convicted for a mortgage fraud scheme in which he admitted he conspired to commit bank, mail and wire fraud. He was permitted to remain on bond pending his sentencing in that case, but was ordered to wear a GPS monitoring device secured around his leg as a condition of his release.
On April 21, 2017, he cut off the device and left it on the side of the road in southwest Houston. His vehicle was later found abandoned in a parking lot in the same area of town.
On April 24, 2017, Ortiz was set to appear before U.S. District Judge Kenneth M. Hoyt for sentencing in the mortgage fraud scheme. He failed show for that hearing.
He was residing in Mexico and turned himself in to the U.S. Embassy in Mexico City, Mexico on Aug. 23, 2017. Ortiz told the FBI at the Embassy that he was a fugitive from the United States and had decided to flee because he wanted more time to work on a project. He was flown back to Houston the following day.
Upon his arrival, agents noted that Ortiz had changed his appearance by growing facial hair and dying it and his hair red. Ortiz admitted he had purchased a second car to replace the one he abandoned and drove across the border into Mexico where he stayed until his arrest.
While a fugitive, Judge Hoyt imposed the nearly 22-year sentence in absentia which will be served consecutively to the term imposed today.
The FBI conducted the investigation of both cases. Assistant U.S. Attorney Melissa Annis is prosecuting the cases.
Jury Finds Stockbroker Guilty of Insider Trading for Dealing in Stock of Local Biotechnology FirmRead the Press Release
Assistant U. S. Attorneys Aaron P. Arnzen (619) 546-8384 Emily W. Allen (619) 546-9738
NEWS RELEASE SUMMARY – March 12, 2018
SAN DIEGO – A stockbroker was convicted of insider trading by a federal jury Friday, and a codefendant pleaded guilty this morning – the day his trial was set to begin.
The jury found stockbroker Paul Rampoldi guilty of conspiracy to commit insider trading, wire fraud, and money laundering, in connection with an illegal trade based on an insider tip about the merger of San Diego firm Ardea Biosciences, Inc. with multinational pharmaceutical company AstraZeneca.
Separately, William Scott Blythe, Rampoldi’s client who placed the trade and secretly paid Rampoldi his share of the profits in tens of thousands of dollars in cash, appeared in court this morning on the date set for his trial, and pleaded guilty to engaging in the same conspiracy. Blythe admitted in his plea agreement that the inside information came from Ardea’s then-director of Information Technology Michael Fefferman, and proved to be extremely lucrative – as the conspirators profited more than 1,500% from their illegal stock trades.
The evidence presented at trial showed that in April 2012, Ardea insider Fefferman learned that the company was planning to merge with AstraZeneca. He also knew that this secret news would boost Ardea’s stock price by a hefty 50%. Before the merger was announced to the public, Fefferman passed the inside information on to his close friend and brother-in-law Chad Wiegand, a licensed stockbroker at National Planning Corporation (NPC). Wiegand passed the information on to his coworker at NPC, Akis Eracleous, who was also a licensed stockbroker. Eracleous, in turn, passed the tip to defendants Rampoldi and Blythe, and the three agreed (to avoid suspicion and scrutiny) that Blythe would trade on the information in his non-NPC brokerage account, and then they would all share the profits.
On the Friday before the merger was announced publicly, Blythe bought more than $5,400 in risky Ardea stock options. On Monday – the next trading day after the merger announcement was released – Blythe sold the options for nearly $89,000. Blythe distributed approximately $40,000 of the fraudulent proceeds in cash to Rampoldi and Eracleous to hide the paper trail, and paid $2,000 in cash to Wiegand to compensate him for the tip. After Forbes magazine reported on Blythe’s spectacular earnings, the group realized an investigation was brewing, and they got together to work on their cover story to mislead the FBI and financial industry investigators.
Fefferman, Wiegand, and Eracleous were each charged previously, and each has admitted his involvement in the insider trading and agreed to cooperate with the investigation. Rampoldi and Blythe are scheduled to be sentenced on May 25, 2018, at 9:00 am before U.S. District Judge Dana M. Sabraw. The jury hearing Rampoldi’s case was unable to reach a verdict on two other counts facing him, so a status hearing is set for March 23, 2018, at 11:00 am before Judge Sabraw to discuss a possible retrial on those counts.
DEFENDANTS (16CR1842-DMS):
Paul Rampoldi Age: 50 San Diego, CA
Scott Blythe Age: 53 San Diego, CA
Charges of Conviction
Conspiracy, in violation of 18 U.S.C. §371
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
DEFENDANTS PREVIOUSLY CHARGED:
Chad Wiegand, 15CR1462-DMS Age: 43 Lakeside, CA
Akis Eracleous, 15CR1462-DMS Age: 50 San Diego, CA
Michael Fefferman, 15CR1534-DMS Age: 45 Escondido, CA
AGENCIES
Federal Bureau of Investigation
Securities and Exchange Commission
Jury Convicts Meth SmugglerRead the Press Release
BROWNSVILLE, Texas – A federal jury sitting in Brownsville has convicted a 35-year-old man for conspiracy and methamphetamine smuggling, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than three hours following a six-day trial before convicting Jesus Yzaguirre Jr., of Brownsville, on all four counts as charged.
The jury heard that on Feb. 25, 2017, Yzaguirre Jr. drove into the United States through the Gateway Port of Entry in Brownsville. At primary inspection, Yzaguirre said he had gone into Mexico to “borrow the van” he was driving from his uncle. He was referred for secondary inspection, at which time he then said he had gone into Mexico to pick up the van which belonged to him. Agents searched the van and discovered 29.4 kilograms of methamphetamine hidden within the floorboard and frame compartments.
Yzaguirre then gave a statement saying he thought he was bringing the van in for another person to use for alien smuggling. The person, a female friend whom he “bumped into in Matamoros” asked him to pick up the van at a parking lot, according to his statement. She was to pay him $50 for taking it into the U.S. and parking it at a certain location. Yzaguirre said he had previously done the same thing with a different van which he parked somewhere in Brownsville.
Further investigation revealed Yzaguirre had in fact crossed a commercial van on three other occasions, each time going through the Sarita checkpoint. Agents interviewed an acquaintance of Yzaguirre who said Yzaguirre had admitted to knowing there were drugs in the van when he was arrested and that he had been working for “La Guera” who was in charge of the drug loads.
Yzaguirre was convicted of conspiracy to possess with intent to distribute 29.4 kilograms of methamphetamine, possession with intent to distribute the methamphetamine, conspiracy to import methamphetamine and importation of methamphetamine with intent to distribute.
U.S. District Judge Rolando Olvera presided over the trial, and set sentencing for June 20, 2018. At that time, Yzaguirre faces a minimum of 10 years and up to life in prison as well as a $10 million fine. He will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protections. Assistant U.S. Attorneys Oscar Ponce and Angel Castro are prosecuting the case.
Jacksonville Woman Pleads Guilty to Stealing Handguns from Local Gun StoresRead the Press Release
Jacksonville, Florida – Bruquanna Griffin (21, Jacksonville) today pleaded guilty to stealing firearms, and conspiring to steal firearms from federally-licensed firearms dealers. She faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to court documents, throughout the summer of 2017, Griffin and another individual worked together to steal firearms from at least three Jacksonville gun stores. At each location, Griffin’s co-conspirator would distract the sales staff, while Griffin would sneak behind the counter to steal handguns. She stole as many as five guns from a single location. On August 23, 2017, Griffin was arrested after she attempted to leave a gun store with two stolen pistols in her purse. She eventually admitted her involvement in the conspiracy, explaining that after she stole the firearms, her co-conspirator would either keep, sell, or trade the guns for drugs.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jackson Man Sentenced to 100 Months in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – Michael Ervin a/k/a Michael Irving, 37, of Jackson, was sentenced on March 12, 2018, by U.S. District Judge Daniel P. Jordan III, to serve 100 months in federal prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 13, 2017, while attempting to execute an arrest warrant, the Gulf Coast Regional Fugitive Taskforce discovered multiple firearms in the possession of Michael Ervin at a residence in Jackson. Specifically, officers recovered a DPMS Inc. brand, model A15, .223 caliber semi-automatic rifle; an Anderson Manufacturing brand, model AM-15, multiple caliber lower receiver, semi-automatic rifle; a Ruger brand, model LCP, .380 caliber semi-automatic pistol; a Taurus brand, model PT140 Millennium G2, .40 caliber pistol; and one hundred and fifty (150) rounds of ammunition.
Also, at Ervin’s residence, officers recovered 270.38 grams of Marijuana, 15 grams of Cocaine, .54 grams of Methamphetamine, 1.13 grams of Heroin, and 5 grams of Tetrahydrocannabinol (THC Oil)
Ervin was previously convicted in the First Judicial District of Hinds County for possession of cocaine and for possession of ammunition by a convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gulf Coast Regional Fugitive Taskforce. It was prosecuted by Assistant U.S. Attorney Keesha D. Middleton.
Inmate Sentenced to 46 Months in Prison for Assaulting and Resisting a Federal EmployeeRead the Press Release
DENVER - A federal prison inmate already serving multiple federal sentences was sentenced to serve an additional 46 months in prison for assaulting and resisting a federal employee, announced U.S. Attorney Bob Troyer of the United States Attorney’s Office for the District of Colorado.
James Wilson, 36, of Pitt County, North Carolina, was sentenced on March 9, 2018, by U.S. District Court Judge William J. Martínez, who also ordered Wilson to serve three years of supervised release following his prison sentence. Previously, Wilson pleaded guilty on Dec. 7, 2017, to one count of assaulting and resisting a federal employee.
According to court filings, on January 2, 2017, Wilson intentionally and forcibly assaulted, resisted, opposed, or impeded an officer with the Federal Bureau of Prisons at the United States Penitentiary in Florence, Colorado (USP Florence). Before being escorted to a lieutenant’s holding cell, Wilson was ordered to stop and submit to a pat search. Wilson ignored the order and ran. Another correctional officer observed a weapon — a cell-made shank — in Wilson’s hand as he fled. After a struggle, Wilson was placed on the ground, where he continued to actively resist. As Wilson resisted, he punched an officer multiple times in the chest. Following the incident, a review of the officer’s polo shirt showed at least one puncture hole over his left breast. The officer’s protective vest, which had several indentations from the assault, protected the officer from sustaining substantial bodily injury.
The Federal Bureau of Investigation and the Special Investigative Service of the Federal Bureau of Prisons investigated this case. This case was prosecuted by Assistant U.S. Attorney Juan G. Villaseñor, and Special Assistant U.S. Attorney Clay C. Cook, of the District of Colorado.
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Illegal Alien is Sentenced for Further Illegal ReentryRead the Press Release
PITTSBURGH - An illegal alien found in Pittsburgh, Pennsylvania, pleaded guilty and has been sentenced in federal court to 10 months imprisonment on his conviction of illegal re-entry after deportation, United States Attorney Scott C. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Rene Hilerio-Ballina, age 33, of Mexico.
According to the information presented to the court, Hilerio-Ballina, a native and citizen of Mexico, was formally removed from the United States by the United States Immigration and Customs Enforcement on April 23, 2010, June 9, 2010, May 10, 2013, and October 29, 2013. Hilerio-Ballina was found to be illegally present in Pittsburgh, Pennsylvania, on December 19, 2017, when he was arrested by the United States Immigration and Customs Enforcement.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI) for the investigation leading to the successful prosecution of Hilerio-Ballina.
Guatemalan Man Sentenced for Immigration FraudRead the Press Release
ALBANY, NEW YORK – Juan Luis Ortiz Jimenez, age 32, and a citizen of Guatemala, was sentenced today to time served (74 days in jail) for possessing a fraudulent green card.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Ortiz Jimenez admitted that he possessed a counterfeit permanent residency card (“green card”) in Colonie, New York, on December 28, 2017. ICE Officers found Ortiz Jimenez to be in possession of the counterfeit green card when they arrested him on December 28 for being unlawfully present in the United States.
Following his sentencing, Ortiz Jimenez was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Four Members of an Armed Robbery Crew have been Indicted for Committing Robberies throughout Western Tennessee, Resulting in One FatalityRead the Press Release
Memphis, TN – Four individuals have been indicted for conspiracy to commit robberies of drug dealers in the Western District of Tennessee, one of which resulted in a fatality. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today.
On March 7, 2018, a federal grand jury returned the indictment, which remained sealed until the defendants’ arrest. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
This indictment follows a four-month investigation involving agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as well as other federal and state agencies. These defendants participated in a conspiracy to rob drug dealers throughout the Western District of Tennessee.
The four defendants listed are currently in custody:
Marcus Danner, 38, Memphis, Tennessee
Quintez Agnew, 33, Memphis, Tennessee
Shuntario Johnson, 37, Memphis, Tennessee
John Lott, 29, Memphis, TennesseeCount 1 charges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott with conspiracy to obstruct, delay and affect commerce by robbery, in that the defendants did
plan on robbing persons engaged in interstate commerce, that is, narcotics trafficking, of drugs and drug proceeds.
Count 2 charges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott with conspiracy to possess with the intent to distribute 5 kilograms or more of a mixture of substance containing a detectable amount of cocaine.
Count 3 charges Shuntario Johnson with carjacking by force, violence and intimidation, with the intent to cause serious bodily injury.
Count 4 charges Shuntario Johnson with carrying and discharging a firearm, during and in relation to a crime of violence, that is, the taking a motor vehicle, that had been transported, shipped and received in interstate commerce by force, violence and intimidation, with the intent to cause serious bodily injury.
Count 5 charges Shuntario Johnson with using and discharging a firearm, during and in relation to a crime of violence, that is, the taking of a motor vehicle, that had been transported, shipped and received in interstate commerce by force, violence and intimidation, with the intent to cause serious bodily injury.
Count 6 charges Shuntario Johnson with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 7 alleges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott being aided and abetted by the other did unlawfully obstruct, delay and affect commerce by robbery in that the defendants did attempt to rob an individual then engaged in interstate commerce, that is, narcotics trafficking, of drugs and drug proceeds.
Count 8 alleges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott, being aided and abetted by the other did knowingly carry and discharge a firearm, during and in relation to a crime of violence, that is, to obstruct, delay and affect commerce by robbery in that the defendants did attempt to rob B.B., an individual then engaged in interstate commerce, that is, narcotics trafficking, of drugs and drug proceeds.
Count 9 alleges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott, being aided and abetted by the other did knowingly use and discharge a firearm, during and in relation to a crime of violence to obstruct, delay and affect commerce by robbery in that the defendants did attempt to rob B.B., an individual then engaged in interstate commerce, that is narcotics trafficking, of drugs and drug proceeds by threats of physical violence.
Count 10 charges Marcus Danner with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 11 charges Quintez Agnew with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 12 charges Shuntario Johnson with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 13 charges John Lott with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 14 alleges Marcus Danner; Quintez Agnew and Shuntario Johnson being aided and abetted by the other, did knowingly possess a firearm, in furtherance of a drug trafficking crime, that is, conspiracy to possess with intent to distribute five kilograms or more of a mixture or substance containing a detectable amount of cocaine.
Count 15 alleges Marcus Danner; Quintez Agnew and Shuntario Johnson, being aided and abetted by the other, did knowingly carry a firearm, in furtherance of a drug trafficking crime, that is, conspiracy to possess with intent to distribute five kilograms or more of a mixture or substance containing detectable amount of cocaine.
Count 16 alleges Marcus Danner having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affect interstate commerce with a firearm.
Count 17 alleges Quintez Agnew having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting interstate commerce with a firearm.
Count 18 alleges Shuntario Johnson, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting interstate commerce with a firearm.
During this investigation, agents seized multiple firearms; approximately $2,000 in U.S. currency; and approximately 28 grams of crack cocaine.
If convicted, the defendants face mandatory minimum sentences of 10 years imprisonment up to life.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Memphis Police Department, Multi Agency Gang Unit and Shelby County Sheriff’s Office investigated this case.
Assistant U.S. Attorney Jerry Kitchen is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proved guilty.
Former Spring Hill Police Officer Sentenced to Prison for Federal Civil Rights ViolationRead the Press Release
Former Spring Hill Police Officer Christopher Patrick Odom, 27, of Spring Hill, Tennessee, was sentenced on Friday in U.S. District Court to 12 months in prison, followed by one year of supervised release, for deprivation of rights under color of law, announced Don Cochran, U.S. Attorney for the Middle District of Tennessee.
Odom was indicted in July 2017 and pleaded guilty in October 2017 to engaging in unwanted sexual contact with a female motorist while on duty as a police officer.
U.S. District Judge Aleta A. Trauger sentenced Odom to the maximum penalty under the statute and noted that Odom’s behavior was outrageous and that he displayed a pattern of conduct that abused his position as a police officer.
According to court documents, Odom initiated a traffic stop on the female victim during the late evening hours of June 25, 2016. Upon approaching the victim’s car, Odom ordered her to write her name and phone number or date of birth on a piece of paper. Thereafter, Odom ordered the victim out of her car and brought her to the side of his patrol car. He then tried to kiss the victim and attempted put his hands down her pants. He then grabbed the victim’s hand and placed it on his penis. Odom also lied to the victim about his name before finally allowing her to leave the scene.
Odom previously pleaded guilty to state charges of sexual battery and official misconduct regarding the victim in this case and another female motorist in Maury County and served 78 days in jail. He is facing similar state charges in Williamson County.
This case was investigated by the Tennessee Bureau of Investigation in consultation with the Department of Justice Civil Rights Division. Assistant United States Attorneys Henry Leventis and Sara Beth Myers are prosecuting the case.
Former Settlement Agent Gets 12 Years in Prison for Mortgage Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – A former settlement agent from Wyckoff, New Jersey, was sentenced today to 144 months in prison for defrauding banks out of $1.1 million using phony loan applications for properties in Bergen and Morris Counties, New Jersey, and for failing to pay over $450,000 in personal income taxes, U.S. Attorney Craig Carpenito announced.
Mark Andreotti, 47, was previously convicted on all six counts of an indictment charging him with bank fraud, conspiracy to commit bank fraud, tax evasion, and failure to file tax returns. He was convicted following a two-week trial before U.S. District Judge Susan D. Wigenton, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
In January 2010, Andreotti submitted a loan application to a bank requesting $625,000 to refinance the mortgage on his house in Wyckoff. Andreotti, who owned and operated Metropolitan Title and Abstract (Metropolitan), used Metropolitan as the settlement agent on the transaction. After the bank transferred the $625,000 for the refinance to Metropolitan’s escrow account, Andreotti spent the money on personal expenses instead of paying off the first mortgage on the house.
In April 2011, Andreotti conspired with another individual who worked as a real estate attorney to obtain $480,000 by claiming that the money would be used to refinance the mortgage on the attorney’s house in Montville, New Jersey. After the bank transferred the money for the refinance to Metropolitan’s escrow account, Andreotti kept $110,000 for himself before transferring the remaining funds to the other conspirator.
In 2010, the IRS initiated collection actions against Andreotti for unpaid personal income taxes. Despite numerous liens and levies and having five rental income properties in addition to his primary residence, Andreotti continued to evade his taxes. He also failed to file tax returns for the tax years 2010 and 2011.
In addition to the prison term, Judge Wigenton sentenced Andreotti to five years of supervised release and ordered him to pay restitution of over $2.1 million.
U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark; special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark; and special agents with the U.S. Attorney’s Office, with the investigation.
The government is represented by Assistant U.S. Attorney Shana Chen in of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Charlie Divine of the Federal Housing and Finance Agency – Office of Inspector General.Defense counsel: Marc Neff, Esq., of Marlton
Former Marshall Resident Sentenced for Child PornographyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that an Arkansas man, formerly of Marshall, Mo., was sentenced in federal court today for possessing child pornography.
Kenneth Larrechea, 48, formerly of Marshall, was sentenced by U.S. District Judge Beth Phillips to 13 years in federal prison without parole. The court also sentenced Larrechea to a 10-year term of supervised release following incarceration.
Larrechea, who pleaded guilty on Nov. 20, 2017, to possessing child pornography, was identified as one of 158 individuals who received child pornography through Kik (an instant messaging and chat application) from a New York man, who pleaded guilty in a separate case in the Northern District of New York. An FBI agent executed a search warrant at Larrechea’s Marshall residence on Dec. 8, 2015, and seized several electronic media devices, including computers, hard drives and cell phones.
Investigators discovered several images on an SD card in Larrechea’s cell phone of a child victim, approximately 10 or 11 years old, getting in and out of a shower. The images were screen shots taken from a video file. Larrechea was acquainted with the child victim and investigators believed he produced the images with a hidden camera. The child victim told investigators she was not aware that she was being video recorded or photographed.
More than 400 videos and more than 70 images of child pornography and erotica were also located on Larrechea’s cell phone and SD card.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI and the Marshall, Mo., Police Department.Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Felon Charged for Armed Robbery of Cashier Cage at New York-New York Hotel and CasinoRead the Press Release
LAS VEGAS, Nev. – An armed man who robbed a casino floor cashier cage at New York-New York Hotel and Casino in January was charged today in federal court, announced United States Attorney Dayle Elieson of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department.
Cameron James Kennedy, 26, of Las Vegas, is charged with one count of interference with commerce by robbery.
According to allegations contained in the criminal complaint, Kennedy was on federal supervision for a bank robbery charge and he was required to wear a GPS monitoring bracelet. On January 10, 2018, about three hours after he cut off his GPS monitoring bracelet, Kennedy demanded money from a casino floor cage cashier at the New York-New York Hotel and Casino. He lifted his hooded jacket and displayed a black semiautomatic handgun in his waistband. He told the cashier: “I want all your hundreds and don’t mess around. I am not kidding, I want all the hundreds.” He stole approximately $23,367 and fled in a taxi cab.
If convicted, the maximum statutory penalty is 20 years in prison and a $250,000 fine.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Violent Crimes Task Force and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Tony Lopez is prosecuting the case.
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Former Fairview Township Police Officer Sentenced to 42 Months’ Imprisonment on Theft ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tyson Baker, age 43, of Etters, Pennsylvania, was sentenced today by United States District Court Judge Sylvia H. Rambo to 42 months’ imprisonment and two years’ supervised release for theft of seized money that was evidence in two separate drug cases.
Judge Rambo also ordered Baker to pay $1,000 restitution to Fairview Township Police Department and $330 restitution to the FBI. Baker is to report to the Bureau of Prisons on April 2, 2018.
According to United States Attorney David J. Freed, Baker, a former 17 year veteran police officer with the Fairview Township Police Department, was convicted on September 14, 2017, after a four-day trial before Judge Rambo. Baker was convicted of two counts of theft of drug money that was subject to seizure and forfeiture, one count of falsifying or altering records to impede, obstruct or influence a federal drug investigation regarding the first incident, one count of theft of federal property, and one count of presenting a false police report to the FBI.
The Federal Bureau of Investigation (FBI) in Harrisburg received information that Baker stole money from drug traffickers who were arrested, the subject of traffic stops, or both. On November 21, 2015, Baker orchestrated the theft of $2,000 in drug proceeds seized by the Fairview Township Police Department during a search of a residence that resulted in the seizure of several pounds of marijuana and approximately $15,000. On December 16, 2015, the FBI arranged for an undercover vehicle operated by an undercover FBI agent to be stopped by Fairview Township. Baker had the vehicle towed from the scene and, without a warrant and in spite of directions from an FBI agent not to search the vehicle, Baker searched the vehicle and stole $3,000 out of $15,000 concealed in a gym bag in the back of the vehicle. The undercover vehicle was equipped with video recording equipment that recorded Baker going through the vehicle without a warrant. On December 18, 2015, Baker was arrested by the FBI and confessed to both incidents.
“Because of his status as a law enforcement officer, Baker’s actions not only violated state and federal laws, but also had a direct negative impact on state and federal cases where he served as an investigator or witness,” said United States Attorney Freed. “The excellent cooperative investigation followed by Judge Rambo’s sentence send a strong message that this type of conduct will be vigorously prosecuted and punished.”
“When an officer shrugs off his sworn oath, breaking the law to pad his paycheck, he betrays the people of his community – and all of us who wear a badge,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Removing rogue officers from the ranks is vital. The FBI will continue to investigate police corruption and bring those responsible to justice. No one is above the law.”
The case was investigated by the Harrisburg Resident Office of the Federal Bureau of Investigation, the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Fairview Township Police Department. Assistant United States Attorneys William A. Behe and Michael Consiglio prosecuted the case.
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Former Anchorage Resident Charged with Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Mitchell Zong, 45, a former Anchorage resident, has been charged in federal court with one count of conspiracy to commit money laundering.
According to the allegations in the Felony Information, between Sept. 8, 2013, and April 4, 2014, Mitchell Zong allegedly conspired with others to commit money laundering violations in excess of $10,000, with the funds being the result of violations of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transaction and Sanctions Regulations (ITSR).
Mitchell Zong’s father, Kenneth Zong, is currently under indictment in the District of Alaska for similar violations of IEEPA, ITSR, and money laundering. Kenneth Zong is currently in custody in the Republic of South Korea for violations of Korean law.
The maximum penalty for conspiracy to commit money laundering is 20 years in prison, and a fine of $250,000. An arraignment date has not yet been set.
The FBI and IRS-Criminal Investigation conducted the investigation leading to the charges in this case. This case is being prosecuted by Deputy Criminal Chief Steven E. Skrocki.
An Information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Essex County, New Jersey, Father and Daughter Charged in Food Stamps SchemeRead the Press Release
NEWARK, N.J. – Two individuals who operate a Newark grocery store were charged today with fraudulently exchanging over $885,000 in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, U.S. Attorney Craig Carpenito announced.
Maria Teresa Venegas, 25, and her father, Manuel Venegas, 53, both of Newark, are charged by complaint with SNAP benefits fraud. Both were arrested this morning and appeared in the afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. They were released on $200,000 unsecured bond.
According to the complaint:
Since November 2011, the defendants managed Jenny’s Deli, a small grocery store in Newark that was authorized to accept SNAP benefits, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits but may not exchange SNAP benefits for cash.
Manuel and Maria Teresa Venegas allegedly exchanged more than $885,000 in SNAP benefits for cash between 2011 and 2018. In addition to the high volume of SNAP redemptions for Jenny’s Deli indicating fraud, law enforcement officers used an undercover agent who engaged in approximately 20 “purchases” at Jenny’s Deli where one or both defendants allegedly exchanged cash for SNAP benefits.
The SNAP benefits fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense counsel:
Maria Teresa Venegas: Linda Foster, Esq., Assistant Federal Public Defender, Newark
Manuel Venegas: Laurie Fierro Esq., Kinnelon, New JerseyEast Bay Resident Sentenced to over Four Years in Prison for Wire Fraud, Bank Fraud, and Related Charges in Embezzlement SchemeRead the Press Release
OAKLAND – Celia Nipper, aka Celia Arrand, was sentenced this afternoon to 51 months in prison for committing wire fraud, bank fraud, and filing false tax returns in connection with a scheme to embezzle funds from a real estate technology company, announced Acting United States Attorney Alex G. Tse; Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett; and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge, following Nipper’s entry of a plea agreement on September 18, 2017.
According to her plea agreement, Nipper, 62, from Discovery Bay, Calif., admitted that while employed as an office manager, she used her position of financial control at the company to redirect funds intended for her employer to accounts that she controlled. Nipper acknowledged that from 2005 to 2011, while she managed her company’s accounts payable and accounts receivable, invoicing, and bill paying, she opened bank accounts in the name of her employer without disclosing their existence to her employer. She then directed customer payments to those accounts and used that money for her own personal gain. Nipper also admitted as part of the plea agreement that she misappropriated funds from her employer’s legitimate corporate bank accounts and used money belonging to her employer to pay for her own personal expenses and deposited funds into her personal bank accounts. Nipper acknowledged that her scheme defrauded the company of more than $2 million.
In addition, as part of the plea agreement, Nipper admitted that she overstated her income in connection with two mortgage loan applications in June of 2008. Further, Nipper admitted that she filed false U.S. Income Tax Returns for the tax years 2009, 2010, and 2011. In each case, she understated her income, resulting in a failure to report more than $1 million of income and a tax loss to the United States of at least $290,000.
On April 7, 2016, a federal grand jury charged Nipper by Superseding Indictment with three counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of bank fraud, in violation of 18 U.S.C. § 1344(2); and three counts of filing a false tax return, in violation of 26 U.S.C. § 7206(1). Pursuant to her plea agreement, Nipper pleaded guilty to three counts of wire fraud, two counts of bank fraud and two counts of filing a false tax return.
In addition to the prison term, Judge Gilliam issued a forfeiture money judgment in the amount of $2,029,068 against Nipper and has ordered an April 30, 2018 hearing to determine the amount Nipper will be ordered to pay in restitution. In addition, Judge Gilliam ordered Nipper to serve 36 months of supervised release following her prison term during which time the defendant may not undertake, without prior permission, a position of fiduciary capacity. Nipper currently is released on a bond and has been ordered to self-surrender on or before April 30, 2018, to begin serving her prison term.
Assistant United States Attorney Tom Green is prosecuting this case with the assistance of Noble Hughes and Katie Turner. This prosecution is the result of an investigation by the FBI and the IRS.
Doctor Allegedly Prescribed Opioids for Dead and Incarcerated People in “Pill Mill” Operation; Doctor and Seven Others Arrested and ChargedRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – March 12, 2018
SAN DIEGO – Egisto Salerno, a medical doctor, who owns and operates a medical office on El Cajon Boulevard in San Diego, and seven others have been arrested on federal charges stemming from their alleged roles in a conspiracy to possess with the intent to distribute hydrocodone as part of a ‘pill mill’ operation.
Special agents with the Drug Enforcement Administration arrested Dr. Egisto Salerno, 73, of San Diego; Stephen Toney, 57, of San Diego; April Cervantes, 27, of San Diego; David Apple, 25, of Chula Vista; Amber Horne, 28, of El Cajon; Lonnell Ligon, 55, of San Diego; Shalina Latson, 47, of San Diego; and LaJuan Smith, 38, of San Diego. Each is charged with one count of conspiracy to possess with the intent to distribute a controlled substance.
The complaint alleges that, beginning not later than November 2014, defendant Stephen Toney and others recruited individuals, often homeless or of limited means, to pose as “patients” at the office of Salerno to obtain hydrocodone prescriptions. Salerno, who received an office visit fee for each “patient,” performed a cursory or no physical examination and prescribed the hydrocodone despite the lack of any legitimate medical purpose and outside the usual course of professional practice. The “patients” were paid for turning over their hydrocodone tablets to defendants. The defendant recruiters arranged transportation of these “patients” to Salerno’s office, to a pharmacy to pick up the hydrocodone, and then returned them to or near homeless shelters or their residences. Toney and other co-conspirators intended to further distribute these hydrocodone tablets.
Salerno is alleged to have prescribed hydrocodone for, among others, dead “patients” and “patients” who were in jail and who could not, therefore, have been in Salerno’s office when they were allegedly examined by Salerno and hydrocodone was prescribed in their names. For example, one patient died in October 2015 and Salerno allegedly saw that patient and prescribed hydrocodone in that patient’s name five times after death, including two prescriptions written more than a year after the death.
According to the charging documents, Salerno and two of his medical assistants allegedly falsified chart notes and medical records to justify these hydrocodone prescriptions and further the conspiracy. In one instance, the medical chart for an undercover agent who visited the clinic was seized by agents during execution of a search warrant. That chart included a set of medical examination notes in Salerno’s handwriting and signed by him purporting to document a visit that never occurred. The charging documents allege that hydrocodone was prescribed on that date in the name of the undercover agent and the tablets were picked up from the pharmacy by defendant Stephen Toney.
Hydrocodone is the generic name for a narcotic analgesic that is sold under a variety of brand names such as Vicodin, Norco and Lortab. When legally supplied by a licensed practitioner for a legitimate medical purpose in the usual course of professional practice, hydrocodone is used to combat moderate pain. It is a Schedule II controlled substance (narcotic) that is widely abused and it is frequently diverted from legitimate medical channels and distributed illicitly on the street for profit and abuse.
“The opioid crisis is ravaging families in San Diego and Imperial Counties and is part of a national epidemic,” said U.S. Attorney Adam Braverman. “We are and will continue to zealously prosecute and bring to justice those doctors, pharmacies, medical providers and others who are furthering this epidemic to line their own pockets.”
“Patients trust their doctors to give them the best care possible,” said DEA San Diego Acting Special Agent in Charge Steve Woodland. “It’s DEA’s responsibility to ensure that DEA registrants are worthy of that trust. DEA will keep conducting these investigations to ensure that registrants are following all the rules when prescribing these potentially deadly drugs.”
Anyone with information about opioid abuse/diversion or other drug diversion should report that to the Drug Enforcement Administration at https://apps.deadiversion.usdoj.gov or contact the DEA hotline at 1-877-RX-Abuse (1-877-792-2873).
DEFENDANTS Case Number 18mj1080
Egisto Salerno Age: 73 San Diego, CA
Stephen Toney Age: 57 San Diego, CA
April Cervantes Age: 27 San Diego, CA
David Apple Age: 25 Chula Vista, CA
Amber Horne Age: 28 El Cajon, CA
Lonnell Ligon Age: 55 San Diego, CA
Shalina Latson Age: 47 San Diego, CA
LaJuan Smith Age: 38 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Unlawfully Distribute and Dispense a Controlled Substance, 21 U.S.C. 846
Maximum penalty: 20 years’ imprisonment; $1,000,000 fine or twice the pecuniary gain or loss, whichever is greater, and five years’ supervised release.
INVESTIGATING AGENCIES
Drug Enforcement Administration
Internal Revenue Service
Health and Human Services-Office of Inspector General
California Department of Health Care Services
San Diego County Sheriff’s Department
California Department of Justice
San Diego Police Department
*The charges and allegations contained in a Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Detroit Drug Dealer Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. – A Detroit man caught with heroin and a firearm in July 2017 was sentenced today by United States District Court Judge Robert C. Chambers to 151 months in federal prison, announced United States Attorney Mike Stuart. Antonio Newson, 43, previously pled guilty to possession with intent to distribute 100 grams or more of heroin.
“Thanks to the tireless work of the Huntington FBI Drug Task Force, yet another Detroit drug dealer has been taken off the streets of Huntington. Together with our law enforcement partners, we are taking Huntington back, one Detroit drug dealer at a time,” said United States Attorney Mike Stuart. Continued Stuart, “At the pace we’re locking up Detroit thugs, the State of Michigan should be sending us money to help pay prison costs.”
On July 10, 2017, officers with the Huntington FBI Drug Task Force executed a search warrant at Newson’s residence, 1748 Jefferson Avenue, Apartment 1, in Huntington, West Virginia. During the search, officers located approximately 983 grams of heroin in a closet. Officers also located a firearm in the closet. As part of the plea agreement, Newson admitted that the heroin and the firearm belonged to him. Newson also admitted to the other drug activity charged in the indictment. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
This case was 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
Des Moines Man Sentenced to Prison for Enticement of a Minor ChildRead the Press Release
DES MOINES, Iowa – On March 8, 2018, Dale Alan Grau, age 52, of Des Moines, Iowa, appeared before United States District Court Judge Stephanie M. Rose and was sentenced to 120 months in prison following his plea of guilty to enticement and attempted enticement of a minor to engage in elicit sexual activities announced United States Attorney Marc Krickbaum. Grau was ordered to serve a ten-year period of supervised release to follow his prison term.
According to the plea agreement, Grau admitted between the dates of February 20 and 23, 2017, he attempted to persuade and entice a 14 year-old boy, using the Internet, to engage in sexual activity with him.
This investigation was conducted by the Marion County Attorney’s Office, Marion County Sheriff’s Office, Knoxville Police Department, Pella Police Department, Pleasantville Police Department, Warren County Sheriff’s Office, Indianola Police Department, Mid Iowa Narcotics Task Force, Iowa Division of Criminal Investigation, United States Department of Homeland Security – Homeland Security Investigations, and the United States Marshals Service.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the 24-hour Iowa Sexual Abuse Hotline at 1-800-284-7821. The National Center for Missing and Exploited Children (NCMEC) also operates a Cyber Tip line at www.cybertipline.com that allows parents and children to report child pornography and other incidents of sexual exploitation of children by submitting an online form.
Department of Justice to Hold Roundtable on Criminal Antitrust ComplianceRead the Press Release
On April 9, the Department of Justice’s Antitrust Division will hold a public roundtable discussion to explore the issue of corporate antitrust compliance and its implications for criminal antitrust enforcement policy.
The roundtable will provide a forum for the Antitrust Division to engage with inside and outside corporate counsel, foreign antitrust enforcers, international organization representatives, and other interested parties on the topic of antitrust compliance. Participants will discuss the role that antitrust compliance programs play in preventing and detecting antitrust violations, and ways to further promote corporate antitrust compliance. The format of the program will be a series of panel discussions with featured speakers. Audience participation in the discussions will be encouraged.
The Roundtable will take place in the Great Hall of the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, DC, from 1:00 p.m. to 5:00 p.m. EDT. The agenda can be found here.
“Corporate compliance is key to the Antitrust Division’s ultimate goals of preventing and uncovering criminal antitrust violations and protecting consumers and small businesses,” said Assistant Attorney General Makan Delrahim. “The Division values continued engagement with corporate counsel, the antitrust bar, and other stakeholders on this important topic.”
The roundtable will be open to the public. Individuals wishing to attend must register on the Department’s website. For more information or to submit questions or comments, please send an email to [email protected].
Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted via email to Jeremy Edwards in the Office of Public Affairs at [email protected] or by calling 202-307-2016. Requests should be made in advance. Please include a detailed description of the accommodation needed and provide contact information.
Department of Justice, EPA Reach Agreement with Two Idaho Mining Companies to Secure Wastewater Treatment and Remove a Barrier to New Mining OperationsRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced a settlement with the owner of the Bunker Hill Mine, Placer Mining Company, Inc. (Placer Mining), resolving Placer Mining’s cleanup liability in Idaho’s northern panhandle. The Department of Justice and EPA have concurrently reached a settlement with the lessee of the Bunker Hill Mine, Bunker Hill Mining Corp. (BHMC), removing a barrier to new operations at the Mine.
The settlement:- Protects area waterways and ecosystems, through the continued treatment of 1,300 gallons of acid mine drainage discharged per minute;
- Reduces the financial burden on federal taxpayers by shifting the responsibility for future wastewater treatment to the new operator;
- Paves the way for a new mining enterprise, with the prospect of more jobs in Idaho’s Silver Valley;
- Offers more regulatory certainty for current and future mine owners/operators; and
- Resolves close to three decades of litigation surrounding the cleanup of contaminated mine waste in Idaho’s Silver Valley.
“Today’s settlement ends years of litigation, recoups for taxpayers millions of dollars in cleanup costs, and ensures a better environment for the people of Idaho, while also spurring economic growth and job creation in the northern panhandle region,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “We are pleased to work with our partners at EPA to bring this longstanding matter to a good resolution.”
"Through this settlement, EPA is clearing the way for a new operator to resume mining, bringing jobs back to the community, while also securing the ongoing cleanup of contaminated water and recovery of EPA's past cleanup costs," said EPA Administrator Scott Pruitt. "EPA is delivering on its Superfund Task Force commitments."
As part of the settlement, BHMC will pay EPA up to $20 million, on behalf of Placer Mining, in satisfaction of EPA’s past costs claim against Placer Mining. Placer Mining also agrees drop its “takings” case against the United States. This settlement of claims between EPA and Placer Mining also enables BHMC to return the Bunker Hill Mine to production after a hiatus of more than two decades. For nearly a century, the Bunker Hill Mine was one of the most productive mines in the Coeur d’Alene Mining District. As part of the agreement, BHMC has agreed to pay for future treatment of acid mine drainage coming from the mine. BHMC has also agreed to undertake various maintenance and monitoring tasks to help ensure previous cleanup work at the Superfund Site remains protective and is not adversely impacted by new mining operations.
By innovatively approaching this complex situation involving multiple parties and interests, EPA and the Department of Justice addressed a host of complex legal and technical issues that arise when a third party locates a business within a Superfund site where response actions and litigation are pending. These issues were resolved through a combination of a consent decree for cost recovery and a prospective purchaser agreement to govern the performance of ongoing response actions.
The Bunker Hill Mine sits amidst the Bunker Hill Mining and Metallurgical Complex Superfund Site (https://go.usa.gov/xnm9K0), running next to Interstate 90 from near the Montana state line, then along the Coeur d’Alene River, and reaching into the state of Washington. The historic Jesuit Cataldo Mission is also within the Site, which has been home to the Coeur d’Alene Tribe for millennia.
EPA first listed the Site on its National Priorities List (NPL) in 1983. Soon after being added to the NPL, cleanup of mine waste contamination in surface water, groundwater, soil, and sediment began across the Site. EPA and the state of Idaho jointly lead the project. Currently, EPA and the state of Idaho are coordinating approximately $25-$30 million in cleanup projects annually.
The site-wide cleanup was spurred by the toxic side effects of widespread lead (and other metals) contamination which began showing up in the 1970s in routine blood lead screenings for children who lived in the area. Some of the highest blood lead readings ever documented in North America were measured in local children in the 1970s and 1980s. Following years of a comprehensive approach that includes a large-scale cleanup, outreach, education, and health interventions, local blood lead levels are now within the national average.
Funding from this settlement will help reimburse EPA for past costs incurred related to the Central Treatment Plant (CTP) in Kellogg, Idaho. The CTP has been treating acid mine drainage from the Bunker Hill Mine since 1995. The settlement agreement is structured to recover up to 82% of the past costs for water treatment and result in payment for all future water treatment costs.
The consent decree, lodged in the District Court of Idaho, is subject to a 30-day federal public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
For more information about the settlement, please visit: https://www.epa.gov/enforcement/case-summary-third-party-settlement-bunker-hill-site-secure-wastewater-treatment-and.
Defendant pleads guilty in international business email compromise scamRead the Press Release
ATLANTA - Kerby Rigaud, who participated in an international business email compromise scheme, has pleaded guilty to conspiracy to commit wire and bank fraud and money laundering.
“Business email compromise scams continue to inflict serious harm on our citizens and businesses,” said U.S. Attorney Byung J. “BJay” Pak. “We urge everyone to carefully scrutinize any emails they receive directing the transfer of money via wire. We will continue to pursue justice for the victims of this pernicious financial threat.”
“Rigaud and his co-conspirators used cyberspace to organize a complex criminal scheme that crossed borders and defrauded numerous people right here in Georgia,” said Kenneth Cronin, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The United States Secret Service and our law enforcement partners will continue to place a high priority on investigating cases that take advantage of unsuspecting victims.”
According to U.S. Attorney Pak, the charges and other information presented in court: From April 2015 through April 2016, Rigaud served as a key player in an international business email compromise scam impacting victims across the U.S., including in the Northern District of Georgia. In numerous instances, victims, including those identified in the indictment as T.W., A.P., and J.L., received emails that purported to be from trusted sources, including banking representatives and closing agents. The emails directed the victims to wire money to specific bank accounts, some of which were opened in the metro-Atlanta area.
Rigaud’s co-conspirators sent the emails, and in some instances, they hacked into victim’s email accounts. In others, they “spoofed” the email addresses; that is, the co-conspirators took steps to make the email appear as if it were sent by a trusted source, when in reality, it was sent from a different account by a malicious actor.
Rigaud recruited numerous individuals who agreed to let him use their bank accounts for the purpose of receiving large wires from unwitting victims. After receiving the wires, Rigaud directed his recruits on where to send the money, including to a number of financial institutions in Asia. Investigators believe that Rigaud and his co-conspirators attempted to steal over $1 million dollars during the timeframe of the conspiracy.
Sentencing for Kerby Rigaud, 27, of Duluth, Georgia, is scheduled for June 14, 2018 at 10:00 am at before U.S. District Judge Eleanor L. Ross.
This case is being investigated by the U.S. Secret Service.
Assistant U.S. Attorney Kamal Ghali is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Defendant Sentenced in Multimillion Dollar Prize Promotion Scams Targeting Elderly VictimsRead the Press Release
An individual who ran multimillion dollar prize promotion scams was sentenced on March 12, 2018, to serve 87 months in prison by a federal judge in Las Vegas, Nevada, the Department of Justice announced.
Glen Burke, 58, of Las Vegas, was sentenced to 87 months in prison, followed by three years of supervised release. U.S. District Judge Jennifer A. Dorsey also ordered Burke to pay $2,785,508.36 in restitution, reflecting the consumer loss from one of Burke’s schemes.
Burke pleaded guilty in December 2017 to criminal contempt of court and conspiracy charges arising from his operation of two predatory schemes that defrauded thousands of victims, many of whom were elderly, out of more than $20 million. Burke conducted those fraudulent campaigns in violation of a 1998 court order obtained by the Federal Trade Commission (FTC) permanently banning him from telemarketing and making misrepresentations to consumers. A co-defendant, Michael Rossi, 52, also of Las Vegas, also pleaded guilty in connection with one of Burke’s schemes. Rossi is scheduled to be sentenced on June 25, 2018.
“This case exemplifies the Department’s commitment to halt schemes that target seniors, which the Attorney General announced in an historic elder fraud sweep a few weeks ago,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “We are sending a clear message: Perpetrators of telemarketing fraud will be prosecuted and law enforcement will not stop until fraudulent mass mailing practices are halted.”
Burke pleaded guilty to criminal contempt of court for violating a court order prohibiting him from making misrepresentations to consumers. The charge stemmed from Burke’s operation of a mass-mailing fraud scheme that misled consumers into believing that they had won large cash prizes, often millions of dollars. Burke specifically mailed consumers solicitations that used fake names and, in many cases, looked like they came from law firms or financial institutions, advising consumers to pay a fee – usually $20 to $30 – to claim their promised winnings. Once consumers paid, however, Burke never sent any consumer a promised prize.
Burke, along with Rossi, also pleaded guilty to conspiracy to commit mail and wire fraud for running a fraudulent telemarketing operation. Telemarketers working for Burke and Rossi falsely told victims that they had won one of five valuable prizes, typically: a Chevy Camaro; a Boston Whaler boat; a diamond-and-sapphire bracelet; $3,000 cash; or a cruise that could be exchanged for $2,300. To claim the prize, consumers were told to pay hundreds, or in some cases thousands, of dollars. Once they paid, victims received a nearly worthless piece of costume jewelry or nothing at all.
In January 2013, the FTC filed a civil contempt case against Burke for violating the 1998 court order. The district court found Burke in civil contempt and ordered him to pay contempt sanctions of over $20 million, reflecting consumer loss from both the telemarketing and mass-mailing schemes.
Acting Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service and thanked the FTC for its valuable assistance. The case was prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Consumer Protection Branch of the Department of Justice’s Civil Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
Defendant Indicted in Brooklyn Federal Court for Transnational Cyber ScamRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Joshua Philips, also known as “Erick Ayo Kalu,” “Anthony Abongile Baker” and “Johnson Foday Brown,” with conspiring to commit wire and bank fraud and conspiring to commit money laundering, in connection with several business email compromise and confidence fraud scams. Philips was arrested on March 7, 2018, in the Northern District of Georgia and was arraigned this afternoon before United States Magistrate Judge Linda T. Walker at the federal courthouse in Atlanta, Georgia.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the indictment, Philips stole hundreds of thousands of dollars from his victims, then laundered the proceeds of his scam,” stated United States Attorney Donoghue. “The rule of law applies in cyberspace just as it does on the street, and this Office, together with our law enforcement partners, is committed to investigating and prosecuting cybercriminals like the defendants who engage in illegal conduct.” Mr. Donoghue expressed his appreciation to the FBI Field Office in Atlanta and the United States Attorney’s Office for the Northern District of Georgia for their assistance in the case.
“As we alleged, Joshua Philips, together with others, was able to swindle more than $800,000 from unsuspecting victims as a result of schemes of deception known as business email compromise and confidence fraud,” stated FBI Assistant Director-in-Charge Sweeney. “Philips, together with others, tricked victims into sending funds to accounts they thought were part of a legitimate business deal. The defendant then transferred his ill-gotten gains to overseas accounts. I commend the work of the Cyber Task Force who worked dutifully to bring this case to justice.”
Business email compromise is a form of cyber-enabled financial fraud. In a typical business email compromise scheme, a malicious actor compromises legitimate business email accounts through computer intrusion techniques or social engineering and uses those accounts to cause the unauthorized transfer of funds. Techniques for perpetrating these schemes include spear phishing, identity theft, spoofing of emails and websites, and the use of malware.
Confidence fraud is another form of cyber-enabled financial fraud. In a typical confidence fraud, a malicious actor befriends, and gains the confidence of, another individual through online communications and uses that confidence to cause the transfer of funds for unauthorized purposes.
As alleged in court documents, individuals in the Eastern District of New York and around the United States were defrauded – through business email compromise and confidence fraud scams – into sending more than $800,000 to the defendant. For example, in or about July 2017 and August 2017, the defendant and others targeted an individual on Long Island (“John Doe 1”) who was engaged in a real estate transaction involving the purchase of property in Massapequa, New York, and his real estate attorney (“John Doe 2”), who facilitated the purchase. On or about August 23, 2017, John Doe 1 received an email from John Doe 2’s email account asking, “With regards to the closing funds, is it currently available?” After responding that the funds were available, John Doe 1 received an email on August 24, 2017 from John Doe 2’s email account instructing him to “to go to your local branch within the day and initiate a wire transfer of the funds to my attorney escrow account.” The email provided information for a bank account that was, in fact, in the control of one of the defendant’s co-conspirators. On August 28, 2017, John Doe 1 sent a wire transfer in the amount of $84,000 to the bank account. The co-conspirator received the money and transferred a portion of it to Philips, who then wired a portion of it overseas. John Doe 2 has informed law enforcement officers that he did not send the August 24 email and that the bank account details did not pertain to any account within his control.
As part of the broader cyber-enabled schemes, Philips unlawfully transferred the fraudulently obtained money overseas, including to various foreign bank accounts and to purchase used cars for an import/export company in Nigeria.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
According to the FBI’s Internet Crime Complaint Center (IC3), business email compromise and confidence fraud scams have continued to rise over the past few years and were the top two types of internet crimes (by reported loss) reported to the FBI in 2016. Such scams have victimized large and small companies, as well as individuals, in every U.S. state and in more than 100 countries around the world.
If you or your company has been victimized by a business email compromise scam or confidence fraud, it is important to act quickly. The FBI’s Internet Crime Complaint Center (IC3) provides the public with a reporting mechanism to submit information concerning suspected Internet-facilitated criminal activity. Individuals and companies who have been victims of Internet crimes are encouraged to file a complaint online at www.ic3.gov. In addition, victims can take steps to mitigate further loss such as contacting banks, credit card companies, and/or credit bureaus to block accounts, freeze accounts, dispute charges, and attempt recovery of lost funds.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorney Saritha Komatireddy is in charge of the prosecution.
The Defendant:
JOSHUA PHILIPS (also known as “Erick Ayo Kalu,” “Anthony Abongile Baker” and “Johnson Foday Brown”)
Age: 33
Ellenwood, GeorgiaE.D.N.Y. Docket No. 18-CR-121
Danbury Man Sentenced to 30 Months in Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE GREGORY CHARON, also known as “Yoshi,” 32, of Danbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by four years of supervised release, for distributing heroin. Judge Shea also ordered CHARON to serve the first six months of his supervised release in home confinement.
This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 9, 2017, the Danbury Police Department responded to a Danbury residence on a report of an untimely death of a woman. Investigators collected from the scene three cellphones, a bottle of methadone and an empty glassine bag marked with a particular brand stamp. Testing of the contents of the bag confirmed that it contained heroin.
The Office of the Chief Medical Examiner determined that the victim died on April 8, 2017, as a result of a methadone and benzodiazepine overdose.
In May 2017, investigators made two controlled purchases of heroin from CHARON. Several of the bags of heroin purchased on both occasions were marked with the same brand stamp that was on the empty bag found in the overdose victim’s residence.
CHARON has been detained since his arrest on a federal criminal complaint on September 12, 2017. On December 21, he pleaded guilty to one count of distribution of heroin.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, the Danbury Police Department and the Darien Police Department. The Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police. This case was prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and David C. Nelson.
Columbus Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
HUNTINGTON, W.Va. – A Columbus, Ohio man who sold heroin and an illegal firearm in Huntington in 2016 pled guilty today to a federal gun and drug charges, announced United States Attorney Mike Stuart. Jamal Marsalas Glass, 20, entered his guilty pleas to distributing heroin and carrying a firearm during and in relation to a drug trafficking crime. U.S. Attorney Stuart credited the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and emphasized the importance of the agency’s role in addressing gun crime in the City of Huntington.
“The only thing my Office is more committed to than prosecuting dangerous out-of-state drug dealers is prosecuting drug dealers that carry guns. We are aggressively prosecuting gun toting drug dealers.” said United States Attorney Mike Stuart.
On August 25, 2016, a confidential informant contacted Glass to purchase heroin. The informant also negotiated the purchase of a firearm from Glass. The informant subsequently met with Glass inside an Apartment at the Marcum Terrace housing projects in Huntington. Inside the apartment, Glass sold the informant approximately 3 grams of heroin. Glass also sold the informant a 9mm pistol which had the serial number obliterated in violation of federal law. Glass further admitted as part of his plea agreement that he possessed a separate .38 caliber revolver when he conduct the transaction.
Glass faces up to 20 years in federal prison for the drug charge, and a mandatory minimum consecutive term of at least 5 years in federal prison for the gun charge, when he is sentenced by United States District Judge Robert C. Chambers on June 11, 2018. Assistant United States Attorney Joseph F. Adams is responsible for the prosecution.
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.
This case is also being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
Clovis Man Pleads Guilty to Running $24M Ponzi SchemeRead the Press Release
FRESNO, Calif. — Seth Adam Depiano, 36, of Clovis, pleaded guilty today to mail fraud, wire fraud and money laundering in connection with a real estate investment Ponzi scheme, U.S. Attorney McGregor W. Scott announced.
According to court documents, Depiano operated a Ponzi scheme that lured real estate investors to give money to Depiano and the businesses he controlled, including The Rental Group, US Funding and Home Services LLC, and Draymond Homes. Depiano fraudulently promised investors that he would use their money to purchase residential properties and either manage the properties for rental income or arrange for them to be renovated and resold. In many cases, Depiano promoted the properties to investors with documents that falsely represented high occupancy rates. Depiano oftentimes had no authority to purchase or sell the properties and misled investors with fraudulent documents misrepresenting the properties’ ownership. Some of the properties Depiano marketed to investors did not even exist.
Depiano frequently used the investors’ money to pay his personal expenses, fund his gambling activities, and finance the settlement of the investors’ civil lawsuits against Depiano. He also paid investors purported rental income that, in fact, was money other investors gave to Depiano for investment purposes.
In his plea agreement, Depiano admitted to defrauding investors of approximately $24 million dollars and agreed to pay restitution to approximately 28 investors. Depiano also agreed to forfeit more than $700,000 seized from several bank accounts and cash, and a baseball card collection valued at more than $31,000.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Depiano is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 29, 2018 at 1:30 p.m. Depiano faces a maximum statutory penalty of 20 years in prison for the mail fraud and wire fraud charges, ten years in prison for money laundering, and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Chatham Area Transit Contractor Convicted of Twenty-Five Counts of Fraud and BriberyRead the Press Release
SAVANNAH, GA: On February 28, 2018, Anthony Florence, a contractor for the Chatham Area Transit Authority (“CAT”), was convicted by a federal jury on twenty-two counts of mail fraud, two counts of wire fraud, and one count of bribery of a program receiving federal funds. United States District Court Judge William T. Moore presided over Florence’s three-day jury trial.
According to the evidence presented at trial, Florence paid bribes and kickbacks to Chadwick L. Reese, formerly the Executive Director of CAT, and Joel T. Morris, formerly the Director of Maintenance of CAT. Florence paid for over $100,000 worth of work on the personal residences of Reese and Morris. In exchange, Reese awarded contracts to a company operated by Florence over a period of nearly two years. Even though Florence and his company provided little to no work, Reese and Morris approved over $200,000 in payments by Chatham Area Transit to Florence’s company.
Reese and Morris previously pled guilty and were sentenced to 84 months and 20 months, respectively.
United States Attorney Bobby L. Christine stated, “The lesson for contractors doing business in South Georgia is simple: paying a public official to obtain ‘no show’ work is a good way to end up in federal prison. This office will aggressively root out corruption at every level of government.”
“Just because public officials are willing to violate the trust of the people they serve, doesn’t mean contractors can take advantage of their lack of integrity,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to make public corruption cases, and all of those involved, a priority. We ask anyone with information regarding such matters to contact their nearest FBI field office or resident agency.”
U.S. Attorney Christine commended the hard work and dedication of the FBI, which investigated the case. Special Agent Joshua Hayes led the FBI’s investigation.
Assistant United States Attorneys R. Brian Tanner and J. Thomas Clarkson prosecuted the case on behalf of the United States. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Champagne, Illinois, Resident Sentenced to One Year in Prison for Producing and Selling over 80,000 Homemade Tramadol Capsules to Customers Without Verifying PrescriptionsRead the Press Release
OWENSBORO, Ky. – A Champaign, Illinois, resident was sentenced today in United States District Court, by Chief Judge Joseph H. McKinley, to one year in prison, ordered to pay $950.00 restitution and ordered to pay a $5,000 fine for distribution of Tramadol, a Schedule IV controlled substance, introduction of misbranded drugs, and wire fraud, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
According to the plea agreement, Skyler Dean Prahl, 32, imported Tramadol powder from overseas and used an encapsulating machine to create Tramadol capsules. Tramadol is a synthetic opioid drug. For several years Prahl operated an online business marketing and selling Tramadol capsules and other substances to customers throughout the United States. Prahl sold well over 80,000 units of Tramadol to customers without inquiring or verifying that his customers had a valid prescription.
Prahl admitted that on August 31, 2015, he knowingly and intentionally possessed with the intent to distribute, and distributed Tramadol to an undercover agent.
He further admitted that on August 31, 2015, with the intent to mislead and defraud, he introduced a misbranded drug, Tramadol, into interstate commerce by shipping Tramadol from Champaign, Illinois, to Owensboro, Kentucky. The Tramadol was misbranded because its label failed to state the name and place of business of the manufacturer, packer, and distributor., and because it failed to bear adequate directions for use.
Lastly, Prahl admitted that between January 28, 2016, and March 5, 2016, he devised a wire fraud scheme. Specifically, Prahl used email to promise to deliver at least 3,000 Tramadol capsules to “Michael Riley” in return for $950, but failed to deliver the Tramadol capsules even after receiving the funds.
This case was prosecuted by Assistant United States Attorney David R. Weiser and was investigated by the U.S. Food & Drug Administration - Office of Criminal Investigation (Owensboro, Kentucky, domicile) with assistance from the United States Postal Inspection Service (Evansville, Indiana, domicile) and DEA Diversion (Springfield, Illinois, Resident Office), and the Kentucky State Police, DESI-East.
Buffalo Man Indicted on Heroin ChargeRead 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 a federal grand jury has returned an indictment charging Emmanuel Lopez, 27, of Buffalo, NY, with possession with intent to distribute, and distribution of, 100 grams or more of heroin and 40 grams or more of fentanyl. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the indictment and a previously filed complaint, between 2016 and December 5, 2017, the defendant sold heroin and fentanyl in the Buffalo area. In October, 2017, the ICE-HSI Border Enforcement Security Team (BEST) conducted a controlled purchase from Lopez. During the buy, the defendant turned over 24 small yellow bags which later tested positive for heroin, fentanyl, and tramadol.
The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, Border Enforcement Security Team, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Brooke County woman sentenced for embezzling from credit unionRead the Press Release
WHEELING, WEST VIRGINIA – Michelle K. Martin, of Wellsburg, West Virginia, was sentenced today to 24 hours incarceration and five years of supervised release for taking more than $82,000 from a local credit union, United States Attorney Bill Powell announced.
Martin, age 46, pled guilty to one count of “Theft, Embezzlement or Misapplication by Credit Institution Employee” in December 2017. Martin admitted to embezzling approximately $82,000 from the Strip Steal Community Federal Credit Union in Brooke County from October 2016 to May 2017.
Martin was also ordered to pay $82,000 in restitution for the crime.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Bison Protestors Enter Guilty Pleas at the Yellowstone Justice CenterRead the Press Release
Cody J. Cyson, of Minnetonka, Minnesota and Thomas L. Brown of East Hardwick, Vermont, each entered guilty pleas today in US District Court at the Yellowstone Justice Center in Mammoth, Wyoming, to the charges of entering a closed area in Yellowstone National Park and interference with an agency function. Both subjects had been charged on March 6, 2018. Cyson received a sentence of six days in jail with credit for time served, a $250.00 fine on the charge of entering a closed area and a $250.00 fine on the charge of interference with an agency function, a $500.00 community service payment and $50.00 in special assessment. Brown received an identical sentence. Both Cyson and Brown are banned from entry into Yellowstone National Park for a period of five years and will serve five years of unsupervised probation.
Hanna F. Ponder, of Donnelly, Idaho, pleaded guilty to one charge of entering a closed area and was sentenced to six days in jail with credit for time served, fined $500.00, a $500.00 community service payment, $40.00 in special assessment, and banned from Yellowstone National Park for five years and five years of unsupervised probation. She had been charged on March 6, 2018 for entering the bison closure are in the Reese Creek drainage of the park.
All three defendants appeared before and were sentenced by US Magistrate Judge Mark L. Carman.
Beam Bros. Trucking Inc. and Its Principals Agree to Settle Civil False Claims Act AllegationsRead the Press Release
Beam Bros. Trucking Inc. (BBT), and its principals Gerald Beam and Garland Beam, have agreed to pay $1,025,000 to resolve allegations under the False Claims Act that BBT overcharged the U.S. Postal Service (USPS) on contracts to transport mail. BBT is a trucking company located in Mt. Crawford, Virginia.
“The Department of Justice takes seriously its role in protecting the federal procurement process from false claims,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement demonstrates that we will hold accountable federal contractors engaging in fraud, and will ensure that federal funds are protected from overcharges and abuse.”
“We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative team for both protecting the contracting process and overall program costs,” said Special Agent in Charge Scott Pierce of the U.S. Postal Service Office of Inspector General. “Along with our law enforcement partners, the USPS OIG will continue to aggressively investigate those who engage in activities designed to defraud the Postal Service.”
“Contractors working for the federal government are held to the same high ethical standards as full-time employees,” U.S. Attorney for the District of New Jersey Craig Carpenito said. “This settlement will return more than $1 million to the USPS.”
USPS contracts with trucking companies, including BBT, to transport mail throughout the United States. On some contracts, USPS had provided trucking contractors with credit cards, known as Voyager Cards, to pay for fuel. This settlement resolves allegations that BBT misused Voyager Cards to purchase fuel on contracts that did not allow for their use, resulting in inflated charges in violation of the False Claims Act.
The settlement resolves allegations made in lawsuit filed under the whistleblower provision of the False Claims Act by Bobby Blizzard, a former BBT employee. The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. Mr. Blizzard’s share of the recovery has yet to be determined.
The settlement was the result of a coordinated effort between the United States Attorney’s Office for the District of New Jersey, the Civil Division of the Department of Justice, and the USPS, Office of the Inspector General.
The lawsuit, which was filed in the District of New Jersey, is captioned United States ex rel. Doe v. Beam Bros. Trucking, Inc., Civil Action No. 10-657 (D.N.J.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Beam Bros. Trucking Inc. and Its Principals Agree to Settle Civil False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – Beam Bros. Trucking Inc. (BBT), and its principals Gerald Beam and Garland Beam, have agreed to pay $1,025,000 to resolve allegations under the False Claims Act that BBT overcharged the U.S. Postal Service (USPS) on contracts to transport mail. BBT is a trucking company located in Mt. Crawford, Virginia.
“Contractors working for the federal government are held to the same high ethical standards as full-time employees,” U.S. Attorney for the District of New Jersey Craig Carpenito said. “This settlement will return more than $1 million to the USPS.”
“The Department of Justice takes seriously its role in protecting the federal procurement process from false claims,” Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division said. “This settlement demonstrates that we will hold accountable federal contractors engaging in fraud, and will ensure that federal funds are protected from overcharges and abuse.”
“We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative team for both protecting the contracting process and overall program costs,” Special Agent in Charge Scott Pierce of the U.S. Postal Service Office of Inspector General, said. “Along with our law enforcement partners, the USPS OIG will continue to aggressively investigate those who engage in activities designed to defraud the Postal Service.”
USPS contracts with trucking companies, including BBT, to transport mail throughout the United States. On some contracts, USPS had provided trucking contractors with credit cards, known as Voyager Cards, to pay for fuel. This settlement resolves allegations that BBT misused Voyager Cards to purchase fuel on contracts that did not allow for their use, resulting in inflated charges in violation of the False Claims Act.
The settlement resolves allegations made in lawsuit filed under the whistleblower provision of the False Claims Act by Bobby Blizzard, a former BBT employee. The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. Mr. Blizzard’s share of the recovery has yet to be determined.The settlement was the result of a coordinated effort between the United States Attorney’s Office for the District of New Jersey, the Civil Division of the Department of Justice, and the USPS, Office of the Inspector General. The government is represented by Assistant U.S. Attorney Frances Bajada, District of New Jersey, and Trial Attorney Gregory Pearson, Commercial Litigation Branch, Civil Division, U.S. Department of Justice.
The lawsuit, which was filed in the District of New Jersey, is captioned United States ex rel. Doe v. Beam Bros. Trucking, Inc., Civil Action No. 10-657 (D.N.J.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.Auburn Man Charged with Ecstacy and Marijuana TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Tyler Poland, 31, of Auburn, Maine, was arrested and charged by a criminal complaint unsealed today in U.S. District Court with illegal Ecstasy and marijuana trafficking.
According to the complaint, the charges arose from an investigation into a drug trafficking organization located in the Lewiston-Auburn area that is alleged to have grown and distributed large quantities of marijuana in violation of federal law, and under the cover of, but in violation of, Maine’s Medical Marijuana program. The organization cultivated marijuana at numerous warehouses in Androscoggin County and distributed marijuana to people who were not participants in Maine’s Medical Marijuana program, including out-of-state customers, On February 27, 2018, federal, state and local law enforcement agents executed over 20 search warrants in the Lewiston-Auburn area. The defendant’s Merrow Road residence and warehouses were searched. Agents seized about 608 marijuana plants, 366 pounds of processed marijuana, hundreds of Ecstasy pills (weighing more than a kilogram), hundreds of alprazolam pills, and over $156,000.
If convicted, the defendant faces up to 20 years in prison and a $1,000,000 fine.
The defendant is expected to make an initial appearance in U.S. District Court today at 3:30 p.m. in Portland.
The investigation is being conducted by the U.S. Drug Enforcement Administration; the Internal Revenue Service, Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Maine State Police; and the Lewiston, Auburn, Windham, Biddeford and Scarborough Police Departments.
A criminal complaint is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law
Attorney General Sessions Appoints Six Additional Members to U.S. Attorney Advisory CommitteeRead the Press Release
Attorney General Jeff Sessions announced the appointment of six new U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC), joining the nine members announced on November 13, 2017. The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. It represents the U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management affecting the Offices of the U.S. Attorneys.
The new appointees are U.S. Attorney for the Northern District of Texas Erin Nealy Cox; U.S. Attorney for the Eastern District of New York Richard P. Donoghue; U.S. Attorney for the Middle District of Alabama Louis V. Franklin, Sr.; U.S. Attorney for the Northern District of Illinois John R. Lausch, Jr.; U.S. Attorney for the District of Massachusetts Andrew E. Lelling; and U.S. Attorney for the District of Delaware David C. Weiss.
“I am pleased to announce these new members of the Attorney General’s Advisory Committee. The Advisory Committee plays an important role in helping us achieve the Department of Justice’s goals, including to reduce violent crime, combat transnational criminal organizations, secure our southern border, end the devastating opioid crisis, and enforce the rule of law,” said Attorney General Sessions.
A brief biography of each new member is below:
Erin Nealy Cox
The Senate confirmed Erin Nealy Cox’s appointment as United States Attorney for the Northern District of Texas in November 2017. Prior to this appointment, Ms. Nealy Cox was a Senior Advisor at McKinsey & Co in the cybersecurity and risk practice and on the Board of Directors of Sally Beauty Holdings, a large retailer on the NYSE. From 1999 to 2008, Ms. Nealy Cox served as an Assistant United States Attorney in the Northern District of Texas, where she prosecuted cyber crimes, white collar crimes, and general crimes. In 2004 and 2005, she served at Main Justice as Chief of Staff and Senior Counsel to the Assistant Attorney General in the Office of Legal Policy. Ms. Nealy Cox also previously worked at Stroz Friedberg, a cybersecurity and investigations consulting firm. Ms. Nealy Cox clerked for the Honorable Henry A. Politz, when he served as Chief Judge of the Fifth Circuit Court of Appeals, and the Honorable Barefoot Sanders, United States District Judge in the Northern District of Texas. She received a B.B.A in Finance from the McCombs School of Business at the University of Texas at Austin and her J.D., magna cum laude, from Southern Methodist University Dedman School of Law.
Richard P. Donoghue
On January 5, 2018, the Attorney General appointed Richard P. Donoghue to be interim United States Attorney for the Eastern District of New York. Prior to this appointment, Mr. Donoghue served as the Senior Vice President and Chief Counsel for CA Technologies based in New York. From 2000 to 2011, Mr. Donoghue worked in the United States Attorney’s Office for the Eastern District of New York in various roles, including Criminal Chief and Deputy Criminal Chief. Mr. Donoghue received his B.A., cum laude, from Hofstra University and his J.D., from St. John’s University School of Law.
Louis V. Franklin, Sr.
The Senate confirmed Louis V. Franklin, Sr. to be United States Attorney for the Middle District of Alabama in September 2017. Mr. Franklin has served in the United States Attorney’s Office for the Middle District of Alabama for nearly 27 years, including as Criminal Chief for almost 16 years. Mr. Franklin served as an Assistant United States Attorney from 1990 to 1996 and from 1998 to 2001. From 1996 to 1998, Mr. Franklin was an associate at Sirote and Permutt. Mr. Franklin began his career as a staff attorney at the Legal Services Corporation of Alabama from 1987 to 1990. Mr. Franklin received his B.A. from the University of Alabama, an M.S. from Auburn University at Montgomery, and his J.D. from Howard University School of Law.
John R. Lausch, Jr.
The Senate confirmed John R. Lausch, Jr.’s appointment as United States Attorney for the Northern District of Illinois in November 2017. Prior to his appointment, Mr. Lausch was a partner at Kirkland & Ellis LLP. Previously, he served as an Assistant United States Attorney in the Northern District of Illinois from 1999 to 2010. During his time in the U.S. Attorney’s Office, Mr. Lausch served as a Deputy Chief in the Narcotics and Gangs Section for several years, where he helped lead the District’s Anti-Gang and Project Safe Neighborhoods programs. Mr. Lausch clerked for the Honorable Michael S. Kanne of the United States Court of Appeals for the Seventh Circuit. He received his A.B., cum laude, from Harvard University and his J.D., cum laude, from Northwestern University School of Law.
Andrew E. Lelling
The Senate confirmed Andrew E. Lelling’s appointment as United States Attorney for the District of Massachusetts in December 2017. Prior to this appointment, Mr. Lelling was the senior litigation counsel for the United States Attorney’s Office for the District of Massachusetts and has worked in that office for 12 years, prosecuting white collar crime and international drug trafficking, among other offenses. Mr. Lelling also served as an Assistant United States Attorney in the Eastern District of Virginia. He previously served as counsel to the Assistant Attorney General at the Department of Justice Civil Rights Division. Mr. Lelling clerked for the Honorable B. Avant Edenfield of the United States District Court for the Southern District of Georgia. He received his B.A., magna cum laude, from the State University of New York at Binghamton and his J.D., cum laude, from the University of Pennsylvania Law School.
David C. Weiss
David C. Weiss’s nomination to be United States Attorney for the District of Delaware was confirmed in February. Mr. Weiss previously served as the Acting United States Attorney for the District of Delaware from 2009 to 2011 and 2017 to 2018, and as the First Assistant United States Attorney from 2007 to 2017. Prior to serving in these positions, Mr. Weiss was an Assistant United States Attorney from 1986 to 1989. Mr. Weiss clerked for the Honorable Andrew D. Christie of the Delaware Supreme Court. Mr. Weiss received his B.S. from Washington University and his J.D. from Widener University School of Law.Attorney General Sessions Appoints Six Additional Members to U.S. Attorney Advisory CommitteeRead the Press Release
WASHINGTON - Attorney General Jeff Sessions announced the appointment of six new U.S. Attorneys to serve two-year terms on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC), joining the nine members announced on November 13, 2017. The AGAC was created in 1973 and reports to the Attorney General through the Deputy Attorney General. It represents the U.S. Attorneys and provides advice and counsel to the Attorney General on matters of policy, procedure, and management affecting the Offices of the U.S. Attorneys.
The new appointees are U.S. Attorney for the Northern District of Texas Erin Nealy Cox; U.S. Attorney for the Eastern District of New York Richard P. Donoghue; U.S. Attorney for the Middle District of Alabama Louis V. Franklin, Sr.; U.S. Attorney for the Northern District of Illinois John R. Lausch, Jr.; U.S. Attorney for the District of Massachusetts Andrew E. Lelling; and U.S. Attorney for the District of Delaware David C. Weiss.
“I am pleased to announce these new members of the Attorney General’s Advisory Committee. The Advisory Committee plays an important role in helping us achieve the Department of Justice’s goals, including to reduce violent crime, combat transnational criminal organizations, secure our southern border, end the devastating opioid crisis, and enforce the rule of law,” said Attorney General Sessions.
A brief biography of each new member is below:
Erin Nealy Cox
The Senate confirmed Erin Nealy Cox’s appointment as United States Attorney for the Northern District of Texas in November 2017. Prior to this appointment, Ms. Nealy Cox was a Senior Advisor at McKinsey & Co in the cybersecurity and risk practice and on the Board of Directors of Sally Beauty Holdings, a large retailer on the NYSE. From 1999 to 2008, Ms. Nealy Cox served as an Assistant United States Attorney in the Northern District of Texas, where she prosecuted cyber crimes, white collar crimes, and general crimes. In 2004 and 2005, she served at Main Justice as Chief of Staff and Senior Counsel to the Assistant Attorney General in the Office of Legal Policy. Ms. Nealy Cox also previously worked at Stroz Friedberg, a cybersecurity and investigations consulting firm. Ms. Nealy Cox clerked for the Honorable Henry A. Politz, when he served as Chief Judge of the Fifth Circuit Court of Appeals, and the Honorable Barefoot Sanders, United States District Judge in the Northern District of Texas. She received a B.B.A in Finance from the McCombs School of Business at the University of Texas at Austin and her J.D., magna cum laude, from Southern Methodist University Dedman School of Law.
Richard P. Donoghue
On January 5, 2018, the Attorney General appointed Richard P. Donoghue to be interim United States Attorney for the Eastern District of New York. Prior to this appointment, Mr. Donoghue served as the Senior Vice President and Chief Counsel for CA Technologies based in New York. From 2000 to 2011, Mr. Donoghue worked in the United States Attorney’s Office for the Eastern District of New York in various roles, including Criminal Chief and Deputy Criminal Chief. Mr. Donoghue received his B.A., cum laude, from Hofstra University and his J.D., from St. John’s University School of Law.
Louis V. Franklin, Sr.
The Senate confirmed Louis V. Franklin, Sr. to be United States Attorney for the Middle District of Alabama in September 2017. Mr. Franklin has served in the United States Attorney’s Office for the Middle District of Alabama for nearly 27 years, including as Criminal Chief for almost 16 years. Mr. Franklin served as an Assistant United States Attorney from 1990 to 1996 and from 1998 to 2001. From 1996 to 1998, Mr. Franklin was an associate at Sirote and Permutt. Mr. Franklin began his career as a staff attorney at the Legal Services Corporation of Alabama from 1987 to 1990. Mr. Franklin received his B.A. from the University of Alabama, an M.S. from Auburn University at Montgomery, and his J.D. from Howard University School of Law.
John R. Lausch, Jr.
The Senate confirmed John R. Lausch, Jr.’s appointment as United States Attorney for the Northern District of Illinois in November 2017. Prior to his appointment, Mr. Lausch was a partner at Kirkland & Ellis LLP. Previously, he served as an Assistant United States Attorney in the Northern District of Illinois from 1999 to 2010. During his time in the U.S. Attorney’s Office, Mr. Lausch served as a Deputy Chief in the Narcotics and Gangs Section for several years, where he helped lead the District’s Anti-Gang and Project Safe Neighborhoods programs. Mr. Lausch clerked for the Honorable Michael S. Kanne of the United States Court of Appeals for the Seventh Circuit. He received his A.B., cum laude, from Harvard University and his J.D., cum laude, from Northwestern University School of Law.
Andrew E. Lelling
The Senate confirmed Andrew E. Lelling’s appointment as United States Attorney for the District of Massachusetts in December 2017. Prior to this appointment, Mr. Lelling was the senior litigation counsel for the United States Attorney’s Office for the District of Massachusetts and has worked in that office for 12 years, prosecuting white collar crime and international drug trafficking, among other offenses. Mr. Lelling also served as an Assistant United States Attorney in the Eastern District of Virginia. He previously served as counsel to the Assistant Attorney General at the Department of Justice Civil Rights Division. Mr. Lelling clerked for the Honorable B. Avant Edenfield of the United States District Court for the Southern District of Georgia. He received his B.A., magna cum laude, from the State University of New York at Binghamton and his J.D., cum laude, from the University of Pennsylvania Law School.
David C. Weiss
David C. Weiss’s nomination to be United States Attorney for the District of Delaware was confirmed in February. Mr. Weiss previously served as the Acting United States Attorney for the District of Delaware from 2009 to 2011 and 2017 to 2018, and as the First Assistant United States Attorney from 2007 to 2017. Prior to serving in these positions, Mr. Weiss was an Assistant United States Attorney from 1986 to 1989. Mr. Weiss clerked for the Honorable Andrew D. Christie of the Delaware Supreme Court. Mr. Weiss received his B.S. from Washington University and his J.D. from Widener University School of Law.Attorney General Sessions Announces New Actions to Improve School Safety and Better Enforce Existing Gun LawsRead the Press Release
Today, Attorney General Jeff Sessions announced several steps in support of President Trump’s plan to prevent violence in schools. Through these efforts, the Department of Justice is taking immediate action to protect our schools, better enforce our gun laws, support law enforcement, strengthen the firearms background check system, and improve federal law enforcement’s response to tips. In making the announcement, Attorney General Sessions said:
"No child should have to fear going to school or walking the streets of their neighborhood. Today, I am directing the Department of Justice to take a number of new steps that will help make schools and the American people safer from the threat of gun violence.”
“We are increasing the number of school resource officers, improving background checks and more aggressively prosecuting those who illegally attempt to purchase a firearm, and reviewing and enhancing the way our law enforcement agencies respond to tips from the public. Under my tenure as Attorney General, we have already increased federal gun prosecutions to a 10-year high—and we are just getting started. With these new measures in place, we are better positioned to disarm criminals and protect the law-abiding people of this country."
The Attorney General announced the following actions:
Improvements to School Safety
- Hire More School Resource Officers. The Department will help state, local and tribal law enforcement agencies hire more School Resource Officers (SROs). The COPS Hiring Program—a competitive grant that helps states and local communities hire more police officers—will prioritize applicants who intend to use the grants for SROs.
- Provide Support For Firearms and Situational Awareness Training to School and Law Enforcement Personnel. By leveraging existing assistance programs, the Department will be able to empower state and local firearms and situational awareness training for school personnel. The Department will continue to provide emergency and crisis training to state, local, and tribal law enforcement through its National Training and Technical Assistance Center and VALOR initiative.
- Fully Participate in the Federal Commission on School Safety. The Department of Justice is committed to working with our federal partners to study, evaluate, and make recommendations on how we can improve school safety.
Aggressively Prosecuting Federal Gun Laws
- Bump Stocks. The Department of Justice is supporting President Trump’s absolute commitment to ensuring the safety and security of every American by submitting to the Office of Management and Budget a proposed regulation to clarify that bump stock type devices are machine guns under federal law, which will effectively ban the manufacture, sale or possession of these devices.
- Swift and aggressive “Lie-and-Try” Prosecutions. Attorney General Sessions has ordered federal prosecutors to swiftly and aggressively prosecute appropriate cases against people who are prohibited from having firearms, and who lie in an attempt to thwart the federal background check system.
- Continue to Increase Violent Crime Prosecutions. In 2017 the Department made some great strides under Attorney General Sessions' leadership, including the launch of the enhanced Project Safe Neighborhoods initiative, which brings together all levels of law enforcement and the communities they serve to develop effective, locally based strategies to reduce violent crime. Under this direction, the Department prosecuted more defendants on federal firearms charges than we have in a decade, and more defendants for violent crime than we have in over 25 years – since the Department started tracking a “violent crime” category. Attorney General Sessions is dedicated to ensuring even more violent crime prosecutions, including firearms prosecutions, in 2018.
Supporting Law Enforcement
- Providing Emergency Funding for the Costs of Parkland, Florida Law Enforcement Response. The Department of Justice will provide $1 million in emergency grant funding to the State of Florida to pass through to Broward County and other responding jurisdictions’ law enforcement components. The emergency funding is intended to defray the law enforcement overtime costs related to the response and subsequent crime scene investigation of the tragic shooting at Marjory Stoneman Douglas High School.
Improving Information Available for Firearm Background Checks
- Holding Federal Agencies Accountable. Federal agencies are required by law to report to the National Instant Criminal Background Check System (NICS) relevant records relating to individuals prohibited from possessing a firearm under federal law. Pursuant to his authority, Attorney General Sessions is calling on all relevant agencies to certify within 45 days that they are in full compliance with the law or have a plan to become fully compliant.
- Strengthening Partnerships with State and Local Law Enforcement. The Attorney General is calling on governors and state Attorneys General to improve the reporting of state and local criminal justice data, and other information accessed by the firearms background check system. Because the FBI has identified “missing dispositions” – or arrest records that lack a final disposition – as a significant issue, the Attorney General will provide every state with their respective level of disposition completion with the goal of urging those states who do not have an adequate level of reporting to focus on this issue and improve their reporting.
- Attorney General Sessions has also directed the FBI to identify local jurisdictions that are not reporting arrests to their state repositories as well as jurisdictions that are not providing all of their records identifying persons prohibited from possessing firearms for mental health reasons.
- Improving Access to State Mental Health and Domestic Violence Records. Through the National Criminal History Improvement Program (NCHIP) and NICS Act Records Improvement Program (NARIP) grants, the Department will help states provide more complete, timely, and accurate information to databases accessed by the firearms background check system. The Attorney General has ordered that priority be given to projects that improve accessibility of criminal history records, domestic violence convictions, and information on persons who are prohibited from possessing firearms for mental-health related reasons.
Enhancements to Department Response to Public Information
- Reviewing and reforming the process for handling tips. Attorney General Sessions has ordered an immediate review of the Department’s handling of tips from the public so that they receive prompt and effective responses, especially when doing so could prevent violence.
Technical Assistance to States
- Extreme Risk Protection Orders. The Department stands ready to assist States, at their request, on establishing and implementing extreme risk protection orders.
Click here to view the Attorney General’s memo to the Director of the FBI on Improving State Information sharing.
Click here to view the Attorney General’s memo to US Attorneys on Enforcing Federal Law Against Prohibited Persons Attempting to Purchase Firearms.
Click here to view the Executive Summary of the report provided to the Attorney General in response to his November 22, 2017 Directive to Review NICS.
Associate of La Cosa Nostra Sentenced for Extortion-Related ChargesRead the Press Release
BOSTON – An associate of the Genovese La Cosa Nostra (LCN) crime family was sentenced today in federal court in Worcester on extortion-related charges.
Gerald Daniele, 53, of Longmeadow, Mass., was sentenced by U.S. District Court Judge Timothy S. Hillman to two years in prison and three years of supervised release. In December 2017, Daniele pleaded guilty to one count of using extortionate means to collect an extension of credit.
Daniele and co-defendants Ralph Santaniello, John Calabrese, Francesco Depergola, and Richard Valentini were associates of the New York-based Genovese LCN crime family and engaged in various criminal activities in the Springfield, Mass., area including loansharking and extortion from legitimate and illegitimate businesses, such as illegal gambling businesses and the collection of unlawful debts. Daniele admitted that he used violence, exploited his relationship with LCN, and implied threats of physical violence to instill fear in his victims.
Daniele further admitted that during a six-month period in 2015, he extended two extortionate and usurious loans to an individual, and then, along with Santaniello and Calabrese, threatened the individual if he did not make payments on the loans.
Santaniello, Calabrese, and Depergola pleaded guilty to extortion-related crimes. Their sentencings are scheduled for March 20, April 2, and May 11, 2018, respectively. In December 2017, Valentini was convicted by a federal jury of extortion and conspiracy to commit extortion; his sentencing is also scheduled for May 11, 2018.
United States Attorney Andrew E. Lelling; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Hampden County District Attorney Anthony Gulluni; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Kevin O’Regan, Chief of Lelling’s Springfield Branch Office; Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section; and Assistant U.S. Attorney Katharine Wagner of Lelling’s Springfield Branch Office are prosecuting the case.
Armed Career Criminal from Albuquerque Sentenced to Twenty Years for Federal Firearms and Assault ConvictionsRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Deputy U.S. Marshal Brent Broshow announced today that Nathan Jensen, a 35-year-old armed career criminal from Albuquerque, N.M., was sentenced to 20 years of imprisonment for convictions in two federal cases, and violating the conditions of supervised release in a third case.
Chief U.S. District Judge William P. Johnson sentenced Jensen to an aggregate of 20 years of imprisonment in the following three separate cases late on Friday afternoon (March 9, 2018), after Jensen entered a guilty plea to assaulting a federal officer:
- In the first case, in which Jensen was convicted of being a felon in possession of a firearm, Judge Johnson sentenced Jensen to a mandatory minimum sentence of 15 years of imprisonment. This enhanced sentence was required by Jensen’s status as an armed career criminal and means that Jensen had at least three prior convictions for violent felonies and serious drug offenses when he committed the current offense of conviction.
- In the second case, in which Jensen was convicted of assaulting a federal officer, Judge Johnson sentenced Jenson to 100 months of imprisonment, including 48 months to be served consecutive to the 15-year prison sentence and 52 months to be served concurrent.
- In the third case, in which Jensen admitted violating the conditions of his supervised release on a prior federal felon in possession of a firearm conviction, Judge Johnson sentenced Jensen to 24 months of imprisonment including 12 months consecutive to the 15-year prison sentence and 12 months to be served concurrent.
- Jensen will be on supervised release for three years after completing his prison sentence.
In announcing the sentence, U.S. Attorney Anderson said, “At the age of 35, Nathan Jensen has been involved in the criminal justice system for more than two decades and is a prime example of the violent, repeat offender who needs to be removed from our community. Jensen reoffended less than three weeks after his release from a lengthy federal prison sentence and while still under federal supervision. While awaiting sentencing for that crime, Jensen violently assaulted a federal officer. This prosecution and the sentence will make our community safer.”
“This sentence ensures that Nathan Jensen, an armed career criminal, will spend many years behind bars for assaulting a federal officer,” said ATF Special Agent in Charge Durastanti. “Jensen is a serial offender who has been removed from the community, along with any danger that could result from his actions. The brave men and women of law enforcement risk their lives every day to protect us, and ATF will continue to vigorously pursue anyone who attempts to do them harm.”
“The U.S. Marshals Service is dedicated to removing violent criminals from our communities,” said Chief Deputy U.S. Marshal Broshow. “We work with our local, state, and federal partners on a daily basis to accomplish our mission. Putting career criminals like Jensen behind bars makes our community a safer place to live.”
ATF and the U.S. Marshals Service arrested Jensen in May 2016, on a criminal complaint charging him with being a felon in possession of a firearm. Jensen committed the offense while on supervised release from a prior federal felon in possession of a firearm conviction.
The Court issued a warrant for Jensen’s arrest on May 4, 2016, based on a U.S. Probation Office petition, which stated that Jensen had been released from the custody of the U.S. Bureau of Prisons on April 25, 2016, after completing an 84-month prison sentence. Jensen was to report to his probation officer and a halfway house at which he was to reside for up to six-months. Jensen failed to report either to his probation officer or to the halfway house, and the U.S. Marshals Service’s Southwest Investigative Fugitive Team (USMS-SWIFT) arrested Jensen on the warrant on May 16, 2016.
Jensen subsequently was indicted on June 14, 2016, and was charged with being a felon in possession of a firearm. On Feb. 27, 2017, Jensen pled guilty to the indictment and admitted that he unlawfully was in possession of a firearm and ammunition on May 16, 2016, when the USMS-SWIFT arrested him for violating the conditions of his supervised release.
On Sept. 21, 2017, Jensen was charged in a second indictment with assaulting a federal employee. The indictment was superseded on Dec. 13, 2017, to add Waldo Nahle, 36, of Albuquerque, as a co-defendant. According to the superseding indictment, Jensen and Nahle assaulted a federal employee who was engaged in the performance of his official duties in the Sandoval County Detention Center on May 11, 2017.
Before his sentencing hearing, Jensen pled guilty to the superseding indictment charging him with assaulting a federal employee. In entering the guilty plea, Jensen admitted that on May 11, 2017, while detained at the Sandoval County Detention Center and awaiting sentencing on his firearms guilty plea, he assaulted a federal employee by repeatedly punching him in the face and head while other inmates restrained him. Jensen acknowledged that the victim sustained serious injuries as the result of the assault.
Nahle has entered a plea of not guilty to the charge in the superseding indictment and is currently scheduled for trial in June 2018. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law.
The firearms case was investigated by the Albuquerque office of ATF and the USMS-SWIFT with assistance from the U.S. Probation Office, and the assault case was investigated by the USMS. Assistant U.S. Attorney Eva M. Fontanez prosecuted Jensen under a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.