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Friday 9 March 2018
Lincoln Resident Sentenced for Conspiracy to Distribute Drugs and Conspiracy to Launder MoneyRead the Press Release
United States Attorney Joseph P. Kelly announced that on March 9, 2018, Aurelio Martinez Rodriguez, 45, a Mexican national who resided in Lincoln, was sentenced to concurrent prison sentences of nine years, (108 months), for conspiracy to distribute methamphetamine and cocaine and for conspiracy to money launder. Following the prison term, Martinez will serve five years on supervised release. However, he is likely to be deported to Mexico at the conclusion of his prison sentence.
Information provided to law enforcement indicated that between May of 2014 and April of 2017, Martinez was involved in the distribution of methamphetamine and cocaine, which was transported by other members of the conspiracy from Texas to Lincoln, Nebraska. Martinez also helped launder money by depositing cash proceeds from the sale of methamphetamine and cocaine into bank accounts in Lincoln held by other members of the conspiracy who would then withdraw the funds in Texas. Martinez was held responsible for the distribution of at least 150 grams (approximately 5¼ ounces) of pure methamphetamine, at least 1.5 kilograms (approximately 3 pounds) of methamphetamine mixture and at least two kilograms (over 4 pounds) of cocaine. During a search of Martinez’s residence on April 24, 2017, officers found over 190 grams (6¾ ounces) of pure methamphetamine, over 168 grams (6 ounces) of methamphetamine mixture, and over 280 grams (10 ounces) of cocaine, along with a scale and packaging materials.
Martinez agreed to the forfeiture of a credit union account containing more than $11,500, and surrendered an additional $25,000 in return for the government’s agreement not to seek forfeiture of his Lincoln residence.
This case was investigated by the Lincoln/Lancaster County Drug Task Force; the Nebraska State Patrol; the Federal Bureau of Investigation (FBI); the Drug Enforcement Administration (DEA); Homeland Security Investigations (HSI) and the United States Marshals Service.
Lee's Summit Man Sentenced for Distributing Child PornographyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man was sentenced in federal court today for distributing child pornography over the Internet.
Clark H. Henshaw, 37, of Lee’s Summit, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
On June 9, 2017, Henshaw pleaded guilty to one count of distributing child pornography over the Internet.
The investigation began in July 2013 when federal agents contacted a man in Bangor, Maine, who was trading child pornography on a photo-sharing website. Henshaw was identified as one of his primary trading partners to whom he sent images and videos of his sexual abuse of two 6-to-7-year-old boys. Each of those trading partners, he told federal agents, also claimed to have manufactured the child pornography they were sending to him.
Clark received 34 images of child pornography from his trading partner in Maine, including several images of him sexually molesting two prepubescent boys. Investigators learned that Henshaw sent two e-mail messages to other individuals on Aug. 20, 2013, that contained some of those images of child pornography.
On Feb. 13, 2014, federal agents executed a search warrant at Henshaw’s residence. Henshaw and his mother were home during the execution of the search warrant, however, agents had to force entry because no one would answer the door. They seized Henshaw’s cell phone, which contained 10 child pornography movie file downloads.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
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."
Last member of drug conspiracy arrested at Bossier City casino sentenced to 10 years in prisonRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that the last defendant in a Shreveport methamphetamine distribution ring was sentenced Thursday to 120 months in prison.
Carlos Delarosa, 22, of Dallas, Texas, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of drug trafficking. He was also sentenced to five years of supervised release.
According to the guilty pleas, Delarosa traveled on March 29, 2017 from Dallas to Shreveport with 454 grams of methamphetamine. He distributed some of the methamphetamine to co-defendant Christopher Hudson, 22, of Greenwood, La. Hudson later traveled to a Shreveport casino and was arrested. After a brief investigation, law enforcement agents arrested Delarosa in addition to co-defendants Amone Louangamath, 42, of Shreveport, La., and Daniel Koelemay, 41, of Bossier City, La., at a casino in Bossier City. Upon Delarosa’s arrest, agents found a drug ledger inside his front right pants pocket. Agents found Louangamath carrying a black bag that contained methamphetamine in clear plastic bags, two cell phones, digital scales and $3,250. Agents also found 196.9 grams of methamphetamine, 33.7 grams of powder cocaine and a .9 mm Makarov semi-automatic handgun with seven rounds of ammunition in a safe in Delarosa’s hotel room. Delarosa admitted to transporting methamphetamine to Shreveport on five separate occasions. On three occasions, he told agents that he transported a total of 756 grams and on two occasions transported a total of 1 kilogram.
The three other defendants previously pleaded guilty to the conspiracy count. Koelmay and Hudson were each sentenced on November 20, 2017 to 46 months in prison and three years of supervised release. Louangamath was sentenced on February 28, 2018 to 37 months in prison and three years of supervised release.
The DEA and Caddo Parish Sheriff’s Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
Lakeville Man Indicted for Precious Metals Investment SchemeRead the Press Release
United States Attorney Gregory G. Brooker today announced the indictment of DAVID THOMAS ROUGIER, 45, on one count of mail fraud and one count of wire fraud. ROUGIER made his initial appearance yesterday before Magistrate Judge Franklin L. Noel in U.S. District Court in Minneapolis, Minn.
As alleged in the indictment, in or around late 2010, ROUGIER began soliciting clients to invest in precious metals by purchasing gold and silver through him. Between 2013 and 2014, ROUGIER began telling his victim-investors that he had found a company, which he identified as “TAUG Limited” (“TAUG”) that would guarantee to purchase their gold and silver for a set price on a designated future date, typically three years from the date they signed a contract with TAUG. ROUGIER presented some of his victim-investors with a purported contract between them and TAUG, under which they were charged various fees, including an annual “asset management fee,” typically between $1,000 and $2,000, in order to avail themselves of the guaranteed purchase price. In reality, the annual fees were always paid to ROUGIER and ROUGIER never purchased any gold or silver for his victim-investors.
As alleged in the indictment, in July 2017, ROUGIER represented that a different company, “Industrial and Commercial Bank of China (Asia) Limited” (“ICBC”), had taken over TAUG’s contracts. ROUGIER represented that ICBC would honor TAUG’s existing contracts and offered new clients essentially the same services.
As alleged in the indictment, between November 2010 and June 2017, more than a dozen individuals paid ROUGIER approximately $740,000 based upon his promises that he was using their money to buy gold and silver and, in some cases, that their investments were protected through the TAUG/ICBC contracts. Instead of purchasing gold and silver as promised ROUGIER spent hundreds of thousands of dollars of victims’ money on shopping trips, entertainment, travel, strip clubs and other personal expenses.
This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan is prosecuting the case.
Defendant information:
DAVID THOMAS ROUGIER, 45
Lakeville, Minn.
Charges:
- Mail Fraud, 1 count
- Wire Fraud, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Knoxville Resident Charged with Methamphetamine and Fentanyl Conspiracy Resulting in at Least One Overdose DeathRead the Press Release
KNOXVILLE, Tenn. – On March 6, 2018, a federal grand jury returned a four-count indictment against Ricky Davis, 44 of Knoxville, Tennessee, for his role in a conspiracy to distribute methamphetamine and fentanyl analogues resulting in the death of at least one person. Davis appeared in court on March 7, 2018, before U.S. Magistrate Judge H. Bruce Guyton and pleaded not guilty to the charges in the indictment. He was ordered to be held in custody pending a formal detention hearing.
Trial has been set for May 8, 2018, before the Honorable Pamela L. Reeves, U.S. District Court Judge. If convicted, Davis faces life in prison and fines of up to $20,000,000.
In addition to the conspiracy charge referenced above, the indictment alleges that Davis distributed a quantity of methamphetamine and fentanyl analogues that resulted in the death of at least one person, an additional distribution of methamphetamine, and possession of methamphetamine with the intent to distribute.
U.S. Attorney J. Douglas Overbey said, “As the opioid crisis continues, cheaper and more powerful opioid drugs, such as fentanyl, are increasingly being sought by those who became addicted to prescription opioids. These fentanyl drugs are especially deadly, whether taken alone or with other narcotics such as methamphetamine. Recent statistics provided by the AHIDTA Drug Related Death Task Force show that three to four individuals die from overdoses every week in the city of Knoxville alone. This must stop. My office will prosecute aggressively the drug dealers who market this deadly poison on our streets.”
“We appreciate the collaborative team effort that went into this investigation that resulted in the charges in this case,” said Knoxville Police Chief David Rausch. “The deaths associated with the opioid crisis continue to rise and we must hold those responsible for dealing these drugs accountable for their actions. Fentanyl and its derivatives are being combined in all drugs on the street and it is killing too many in our community and families are devastated. The message to the drug dealers should be clear, we will hold you accountable. We appreciate the full support of the U.S. Attorney in this effort,” added Chief Rausch.
This indictment is the result of an investigation by the Knoxville Police Department (KPD) and Appalachia HIDTA Drug Related Death Task Force. The task force includes members of the KPD, Drug Enforcement Administration, Knox County District Attorney’s Office, and Regional Forensic Center. Other components of the KPD, including members of the Violent Crimes Unit and the Patrol Division, as well as other agents of the DEA, also participated in the investigation. Assistant U.S. Attorney Tracy L. Stone will represent the United States in court proceedings.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
Jury Convicts Schenectady Man of ArsonRead the Press Release
ALBANY, NEW YORK – A jury today voted to convict Duane Griffin, age 35, of Schenectady, New York, of setting fire to a Union Street building, following a 4-day trial.
The announcement was made by United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The evidence at trial demonstrated that on March 17, 2012, Griffin, while in possession of a hand-held propane torch, climbed the fire escape of the building located at 605 Union Street in Schenectady and entered the building through either a second-story window or doorway. Once inside the building, Griffin used the torch to set the building on fire. Griffin then fled the scene in his pick-up truck – which was captured by nearby bank surveillance video. The resulting fire caused significant structural damage to the building, resulting in a finding that the building was a public safety hazard. The building was demolished a few days after the fire.
Griffin will be sentenced on July 6, 2018 by United States District Judge Mae A. D’Agostino. He faces at least 5 years and up to 20 years in prison and up to 3 years of post-imprisonment supervised release.
This case was investigated by the ATF and Schenectady Fire Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Inmate at FCIBerlin Pleads Guilty to Attempted Drug PossessionRead the Press Release
CONCORD –United States Attorney Scott W. Murray announced today that Antonio Priester, 37, an inmate at FCI-Berlin pleaded guilty to one count of attempting to possess prohibited objects within a federal prison. Priester admitted the prohibited objects he was attempting to possess were Schedule I controlled substances known as DMT and jwh-018.
According to documents filed with the court and statements made at the change of plea hearing, in March 2017 Priester sent a number of emails to several individuals directing them to websites through which the controlled substances could be obtained. He directed one individual to purchase jwh-018 from a particular website. Priester also provided directions for sneaking the substances into the prison.
A sentencing hearing is scheduled for June 15th, 2018 at the United States District Court. According to federal law, any sentence imposed in connection with this charge must be served consecutively to any sentence currently be served by Priester.
The Bureau of Prisons investigated this case. Assistant United States Attorney Donald A. Feith prosecuted the case.
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Immigration Attorney Sentenced to More Than Six Years in Prison for Fraud Scheme and Identity Theft in Relation to Visa ApplicationsRead the Press Release
An Indianapolis, Indiana immigration attorney was sentenced today to 75 months in prison for defrauding the U.S. Citizenship and Immigration Services (USCIS) and more than 250 of his clients by filing fraudulent visa applications and reaping approximately $750,000 in illegitimate fees. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge James M. Gibbons of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Chicago made the announcement.
Joel Paul, 45, of Fishers, Indiana, was sentenced by U.S. District Judge Jane E. Magnus-Stinson of the Southern District of Indiana. In addition to the prison sentence, Judge Magnus-Stinson sentenced Paul to serve three years of supervised release, and ordered that he pay up to $750,000 in restitution to his victims. In November 2017, Paul pleaded guilty to one count each of mail fraud, immigration document fraud, and aggravated identity theft in connection with a scheme to submit fraudulent U-visa applications.
“Immigration fraud undermines not only the public’s faith in our institutions and the legal profession, it also jeopardizes public safety and compromises national security,” said Acting Assistant Attorney General Cronan. “Attorneys who commit such egregious fraud on our legal system and their own clients will be held accountable.”
“Immigration fraud presents a serious threat to the national security of our country,” said Special Agent in Charge Gibbons. “Illegal schemes like this not only undermine the integrity of our nation’s legal immigration system, but they create potential security vulnerabilities while also cheating deserving immigrants of benefits they rightfully deserve.”
As part of his plea agreement, Paul admitted that from 2013 to 2017, he submitted more than 250 false Applications for Advance Permission to Enter as a Nonimmigrant on behalf of his clients and without their knowledge. Those applications falsely asserted that Paul’s clients had been victims of a crime and had provided substantial assistance to law enforcement in investigating the crime. With approximately 200 of the false applications, Paul submitted unauthorized copies of a certification he had obtained from the U.S. Attorney’s Office (USAO) for the Southern District of Indiana in 2013, using the certification without the USAO’s knowledge to falsely claim that the applicant had provided substantial assistance in a criminal prosecution. In total, Paul charged his clients approximately $3,000 per application.
HSI investigated the case with the assistance of USCIS Fraud Detection and National Security Directorate. Trial Attorneys Molly Gaston, Peter M. Nothstein and Amanda Vaughn of the Criminal Division’s Public Integrity Section prosecuted the case.
Illegal Alien Sentenced to Five Years for Possession of Loaded Firearms and Felony Assault on A Federal OfficerRead the Press Release
Orlando, Florida – U.S. District Court Judge Carlos E. Mendoza today sentenced Oniel Christopher Russell, a/k/a “O G Russell” (40, Jamaican national), to five years in federal prison for possessing two loaded firearms while being in the United States illegally, and for committing a felony assault on a federal law enforcement officer, causing bodily injury. A federal jury found Russell guilty on December 28, 2017, after a two-day trial.
According to testimony and evidence presented at trial, Russell last entered the United States on October 29, 2008, as a non-immigrant visitor for pleasure with subsequent authorization to remain within the United States only until January 3, 2009. However, Russell failed to depart the United States, and he remained without any lawful immigration status thereafter. On August 24, 2013, Orange County Sheriff’s deputies pulled Russell over for a traffic violation. They subsequently conducted a lawful search of his vehicle, where they discovered two loaded firearms, one in the glove compartment box, and another under the passenger seat. Russell confessed to possessing the firearm in the glove compartment, but denied knowledge of the other. He was charged by the State Attorney’s Office for carrying a concealed firearm.
In October of 2016, deportation officers with U.S. Immigration and Customs Enforcement were alerted to Russell’s presence in the United States when he placed a call to U.S. Citizenship and Immigration Services and made several threatening verbal statements. After verifying that he was in the United States illegally, on April 25, 2017, they located Russell and attempted to execute an administrative warrant for his arrest, during which he resisted and a federal officer suffered injuries to his shoulder and ankle.
At sentencing, the Court imposed an upward variance of 30 months, citing Russell’s apparent hatred for the United States, and law enforcement, his actions when arrested, and his lack of remorse or acceptance of responsibility. The Court also specifically noted that it also had taken into consideration the exhibits submitted into evidence by the United States, which included still shots and a transcription of the lyrics from Russell’s YouTube video on October 23, 2015, titled “Cop Killer.” In the still shots from the video, Russell could be seen brandishing a firearm, and mimicking one with his hand, while singing explicit lyrics.
“Russell’s sentence sends a clear message that assaulting a federal officer will not be tolerated and will be prosecuted to the fullest extent of the law. His actions on April 25th showed no respect or regard for our officers and his sentence was fitting of his crime,” said Marc Moore, field office director for U.S. Immigration and Customs Enforcement.
This case was primarily investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Orange County Sheriff’s Office, with assistance from U.S. Citizenship and Immigration Services, U.S. Customs and Border Protection, Homeland Security Investigations, and the Federal Protective Service. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, who is on assignment from ICE’s Office of the Principal Legal Advisor in the Middle District of Florida.
Houma Man Indicted for Receipt of Child PornographyRead the Press Release
THOMAS BROUSSARD (“BROUSSARD”), age 68, of Houma, Louisiana, was indicted today for receipt of child pornography, announced United States Attorney Duane A. Evans.
On January 23, 2018, law enforcement officers with the Louisiana Bureau of Investigation arrested BROUSSARD at his Houma home after finding that BROUSSARD was in possession of several items, including a laptop computer and thumb drive that contained images depicting the sexual victimization of prepubescent children.
U. S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, BROUSSARD faces a mandatory minimum penalty of five (5) years imprisonment up to twenty (20) years, followed by up to a life term of supervised release, and a $250,000.00 fine.
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 https://www.justice.gov/psc. For more information about internet safety education, please visit https://www.justice.gov/psc and click on the tab "resources."
U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Bureau of Investigation, and the Terrebonne Parish Sheriff’s Office in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that JOSE DECIDERIO ALVARADO-CARDOZA, age 31, a citizen of Honduras, was charged today in a one-count indictment with illegal reentry of a removed alien after deportation, in violation of Title 8 United States Code, Section 1326(a).
According to the indictment, on February 26, 2018, ALVARADO-CARDOZA was found to have reentered the United States after having been previously removed.
If convicted, ALVARADO-CARDOZA faces a term of imprisonment of up to two years, a fine of up to $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Spiro Latsis is in charge of the prosecution.
Head of Stock Trading Operation Admits Role in $3 Million Cross-Country Insider Trading RingRead the Press Release
TRENTON, N.J. -The owner and operator of a stock trading operation today admitted participating in a multi-year insider trading scheme that made over $3 million in illicit profits by exploiting material information in violation of confidentiality agreements, U.S. Attorney Craig Carpenito announced.
Steven Fishoff, 60, of Westlake Village, California, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to Count Four of an indictment charging him with securities fraud.
According to documents filed in this case and statements made in court:
On numerous occasions between May 2010 and August 2013, Fishoff, Ronald Chernin, 69, of Oak Park, California, Steven Costantin, 57, of Farmingdale, New Jersey, Paul Petrello, 56, of Boca Raton, Florida, and Joseph Spera, 56, of Boca Raton, short-sold the securities of numerous public companies using inside information obtained by Fishoff and others.
For each of these offerings, Fishoff or one or more of the day traders that he employed – including his friend, Chernin, and his brother-in-law, Costantin – entered into confidentiality or “wall-crossing” agreements as representatives of Fishoff’s trading entities, whereby they agreed not to disclose or trade on inside information concerning the offerings, such as the name of the issuers and the timing and pricing of the transactions, and were “brought over the wall” for the narrow purpose of determining whether to purchase the offered securities.
In breach of these confidentiality and trading restrictions, Fishoff tipped Petrello and Spera – identified as “CC-1” in the indictment – with the inside information about the confidentially marketed offerings, including the stock trading symbols of the companies and the timing or pricing of the upcoming offerings.
In furtherance of the scheme, Fishoff short sold the stock of the public companies, including Synergy Pharmaceuticals Inc., based on the inside information, in anticipation of a drop in the stocks’ price when the stock offerings were disclosed to the public. Fishoff and his co-defendants traded through the accounts of their respective trading entities or through related accounts that they controlled.
Fishoff and his co-defendants used the inside information to gain more than $3 million in illegal profits over the course of the three-year scheme. Chernin and Costantin, who executed trades using Fishoff’s capital, along with Petrello and Spera, generally split their profits with Fishoff on a 50-50 basis as compensation for the inside information.
Fishoff faces a maximum potential penalty of 20 years in prison and a $5 million fine on the securities fraud charge. Fishoff also agreed to settle the parallel civil forfeiture action, United States of America v. The Contents of Wedbush Securities Account Number 8313 et al., and to forfeit the over $1.6 million in assets sought by the government in that complaint. His sentencing is scheduled for June 20, 2018.
Chernin, Costantin, Petrello, and Spera have all pleaded guilty for their involvement in the scheme and await sentencing.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Regional Director Marc P. Berger and Senior Associate Regional Director Sanjay Wadhwa, for its assistance.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu, Chief of the Asset Recovery and Money Laundering Unit, Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Asset Recovery and Money Laundering Unit.
Defense counsel: Daniel Brown Esq. and Lionel André Esq.
Grand Jury Returns Superseding Indictment Against Jarvis Hardy in Shooting of DEA Task Force OfficerRead the Press Release
U. S. Attorney Duane A. Evans announced that JARVIS HARDY, age 28, a resident of New Orleans, Louisiana, was charged in a nine-count superseding indictment by a Federal Grand Jury for 1) conspiracy to distribute 280 grams or more of cocaine base (“crack”) (Count One); 2) four counts of distribution of quantities of cocaine base (“crack”) (Counts Two through Five); 3) attempted murder of a federal law enforcement officer (Count Six); 4) discharging one firearm during and in relation to a crime of violence and a drug trafficking crime (Count Seven); 5) possession with intent to distribute 28 grams or more of cocaine base (“crack”) (Count Eight); and possessing a second firearm in furtherance of a drug trafficking crime (Count Nine).
According to court documents, on January 26, 2016, agents and task force officers with the Drug Enforcement Administration (DEA) executed a search warrant for 5300 Douglas Street and an arrest warrant for HARDY. During the execution of the warrants, DEA Task Force Officer Stephen C. Arnold was shot multiple times by HARDY. Following the shooting, investigating agents recovered two firearms from HARDY’s residence, as well as amounts of cocaine base (“crack”) and paraphernalia associated with drug trafficking. The execution of the warrants followed an extended investigation of HARDY by the DEA that included multiple undercover purchases of cocaine base (“crack”) from HARDY.
If convicted, HARDY faces a mandatory minimum term of imprisonment of 10 years up to life, a fine of $10,000,000, and at least five (5) years of supervised release following any term of imprisonment as to the cocaine base (“crack”) conspiracy in Count One; a maximum term of imprisonment of twenty years, a fine of $1,000,000 and at least three (3) years of supervised release as to the distributions of cocaine base (“crack”) in Counts Two through Five; a maximum term of imprisonment of twenty (20) years, a fine of $250,000.00 and five (5) years of supervised release as to the attempted murder in Count Six; for the firearm charges in Counts Seven and Nine, a consecutive minimum term of imprisonment of five years up to life imprisonment for one firearm count and a consecutive minimum term of imprisonment of twenty-five years to life imprisonment for the second firearm count; and a mandatory term of at least five years up to forty years, a potential fine of $5,000,000, and at least four (4) years of supervised release for the possession with intent to distribute cocaine base (“crack”) in Count Eight.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office.
U. S. Attorney Evans reiterated that the superseding indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being prosecuted by Assistant U. S. Attorneys Elizabeth Privitera, Theodore Carter, and David Haller.
Granby Man Arrested for Sexually Exploiting a ChildRead the Press Release
BOSTON - A Granby man was arrested last night and charged in federal court in Springfield with child exploitation offenses.
Jonathan Monson, 35, was charged with sexual exploitation of a minor, distribution and receipt of child pornography, and possession of child pornography. Monson appeared in federal court today at 3:30 p.m. and was held in custody. A preliminary hearing is scheduled for March 22, 2018.
Monson is alleged to have used a child to produce child pornography, distributed child pornography, received child pornography, and possessed child pornography from February 2018 to March 8, 2018.
The charge of sexual exploitation of a minor provides for a sentence of no greater than 30 years in prison; the charge of distribution and receipt of child pornography provides for a sentence of no greater than 20 years in prison; and the charge of possession of child pornography provides for a sentence of no greater than 10 years in prison. Each charge provides for up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Hampshire County Sheriff Patrick J. Cahillane; and Granby Police Chief Alan Wishart made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fumigation Company Sentenced, Owner Imprisoned After Illegal Pesticide ApplicationsRead the Press Release
AAA Pest Protection Inc. d/b/a AAA Pest Control, Inc. (AAA Pest), and owner William Robles, 59, of Fort Lauderdale, Florida were sentenced today in federal court in Miami before U.S. District Court Judge Beth Bloom in connection with the illegal application of pesticides to treat homes and other buildings for termites over several years.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Andy Castro, Special Agent in Charge, U.S. Environmental Protection Agency (EPA), Criminal Investigation Division, Atlanta Area Office, made the announcement.
AAA Pest was sentenced to five years of probation, ordered to implement and enforce a comprehensive environmental compliance and employee training plan, and ordered to pay a $35,000 criminal fine. AAA Pest was also ordered to pay restitution to the victims of the crimes. Robles was sentenced to the statutory maximum term of imprisonment of one year and ordered to pay a criminal fine of $30,000. In a related matter, Judge Bloom previously sentenced Pierce Long, 53, of Oakland Park, Florida to a year in prison.
AAA Pest, Robles, and Long previously pled guilty to knowing violations of federal law stemming from their illegal applications of the restricted use pesticide, sulfuryl fluoride, contrary to the label’s safety requirements, in violation of Title 7, United States Code, Section 136j(a)(2)(G).
According to court documents and statements, the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) regulates the use of pesticides, including those designated for restricted use due to their potential adverse effects, including serious injury or death. Application of these pesticides is limited to certified applicators or those under the direct supervision of certified applicators. Sulfuryl fluoride, a commonly used antimicrobial agent in structural fumigations for termites, is one such restricted use pesticide, registered with the EPA. At the heart of the safe use of such pesticides is compliance with the product label, which includes written, printed, or graphic matter associated with the pesticides that dictates the safe application, aeration, testing, and clearance of the fumigant gas through the use of a properly functioning, maintained, and calibrated low level fumigant detection device.
The investigation revealed that on two separate occasions in 2016, AAA Pest and Long completed structural fumigations without providing residents with the proper warnings prior to introduction of the fumigant gases, did not use personal protective equipment for employees, failed to properly aerate the fumigated spaces, failed to post required hazard warnings, and failed to conduct clearance by ensuring that the fumigated space was free of the toxic gas before residents re-entered. In addition, Robles admitted that between March 21, 2013, and April 17, 2015, he failed to have the required, operable, and properly calibrated fumigant detection device for approximately 580 fumigations.
“Today’s sentencing sends an important message to companies, business owners, and employees that knowing violations of federal environmental laws will not be tolerated. Those who engage in such dangerous and reckless conduct will be prosecuted to the fullest extent of the law in light of the serious consequences for the consumer public,” said Benjamin G. Greenberg. “The Southern District of Florida values its partnership with the EPA, Criminal Investigation Division and the Florida Department of Agriculture and Consumer Services and is committed to working together to investigate and prosecute these crimes to protect the public and ensure that companies who comply with the law are not placed at a competitive disadvantage.”
“It is critical for the health and safety of building inhabitants that pest control companies follow manufacturer instructions when applying pesticides indoors,” said Susan Bodine, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance. “This case demonstrates that EPA and its law enforcement partners are committed to making sure that businesses apply pesticides legally and safely.”
Today’s sentencing includes the fourth individual defendant to be sentenced to the statutory maximum term of imprisonment in the District’s ongoing effort to address pesticide crimes. It is estimated that there were more than 25,000 structural fumigations in Miami-Dade and Broward counties in 2017. The Court noted that these companies and individuals hold themselves out to the community as specially trained and skilled experts, and that families put their trust – and their lives - in the fumigators hands and should be able to return to such “safe spaces” as one’s home, without concern about whether the device used to measure if toxic gas remained in the fumigated space, was working and maintained as required by law.
Mr. Greenberg commended the investigative efforts of the EPA and the Florida Department of Agriculture and Consumer Services. The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Stamford Resident Sentenced to Prison for Operating Extensive Immigration Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DAVID NIKOLASHVILI, 52, a citizen of the Republic of Georgia residing in Queens, New York, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to six months of imprisonment, followed by two years of supervised release, for operating an immigration fraud scheme. Judge Chatigny also ordered NIKOLASHVILI to pay a $12,000 fine.
According to court documents and statements made in court, NIKOLASHVILI, formerly of Stamford, Connecticut, operated an immigration fraud scheme through which he attempted to obtain false immigration status from U.S. Citizenship and Immigration Services (USCIS) for at least 60 citizens of European countries. As part of the scheme, after aliens paid NIKOLASHVILI between $12,000 and $20,000, he would arrange sham marriages between the aliens and U.S. citizens in order to obtain immigration benefits for the aliens. The U.S. citizens were paid to enter into the sham marriages.
NIKOLASHVILI was arrested on June 21, 2016. On July 26, 2017, he pleaded guilty to one count of making a false swearing in an immigration matter.
NIKOLASHVILI, who is released on a $75,000 bond, was ordered to report to prison on April 27, 2018. He faces immigration proceedings when he is released from prison.
All of the citizenship cases identified in this scheme have been reviewed by USCIS Fraud Detection and National Security and proper adjudicative action was taken.
This investigation was conducted by Homeland Security Investigations, U.S. Citizenship and Immigration Services’ Office of Fraud Detection and National Security Unit, and U.S. Department of State, Bureau of Diplomatic Security. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Former National Guardsman Sentenced for Threatening to Kill Vice President PenceRead the Press Release
JOHNSTOWN, Pa. – A resident of Berlin, Pa., has been sentenced in federal court to six months incarceration, followed by six months home detention with electronic monitoring; immediate mental health evaluation/treatment program and three years’ supervised release on his conviction of making a threat against the Vice President of the United States, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on William R. Dunbar, 23.
According to information presented to the court, on Sept. 8, 2017, while on military duty in Johnstown, Pa., Dunbar made a threat against the Vice President of the United States, who was to arrive in Johnstown on Sept. 11, 2017. Three witnesses heard Dunbar specifically state he would kill the Vice President.
Assistant United States Attorney Stephanie L. Haines, prosecuted this case on behalf of the government.
Mr. Brady commended the United States Secret Service for the investigation that led to the successful prosecution of Dunbar.
Former Cocoa Company Executives Plead Guilty in Manhattan Federal Court to Defrauding Lenders of $400 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that PETER G. JOHNSON and PETER B. JOHNSON pled guilty today to defrauding a group of lenders (the “Banks”) by submitting false “borrowing base” reports designed to secure and maintain a $400 million line of credit for their cocoa trading company, Transmar Commodity Group Ltd. (“Transmar” or the “Company”). The defendants each pled guilty before U.S. District Judge Jed S. Rakoff.
U.S. Attorney Geoffrey S. Berman said: “As they admitted today, Peter G. and Peter B. Johnson, executives of a cocoa company that supplied some of the world’s largest chocolate companies, defrauded lenders out of hundreds of millions of dollars by continuously and repeatedly lying about the collateral According to the allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
Transmar was a closely held, family-run cocoa commodity trading company. PETER G. JOHNSON was Transmar’s president and chief executive officer. PETER B. JOHNSON, the son of PETER G. JOHNSON, was an officer of Transmar, as well as responsible for the operations of Transmar affiliate Euromar Commodities GMBH (“Euromar”).
From at least 2014 through at least December 2016, Transmar maintained a credit facility from the Banks that varied from approximately $250 million to approximately $400 million. To secure and maintain these hundreds of millions of dollars in credit, PETER G. JOHNSON, PETER B. JOHNSON, and others schemed to misrepresent material information about Transmar’s finances, making it appear that Transmar had far more credit-eligible collateral than it actually had.
The scheme centered on periodic “borrowing base” reports (“BB Reports”) that the Banks required Transmar to submit, sometimes as frequently as weekly, as a condition to continued credit extension. The BB Reports were supposed to accurately reflect and quantify those portions of Transmar’s collateral that qualified for financing under the terms of credit agreements between Transmar and the Banks.
Beginning no later than 2014, Transmar employees, acting with the knowledge and at the direction of PETER G. JOHNSON and PETER B. JOHNSON, manipulated the BB Reports and related documents to give the false impression that Transmar had sufficient eligible collateral to support the amount of credit the Banks were extending. The manipulation involved, among other devices, counting inventory that Transmar had already sold or was otherwise ineligible for inclusion, counting accounts receivable for which Transmar had already received payment, recording fake accounts receivable, and arranging “circle” transactions through which amenable third-party intermediaries agreed to “buy” goods from Transmar with Transmar’s own money, funneled to the third parties through Euromar.
The defendants acknowledged their manipulative devices in internal Transmar correspondence. For example, on or about July 31, 2015, PETER G. JOHNSON sent an email to PETER B. JOHNSON discussing the use of “multiple circles” or “borrowing games” in connection with the BB Reports, and suggesting that Transmar “clean the book of these in due course and before they get questioned and exposed.” On June 14, 2016, PETER B. JOHNSON responded to an email regarding a circle transaction by lamenting, “this is the problem with fake circles and non-existent last minute intermediary deals, there is never a payment to settle them.” PETER B. JOHNSON then suggested that Transmar “reissue the invoices (ie change the date of issuance” because “[t]here isn’t going to be an audit [of the BB Report] for a year and its [sic] causing huge problems to keep writing up fictitious contracts and paperwork.”
Transmar filed for bankruptcy in December 2016. At that time, the Company owed the Banks approximately $360 million.
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PETER G. JOHNSON, 69, of Harding Township, New Jersey, PETER B. JOHNSON, 38, of Morristown, New Jersey, each pled guilty to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution. That offense carries a maximum prison term of 30 years. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The defendants are scheduled to be sentenced by Judge Rakoff on August 6, 2018.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Benet J. Kearney and Daniel M. Tracer are in charge of the prosecution.
Federal Grand Jury Indicts Former Insider for Defrauding Baton Rouge CompanyRead the Press Release
U.S. Attorney Brandon J. Fremin announced today that a federal grand jury has indicted KATHERINE T. CANCIENNE, age 40, on multiple counts of wire fraud in connection with a scheme to embezzle more than $387,000 from her employer, Engineers & Constructors International, Inc. (“ECI”), a consulting firm that provides engineering and managerial staffing to oil and gas companies. If convicted, the defendant faces a significant prison term, fines, and restitution orders.
The indictment charges the defendant, who formerly handled accounting matters at ECI, with executing her fraud scheme by, among other things, establishing a shell corporation and bank account under the name Cappo, LLC, which had a similar name to an actual ECI vendor. According to the indictment, the defendant caused ECI to issue checks and make electronic wire payments to her shell corporation by creating and submitting false and fraudulent documents to ECI. As a result of this scheme, the defendant allegedly obtained more than $387,000.
U.S. Attorney Brandon J. Fremin stated, “We take very seriously the economic threats posed by corrupt corporate insiders whose misconduct and betrayal often risks the livelihoods of their coworkers by potentially undermining the financial integrity of their employer. All companies are susceptible to this danger. We commend the victim in this matter for identifying this situation to law enforcement and thus possibly preventing further fraud against others. I appreciate the hard work by all those involved in this important matter.”
This matter is being investigated by the U.S. Secret Service, and is being prosecuted by Assistant United States Attorney Pete Smyczek.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Father and Son Convicted Following Trial in $16.7 Million Health Care Fraud SchemeRead the Press Release
DALLAS – Yesterday, following a 10-day trial before U.S. Chief District Judge Barbara M.G. Lynn, a jury convicted Terry Lynn Anderson, 67, and Rocky Freeland Anderson, 37, of Dallas, on multiple felony counts related to a health care fraud scheme they operated, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
The jury convicted the father and son duo on one count of conspiracy to commit health care fraud, eight counts of health care fraud, and four counts of aggravated identity theft. The jury convicted Terry Anderson on two additional health care fraud counts.
The evidence at trial showed that the defendants defrauded Blue Cross and Blue Shield of Texas (Blue Cross) by submitting claims on behalf of employees of American Airlines, Inc. for hearing aids that were not needed and, in many cases, never dispensed to the patient. The fraudulent claims were submitted through Anderson Optical & Hearing Aids Center, the defendants’ family-owned business that had locations in Arlington and Bedford.
To increase the number of claims they could submit to Blue Cross, the defendants engaged in fraudulent marketing practices. For example, the defendants promised patients a free pair of high-end sunglasses or a free pair of prescription eyeglasses in exchange for taking a free hearing test. At the conclusion of these hearing tests, the defendants told patients that they had slight to mild hearing loss and required them to sign an order for hearing aids in order to receive the free glasses. The defendants promised patients that the hearing aids would be provided to them at no cost, and that Anderson Optical & Hearing would waive any applicable copayments, coinsurance, or deductibles. The defendants also offered patients $100 gift cards in exchange for referring family members and coworkers for free hearing tests.
In 2012, the pair brought their fraud scheme into American Airlines’ airport facilities and started offering free hearing tests to aircraft mechanics and fleet services clerks in maintenance hangars and employee breakrooms. Attracted by the offer of free sunglasses, the pair often had long lines of employees waiting to be tested. However, an expert witness who testified for the government explained that the cursory screening tests the defendants performed, which witnesses described as lasting 3-5 minutes, were incapable of producing results upon which one could make a legitimate decision to dispense hearing aids. Witnesses from Blue Cross testified that these cursory screening tests also failed to comply with Blue Cross’s medical policies related to the evaluation of hearing impairment.
The evidence also showed that, in November 2013, Blue Cross conducted an audit of Anderson Optical & Hearing and requested copies of patient records for certain American Airlines employees and their dependents. On January 6, 2014, the Texas Department of State Health Services-Professional Licensing Unit (Professional Licensing Unit) began an investigation regarding a complaint it had received concerning the Andersons. In February 2014, when given the opportunity to respond to the complaint, the defendants submitted several patient records to the Professional Licensing Unit, including some of the same patient records that had been collected by Blue Cross. The patient records submitted to the Professional Licensing Unit had altered test scores and additional notations that were not present when the same records were submitted to Blue Cross in November 2013.
During the period of the conspiracy, Anderson Optical & Hearing submitted claims to Blue Cross for hearing aids on behalf of American Airlines employees totaling more than $27 million. As a result of these claims, Blue Cross paid Anderson Optical & Hearing more than $16.7 million.
At trial, Terry Anderson took the stand in his own defense. In an attempt to shift the blame on to patients who were more interested in his offer of free sunglasses than they were in hearing aids, he testified, “Well, unfortunately among us are people that will take advantage of perhaps any program, if they have an opportunity to.”
The defendants face a maximum statutory penalty of 10 years in federal prison and a $250,000 fine for the conspiracy count and for each of the substantive health care fraud counts. The aggravated identity theft counts carry a mandatory statutory penalty of two years in federal prison and a fine of up to $250,000.
The superseding indictment includes a forfeiture notice that requires the defendants to forfeit a 300 acre ranch in Bosque County, three vehicles, and more than $3.1 million that was seized from nine financial accounts in December 2015.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys Douglas Brasher and Rachael Jones prosecuted.
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Fairfax Bookkeeper Indicted for $500,000 Embezzlement SchemeRead the Press Release
United States Attorney Gregory G. Brooker announced a federal indictment charging THERESA ERNESTINE LINSMEIER with three counts of wire fraud and five counts of filing false tax returns. LINSMEIER will make her initial appearance in United States District Court on March 15, 2018.
According to the indictment, from 1998 to 2016, LINSMEIER was employed as a bookkeeper at Farm Mercantile, Inc., a hardware store located in Fairfax, Minn. In her position, LINSMEIER had access to and was an authorized signatory on Farm Mercantile’s bank accounts and had authority to sign and issue checks on behalf of the company.
According to the indictment, from about 2011 through 2016, LINSMEIER devised a scheme to embezzle more than $500,000 from Farm Mercantile. As part of the scheme, LINSMEIER transferred money to her personal credit cards directly from the bank accounts to which she had access. LINSMEIER attempted to conceal her embezzlement by creating false entries in Farm Mercantile’s general ledger to make it look like the money she stole had actually been used to pay legitimate business expenses. In total, LINSMEIER stole approximately $535,000, which she used for online gambling.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Joseph H Thompson.
Defendant Information:
THERESA ERNESTINE LINSMEIER, 58
Fairfax, Minn.
Charges:
- Wire fraud, 3 counts
- Filing false tax returns, 5 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Erie Man Charged with Receiving, Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The two-count indictment named Adam Gregory Ryzinski, 38, as the sole defendant.
According to the indictment presented to the court, Ryzinski received and possessed computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
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.justice.gov/psc.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Durham Man Who Kidnapped, Robbed Families Pleads GuiltyRead the Press Release
Greensboro, N.C. – A man who kidnapped multiple people over a four-day period and forced them to withdraw money from ATMs and buy items for him pleaded guilty to federal kidnapping charges today, announced United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
Rollin Anthony Owens, Jr., 30, of Durham, North Carolina, pleaded guilty to two counts of kidnapping of a minor and one count of kidnapping, in front of the Honorable N. Carlton Tilley, Jr., United States District Judge for the Middle District of North Carolina.
According to court documents, on June 17, 2017, Owens kidnapped a father and his two small children, ages 4 and 18 months, as they were leaving Burch Avenue Park in Durham. Owens pulled out a gun and forced the father to drive to an ATM to withdraw money and to a convenience store to make purchases.
Court documents also indicate that Owens kidnapped two brothers from the parking lot of a residence in Durham on June 18, 2017. When one brother resisted, Owens pistol whipped him with a large gun and threw him in the trunk of one of the brother’s car. Owens then forced the other brother to drive the car to an ATM and withdraw money from both brothers’ accounts and to make a purchase at a convenience store.
Finally, on June 20, 2017, Owens kidnapped a man and woman and their two small children from their home in Durham. Owens knocked on the family’s door asking for money. After the father gave him money, Owens pulled out a gun, and forced the father, his wife, and two children, ages 4 and 2, into the family car. He then directed the father at gunpoint to drive to an ATM to withdraw money and to a Food Lion and convenience store to make purchases and attempt to get cash back. Owens’ crime spree finally ended when he forced the family to go to Target, where the father, while in the store purchasing items for Owens, was able to alert an employee to call the police. Durham Police Department officers apprehended Owens as he was leaving the store with more than $1,000 worth of merchandise.
The sentencing is set for June 15, 2018, at 2 p.m. in Greensboro. Each of the two counts of kidnapping of a minor carries a mandatory minimum sentence of 25 years and a maximum of life in prison. The last count of kidnapping carries a maximum sentence of life.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Department of Treasury Office of Inspector General Task Force, and the Durham Police Department. Special Assistant United States Attorney Kennedy Gates and Assistant United States Attorney Frank J. Chut, Jr. prosecuted the case.
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Doctor Sentenced for Healthcare Fraud, Accepting Kickbacks to Prescribe Highly Addictive Version of FentanylRead the Press Release
PROVIDENCE, RI — Dr. Jerrold N. Rosenberg, 63 of Warren, the operator of a now-defunct pain management practice in Rhode Island, was sentenced today to 51 months in federal prison for committing healthcare fraud and for conspiring to solicit and receive kickbacks in return for prescribing the drug Subsys, a fast-acting, powerful, and highly-addictive version of the opioid drug Fentanyl.
Subsys is manufactured by Arizona based company Insys Therapeutics, Inc. (“Insys”). This under-the-tongue spray was approved by the U.S. Food and Drug Administration in 2012 exclusively for “the management of breakthrough cancer pain in patients who are already receiving and who are already tolerant of opioid therapy for their underlying persistent cancer pain.” As a result, many insurance companies require a diagnosis of breakthrough cancer pain before approving coverage of the drug, which costs approximately $2,000 to over $16,000 for a thirty day supply.
At today’s sentencing hearing, three former patients of Dr. Rosenberg testified about the severe and debilitating effects they experienced from taking Subsys. Some witnesses testified to the doctor’s indifference to their complaints and pleas to be taken off Subsys.
Rosenberg pleaded guilty on October 25, 2017, to healthcare fraud and conspiracy to receive kickbacks. At the time of his guilty plea, Rosenberg admitted to the Court that between 2012 and 2015, he carried out a healthcare fraud scheme in which he made false representations to insurers, both private and government funded, claiming patients met the insurance criteria of having breakthrough cancer pain when he knew that they in fact did not, in order to secure approvals and payment for prescriptions of Subsys. Rosenberg admitted that, in total, the healthcare fraud scheme resulted in losses of over $750,000; in many cases, the cost of the drug was reimbursed, at least in part, by the Medicare program.
Additionally, Rosenberg admitted that, between 2012 and 2015, he conspired with Insys officials to receive kickbacks, in the form of purported speaker fees, from the manufacturer of the spray. Rosenberg admitted that he accepted these payments, which totaled over $188,000. In addition, according to court documents, Rosenberg’s son was a sales representative for Insys Therapeutics from June 2012 – September 2013, and made substantial amounts in commissions as a result of the defendant’s prescribing Subsys to his patients. Rosenberg admitted that the speaking fees he received from Insys were a significant motivating factor in his decision to prescribe Subsys to his patients.
The U.S. Sentencing guideline range of imprisonment in this matter is 51-63 months. The government recommended the court impose a sentence of 63 months incarceration. At sentencing, the Court also ordered Rosenberg to pay restitution in the amount of $754,736.48 to the Medicare program. Rosenberg’s sentence, imposed by U.S. District Court Judge John J. McConnell, Jr., is announced by U.S. Attorney for the District of Rhode Island Stephen G. Dambruch; Phillip Coyne, Special Agent-in-Charge of the Boston Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and Rhode Island Attorney General Peter F. Kilmartin.
The case was prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Zachary A. Cunha.
The matter was investigated by the United States Attorney’s Office for the District of Rhode Island, the U.S. Department of Health and Human Services Office of Inspector General and the Rhode Island Department of Attorney General’s Medicaid Fraud and Patient Abuse Unit.
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District Teenager Found Guilty of Charges in Two Murders over Four-Month PeriodRead the Press Release
WASHINGTON – Maurice Bellamy, 19, of Washington, D.C., was found guilty by a jury today of two counts of first-degree murder while armed and other charges stemming from the separate killings of an off-duty United States Secret Service officer and a 15-year-old boy.
The announcement was made by U.S. Attorney Jessie K. Liu, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Ron Pavlik, Chief of the Metro Transit Police.
Bellamy was found guilty of two counts of first-degree murder while armed, one count of armed robbery, and a weapons offense. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Juliet McKenna scheduled sentencing for July 20, 2018.
The jury found that the murder of 15-year-old Davonte Washington was especially cruel, atrocious and heinous. The jurors also found that the murder of off-duty officer Arthur Earl Baldwin Jr. was committed during the course of a robbery. As a result, Bellamy could face sentences of life in prison with no possibility of release for each of those offenses.
According to the government’s evidence, the first murder took place on Dec. 15, 2015 in the 4700 block of First Street SW. Bellamy and two accomplices approached a car parked on the street at approximately 2:50 p.m. Bellamy, armed with a .38-caliber revolver, approached the passenger window. The assailants instructed the driver, Mr. Baldwin, to pop open the trunk. Nothing of value was found. Mr. Baldwin then attempted to push his way out of the driver’s seat, and Bellamy opened fire. One of Bellamy’s accomplices then fired his gun. The three then took Mr. Baldwin’s wallet, cell phone, and iPad. Mr. Baldwin, 30, an off-duty U.S. Secret Service officer, was taken to a hospital, where he died from multiple gunshot wounds.
The second murder took place on Saturday, March 26, 2016, the day before Easter, at the Deanwood Metro station, in the 4700 block of Minnesota Avenue NE. According to the government’s evidence, just before 4 p.m., Bellamy saw Davonte Washington on the platform with his mother and two little sisters also waiting for a train. The family was on the way to getting Davonte’s haircut for Easter. Bellamy mistakenly believed Davonte was “mugging” on him, and he pulled his .38-caliber revolver from his pocket and fired it at close range into Devonte’s chest, killing him. He then fled the station. Davonte died from two gunshot wounds to the torso.
The homicide of Davonte Washington was captured on Metro surveillance video. Bellamy was arrested two days after Davonte’s murder and has been in custody ever since. An investigation determined that the same gun that killed the teenager was used to kill Mr. Baldwin.
In announcing the verdict, U.S. Attorney Liu, Chief Newsham, and Chief Pavlik commended the work of those who investigated the case from the Metropolitan Police Department and the Metro Transit Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Investigative Analyst Zachary McMenamin; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Litigation Technology Specialist Leif Hickling; Lead Paralegal Specialist Meridith McGarrity; Paralegal Specialist Alesha Matthews; Acting Supervisory Victim/Witness Coordinator Katina Adams-Washington; former Supervisory Victim/Witness Services Coordinator David Foster; Victim/Witness Supervisory Security Specialist M. Laverne Perry; Victim/Witness Security Specialist Lesley Slade, and Victim/Witness Advocate Marcia Rinker.
Finally, they commended the work of Assistant U.S. Attorneys Deborah Sines and Glenn Kirschner, who investigated and prosecuted the case.
District Man and Woman Found Guilty of Federal Charges for Roles in Regional Drug Trafficking OrganizationRead the Press Release
WASHINGTON – Andrea Miller, 48, and Steven Mason, 48, both of Washington, D.C., have been found guilty by a jury of federal charges stemming from their roles in a narcotics trafficking organization that imported and distributed heroin and other drugs into the Washington, D.C. area.
The announcement was made by U.S. Attorney Jessie K. Liu; Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Washington, D.C.; Robert B. Wemyss, Inspector in Charge, Washington Division, U.S. Postal Inspection Service, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The verdicts followed a trial in the U.S. District Court for the District of Columbia. Miller was found guilty of conspiracy to import 100 grams or more of heroin and a quantity of alprazolam from a foreign country. Both Miller and Mason were found guilty of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin and a quantity of alprazolam. The defendants now each face five--year mandatory-minimum sentences and up to 20 years in prison. The Honorable Tanya S. Chutkan scheduled sentencing for June 19, 2018.
Miller and Mason were among a total of 14 defendants indicted in May 2016 following a long-term investigation into a drug trafficking organization with sources of supply in Nigeria and distribution points in Washington, D.C. and Maryland. Eleven others have been convicted of drug trafficking charges and one defendant remains a fugitive.
According to the government’s evidence, between August 2014 and June 2016, Miller conspired to import packages of narcotics into the United States from various countries in Africa, and, Miller and Mason, together with their co-conspirators, conspired to distribute the narcotics throughout the Washington D.C. region.
The drug operation misused the United States Postal Service and the commercial shipping industry to illegally import into the United States and then redistribute significant quantities of drugs, primarily heroin, within the District of Columbia and the greater Washington, D.C., metropolitan area.
For purposes of this criminal activity, the international packages had the controlled substances hidden or secreted within certain items or clothing located inside the packages, and the packages were addressed and emanated from foreign countries, such as India, and listed fictitious names for addresses or locations within the Washington, D.C., area. Higher-level participants in the drug network would either wait for the packages to be delivered to certain addresses by the Postal Service or another commercial shipping business, or these same conspirators would use various civilians to accept packages containing drugs in the mail at their residences or other locations for cash or illegal drugs.
Significant quantities of the heroin were re-distributed in the 11th and H Street NE, Fourth Street and Florida Avenue NE, and 19th and Benning Road NE areas of the District of Columbia, and other locations in the District of Columbia and Maryland.
This case was investigated by Homeland Security Investigations and the Customs and Border Protection Agency of the Department of Homeland Security, the United States Postal Inspection Service and the Metropolitan Police Department. The prosecution was sponsored and supported by the federal Organized Crime Drug Enforcement Task Force (OCDETF).
The case was prosecuted by Assistant U.S. Attorneys Kenneth F. Whitted and Jamila Hodge of the Violent Crime and Narcotics Trafficking Section, and Assistant U.S. Attorney Thomas Swanton of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Paralegal Specialists Candace Battle, Catherine O’Neal, Teesha Tobias, and Mary Downing; Legal Assistants Peter Gaboton and Katie Cowley; Litigation Technology Specialists Ron Royal, Kimberly Smith, and Anisha Bhatia, and Intern Mallory Kruper.
Dallas Man Sentenced to 41 Months in Federal Prison and Ordered to Pay $1.4 Million in Restitution for Corporate Embezzlement SchemeRead the Press Release
DALLAS — Kristopher Brian Anderson, 32, of Dallas, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 41 months in federal prison and ordered to pay $1,412,424.06 in restitution, following his guilty plea in September 2017 to offenses related to a scheme to defraud Pivotal Petroleum Services LLC, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas. The total restitution figure included the total amount of funds stolen, as well as additional funds spent to investigate Anderson’s theft of his employer’s funds.
Anderson pleaded guilty to one count mail fraud. Judge Fitzwater ordered Anderson to surrender to the Bureau of Prisons on April 24, 2018.
According to the plea agreement factual resume, Tailwater Capital LLC was a Texas corporation, based in Dallas, Texas that specialized in raising private equity capital for oil and gas investments. Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP were privately held Texas corporations, based in Dallas, Texas that specialized in acquiring and leasing non-operating working interests of oil and gas properties. Tailwater Capital LLC owned Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP.
P2 Energy Solutions was a privately held company, based in Denver Colorado, with Texas offices in Houston, San Antonio and Fort Worth. P2 Energy Solutions provided various administrative services to the oil, gas and energy industry including financial and accounting management software for revenue processing and check distribution. Pivotal Petroleum Services LLC handled the administrative and accounting services of Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II, LP. Pivotal Petroleum Services LLC in tum used the services of P2 Energy Solutions to electronically process incoming vender invoices and to physically prepare hard copy checks payable to the companies listed on the invoice. P2 Energy Solutions then caused checks prepared by P2 Energy Solutions to be sent via the United States Postal Service to the addresses printed on the checks or delivered by a private courier services all at the direction of Anderson.
Empery Resource Consultants, LLC (Empery) was a Texas corporation which Anderson secretly set up and used as part of the scheme to embezzle Tailwater Capital Funds. Over a 33 month period, Anderson repeatedly submitted fraudulent invoices to Pivotal Petroleum Partners falsely claiming payment to Empery Resource Consultants for “landmen” services that were never provided to Pivotal Petroleum Partners.
On May 14, 2014, according to the factual resume, Anderson was hired by Pivotal Petroleum Services as the corporate controller. As controller, Anderson was responsible for the accounting operations of Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP. These duties involved the preparation of financial reports, maintaining records involving the receipt and disbursement of funds to ensure that the reported results comply with the generally accepted accounting principles. These duties included the review and approval of vender invoices for payment. As controller, Anderson was clearly responsible to monitor and protect the assets of the Pivotal Petroleum companies. Instead, Anderson used his position of trust as corporate controller to betray his employer Tailwater Capital and ultimately caused total losses of over $1.4 million to Tailwater Capital.
On August 28, 2014, Anderson opened a business bank account in the name Empery Resource Consultants, LLC. Anderson used this account to deposit and later spend funds fraudulently obtained Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II LP.
From August 2014 and continuing through May 2017, Anderson submitted 142 fraudulent invoices causing the fraudulent payment of $1,389,991. Simply put, Anderson stole over $1.3 million from his employer. During the approximately 33 month scheme, Anderson spent funds stolen from Pivotal Petroleum Partners LP and Pivotal Petroleum Partners II, LP to support a lavish lifestyle. Anderson fraudulently obtained an average of over $86,000 per month. Among other things, these expenses included $451,683 in total cash withdrawals and $958,091 in credit card and debit card charges.
The United States Postal Inspection Service, Fort Worth investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
# # #Craig Fine Charged with Armed Robbery of First Tennessee BankRead the Press Release
KNOXVILLE, Tenn. – On March 8, 2018, Craig, Fine, 48, of Knoxville, Tennessee, was arrested and charged with armed bank robbery and brandishing and discharging a firearm during a crime of violence. Fine appeared in U.S District Court on March 9, 2018, before the Honorable H. Bruce Guyton, U.S. Magistrate Judge. He will remain in custody pending a preliminary hearing at 1:30 p.m., on March 22, 2018, in U.S. District Court.
Details of the robbery can be found in the criminal complaint and supporting affidavit on file with the U.S. District Court. According to the affidavit, on March 6, 2018, Fine entered the First Tennessee Bank on Merchants Drive in Knoxville with a firearm and demanded money from the bank teller. During the incident, Fine discharged a firearm. Additionally, he pointed the firearm directly at the victim teller and customers inside the bank. Before leaving the bank, Fine also claimed to have a pipe bomb.
Through investigative efforts as well an anonymous tip to law enforcement, officers located and arrested Fine on March 8, 2018. Details surrounding the arrest of Fine can also be found in the affidavit on file with U.S. District Court.
This case was the result of an investigation by the FBI Safe Streets Task Force, which consists of FBI Special Agents, Knox County Sheriff’s Deputies, and Knoxville Police Department Officers. Assistant U.S. Attorney Kelly A. Norris will represent the United States in court proceedings.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Chemist for Mexican Drug Cartel Sentenced in Brooklyn Federal Court to 10 Years’ Imprisonment for Conspiring to Distribute Thousands of Kilograms of Illegal NarcoticsRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Jose Dagoberto Cortez-Perez, also known as “D.C.P.,” a “chemist” or “cook” of illegal narcotics for a violent Mexican drug trafficking organization, was sentenced by United States District Judge Carol Bagley Amon to 10 years’ imprisonment for his involvement in a large-scale international narcotics distribution conspiracy. Cortez-Perez was apprehended in Minnesota and pled guilty on September 25, 2017 to conspiring to import more than 500 grams of methamphetamine, more than one kilogram of heroin, more than five kilograms of cocaine and more than 1,000 kilograms of marijuana. After serving his sentence, the defendant will face deportation from the United States.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“A Mexican cartel employed Jose Dagoberto Cortez-Perez for his specialized skill improving the quality and purity of illegal and addictive narcotics, in particular methamphetamine,” stated United States Attorney Donoghue. “Cortez-Perez travelled around the country on behalf of the cartel and enhanced the addictive nature of its narcotics, which ultimately increased demand and price for them. Today, drug trafficking organizations are on notice that we will bring the full weight of the law to bear on those activities that destabilize our communities.” Mr. Donoghue extended his grateful appreciation to the United States Attorney’s Office for the District of Minnesota, as well as the Chicago Division of the U.S. Drug Enforcement Administration, for their assistance in the investigation and prosecution.
According to court filings and facts presented during court proceedings, the defendant was a member of a Mexican-based drug trafficking organization, which was responsible for the manufacture, importation and distribution of multi-ton quantities of heroin, methamphetamine, cocaine, and marijuana into the United States, including to locations in the Eastern District of New York. The defendant was a “chemist” or “cook” for the organization, and was sent to the United States to repair (or “clean”) methamphetamine that was not sufficiently pure or had otherwise been contaminated. The defendant created a more desirable product that was then distributed across the United States, including Brooklyn and Queens. In May 2016, DEA agents searched two homes in Minnesota and discovered more than 140 pounds of methamphetamine, more than $130,000 in United States currency, evidence of an ongoing methamphetamine cleaning operation and drug paraphernalia. This seizure demonstrated a highly organized drug network responsible for the distribution of large-scale quantities narcotics.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Craig R. Heeren, Ryan C. Harris, Alicia N. Washington, G. Karthik Srinivasan and Michael P. Robotti are in charge of the prosecution.
The Defendant:
Jose Dagoberto Cortez-Perez
Age: 28
Residence: Sinaloa, MexicoEDNY Docket No. 16-CR-241 (CBA)
Catskill Doctor Arrested for Unlawful Drug DistributionRead the Press Release
ALBANY, NEW YORK – Myra Mabry, age 48, a doctor of osteopathic medicine residing in Catskill, New York, was arrested today and charged with distributing controlled substances outside the course of professional practice and for no legitimate medical purpose.
The announcement was made by United States Attorney Grant C. Jaquith; James J. Hunt, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Field Division; and Joshua Vinciguerra, Director of the New York State Department of Health, Bureau of Narcotic Enforcement.
According to a criminal complaint, Mabry authorized approximately 51 prescriptions for the controlled substance oxycodone, between May 2015 and January 2017, that a co-conspirator filled and picked up at pharmacies in Greene County. Additionally, between November 2015 and June 2017, Mabry authorized approximately 44 prescriptions for the controlled substances oxycodone and hydromorphone, which were issued to another person but which Mabry filled and picked up at a Greene County pharmacy.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Mabry appeared today in Albany before United States Magistrate Judge Daniel J. Stewart, who ordered her detained pending a detention hearing on Monday, March 12.
If convicted, Mabry faces up to 20 years in prison, at least 3 years of post-imprisonment supervised release, and a maximum $1 million fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the DEA and the New York State Department of Health, Bureau of Narcotic Enforcement, with assistance from the Catskill Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Cambria County Man Sentenced to 10 Years in Prison for Distributing Heroin that Caused a DeathRead the Press Release
PITTSBURGH - A Cambria County resident has been sentenced in federal court to 120 months imprisonment to be followed by three years supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Brad Troup, 39, of Northern Cambria, Pennsylvania.
According to information presented to the court, on January 13, 2016, Mr. Troup distributed and possessed with intent to distribute heroin. Mr. Troup previously admitted that the heroin he distributed caused the death of Jeremiah Huey, who had used heroin he obtained from Troup.
Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration, along with the Pennsylvania State Police, the Offices of the District Attorneys of Allegheny and Indiana Counties, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Troup.
California Man Sentenced for Nationwide Tax Refund FraudRead the Press Release
ALEXANDRIA, Va. – A California man was sentenced today to 64 months in prison for conspiracy to commit bank fraud and aggravated identity theft.
According to court documents, Kefvon Keffen Baker, 42, of Los Angeles, was part of a nationwide bank fraud conspiracy based in Los Angeles in which conspirators have been stealing U.S. Treasury refund checks, using the identities of those taxpayers to open bank accounts, depositing the stolen checks, and withdrawing monies against the deposits. In just one month of activity in the Eastern District of Virginia and nearby Pennsylvania, Baker attempted to steal over $1 million in U.S. Treasury-issued tax refund checks.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Eric M. Thorson, Inspector General for the U.S. Department of Treasury, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Grace L. Hill prosecuted the case.
The Leesburg Police Department, Arlington County Police Department, and the Loudoun County Sheriff’s Office provided significant assistance with this case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-264.
Boca Raton Man Arrested for Securities Fraud and Mail Fraud ConspiracyRead the Press Release
BIRMINGHAM – The FBI on Thursday arrested a Florida man on securities and mail fraud charges related to a multi-million dollar scheme involving highly speculative, low-priced penny stocks, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
A ten-count indictment filed in U.S. District Court charges BRIAN ROBERT “Mailman” SODI, 46, of Boca Raton, with conspiracy to commit securities fraud and mail fraud, and related charges.
“Financial crimes prey on the unsuspecting public and undermine the integrity of the nation’s stock exchanges,” Town said. “Pump-and-dump schemes like this must be disrupted by law enforcement before they disrupt market forces.”
According to the indictment, Sodi used his Florida-based publishing houses to distribute deceptive promotional mailers recommending the purchase of select penny stocks, while hiding from potential investors that he secretly was selling the stocks he was urging them to buy. The indictment also charges that Sodi obscured his involvement in the scheme by using offshore accounts and intermediaries to launder the proceeds of his fraud back to himself and his publishing houses.
According to the indictment, Sodi conducted his scheme as follows:
He would acquire shares of a publicly-traded stock, positioning himself to benefit from selling the shares at inflated prices. Sodi would try to induce the public to purchase the stock by developing and disseminating promotional and marketing mailers that exaggerated the stock’s prospects for growth and urged readers to purchase it. The mailers would falsely and deceptively conceal and fail to disclose that Sodi intended to sell the stock he was urging others to buy. After the stock price rose, Sodi would sell the stock for a profit.
Sodi hid his ownership interest in the promoted stock by trading through Arliss, a Swiss account, instead of through a brokerage account held in his own name. He brought the proceeds of his fraud back to himself and his publishing houses through offshore accounts held by firms in Switzerland, the Cayman Islands, and elsewhere.
On Jan. 10, 2013, Sodi used the U.S. Postal Service to send mailers promoting the stock of Southern USA, Inc., a company with mining operations in Ashland, Ala., to addresses throughout the country. On March 1, 2013, after the price and volume of trading in SUSA stock had dramatically increased as a result of the promotion, the U.S. Securities and Exchange Commission issued an order suspending trading in SUSA stock. SUSA subsequently laid off most of its workers and suspended its mining operations in Alabama.
If convicted of the charge of conspiracy, Sodi would face a maximum penalty of 25 years in prison and a fine of $250,000 or twice the gross gain or loss, whichever is greater.
The FBI investigated the case, with assistance from the SEC, the Alabama Securities Commission, the U.S. Postal Inspection Service, and the U.S. Attorney’s Offices for the District of New Jersey, the Eastern District of New York, and the Eastern District of Virginia. Assistant U.S. Attorney Jonathan Keim is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Bloomingburg Man Pleads Guilty to Child EnticementRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Brian Michael, Special Agent in Charge of the Newark, New Jersey Field Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), announced that CODY MANN pled guilty to enticing a child to engage in illegal sexual activity. MANN faces a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison. MANN pled guilty today before United States District Judge Nelson S. Román.
According to the Information and other documents filed in the case to which Mann pled, as well as statements made during the plea proceeding:
Between in or about 2014 and in or about 2016, MANN used a cellphone repeatedly to direct the parent of a four-year-old child to engage in illegal sexual activity with the child. MANN further directed the parent to produce and send him images depicting child pornography featuring the child. MANN received the child pornography on his cellphone.
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MANN, 23, of Bloomingburg, New York, pled guilty to one count of enticing a child to engage in illegal sexual activity. MANN faces a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of HSI in this investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Gillian Grossman is in charge of the prosecution.
Andrews Electrician Sentenced to Federal Prison for False Billing Scheme and for Failing to File Tax ReturnsRead the Press Release
In Midland today, a federal judge sentenced Andrews County electrician Randall Varian Hanks to 97 months in federal prison for a false billing scheme that resulted in more than a $1.5 million loss to local businesses and for failing to file tax returns, announced United States Attorney John F. Bash, Federal Bureau of Investigation (FBI) Special Agent in Charge Emmerson Buie, Jr., El Paso Division, and Acting Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Andy Tsui.
In addition to the prison term, United States District Judge David Counts ordered that Hanks pay $1,786,559.68 restitution and be placed on supervised release for a period of three years after completing his prison term. Judge Counts also ordered that Hanks forfeit to the Government his Andrews County residential property, agreeing that it was proceeds generated from the defendant’s fraudulent scheme. At the end of today’s sentencing hearing, Judge Counts remanded Hanks into the custody of the U.S. Marshals Service to begin serving his prison term.
On November 9, 2017, a federal jury convicted the 46-year-old, who once owned and operated Sandhills Electric, Inc., of four counts of mail fraud and three counts of failure to file a tax return.
Evidence presented at trial revealed that from June 2013 to May 2016, Hanks, while working for two area oilfield services companies, generated fraudulent service tickets and invoices in excess of $1.5 million for parts and services that he fraudulently claimed to have provided to the two companies’ customers. Both oilfield service companies paid Hanks and then billed the respective customers for parts and services Hanks claimed to have provided.
Furthermore, testimony revealed that Hanks received more than the applicable threshold in personal income each year, yet failed to file income tax returns with the Internal Revenue Service for the calendar years 2013, 2014, and 2015, resulting in tax losses to the U.S. Government of nearly $500,000.
The FBI Oilfield Theft Task Force and IRS-CI agents investigated this case. Assistant United States Attorney Glenn Harwood prosecuted this case on behalf of the Government.
Albany Man Charged in Connection with Fatal OverdoseRead the Press Release
ALBANY, NEW YORK – Daniel J. Fillerup, age 34, of Albany, New York, was charged today with distribution of fentanyl that resulted in another person’s death.
The announcement was made by United States Attorney Grant C. Jaquith; Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Schenectady Police Chief Eric Clifford.
Fillerup appeared today before United States Magistrate Judge Daniel J. Stewart and was ordered detained pending further proceedings.
According to the criminal complaint, on September 29, 2016, Fillerup distributed fentanyl to a woman identified as “K.C.” When it became apparent that K.C. was in distress from using the drugs, Fillerup brought her to the Ellis Hospital Emergency Room. Minutes after bringing her to the hospital, Fillerup left, but was located later that day by Schenectady Police. K.C.’s cause of death was cardiac arrhythmia due to fentanyl intoxication.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted of the offense of distributing a controlled substance resulting in death, Fillerup faces at least 20 years and up to life in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and the Schenectady Police Department, with assistance from the Saratoga County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
4 from San Fernando Valley Arrested Pursuant to Federal Indictment Alleging Real Estate Fraud Scam Targeting Distressed HomeownersRead the Press Release
LOS ANGELES – Four San Fernando Valley residents – including an alleged career conman already under indictment in a foreclosure-avoidance and bankruptcy fraud scam – were arrested this morning pursuant to a new federal indictment that alleges a $17 million scheme that defrauded – and in some cases stole homes from – distressed homeowners, many of whom were elderly victims.
The four defendants arrested this morning by federal authorities are:
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Michael “Mickey” Henschel, 68, of Van Nuys, who was originally indicted last summer in the bankruptcy fraud scheme and who allegedly continued to defraud homeowners while free on bond;
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Camerino “Mino” Islas, 40, of North Hollywood;
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Claudia “Jessica” Islas, 42, of Reseda; and
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Juan Carlos Velasquez, 43, of Sylmar.
A fifth defendant named in the superseding indictment returned yesterday by a federal grand jury – Eugene “Gene” Fulmer, 83, of Encino – is currently a fugitive being sought by federal authorities.
The four defendants arrested this morning are scheduled to be arraigned on the superseding indictment this afternoon in United States District Court.
According to the superseding indictment that was unsealed this afternoon, Henschel – who used various aliases, including “Frank Winston,” “Steve Lopez,” and “Ron Berman” – and his associates tricked homeowners into signing fraudulent deeds on their properties. Henschel and his co-defendants then allegedly used the fraudulent deeds to extort money from homeowners, charge homeowners illegal fees to delay foreclosure and eviction actions, and to steal some homes outright. The new indictment adds charges based on the fraudulent deeds.
The indictment alleges that Henschel and the others collected more than $17 million from the scheme.
In the newly alleged portion of the scheme, Henschel and his co-conspirators identified distressed homeowners who were in default on mortgages or were experiencing financial troubles, even though some had large amounts of equity in their properties. These homeowners allegedly were told that Henschel was a sophisticated real estate investor and attorney interested in purchasing their properties, or, if they wanted to keep their homes, he could help protect the homes from creditors. Henschel and the others promised distressed homeowners that they could refinance mortgages or restructure real estate holdings to insulate the properties from creditors, and that Henschel and other co-conspirators could manage the properties on an ongoing basis.
Henschel and other co-conspirators allegedly convinced homeowners to sign fraudulent documents that were recorded on titles to their homes, including trust deeds that recorded secured interests in their homes based on fictional loans that the homeowners supposedly guaranteed, and grant deeds that supposedly conveyed properties to entities that Henschel controlled.
Henschel and the others used the fraudulent filings to steal some properties outright, according to the indictment. In other cases, they allegedly exploited the fraudulent filings in a number of ways, including by initiating foreclosure proceedings on the properties, demanding money from homeowners before properties sold, and making extortionate settlement demands based on the filings.
Henschel and other co-conspirators are alleged to have leveraged the high cost of bringing and defending civil actions to extort settlement payments from homeowners, relying on the fact that it would often be less expensive for homeowners to pay the co-conspirators than to fight them in court. The indictment describes unscrupulous litigation tactics allegedly used by Henschel and his co-conspirators, which included pretending to be licensed attorneys, tricking victims into signing legal documents, fabricating documents and forging victims’ signatures.
In the bankruptcy fraud part of the scheme originally alleged in last summer’s indictment, Henschel and his co-conspirators used fraudulent filings to charge homeowners fees to delay foreclosure and eviction actions. In this part of the conspiracy, Henschel and the others had homeowners sign fraudulent deeds that transferred interests to debtors in bankruptcy cases – but the bankruptcies allegedly were fraudulent and were filed on behalf of fictional people and entities. The superseding indictment alleges that Henschel and his co-conspirators sent the fake deeds and the fraudulent bankruptcy petitions to trustees to stop foreclosure sales. Henschel and his associates allegedly delayed evictions in a similar way, mainly by sending bogus documents to sheriff’s offices. Henschel and other co-conspirators allegedly charged monthly fees for the illegal services, and some homeowners were charged large fees to clear title to their properties.
The superseding indictment charges all five defendants with one count of conspiracy and eight counts of mail fraud. Henschel is additionally charged with eight counts of bankruptcy fraud.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If the defendants were to be convicted, they each would face a statutory maximum sentence of five years in federal prison on the conspiracy count and 30 years for each of the mail fraud counts. If convicted, Henschel would also face five years in prison for each of the eight bankruptcy fraud counts.
Two other individuals – Shara Surabi, 34, of Burbank, and Lidia Alvarez, 54, of Bell Gardens – previously pleaded guilty to federal charges related to this scheme.
The cases against Henschel and the others are the result of an investigation by the Federal Bureau of Investigation, and the Federal Housing Finance Agency - Office of Inspector General. These agencies received substantial assistance from the Alameda County District Attorney’s Office, the United States Trustee’s Office for the Central District of California, the Los Angeles County Recorder’s Office, the Alameda County Recorder’s Office, and the San Diego County Recorder’s Office.
This case is being prosecuted by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section
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Thursday 8 March 2018
Worcester Woman Pleads Guilty to Federal Drug ConspiracyRead the Press Release
BOSTON – A Worcester woman pleaded guilty today in federal court in Worcester to her role in a heroin and cocaine conspiracy.
Kristin Little, 34, pleaded guilty today to one count of conspiring to distribute heroin and cocaine and to possess heroin and cocaine with the intent to distribute. U.S. District Court Judge Timothy J. Hillman scheduled sentencing for June 7, 2018. Little and four co-defendants, Vito Nuzzolilo, of Worcester; Thomas Walker, of Pemaquid, Maine; Melissa Rock, of Pemaquid, Maine; and Ricardo Ortega-Vasquez, a Dominican national residing in New York City, were indicted in July 2017.
In May 2017, as a result of an investigation into drug trafficking in the Worcester area, Little and Nuzzolilo were arrested for their roles in a drug conspiracy. (The three other co-defendants were arrested in June and July 2017.) Little sold heroin and cocaine from her apartment in Worcester and collected debts that arose from previous drug sales. In 2017, a federal wiretap captured Nuzzolilo directing Little to provide heroin and cocaine of various quantities to numerous customers.
Little faces a sentence of up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Massachusetts Attorney General Maura Healey made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Willoughby Hills man indicted for failing to register as a sex offenderRead the Press Release
A Willoughby Hills man was indicted for failing to register as a sex offender.
Patrick Denning, 57, failed to register, or update a registration, as a sex offender as required under the Sex Offender Registration and Notification Act, after having traveled in interstate commerce, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Marshals Service. The matter is being prosecuted by Assistant U.S. Attorney Danielle K. Angeli.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wildwood Man Faces Additional Charges Related to Real Estate Development BusinessRead the Press Release
St. Louis, MO – Paul Everett Creager, 39, of Wildwood, having pleaded guilty to fraud in December in association with investments he solicited for his failed residential real estate business, faces additional charges relating to that business.
A Grand Jury sitting in St. Louis handed down two additional counts of wire fraud against Creager who developed business through a number of entities using the name “Everett Builders” and “L and P Builders.”
The first count relates to investments solicited from an individual investor identified in the Indictment as M.L. The indictment alleges Creager collected more than $2.5 million in investments from M.L. through false representations about Creager’s personal wealth, his planned use of investment funds and M.L.’s exclusive status as Creager’r partner.
Contrary to Creager’s representations to M.L., the Indictment alleges Creager (1) was not a multi-millionaire and had, in fact, filed for bankruptcy in the past, (2) used M.L.’s money to buy a luxury SUV, a Harley Davidson and to sustain a lavish lifestyle and (3) sold other equity positions in his business and borrowed heavily against it.
The second count alleges that Creager intentionally filed a false affidavit at the closing of one of his homes in Kirkwood stating that all the subcontractors on the project had been paid even though he knew he still owed a storm drain subcontractor $30,000. After pocketing nearly $50,000 at the closing, Creager refused to pay the subcontractor’s bill, forcing the subcontractor to file a mechanic’s lien against the property.
Creager faces up to 20 years in prison for each of the wire fraud counts in addition to the 20 years he faces for the wire fraud count to which he pleaded guilty in December. Additionally, the government will pursue an order of restitution in favor of all the victims.
The case was investigated by the St. Louis Division of the FBI. Assistant U.S. Attorney Tom Albus is handling the case for the government.
University Heights man sentenced to a month of incarceration for stealing Social Security benefitsRead the Press Release
A University Heights man was sentenced to 30 days of incarceration for theft of government money.
Al Plummer, 51, was also ordered to pay $45,121 in restitution. His incarceration is to be followed by six months of home confinement.
Plummer is the co-owner of Gimme Java Coffee in Shaker Heights. Plummer began stealing his grandmother’s Social Security Retirement benefits after she had passed away in July 2013. Plummer did not report his grandmother’s death and continued to withdraw the monthly benefit until he was caught in October 2016, according to court documents.
The case was prosecuted by Special Assistant U.S. Attorney Payum Doroodian following an investigation by Kelly Clark from the Social Security Administration Office of Inspector General.
U.S. Senate Confirms McGregor W. Scott as U.S. Attorney for the Eastern District of CaliforniaRead the Press Release
SACRAMENTO, Calif. — On Wednesday, March 7, 2018, McGregor W. Scott was confirmed by the U.S. Senate to be the U.S. Attorney for the Eastern District of California. He was been nominated for the position by President Donald J. Trump.
Mr. Scott was sworn in as the Court-appointed U.S. Attorney on December 29, 2017. He returned to the position he held from 2003 to 2009 when he was appointed U.S. Attorney by President George W. Bush.
Mr. Scott received his B.A. from Santa Clara University in 1985 and his J.D. from Hastings College of the Law, University of California, in 1989. He served as a deputy district attorney from 1989 to 1997 in Contra Costa County, California, and served as the elected District Attorney of Shasta County, California, from 1997 to 2003. After completing his first term as U.S. Attorney, Mr. Scott practiced as a partner with the law firm of Orrick, Herrington, & Sutcliffe LLP, focusing on white collar criminal defense and corporate investigations. In addition, Mr. Scott retired in 2008 from the U.S. Army Reserve as a lieutenant colonel after 23 years of service.
The U.S. Attorney serves as the chief federal law enforcement officer for the Eastern District of California and is responsible for prosecuting federal criminal cases and representing the United States in civil litigation. The Eastern District covers 34 counties throughout the Central Valley and the Sierras, from the Oregon border in the north to the Los Angeles County line in the south. The office has 92 attorneys and 81 non-attorney staff with offices in Sacramento, Fresno, and Bakersfield.
“I am humbled and honored to be appointed by the president to lead the committed men and women in this outstanding office. I look forward to working with them and our law enforcement partners to keep our communities safe, to safeguard the Treasury, and to provide the United States with the highest quality legal representation in all the matters we handle,” U.S. Attorney Scott said.
Two indicted for illegally reentering the U.S. after multiple previous deportationsRead the Press Release
Two people were indicted for illegally reentering the United States.
Bonifacio Lopez-Herrera, 29, of Guatemala, was in the U.S. on Feb. 7, 2018. after having been previously deported twice, according to the indictment.
Jonathan Milla, 41, of Honduras, was found in Fairview Park after having been previously deported from the U.S. three times, according to the indictment.
The cases are being prosecuted by Assistant U.S. Attorney Kathryn G. Andrachik (Milla) and Gene Crawford (Lopez-Herrera) following investigations by the U.S. Customs and Border Protection, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two West Virginia men indicted on sex offender registry violationsRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Hampshire County, West Virginia, man and a Monongalia County, West Virginia, man were indicted this week by a federal grand jury on sex offender registration violations, United States Attorney Bill Powell announced.
Anthony Dale Helton, of High View, age 50, was indicted on one count of “Failure to Register.” Helton, who had previously been convicted of a sex offense in South Carolina, is accused of traveling across state lines without updating his sex offender registration, as required by law, in November and December 2017 in Hampshire County.
In a separate case, Robert W. Tucker, Jr., of Star City, age 43, was indicted on one count of “Failure to Update Sex Offender Registration.” Rucker is accused of traveling from Monongalia County, West Virginia to South Carolina and North Carolina, without updating his registry, as required by law, in August 2016 and September 2017.
Helton and Tucker each face up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the Helton case on behalf of the government. Assistant U.S. Assistant U.S. Attorney Sara E. Wagner is prosecuting the Tucker case on behalf of the government. The United States Marshals Service investigated both cases.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Mineral County men admit to drug distribution chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA –Jordan Foster, of Piedmont, West Virginia, and Brandon Suter, of Keyser, West Virginia, have admitted to a drug distribution charges, United States Attorney Bill Powell announced.
Foster, age 22, pled guilty to one count of “Possession with Intent to Distribute Cocaine Hydrochloride.” Foster admitted to distributing cocaine hydrochloride in August 2017 in Mineral County.
Suter, age 26, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Hydrochloride.” Suter admitted to assisting Foster in possessing with the intent to distribute cocaine hydrochloride in August 2017 in Mineral County.
Foster and Suter each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government. The Potomac Highlands Drug and Violent Crimes Task Force, the Mineral County Sheriff's Office, and the Keyser City Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Two Local Men Indicted for Carjacking, Obstruction of Justice, and Discharging A FirearmRead the Press Release
Today, United States Attorney Trent Shores announced that a Federal Grand Jury indicted MICHAEL W. NEWLIN, 18, of Owasso, and BRANDON MENDINGHALL, 23, of Stillwater, for their alleged roles in a December carjacking and obstruction of justice that involved evading and shooting at a Tulsa Police Officer. This indictment is part of the United States Justice Department’s Project Safe Neighborhoods national initiative to combat gun violence and violent crime.
“If you commit a federal crime and then shoot at a police officer, you can expect to meet a federal prosecutor in the courtroom,” stated U.S. Attorney Shores. “We will aggressively pursue violent criminals in our district, especially those who would further imperil the lives of the men and women sworn to protect our community. I am thankful that the officers made it home safely in this case.”
The Grand Jury alleged the defendants committed the following federal crimes:
- Count 1: Conspiracy to Carry, Brandish and Use a Firearm During and in Relation to a Crime of Violence;
- Count 2: Carjacking;
- Counts 3 and 5: Carrying, Brandishing, and Using a Firearm in Relation to a Crime of Violence;
- Count 4: Obstruction of Justice by Threatening Physical Force Against a Witness;
- Count 6: Conspiracy to Obstruct an Officer by Killing a Witness;
- Count 7: Obstruction of Justice by Attempting to Kill a Witness; and
- Count 8: Carrying, Using, and Discharging a Firearm in Relation to a Crime of Violence.
The Grand Jury alleged the defendants used a firearm to carjack two victims in Tulsa, Oklahoma. According to the indictment, the defendants took away the victims’ cellular telephones, stranding the victims on the side of the road. Defendant Newlin allegedly fired shots at a police officer in pursuit as the defendants attempted to evade arrest.
The defendants face the following punishments for each alleged violation of law:
- Count 1: Not more than 20 years imprisonment if convicted of Conspiracy to Carry, Brandish and Use a Firearm During and in Relation to a Crime of Violence;
- Count 2: Not more than 15 years imprisonment if convicted of Carjacking;
- Count 3: Not less than 7 years imprisonment up to life imprisonment, to run consecutively to any other sentence, if convicted of Carrying, Brandishing, and Using a Firearm in Relation to a Crime of Violence;
- Count 4: Not more than 20 years imprisonment if convicted of Obstruction of Justice by Threatening Physical Force Against a Witness;
- Count 5: Not less than 25 years imprisonment up to life imprisonment, to run consecutively to any other sentence, if convicted of Carrying, Brandishing, and Using a Firearm in Relation to a Crime of Violence;
- Count 6: Not more than 30 years imprisonment if convicted of Conspiracy to Obstruct an Officer by Killing a Witness;
- Count 7: Not more than 30 years imprisonment if convicted of Obstruction of Justice by Attempting to Kill a Witness;
- Count 8: Not less than 25 years imprisonment up to life imprisonment, to run consecutively to any other sentence, if convicted of Carrying, Brandishing, and Using a Firearm in Relation to a Crime of Violence; and
- All convictions for the charged offenses carry a fine not to exceed $250,000.
Assistant United States Attorneys Ryan M. Roberts and Christopher J. Nassar are representing the United States in this prosecution. The FBI, the Tulsa Police Department, and the Tulsa County Sheriff’s Office are the investigative agencies. The Tulsa County District Attorney’s Office is also an important partner in this case as federal and state prosecutors are working jointly through Project Safe Neighborhoods.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources at all levels. Each United States Attorney’s Office will create a specialized unit that tailors its approach to the unique needs of its own district, and targets the most significant gun crime problems within that district to maximize the impact of the initiative and help ensure the safety of the community. In the coming month, there will be additional information concerning the Project Safe Neighborhoods initiative in this district.
The return of an indictment is a method of informing a defendant of alleged federal crimes, which must be proven beyond a reasonable doubt in a court of law to overcome a defendant’s presumption of innocence.
Twenty New United States Citizens Naturalized Thursday in JacksonRead the Press Release
Jackson, Miss. – Twenty people from 16 different countries were sworn in as United States citizens today during a Naturalization Ceremony held at the United States District Court in Jackson, Mississippi.
U.S. Magistrate Judge Linda R. Anderson presided over the ceremony. Judge Anderson welcomed family, friends, soon-to-be citizens, and special guests that included students from the 4th grade at McWillie Montessori Elementary School in Jackson; Gwen Reed, U.S. Department of Homeland Security; and Judge James Graves, Jr., United States Court of Appeals for the Fifth Circuit. Following a performance of "America the Beautiful" by Lisa Evans and Donnie Dennis, the candidates were presented for citizenship by Assistant U.S. Attorney Mitzi Dease Paige, on behalf of the Attorney General of the United States, Jeff Sessions.
After Arthur Johnston, Clerk of the U.S. District Court, administered the Oath of Allegiance for citizenship, those assembled recited the Pledge of Allegiance for the first time as United States citizens. The Pledge of Allegiance was led by Clarissa Coleman, a 4th grade student at McWillie Montessori Elementary School. Dennis and Evans then sang "My Country ‘Tis of Thee."
A tribute was given by Kamari Littleton-Mack, a 4th grade student at McWillie. "To be a citizen of the United States is to live in a democratic republic," Littleton-Mack said. "You have rights as a citizen. Citizens vote for government officials and these officials represent the concerns and ideas of the citizens."
Judge Anderson congratulated the new citizens and commended the honorees for their hard work to achieve citizenship. Judge Anderson then presented them with certificates of citizenship. Representatives from the local chapter of the National Society of the Daughters of the American Revolution presented American flags and gift bags to the new citizens.
The students from the 4th grade at McWillie led the audience in the singing of the Star Spangled Banner.
The new citizens originated from the following 16 countries: India, Lebanon, Dominican Republic, Thailand, Yemen, Mexico, Canada, Cambodia, Indonesia, United Kingdom, Cuba, Colombia, Vietnam, Jamaica, Mauritius, and People’s Republic of China.
Twelve Individuals Charged in 46-Count Federal Indictment Alleging Duluth-Based Heroin Trafficking ConspiracyRead the Press Release
United States Attorney Gregory G. Brooker today announced the indictment of 12 individuals for their roles in a heroin distribution conspiracy. All 12 defendants named in the indictment were charged with conspiracy to distribute heroin. The defendants will make their initial appearances this week before Magistrate Judge Leo Brisbois in U.S. District Court in Duluth, Minn.
According to the indictment and documents filed in court, from at least March 13, 2017 through the present, CARLOS NASHUN COLEMAN, 33, BERNARD BRANDON MIMS, 38, CRYSTAL BROOKE STARSTEAD, 35, CAZEMBE OSIE FRANKLIN, 44, KENNETH SKY QUADE, 24, DANIEL ALBERT AMATUZIO, JR, 29, BENJAMIN MICHAEL WOODBURY, 27, DAMIEN DEANDRE BURNETT, 33, LAVINA NICOLE SHANNON, 40, JOSEPH DANTE WILLIAMS, 28, CHEVELLA DAWN KORKALO, 23, AND ERIN MARIE ALHACHEM, 27, conspired together to distribute heroin throughout the Twin Ports area. COLEMAN, who is identified as the main distributor, transported heroin from Chicago, Illinois to the Twin Cities and throughout the Twin Ports area where the heroin was further distributed through his network of co-conspirators.
This case is the result of a cooperative investigation conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Duluth Police Department, the Saint Louis County Sheriff’s Office, the Superior Police Department, the Carlton County Sheriff’s Office, the Hibbing Police Department, the Virginia Police Department, the Hermantown Police Department, and the Fond du Lac Reservation Police Department.
This case is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
Defendant Information:
CARLOS NASHUN COLEMAN, a/k/a “Los,” 33
Apple Valley, MN
Charges:
- Conspiracy to distribute heroin, 1 count
- Distribution of heroin, 1 count
BERNARD BRANDON MIMS, a/k/a “Lil B,” 38
Superior, WI
Charges:- Conspiracy to distribute heroin, 1 count
- Distribution of heroin, 28 counts
- Possession with intent to distribute heroin, 5 counts
CRYSTAL BROOKE STARSTEAD, 35
Superior, WI
Charges:- Conspiracy to distribute heroin, 1 count
- Distribution of heroin, 5 counts
- Possession with intent to distribute heroin, 4 counts
CAZEMBE OSIE FRANKLIN, a/k/a “MC Snake,” 44
Aurora, MN
Charges:- Conspiracy to distribute heroin, 1 count
- Possession with intent to distribute heroin, 1 count
KENNETH SKY QUADE, a/k/a “Q,” 24
Unknown
Charges:- Conspiracy to distribute heroin, 1 count
- Possession with intent to distribute heroin, 1 count
DANIEL ALBERT AMATUZIO, JR, 29
Unknown
Charges:- Conspiracy to distribute heroin, 1 count
- Possession with intent to distribute heroin, 3 counts
BENJAMIN MICHAEL WOODBURY, a/k/a “Woody,” 27
Unknown
Charges:- Conspiracy to distribute heroin, 1 count
- Possession with intent to distribute heroin, 1 count
DAMIEN DEANDRE BURNETT, a/k/a “Luck,” 33
Unknown
Charges:- Conspiracy to distribute heroin, 1 count
- Possession with intent to distribute heroin, 1 count
LAVINA NICOLE SHANNON, a/k/a “Satin,” 40
Unknown
Charges:
- Conspiracy to distribute heroin, 1 count
- Possession with intent to distribute heroin, 1 count
JOSEPH DANTE WILLIAMS, 28
Unknown
Charges:
- Conspiracy to distribute heroin, 1 count
- Possession with intent to distribute heroin, 3 counts
CHEVELLA DAWN KORKALO, 23
Unknown
Charges:- Conspiracy to distribute heroin, 1 count
- Possession with intent to distribute heroin, 1 count
ERIN MARIE ALHACHEM,” 27
Unknown
Charges:
- Conspiracy to distribute heroin, 1 count
- Possession with intent to distribute heroin, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Twelve Charged in Cincinnati in Connection to Mexico-Based Sinaloa Drug CartelRead the Press Release
CINCINNATI – A federal grand jury has charged 12 individuals in a narcotics and money laundering conspiracy in a superseding indictment unsealed here today. Members of the group allegedly distributed fentanyl from Mexico in Middletown, Ohio and sent proceeds back to the Sinaloa Drug Cartel in Mexico.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Cincinnati Police Chief Eliot K. Isaac, Middletown Police Chief Rodney Muterspaw, Preble County Prosecuting Attorney Martin P. Votel and Ohio State Highway Patrol Superintendent Col. Paul A. Pride announced the charges.
In addition to the superseding indictment unsealed in Cincinnati today, 40 defendants have been charged in San Diego, as well as additional defendants charged in Columbus, Ohio, the Eastern District of Kentucky, the District of Kansas and the Eastern District of Washington.
Those charged in the Cincinnati case include:
Name
Also Known As
Age
Residence
Jose Chavez-Meraz
Chema
55
Mexico
Rolando Chavez-Garcia
24
Mexico
Favrisio Orozco-Meraz
Favi, Gordo, Gordito
34
Mexico
Raul Trejo
Duende
52
Middletown, Ohio
Donte Holdbrook
Jay
24
Middletown, Ohio
Mariela Penaloza
25
Cleveland, Ohio
Charleston Quinn
Buddy, Buddy Rowe
34
Mason, Ohio
Frank Frazier, Jr.
24
Middletown, Ohio
Jesus Diaz
Chuy, Chewey
47
Ontario, Calif.
Jettie Bailey
23
Middletown, Ohio
Christopher Watkins
23
Trenton, Ohio
Courtney Bailey
24
Middletown, Ohio
According to the superseding indictment, the conspiracy included distributing fentanyl and heroin originating from Mexico into the Southern District of Ohio.
This investigation began when undercover FBI agents in San Diego learned that a known Sinaloa Cartel money-laundering boss, Jose Lopez-Albarran, coordinated and conducted multiple bulk cash pickups from a drug trafficking organization within the Southern District of Ohio.
Lopez-Albarran was one of 40 defendants charged in the Southern District of California. According to court documents there, he and other members of the Cartel allegedly laundered tens of millions of dollars in narcotics proceeds from the United States to Mexico between 2015 and 2018. Through the investigation in California, law enforcement discovered multiple drug-trafficking cells throughout the United States.
It is alleged that the Middletown, Ohio drug-trafficking cell led by Donte Holdbrook would send drug proceeds back to the Sinaloa Cartel in Mexico via Lopez-Albarran.
The superseding indictment details that the Ohio drug trafficking organization primarily conducted fentanyl sales in Middletown and received the narcotics from Mexico via Chavez-Meraz. The drugs would initially enter the United States at locations in California and Arizona, where “drug mules” would then retrieve the drugs for transport to Southern Ohio.
When a sizeable amount of drug proceeds had been collected, the co-conspirators would arrange bulk cash transports back to Mexico. Investigators witnessed at least seven bulk cash pick-ups within the Southern District of Ohio, six on Tivoli Lane in Cincinnati and one at a Comfort Inn and Suites in West Chester. Each transaction involved $25,000 to more than $180,000.
From March 28 to May 4, 2017, investigators observed multiple fentanyl sales in Middletown, several of them in exchange for as much as $2,400 in a single sale.
On August 12, 2017, Troopers with the Ohio State Highway Patrol stopped Jettie and Courtney Bailey in a traffic stop in Preble County, when they discovered nearly three kilograms of fentanyl and two kilograms of heroin concealed in the vehicle’s fuel tank. Similarly, Holdbrook was found to be in possession of 366 grams of fentanyl during a traffic stop on December 2, 2017.
The superseding indictment details at least six drug mule trips organized by Holdbrook from Ohio to multiple locations in California and Arizona, including at least one trip with Christopher Watkins, who was a reserve auxiliary police officer with the Seven Mile, Ohio Police Department.
It is alleged that Watkins was recruited because his law enforcement experience and police training would aid the group in avoiding detection while traveling with the drugs. Watkins allegedly traveled to Ontario, Calif. to pick up narcotics in exchange for $1,000 cash.
Crimes charged in the superseding indictment include:
Crime
Potential Sentences
Narcotics Conspiracy
10 years to life in prison
Possession of Fentanyl with Intent to Distribute
(400 grams or more)
10 years to life in prison
Possession of Heroin with Intent to Distribute
(1 kilogram or more)
10 years to life in prison
Possession of Fentanyl with Intent to Distribute
(40 grams or more)
Five to 40 years in prison
Maintaining a Drug-Involved Premises
Up to 20 years in prison
Money Laundering Conspiracy
Up to 20 years in prison
Interstate Travel Facilitating Unlawful Activities
Up to five years in prison
In Columbus, three individuals were arrested yesterday and charged by criminal complaint with money laundering, money laundering conspiracy and conspiracy to possess with intent to distribute five kilograms or more of cocaine. The three Columbus residents charged include Timothy J.Cox, 41, Todd W. Spriggs, 37, and Randy Ellis Mullins, Jr., 40. Cox and Spriggs are each also charged with felon in possession of a firearm. A federal grand jury indicted the trio this morning in Columbus on the same charges.
In Lexington, Ky., three individuals – Gerardo Mejia-Palacio, Hector Salas-Pina and Ansar I. McIver – have been charged with crimes related to drug trafficking and money laundering. Another Lexington resident, Shontail M. Hocker, 42, was charged in the Southern District of California with conspiring to commit money laundering, based on her involvement with individuals implicated in the San Diego investigation.
U.S. Attorney Glassman commended the investigation of the cases by the FBI – including FBI San Diego Cross Border Violence Task Force, FBI Cincinnati Division and FBI Cleveland Division, Cincinnati and Middletown police departments, Ohio State Highway Patrol and Warren County Drug Task Force, as well as the coordination of Preble County Prosecutor Votel.
Glassman also commended Assistant United States Attorney Karl P. Kadon, who is prosecuting the Cincinnati case, and Assistant United States Attorney Timothy Prichard, who is prosecuting the Columbus case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Tukwila Man Pleads Guilty to Production of Images of Child RapeRead the Press Release
A 40-yearold Tukwila, Washington resident pleaded guilty today in U.S. District Court in Seattle to production and possession of child pornography, announced U.S. Attorney Annette L. Hayes. JESSE LEE ALLEN, was arrested in November 2016, after a witness reported that she had seen videos of the molestation of a young child on ALLEN’s cell phone. The witness made a report to Tukwila Police in October 2016 and ALLEN was located and arrested a few weeks later. ALLEN faces a mandatory minimum 15 years in prison when sentenced by U.S. District Judge Thomas S. Zilly on June 7, 2018.
According to records filed in the case, the witness was involved in a romantic relationship with ALLEN and at one point checked his phone to see if there were images of other women ALLEN might be dating. The witness instead discovered three videos that showed the sexual molestation of a 6-year-old child. The witness immediately went to police.
Production of child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years in prison. Possession of child pornography is punishable by up to 20 years in prison.
The case was investigated by the Tukwila Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI). The case is being prosecuted by Special Assistant United States Attorney Cecilia Gregson. Ms. Gregson is a Senior Deputy King County Prosecutor specially designated to prosecute child exploitation cases in federal court.