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Tuesday 27 February 2018
Davenport Man Sentenced for Escape from Davenport Residential Re-Entry CenterRead the Press Release
DAVENPORT, Iowa-- On February 23, 2018, United States Chief District Court Judge John A. Jarvey sentenced Darrell Anthony Rice to 22 months in prison as the result of his plea of guilty to escape from a federal facility, announced United States Attorney Marc Krickbaum. Rice, age 24, of Davenport, Iowa, was also ordered to serve three years of supervised release and pay $100 to the Crime Victim’s Fund.
In 2012, Rice was sentenced to 70 months imprisonment as the result of a federal arson conviction. Pursuant to a U.S. Bureau of Prisons agreement, in December of 2016 Rice was transferred to the Davenport Residential Re-Entry Center to serve the remainder of his federal sentence. His discharge date was June 1, 2017. Rice was required to wear a GPS device inside the facility. On February 6, 2107, Rice left the Davenport facility without authorization, removed his GPS device and escaped. He was found on April 19, 2017, in Davenport after being arrested on state drug charges.
This investigation was conducted by the United States Marshals Service, Seventh Judicial District Department of Correctional Services, and Davenport Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Aaron Lucas, aka B-Wise, 39, of Buffalo, NY, pleaded guilty to being a felon-in- possession of a firearm before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that on October 25, 2015, a New York State search warrant was executed at the defendant’s Busti Avenue residence in Buffalo. Officers recovered a .22 caliber semi-automatic rifle.
Lucas was convicted in 2003 of a felony charge in state court and as a result was prohibited from legally possessing a firearm.
The plea is the culmination of an investigation on the part of the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for May 31, 2018, before Judge Vilardo.Chinle Man Sentenced to 9 Years for Abusive Sexual Contact with a MinorRead the Press Release
PHOENIX– Yesterday, Earlson Tso, 39, of Chinle, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 108 months’ imprisonment. Tso had previously pleaded guilty to abusive sexual contact with a minor.
In June 2016, the victim, a minor and member of the Navajo Nation, reported inappropriately being touched by Tso while sleeping. Tso is also a member of the Navajo Nation.
Navajo Nation Criminal Investigations and the Federal Bureau of Investigations conducted the investigation. The prosecution was handled by Kiyoko Patterson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8227-PCT-DLR
RELEASE NUMBER: 2018-018_Tso
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Cedar Rapids Man Sentenced to Federal Prison for Unlawfully Possessing a GunRead the Press Release
A man who illegally possessed a gun was sentenced today to more than a year in federal prison.
Demontrae Poole, age 20, from Cedar Rapids, Iowa, received the prison term after a September 21, 2017, guilty plea to unlawfully possessing a gun while an illegal drug user. At the guilty plea, Poole admitted he possessed a Jimenez Arms JA380, .380 caliber pistol and that he was an unlawful user of marijuana on May 4, 2017. Information at sentencing showed that Poole’s criminal history includes two separate convictions for interference with official acts, during which law enforcement officers were injured.
Poole was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Poole was sentenced to 21 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Poole is being held in United States Marshal’s custody until he can be transported to a federal prison. Poole was originally given pretrial release following his federal indictment, but was taken into custody following numerous violations of the release conditions set by the District Court, including attempting to remove his GPS monitor.
The case was prosecuted by Assistant United States Attorney Lyndie Freeman and was investigated by the Federal Bureau of Investigation, the Cedar Rapids Police Department, and the Bureau of Alcohol, Tobacco, and Firearms.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-0064.
Follow us on Twitter @USAO_NDIA.
Caribou Man Pleads Guilty to Possessing Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Ryan T. Card, 22, of Caribou, Maine, pled guilty today in U.S. District Court to possessing child pornography.
According to court records, between about November 2016 and April 2017, Card possessed images of child pornography in his cell phone. At least one of these files, which he had sought out and downloaded from on-line storage accounts on the internet, depicted a child under the age of 12.
Card faces up to 20 years in prison, a $250,000 fine and between five years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Caribou Police Department, and the Maine State Police Computer Crimes Unit.
Blue Gap Man Sentenced to 166 Months in Prison for Assault with a FirearmRead the Press Release
PHOENIX – On Friday, Feb. 23, 2018, Edsel Aaron Badoni, 34, of Blue Gap, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 166 months’ imprisonment. Badoni had previously been convicted at trial of assault with a dangerous weapon, assault resulting in serious bodily injury, and discharging a firearm during a crime of violence.
Badoni had a history of discharging a firearm in the victim’s neighborhood, and when the victim approached him to tell him to stop, Badoni shot the victim in the chest. Officers of the Navajo Nation began an investigation, which led to Badoni’s arrest and prosecution. Badoni is a member of the Navajo Nation, and the crime occurred within the Navajo Nation Reservation.
The investigation was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Public Safety. Badoni’s trial was handled by Assistant U.S. Attorney Roger Dokken, now retired. His sentencing was handled by Assistant U.S. Attorney William G. Voit, District of Arizona, Phoenix.
CASE NUMBER: CR-12-08262-PCT-GMS
RELEASE NUMBER: 2018-16_Badoni
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Bangor Man Sentenced to 20 Months on Heroin, Crack and Oxycodone Conspiracy ChargeRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Quindell Smallwood, a/k/a “Queezo,” 28, of Bangor was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 20 months in prison and three years of supervised release for conspiracy to distribute heroin, cocaine based, commonly known as crack, and oxycodone.
According to court records, between January 2013 and September 2015, Smallwood conspired with others to distribute crack, heroin and oxycodone in the Bangor area and elsewhere. After the drugs were obtained from out-of-state sources and transported to Maine, Smallwood and others sold them to drug customers.
The case was related to the prosecution of Mario Lee, a/k/a “Moe,” of Bangor, and formerly of the Bronx, New York, who was sentenced on May 5, 2017 to over 18 years for his role in the conspiracy.
The case was investigated by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Baltimore Man Convicted of Armed Bank RobberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On February 26, 2018, a federal jury convicted Timothy Allen McNeal, age 31, of Baltimore, Maryland, on charges of armed robbery, conspiracy, and brandishing a firearm during a crime of violence.
The verdict was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Division; and Chief Gary L. Gardner of the Howard County Police.
According to evidence presented at trial, on August 4, 2016, McNeal and his brother, Markus Fields, age 28, of Baltimore, robbed the Howard County Education Federal Credit Union (HCEFCU) in Ellicott City, Maryland at gun point. Surveillance video captured the robbery, during which both Fields and McNeal entered the credit union wearing ski masks to cover their faces. Fields entered first carrying a black backpack. McNeal entered after, carrying a rifle-style long gun with a large magazine visible on the top. McNeal pointed the gun at a bank teller and a customer, while Fields walked to another room. McNeal forced the victims to the ground at gunpoint and moved behind the counter. Fields opened the teller drawer and began rifling through it. McNeal, after closing the bank door, walked back to a supervisor’s office down a short hallway.
McNeal pointed the gun toward the supervisor’s office, forcing the employee to exit the office and, ultimately, open the safe in the lobby. After opening the safe, she was ordered to the ground where she remained while the Fields and McNeal removed cash from the safe.
McNeal then reached into the backpack Fields was carrying, removed zip ties, and zip tied the supervisor and customer. Fields used the zip ties to restrain the teller’s hands behind her back. McNeal and Fields then left the HCEFCU by climbing out of a window.
McNeal, Fields and their mother, an employee of the Howard County School District, were all account holders at the HCEFCU. On August 4, 2016, a few hours after the robbery, McNeal and Fields went to Wal-Mart and purchased two large televisions, paying over $350 in cash for each. On August 6, 2016, two days after the robbery, Fields purchased a maroon Lexus and paid $4,620 in cash. On August 8, 2016, McNeal posted a photograph of a maroon Lexus with the caption “we working.” On August 17, 2016, over $2,600 in overdue rent was paid on Fields and McNeal’s residence.
During execution of a search warrant, law enforcement recovered black ski masks, clothing matching the clothing worn by McNeal during the bank robbery, banded cash, and cell phones from Fields and McNeal’s residence
Co-defendant Fields pleaded guilty to Armed Bank Robbery on February 9, 2018 and is scheduled for sentencing on May 8, 2018. Judge Catherine C. Blake has set sentencing for May 30, 2018 for McNeal.
Acting United States Attorney Stephen M. Schenning commended the FBI, ATF, Howard County Police and the Howard County State’s Attorney’s office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Lauren Perry and Burden Walker who prosecuted the case.
Baldwin County Man Receives 5 Years Probation and 300 Hours of Community Service for Possession of a Firearm After Felony ConvictionRead the Press Release
The United States Attorney, Richard W. Moore, announces that Craig Miller, a 34 year old, resident of Foley, Alabama was sentenced to five years of probation and ordered to perform 300 hours of community service. During the first six months of his probationary term, Miller will be on home confinement.
On September 24, 2016, a Baldwin County, Alabama sheriff’s deputy initiated a traffic stop for a vehicle driven by Miller. The vehicle was stopped for speeding. The deputy obtained Miller’s license and learned that it was suspended. When the deputy told Miller of the suspension, he observed Miller speaking with slightly slurred speech and Miller had the strong odor of a fermented beverage on or about his person. Next, the deputy asked Miller if there were weapons in the vehicle. Miller responded by looking in the back seat. He did not respond verbally. The deputy then asked Miller if he had been drinking that night. Miller responded with, “yes, a few drinks.” The deputy asked Miller to step out of the vehicle so they could talk about Miller’s license and talk about how much Miller had drank that night. When Miller stepped out of the vehicle, the deputy asked Miller if he had anything on him or in the vehicle that the deputy needed to know about. Miller replied that there was a gun in the vehicle. The deputy then asked if he could search the vehicle and Miller consented to the search. The search yielded two bottles of alcohol, an open container with alcohol inside and a crown royal bag with a Sig Sauer, .40 caliber pistol. A records check revealed that the firearm had been stolen. Miller was then read his Miranda Rights and he confessed to possessing a firearm knowing that he was prohibited from doing so due to his felony conviction. On November 13, 2017, Miller entered a guilty plea to possession of a firearm after being convicted of a felony assault in 2011.
The Baldwin County Sheriff’s Office along with the FBI’s Violent Crime Unit investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.
Attorney General Sessions Announces New Prescription Interdiction & Litigation Task ForceRead the Press Release
Attorney General Jeff Sessions today announced the creation of a new effort, the Department of Justice Prescription Interdiction & Litigation (PIL) Task Force, to fight the prescription opioid crisis. The PIL Task Force will aggressively deploy and coordinate all available criminal and civil law enforcement tools to reverse the tide of opioid overdoses in the United States, with a particular focus on opioid manufacturers and distributors.
“Over the past year, the Department has vigorously fought the prescription opioid crisis, and we are determined to continue making progress. Today, we are opening a new front in the war on the opioid crisis by bringing all of our anti-opioid efforts under one banner,” said Attorney General Sessions. “We have no time to waste. Every day, 180 Americans die from drug overdoses. This epidemic actually lowered American life expectancy in 2015 and 2016 for the first time in decades, with drug overdose now the leading cause of death for Americans under age 50. These are not acceptable trends and this new task force will make us more effective in reversing them and saving Americans from the scourge of opioid addiction.”
The PIL Task Force will include senior officials from the offices of the Attorney General, the Deputy Attorney General, and the Associate Attorney General, as well as senior officials from the Executive Office for U.S. Attorneys, the Civil Division, the Criminal Division, and the Drug Enforcement Administration. The Task Force will coordinate the Department’s many efforts and tools to combat the opioid epidemic.
The PIL Task Force will combat the opioid crisis at every level of the distribution system. At the manufacturer level, the PIL Task Force will use all available criminal and civil remedies available under federal law to hold opioid manufacturers accountable for unlawful practices. The PIL Task Force will build on and strengthen existing Department of Justice initiatives to ensure that opioid manufacturers are marketing their products truthfully and in accordance with Food and Drug Administration rules.
The Attorney General has also directed the PIL Task Force to examine existing state and local government lawsuits against opioid manufacturers to determine what assistance, if any, federal law can provide in those lawsuits. The federal government has borne substantial costs from the opioid crisis, and it must be compensated by any party whose illegal activity contributed to those costs.
The Department will also use all criminal and civil tools at its disposal to hold distributors such as pharmacies, pain management clinics, drug testing facilities, and individual physicians accountable for unlawful actions.
The PIL Task Force will use criminal and civil actions to ensure that distributors and pharmacies are obeying Drug Enforcement Administration rules designed to prevent diversion and improper prescribing. It will use the False Claims Act and other tools to crack down on pain-management clinics, drug testing facilities, and physicians that make opioid prescriptions.
The PIL Task Force will use the criminal and civil tools available under the Controlled Substances Act against doctors, pharmacies, and others that break the law. The PIL Task Force will build upon and expand the efforts of the existing Opioid Fraud and Abuse Detection Unit. Created in August 2017, the Unit uses sophisticated data analysis to identify and prosecute individuals who are contributing to the opioid epidemic, including pill-mill schemes and pharmacies that unlawfully divert or dispense prescription opioids for illegitimate purposes.
The PIL Task Force will also work closely with the Department of Health and Human Services to investigate and hold accountable any parties who engage in illegal activity surrounding prescription opioids. The Attorney General has directed the PIL Task Force to establish immediately a working group to: (1) improve coordination and data sharing across the federal government to better identify violations of law and patterns of fraud related to the opioid epidemic; (2) evaluate possible changes to the regulatory regime governing opioid distribution; and (3) recommend changes in laws.
This new Task Force will build on a number of new initiatives begun by Attorney General Sessions over the past year that will help us end the drug crisis, including the following:- In July, the Attorney General announced charges against more than 120 defendants, including doctors, for crimes related to prescribing or distributing opioids and other dangerous narcotics.
- One week later, the Attorney General announced the seizure of AlphaBay, the largest criminal marketplace on the Internet. This site hosted some 220,000 drug listings – including more than 100 vendors advertising fentanyl – and was responsible for countless synthetic opioid overdoses, including the tragic death of a 13-year old in Utah.
- In August, the Attorney General created the Opioid Fraud and Abuse Detection Unit, a new data analytics program to help find evidence of overprescribing and opioid-related health care fraud.
- The Attorney General then assigned 12 experienced Assistant United States Attorneys to opioid “hot-spots” to focus solely on investigating and prosecuting opioid-related health care fraud. By November they had begun issuing indictments.
- In October, the Department announced the first-ever indictments of Chinese nationals and their North American-based traffickers and distributers for separate conspiracies to distribute fentanyl and other opioids in the United States.
- Also in October, the DEA announced the establishment of six new enforcement teams focused on combatting the flow of heroin and illicit fentanyl into the U.S. These enforcement teams are based in communities facing some of the most significant challenges with heroin and fentanyl.
- In 2017, the DEA held two of its National Prescription Drug Takeback Days, when people can dispose of unnecessary and potentially dangerous drugs with no questions asked. In total, DEA took a record 956 tons of drugs out of American communities.
- In January 2018, the Department announced a new resource to target traffickers who sell drugs online called J-CODE: Joint Criminal Opioid Darknet Enforcement team. The J-CODE team will coordinate efforts across the FBI’s offices all around the world – bringing together DEA, our Safe Streets Task Forces, drug trafficking task forces, Health Care Fraud Special Agents, and other assets – effectively doubling the FBI’s investment into fighting against online drug trafficking.
- Also in January 2018, the DEA announced a 45-day surge of Special Agents, Diversion Investigators, and Intelligence Research Specialists to focus on pharmacies and prescribers who are dispensing unusual or disproportionate amounts of drugs.
- On February 7, 2018, the DEA placed all fentanyl analogues not already regulated by the Controlled Substances Act into Schedule I – the category for substances with no currently accepted medical use – for at least two years. This makes it harder for people to acquire illicit fentanyl and easier for law enforcement to investigate and prosecute drug traffickers.
- The Department anticipates filing a statement of interest in the coming days in a multi-district action regarding hundreds of lawsuits against opioid manufacturers and distributors.
Armed Drug Trafficker SentencedRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Bruce King, 48, of Rochester, NY, who was convicted of possession with intent to distribute marijuana and possession of a short-barrel rifle which was not registered in the National Firearms Registration and Transfer Record, was sentenced to 97 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that King was arrested on October 19, 2015, following a search by the New York State Department of Corrections and Community Supervision of his residence at 161 Conkey Avenue in Rochester. During the search, officers recovered a brown paper bag with plastic capsules containing marijuana inside a backpack. Officers also found a .22 caliber sawed-off rifle with two boxes of .22 caliber ammunition. The barrel and the stock of the rifle had been shortened. Officers also found drug trafficking paraphernalia in the residence as well.
The sentencing is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; the Rochester Police Department, under the direction of Chief Michael Ciminelli; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Armed Drug Dealer from Seattle’s Belltown Neighborhood Sentenced to Six Years in PrisonRead the Press Release
A Seattle man who sold heroin and meth in downtown Seattle while armed with a handgun was sentenced today in U.S. District Court in Seattle to six years in prison, announced U.S. Attorney Annette L. Hayes. JUSTIN GARRETT HARRISON, 37, used his 85-year-old grandmother’s condominium home to store and sell heroin and methamphetamine. Judge John C. Coughenour sentenced HARRISON for being a felon in possession of a firearm, possession of heroin with intent to distribute and possession of a firearm in connection with a drug trafficking crime. Judge Coughenour ordered four years of supervised release to follow the prison term.
According to records filed in the case, in late January 2017, HARRISON arranged to sell $2500 worth of heroin to an undercover agent. Police had already received numerous complaints from neighbors at HARRISON’s grandmother’s condo complex about the high volume of foot traffic coming and going from the condo. HARRISON was arrested in the lobby of the building after he returned from another drug deal. HARRISON carried a backpack containing meth, heroin, prescription pills, three cell phones, a drug ledger and a loaded handgun with additional rounds of ammunition. In the apartment law enforcement found other evidence of drug trafficking and at a room in a nearby hotel they found nearly half a pound of methamphetamine that HARRISON was storing in the room safe.
HARRISON is prohibited from possessing firearms due to a King County Superior Court conviction for assault with a deadly weapon. In that case HARRISON threatened a cab driver with a knife.
The case was investigated by the Seattle Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case was prosecuted by Special Assistant United States Attorney Jessica Manca. Ms. Manca is a Senior Deputy King County Prosecutor specially designated to prosecute gun crimes in federal court.
Anchorage Man Sentenced for Cyberstalking Former GirlfriendRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage man was sentenced in federal court yesterday for cyberstalking his former girlfriend while on release after being charged with physically assaulting the same victim.
Jeffery Ray Ward, 41, of Anchorage, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess, to serve 40 months in prison, followed by a three-year term of supervised release. Ward previously pleaded guilty on Sept. 27, 2017, to one count of cyberstalking in violation of a domestic violence protective order. Ward had been previously convicted by the Municipality of Anchorage of the domestic violence offense involving the same victim.
According to court documents, on April 16, 2017, APD received a 911 call from the victim reporting that Ward, her ex-boyfriend, had violated his conditions of release in the pending Municipal domestic violence case, where the court had ordered that Ward have no contact with the victim. While that case was pending, Ward threatened to put the victim’s “dirt on blast” before hacking her social media accounts and posting nude, sexually explicit pictures of the victim for hundreds of her friends and family to see.
Furthermore, the victim received an automated email from the social media site stating that the email address associated with her account had been changed from her own to one belonging to Ward, making it impossible for the victim to regain control and change the password back. The investigation further revealed that Ward had also impersonated the victim via social media direct messaging to engage in sexually explicit communications with the victim’s prior boyfriend.
Ward has a history of domestic violence offenses in the State of Alaska and elsewhere. At sentencing in this matter, Judge Burgess advised Ward that “to call this a serious crime is an understatement,” and stated that he was “concerned about protecting other women” in the community from Ward.
“Our highest priority is prevention of violent crime,” said U.S. Attorney Schroder. “While a significant amount of our efforts go toward drug trafficking related and firearms based violent crime, domestic violence is an insidious threat to Alaskan families. Where appropriate, the U.S. Attorney’s Office will bring charges to hold domestic abusers accountable.”
“APD Cyber Detectives work diligently to ensure the safety of all Anchorage residents online,” said APD Cyber Crimes Lieutenant Josh Nolder. “We are pleased to partner with the US Attorney’s office to prosecute Mr. Ward.”
Patrol Officers and Detectives with the Cyber Crimes Unit of the Anchorage Police Department (“APD”) conducted the investigation leading to the successful prosecution of this case. This case was developed through cooperation with the Municipality of Anchorage Prosecutor’s Office. Assistant U.S. Attorney Adam Alexander prosecuted the case.
Albany Woman Charged with Distributing and Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Michelle M. Syler, age 49, of Albany, was arrested and charged today for distributing and receiving child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to a complaint, Syler distributed and received child pornography through a peer-to-peer, file-sharing network, between December 30, 2017 and February 27, 2018.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Syler appeared today before United States Magistrate Judge Christian F. Hummel, who ordered her detained pending further proceedings.
If convicted, Syler faces at least 15 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life. A sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines, and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Monday 26 February 2018
Windsor Man Charged with Enticing Minor to Engage in SexRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ANDREW CUNNINGHAM, 37, formerly of Windsor, has been charged by federal criminal complaint with one count of enticement of a minor to engage in illegal sexual activity.
The complaint alleges that, in March 2017, CUNNINGHAM began communicating with a 13-year-old female on Omegle, a website and mobile application designed to pair strangers for text and video chats. CUNNINGHAM first told the minor victim that he was 17, and later stated he was 25. CUNNINGHAM and the minor victim then communicated via text messaging and phone calls for approximately one week. During that time, CUNNINGHAM enticed the minor victim to send him sexually explicit images of herself, and attempted to lure her to travel to Connecticut.
CUNNINGHAM appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford. He has been in state custody since May 2, 2017 when he was arrested on state charges. He previously pleaded guilty in state court to illegal sexual contact with a minor and enticement of a minor, and is currently serving a three-year state sentence.
If convicted of the federal charge, CUNNINGHAM faces a mandatory minimum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut State Police, with the assistance of Connecticut State Parole. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
U.S. Attorney Carpenito Restructures Office to Add Additional Resources to Quality of Life Issues Facing New Jersey CitizensRead the Press Release
NEWARK, N.J. – U.S. Attorney Craig Carpenito announced today that he is reorganizing the District of New Jersey office to add additional resources to areas that are vital to the health and safety of the people of New Jersey.
U.S. Attorney Carpenito said this new structure will take best advantage of the depth and breadth of experience of the 130 Assistant U.S. Attorneys that staff the Newark, Trenton and Camden offices and focus their work on areas of criminal and civil enforcement that will pay the biggest dividends in protecting the public.
“After spending the past six weeks conducting an in-depth review of our operations, meeting with federal and state law enforcement leaders from across the state, and working closely with the Department of Justice, I have identified several areas of criminal activity where we need to intensify our efforts,” U.S. Attorney Carpenito said. “This sharpened focus will help us get the most dangerous criminals off our streets, address the ongoing opioid epidemic in our state, and stop the hackers and identity thieves who prey on our residents.”
U.S. Attorney Carpenito announced the following strategic changes in how the office will be organized:
• Three new units in the Criminal Division:
o Opioid Abuse Prevention and Enforcement – Among the first stand-alone units of its kind in the country, this unit will work with the existing Health Care and Government Fraud Unit and the Organized Crime and Drug Enforcement Task Force (OCDETF) Unit to target everyone who is making a living on these dangerous and addictive drugs, from the people who are running street-level distribution networks, to the doctors and pharmacists who turn a blind eye to over-prescribing and phony prescriptions, to the manufacturers and distributors who abdicate their responsibility to ensure these medications are being used lawfully. The Centers for Disease Control and Prevention reports that drug overdose deaths and opioid-involved deaths continue to increase in the United States. The majority of drug overdose deaths (66 percent) involve an opioid. In 2016, the number of overdose deaths involving opioids (including prescription opioids and heroin) was five times higher than in 1999. From 2000 to 2016, more than 600,000 people died from drug overdoses. On average, 115 Americans die every day from an opioid overdose. This unit will be enhanced by two Special U.S. Attorneys from the N.J. Office of the Attorney General, part of a joint state/federal effort to combat the growing problem of opioid abuse.
“U.S. Attorney Carpenito and I have forged a partnership dedicated to preventing illegal narcotics and prescription painkillers from flowing unchecked into our communities,” N.J. Attorney General Grewal said. “This collaboration of state and federal law enforcement allows us to share resources and strategies to identify, apprehend, and prosecute drug traffickers, unscrupulous doctors, and others who profit from the suffering and death caused by opioid addiction.”
o Violent Crimes Enforcement Unit – According to national crime data from the FBI, New Jersey’s homicide rate per 100,000 people rose from 3.9 to 4.2 and the rape rate rose from 10.7 to 16.2 between 2014 and 2016. The new Violent Crimes Enforcement Unit will work together with the Organized Crime/Gangs Unit to address these trends by targeting seven strategic areas:
- Federal Interest Murder/Major Violent Crimes
- Gang prosecution
- Carjacking
- Gun Trafficking
- Armed Bank Robberies
- Hobbs Act Robberies
- Human trafficking
o Cyber Crime Prevention and Enforcement – The attorneys in this unit are responsible for some of the most complex investigations the office handles, dealing with the unique and ever-changing issues presented by computer and communications technologies. Computer hacking, mass identity theft, ATM hacking – this unit will partner with the National Security and Economic Crimes units to focus on those cases and other emerging illegal uses of technology. In addition to litigating their own cases, they will provide their support and special expertise to federal and state partners as needed. The most recent report from the FBI Internet Crime Complaint Center found that, nationally, there were an average of 280,000 complaints per year from 2010 through 2016, and in 2016, the number of complaints reached 298,728, resulting in victim losses of $1.33 billion in that year alone. That same year, New Jersey received 6,690 complaints (13th in the nation), resulting in losses to victims of $24.5 million (11th in the nation.)
• A fourth unit, the current General Crimes Unit, will be recast as the Public Protection Unit. This unit will lead the office’s realignment with the Department of Justice’s renewed focus on the Project Safe Neighborhoods program, a nationwide strategy for using existing resources to most effectively combat violent crime in partnership with state and local law enforcement and the communities we serve. The unit handles any and all types of crime, but in this restructuring, the focus will be on criminals who prey on the public, including those who commit violent crimes and white collar scams, human trafficking and child exploitation.
“The changes I am announcing today will enhance our ability to do our most important job – protecting the public – more efficiently and with greater impact,” U.S. Attorney Carpenito said. “They will align our office with the priorities outlined and implemented by Attorney General Sessions and the Department of Justice. Of course, the office will continue to focus on all areas of federal interest, including national security, economic crimes, federal taxes, political corruption, civil rights, health care and government frauds.”
“The FBI dedicates significant resources in combating violent crime, cybercrime and the alarming rise in opioid abuse,” Special Agent In Charge of the FBI Newark Division Timothy Gallagher said. “We strongly support U.S. Attorney Carpenito’s focus to get the most dangerous drugs and criminals off our streets, particularly those who intend on defrauding our citizens and praying on the young and old. We look forward to continuing to work closely with the U.S. Attorney’s Office, so together we can make our state a safer place for our citizens.”
Valerie A. Nickerson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division said, “The men and women of the Drug Enforcement Administration work tirelessly to combat the current opioid epidemic in New Jersey. We look forward to the opportunity to continue our work with the U.S. Attorney’s Office and the New Jersey Attorney General’s Office to investigate and prosecute those who continue to profit off of the misery that this epidemic has caused.”
“We look forward to expanding upon our great working relationship with the U.S. Attorney’s Office,” Bureau of Alcohol, Tobacco and Firearms Special Agent in Charge John Devito said. “With this reorganization, both ATF and the USAO will be better situated to protect the citizens of New Jersey and mitigate the risk that violent crime poses to the public.”
U.S. Attorney Carpenito also announced new leadership of the office:
The First Assistant U.S. Attorney will be Rachael Honig, who is rejoining the office from the private sector. She worked for the U.S. Attorney’s Office for 14 years, most recently as Counsel to the U.S. Attorney. The Executive Assistant to the U.S. Attorney is Zach Intrater, who has been with the office for eight years in the Criminal Division, most recently as Deputy Chief of the Economic Crimes Unit. The Acting Counsel to the U.S. Attorney is Caroline Sadlowski, who has been with the office for 15 years, including nine years in the Appeals Division and six years in the Civil Division. Most recently, she was chief of the Civil Division. The Deputy U.S. Attorney, overseeing the Trenton and Camden Vicinages, is Thomas J. Eicher, who has been with the office more than 14 years, most recently as Chief of the Criminal Division.
“Let me be clear: The U.S. Attorneys’ Office for the District of New Jersey has a long and proud history,” U.S. Attorney Carpenito said. “Every U.S. Attorney who has sat in this seat has inherited a great office, and then worked to make it even better before handing it off to his or her successor. I intend to be no different. The changes I am announcing today are my first steps in making this office stronger and more successful.”
Two-Time Sex Offender Pleads Guilty to Attempted Production of Child PornographyRead the Press Release
Tampa, Florida – William Patrick King (35, Columbia, Maryland) has pleaded guilty to attempted production of child pornography. He faces a minimum mandatory penalty of 35 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between December 2016 and February 2017, King attempted to persuade a 17-year-old girl to engage in sexually explicit conduct for the purpose of producing child pornography. King met the victim on a teen-dating website and communicated with her by phone and via Facebook, Skype, and text messages. He told the victim that he was 18 years old, when in fact he was then 34 years old. King asked the girl to produce and send him child pornography. He also engaged in nude chats with the victim, and she sent him photographs.
King is a registered sex offender and has two prior convictions in Maryland for the sexual exploitation of children.
This case was investigated by the FBI. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case 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 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.
Two-Time Felon Found with Ten Guns Sentenced to 41 MonthsRead the Press Release
PHOENIX – Last week, Israel Torres, 35, of Phoenix, Ariz., was sentenced by U.S. District Judge James A. Teilborg to 41 months followed by three years of supervised release. Torres had previously pleaded guilty to felon in possession of a firearm.
Torres has two felony aggravated DUI convictions in the Superior Court of Arizona, Maricopa County, making him a prohibited possessor of firearms and ammunition. The Federal Bureau of Investigation (FBI) discovered postings made by Torres on a website for a group he founded called BQG. These postings depicted Torres with multiple firearms and as well as engaged in what appeared to be militia training activities. Further investigation revealed that Torres used social media to advocate an armed resistance against the United States government and law enforcement. On Feb. 17, 2017, the FBI executed a federal search warrant at Torres’s residence and located 10 firearms, including assault rifles, and dozens of rounds of ammunition. The firearms, some of which were loaded, were visible and not locked in a gun safe.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled Assistant U.S. Attorneys Lisa E. Jennis and Jonathan Hornok, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00265-PHX-JAT
RELEASE NUMBER: 2018-015_Torres
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tucson Woman Charged with Causing Fatal Fentanyl Overdose and Other Opioid Trafficking CrimesRead the Press Release
TUCSON, Ariz. – Earlier this month, the grand jury returned an indictment charging Lana Leshinsky, 41, of Tucson, Ariz., with several crimes related to fentanyl trafficking, including one count of distribution of fentanyl resulting in death—a crime that, under federal law, carries a mandatory-minimum sentence of 20 years in prison and a maximum sentence of life in prison. Specifically, it is alleged that, in July 2017, Leshinky distributed fentanyl to a man who later died from ingesting it.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The prosecution is being handled by Stefani Hepford, Assistant U.S. Attorney, District of Arizona.
CASE NUMBER: CR-18-00229-RCC-JR
RELEASE NUMBER: 2018-013_Leshinsky
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tank Vessel Operator and Master Convicted for Oil and Garbage OffensesRead the Press Release
Sea World Management & Trading, Inc. and Edmon Fajardo were convicted today for maintaining false and incomplete records relating to the discharge of oil and garbage from an oil tanker that was operating off the coast of Texas, announced Acting Assistant Attorney General Jeffrey H. Wood and United States Attorney Ryan K. Patrick for the Southern District of Texas. The defendants were also sentenced today by the court.
Sea World Management & Trading, Inc. and Fajardo pleaded guilty to two felony violations of the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a), for failing to accurately maintain the Sea Faith’s Oil Record Book and Garbage Record Book. Under the terms of the plea agreement, the company will pay a total fine of $2.25 million and serve a 3-year term of probation during which all vessels operated by the company and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan. Fajardo was sentenced to six months incarceration to be followed by two years supervised release and a $2,000 fine.
Sea World Management & Trading, Inc. is a tank vessel operating company, and Fajardo is the master of the tank vessel Sea Faith. Both admitted that oil cargo residues and machinery space bilge water were illegally dumped from the Sea Faith directly into the ocean while the vessel was transiting to Corpus Christi, TX, without the use of required pollution prevention equipment. They also admitted that these discharges were not recorded in the vessel’s Oil Record Book as required. Specifically, on five different occasions between March 10, 2017, and March 18, 2017, Fajardo ordered crew members to illegally discharge oily waste from various locations of the vessel’s cargo/deck spaces. These oily waste discharges bypassed the use of the vessel’s required oil discharge monitoring equipment and were done while the vessel was in the Caribbean Sea and the Gulf of Mexico.
Sea World Management & Trading, Inc. and Fajardo further admitted that on March 10, 2017, and March 15, 2017, Fajardo ordered crew members to throw plastics, empty steel drums, oily rags, batteries, and empty paint cans directly overboard into the ocean. None of these garbage discharges were recorded as required in the vessel’s Garbage Record Book.
The cases were investigated by the U.S. Coast Guard Sector Corpus Christi, U.S. Coast Guard Investigative Service, and Environmental Protection Agency-Criminal Investigation Division. The cases were prosecuted by Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice, and Assistant U.S. Attorney-In-Charge Julie K. Hampton of the U.S. Attorney's Office for the Southern District of Texas.
Tank Vessel Operator and Master Convicted for Oil and Garbage OffensesRead the Press Release
CORPUS CHRISTI, Texas - Sea World Management & Trading Inc. and Edmon Fajardo were convicted today for maintaining false and incomplete records relating to the discharge of oil and garbage from an oil tanker that was operating off the coast of Texas, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Jeffrey H. Wood.
Sea World Management & Trading Inc. is a tank vessel operating company, and Fajardo is the master of the tank vessel Sea Faith. Both admitted that oil cargo residues and machinery space bilge water were illegally dumped from the Sea Faith directly into the ocean while the vessel was transiting to Corpus Christi without the use of required pollution prevention equipment. They also admitted that these discharges were not recorded in the vessel’s Oil Record Book as required. Specifically, on five different occasions between March 10, 2017, and March 18, 2017, Fajardo ordered crew members to illegally discharge oily waste from various locations of the vessel’s cargo/deck spaces. These oily waste discharges bypassed the use of the vessel’s required oil discharge monitoring equipment and were done while the vessel was in the Caribbean Sea and the Gulf of Mexico.
Sea World Management & Trading Inc. and Fajardo further admitted that on March 10, 2017, and March 15, 2017, Fajardo ordered crew members to throw plastics, empty steel drums, oily rags, batteries and empty paint cans directly overboard into the ocean. None of these garbage discharges were recorded as required in the vessel’s Garbage Record Book.
Sea World Management & Trading Inc. and Fajardo pleaded guilty to two felony violations of the Act to Prevent Pollution from Ships for failing to accurately maintain the Sea Faith’s Oil Record Book and Garbage Record Book. Under the terms of the plea agreement, the company will pay a total fine of $2.25 million and serve a three-year term of probation during which all vessels the company operated and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan. Fajardo was also sentenced today to six months in prison to be followed by two years of supervised release. He was also ordered to pay a $2,000 fine.
The U.S. Coast Guard Corpus Christi Sector, U.S. Coast Guard Investigative Service and Environmental Protection Agency-Criminal Investigation Division conducted the investigation. Assistant U.S. Attorney-In-Charge Julie K. Hampton and Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice prosecuted the case.
Springfield Man Sentenced to 13 Years for Possessing Meth to DistributeRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for possessing methamphetamine with the intent to distribute.
Conrad Starks, 33, of Springfield, was sentenced by U.S. District Judge Roseann Ketchmark to 13 years in federal prison without parole.
On July 6, 2017, Starks pleaded guilty to possessing methamphetamine with the intent to distribute.
Springfield police officers executed a search warrant at Starks’s residence on Jan. 2, 2016. A detective found three blue latex gloves under a loose wooden step in the front porch. Each glove contained methamphetamine, weighing a total of 393.3 grams. Investigators also found drug paraphernalia in the residence.
According to court documents, Starks continued dealing methamphetamine after the search of his residence until he was arrested on the federal indictment.
Starks has six prior convictions that involve the possession of controlled substances, three of which are for possession with the intent to distribute. Starks committed this crime while on probation with a 15-year suspended sentence from his 2013 conviction for possession with the intent to distribute methamphetamine.
This case was prosecuted by Special Assistant U.S. Attorney Jody M. Larison. It was investigated by the Springfield, Mo., Police Department and the Drug Enforcement Administration.
Seven Individuals Indicted in McAlester Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bethany Lynn Kendall, age 28, of McAlester, Oklahoma; Steven Alan Phifer, age 40, of McAlester, Oklahoma; Dustin Lee Hall, age 31, of Savanna, Oklahoma; Dylan Joseph Dempsey, age 25, of Fort Smith, Arkansas; Conway Lee Kindle, age 43, of Stuart, Oklahoma; Dominic Alan Giaudrone, age 38, of Krebs, Oklahoma; and Angel Reanea Henderson, age 41, of Hartshorne, Oklahoma were each indicted for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(A), 841(b)(1)(B) and 841(b)(1)(C), punishable by not less than 10 years imprisonment, and up to a $10,000,000 fine or both, and numerous other violations of federal law. A copy of the full indictment can be found online at https://go.usa.gov/xnefa.
The Indictment alleges that beginning in or about April 17, 2017, and continuing until on or about December 26, 2017, in the Eastern District of Oklahoma and elsewhere, the defendants, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to distribute methamphetamine in and around McAlester, Oklahoma and elsewhere.
The charges arose from an investigation by the Drug Enforcement Administration, the Bureau of Indian Affairs, the United States Marshal’s Service, the Oklahoma Bureau of Narcotics, the District 18 Drug and Violent Crimes Task Force, the Pittsburg County Sheriff’s Office, the McAlester Police Department, the Seminole Nation Lighthorse Police, and the Savanna Police Department.
United States Attorney Brian J. Kuester said, “This investigation was accomplished because of the cooperative efforts of many federal, state, local and tribal law enforcement agencies. An investigation of this nature requires cumulatively thousands of hours of work by agents that are willing to make even more sacrifices to their personal lives than they ordinarily do. I commend each participating agency and agent that participated not only for their work, but for their recognition that public safety can be better achieved when agencies from multiple jurisdictions work together.”
District Attorney Charles B. “Chuck” Sullivan emphasized collaboration among the agencies involved as the key to the success of this investigation. “My Drug and Violent Crimes Task Force’s primary function and purpose is to work with other agencies and either assist their investigations or lead them. An investigation of this magnitude highlights the spirit of that collaboration and further validates the existence of and need for the District 18 Task Force.”
A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt.
Seven Individuals Indicted for McAlester Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bethany Lynn Kendall, age 28, of McAlester, Oklahoma; Steven Alan Phifer, age 40, of McAlester, Oklahoma; Dustin Lee Hall, age 31, of Savanna, Oklahoma; Dylan Joseph Dempsey, age 25, of Fort Smith, Arkansas; Conway Lee Kindle, age 43, of Stuart, Oklahoma; Dominic Alan Giaudrone, age 38, of Krebs, Oklahoma; and Angel Reanea Henderson, age 41, of Hartshorne, Oklahoma were each indicted for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(A), 841(b)(1)(B) and 841(b)(1)(C), punishable by not less than 10 years imprisonment, and up to a $10,000,000 fine or both, and numerous other violations of federal law. A copy of the full indictment can be found online at https://go.usa.gov/xnefa.
The Indictment alleges that beginning in or about April 17, 2017, and continuing until on or about December 26, 2017, in the Eastern District of Oklahoma and elsewhere, the defendants, did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to distribute methamphetamine in and around McAlester, Oklahoma and elsewhere.
The charges arose from an investigation by the Drug Enforcement Administration, the Bureau of Indian Affairs, the United States Marshal’s Service, the Oklahoma Bureau of Narcotics, the District 18 Drug and Violent Crimes Task Force, the Pittsburg County Sheriff’s Office, the McAlester Police Department, the Seminole Nation Lighthorse Police, and the Savanna Police Department.
United States Attorney Brian J. Kuester said, “This investigation was accomplished because of the cooperative efforts of many federal, state, local and tribal law enforcement agencies. An investigation of this nature requires cumulatively thousands of hours of work by agents that are willing to make even more sacrifices to their personal lives than they ordinarily do. I commend each participating agency and agent that participated not only for their work, but for their recognition that public safety can be better achieved when agencies from multiple jurisdictions work together.”
District Attorney Charles B. “Chuck” Sullivan emphasized collaboration among the agencies involved as the key to the success of this investigation. “My Drug and Violent Crimes Task Force’s primary function and purpose is to work with other agencies and either assist their investigations or lead them. An investigation of this magnitude highlights the spirit of that collaboration and further validates the existence of and need for the District 18 Task Force.”
A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt.
Sentencings for February 20 - February 23, 2018Read the Press Release
RYAN HARRIS, 37, of Douglas, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 20th, 2018 for tampering with a consumer product and acquiring a controlled substance by misrepresentation, deception, or subterfuge. Harris was arrested in Douglas, Wyoming. He received eight months of imprisonment, to be followed by three years of supervised release, and ordered to pay a $300.00 fine. This case was investigated by the Douglas Police Department and the Wyoming Division of Criminal Investigation.
RAUL FLORES-SANCHEZ, 36, of Oaxaca, Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 20th, 2018 for illegal re-entry of a previously deported alien into the United States. Flores-Sanchez was arrested in Albany County, Wyoming. He received time served plus ten days to allow for deportation proceedings and $100.00 in special assessment to be remitted at the time of deportation.. This case was investigated by the US Immigration and Customs Enforcement Agency.
TRAVIS MICHAEL DEAN, 30, of Pigeon Forge, Tennessee, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 23rd, 2018 for felon in possession of a firearm. Dean was arrested in Greenville, Tennessee. He received forty six months of imprisonment, to be followed by three years of supervised release, and ordered to pay a $400.00 fine and $100.00 in special assessment. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms.
Rochester Man Pleads Guilty to Making False StatementsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Pernell Jackson, 56, of Rochester, NY, pleaded guilty to making materially false statements in a matter involving the U.S. Department of Housing and Urban Development (HUD) and the Department of Veterans Affairs (VA) before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum sentence of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that between 2009 and 2014, Jackson resided in an apartment complex in Greece, NY and received a rent reduction through an income-based HUD subsidy program. During that time period, the defendant knowingly falsified HUD income certification forms by failing to report that he had obtained VA benefits belonging to his deceased aunt, totaling $102,622.76. The investigation revealed that the VA continued to make regular payments into Jackson’s aunt’s bank account for approximately seven years following her death. The defendant, who had access to the account, regularly withdrew the money between 2007 and 2015. The fraud was discovered during a VA audit, which led to an investigation by VA and HUD Offices of the Inspector General.
The plea is the result of an investigation by the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Resident Agent-in-Charge Jeffrey K. Stachowiak, and the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary.
Sentencing is scheduled for May 30, 2018, before Judge Geraci.
Port St. Lucie Resident Indicted on Weapons ChargesRead the Press Release
Port St. Lucie resident Frederik Barbieri, 46, was indicted on charges relating to the illegal exportation of firearms, firearm accessories, and ammunition.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, and Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection (CBP), Miami Field Office, made the announcement.
More specifically, the four-count indictment charges Barbieri with one felony count of conspiracy to commit offenses against the United States, in violation of Title 18, United States Code, Section 371 (Count 1), one felony count of delivering firearms to a contract carrier without written notification that the shipment contained firearms, in violation of Title 18, United States Code, Section 922(e) (Count 2), one felony count of smuggling firearms and firearm accessories from the United States to Brazil, in violation of Title 18, United States Code, Section 554 (Count 3), and one felony count of exporting firearms and firearm accessories without a license, in violation of Title 22, United States Code, Section 2778 (Count 4).
According to the indictment, Barbieri entered into a conspiracy to illegally export firearms to Brazil without a license. In furtherance of the conspiracy, which lasted from May 2013 to June 2017, Barbieri and his co-conspirators purchased firearms, firearm accessories, and ammunition. They then obliterated the serial numbers from the firearms, and concealed the firearms, firearm accessories, and ammunitions in different packages. Barbieri and his co-conspirators would then ship the packages to Brazil, where Barbieri and his co-conspirators would sell such firearms, firearm accessories, and ammunition at a profit.
It is further alleged in the indictment, that on May 26, 2017, Barbieri shipped a package concealing firearms and firearm accessories to Brazil without first obtaining a license to export those items and without notifying the contract carrier that the package contained firearms.
If convicted, Barbieri faces a maximum statutory sentence of five years on Counts 1 and 2, a maximum statutory sentence of 10 years on Count 3, and a maximum statutory sentence of 20 years on Count 4. Barbieri is scheduled to make his initial appearance on February 27, 2018, at 1:30 p.m. before U.S. Magistrate Judge Chris M. McAliley.
Mr. Greenberg commended ICE-HSI, ATF, and CBP for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
An indictment is only an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of West Tennessee Travel Agency Pleads Guilty to Wire FraudRead the Press Release
Jackson, TN – A West Tennessee woman pleaded guilty to wire fraud. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the guilty plea today.
According to the charging instrument, Ronda Hopkins Richards, 54, is the owner of Ronda’s Travel Corner, in Jackson, TN. From November 2016 to July 2017, Richards defrauded approximately 100 clients/victims of funds related to their travel. In some cases, Richards enticed the victims to pay cash for a trip that was never booked. In other instances, she booked air travel for victims, but did not provide lodging at the destination for which the victim had pre-paid.
U.S. Attorney D. Michael Dunavant said: "This act of greed and selfishness has caused many of the more than 100 victims to endure unnecessary and unwarranted financial hardship. This case reflects the resolve of the U.S. Attorney’s Office along with partner agencies to bring to justice those individualswho commit fraud and prey on the innocent."
On June 19, 2017, Richards convinced a client to write a $17,172.00 check to Ronda’s Travel Corner for a family trip to Disney World. The trip was scheduled for March 24, 2018, through March 31, 2108. Richards never booked the trip, but instead deposited the check into her own personal account at First South Bank and used the funds for her personal gain.
This transaction caused a wire transmission of $17,172.00 to occur in interstate commerce, between the victims’ bank, Greenfield Banking Company, Greenfield, TN, through the Federal Reserve Check Clearing Center located in Atlanta, GA, and then to First South Bank in Jackson, TN. This interstate transmission resulted in the crime of wire fraud. Over 100 of Ronda’s Travel Corner clientele were victims of similar schemes. Because of this scheme, the victims lost a total of approximately $410,280.25.
On August 3, 2017, Richards was interviewed by the Jackson Police Department. She stated that she had fallen behind in her payments and began taking money, did not keep up with what she had taken and "everything spiraled out of control."
"Ronda Richards robbed families of once-in-a-lifetime vacations, graduation trips, and anniversary celebrations; leaving them with empty bank accounts and in one case, stranded in a foreign country," said Deputy Chief Tyreece Miller of the Jackson Police Department. "Her actions were inexcusable and criminal. JPD is pleased to have a hand in bringing her to justice."
Richard faces up to 20 years imprisonment; $250,000 fine and 3 years supervised release. This case was investigated by the Jackson Police Department and the United States Secret Service.
For more information, or if there are other victims who have not made their losses known, please contact the U.S. Attorney’s Office Victim/Witness Coordinator at 901-544-4231.
Assistant U.S. Attorney Victor L. Ivy is prosecuting this case on the government’s behalf.
Operators of Retail Newburgh Heroin Store Sentenced in White Plains Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that VICTOR R. RIVAS was sentenced to seven years in prison for his role in operating a retail heroin-selling organization out of a storefront at 427 Broadway in Newburgh. VICTOR R. RIVAS pled guilty on July 26, 2017, and was sentenced today by U.S. District Court Judge Kenneth M. Karas.
U.S. Attorney Geoffrey S. Berman said: “Victor M. Rivas, together with his sons Julio A. Davila and Victor R. Rivas, and their employees, maintained a shop on a main thoroughfare in Newburgh, within a stone’s throw of a bakery, a church, and a post office, that was open on a daily basis for the sole purpose of selling heroin. The serious sentences these defendants received prove that those who endanger the community through their distribution of illegal drugs will be brought to justice.”
According to the Complaint, the Indictment, other filings in White Plains federal court, evidence at a hearing, and statements made in court proceedings:
In 2016, Victor M. Rivas, with the assistance of Julio A. Davila, VICTOR R. RIVAS, Ronald L. Matias, a/k/a “Ronald Luis,” and Edward Cardona, ran an organization engaged in the distribution of heroin in Newburgh, New York, from a storefront location at 427 Broadway, alternately held out as a barbershop or soccer shop (the “Soccer Shop”). The Soccer Shop was open for more than 12 hours a day, seven days a week, for the sole purpose of selling heroin. Constant foot traffic in and out of the Soccer Shop reflected the volume of heroin the defendants were selling: Over the course of a year, the organization distributed well over three kilograms of heroin out of the Soccer Shop.
The defendants also maintained a nearby storage unit that they used for, among other things, storing the proceeds of their illegal drug distribution activity. Law enforcement seized more than $260,000 in cash from the storage unit on the day the defendants were arrested. Additionally, about $44,000 was seized from VICTOR R. RIVAS and about $5,300 was seized from Davila during the course of the investigation.
* * *
In addition to the prison term, VICTOR R. RIVAS, 29, of Newburgh, was sentenced to five years of supervised release.
Victor M. Rivas, 52, of Newburgh, the leader of the organization, was previously sentenced to 15 years in prison and five years of supervised release; Davila, 28, of Newburgh, was previously sentenced to six-and-a-half years in prison and four years of supervised release; and Matias, 36, of Newburgh, was previously sentenced to five years in prison and four years of supervised release. Cardona, 35, of Newburgh, is expected to be sentenced in April.
Mr. Berman praised the work of the Department of Homeland Security, Homeland Security Investigations, and the New York State Police, and thanked the Drug Enforcement Administration and the City of Newburgh Police Department for their assistance with this investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Jacqueline C. Kelly and Allison Nichols are in charge of the prosecution.
One Fresno Man Sentenced for Illegal Possession of Firearms; Another Pleads Guilty to Being an Armed Career CriminalRead the Press Release
FRESNO, Calif. —Troy Franklin, 34, of Fresno, was sentenced today by Chief U.S. District Judge Lawrence J. O'Neill to seven years and eight months in prison for being a felon in possession of a firearm and possession of an unregistered firearm, and Stephen Walker, 42, of Fresno, pleaded guilty to being an armed career criminal, U.S. Attorney McGregor W. Scott announced.
1:16-cr-144 LJO
According to court documents in the first case, Franklin, who is prohibited from possessing firearms due to a prior felony conviction, illegally purchased an AR-15 rifle with a barrel length of less than 16 inches. Police tried to conduct a traffic stop on the black Range Rover Franklin was driving after the purchase, and Franklin fled. He stopped the car and ran, and police found him hiding in a nearby apartment. They found the short-barreled rifle inside of a towel on the back passenger seat of the Range Rover. They also seized a Glock pistol Franklin left in the apartment where he had been hiding. This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, California Department of Justice, California Highway Patrol Special Operations Unit, and the Fresno Police Department. Assistant U.S. Attorneys Jeffrey A. Spivak and Kimberly A. Sanchez prosecuted the case.
1:16-cr-088 LJO
According to court documents in the second case, Walker possessed a Jennings pistol and ammunition after having three prior felony convictions for infliction of corporal injury on a spouse or cohabitant. This case is the product of an investigation by the FBI and the Fresno Police Department. Assistant U.S. Attorneys Jeffrey A. Spivak and Ross Pearson are prosecuting the case.
Walker’s sentencing has been set for May 21, 2018, before Judge O’Neill. Walker faces a minimum of 15 years in prison and a maximum of life in prison, and up to a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
These cases are the product of Project SAFE Neighborhoods investigations. PSN is a nationwide strategy for using existing resources to most effectively combat violent crime in partnership with state, local and tribal law enforcement and the communities we serve.
Omaha Woman Sentenced for Tax FraudRead the Press Release
United States Attorney Joseph P. Kelly announced that Niquisha Taylor, age 37, of Omaha, Nebraska, was sentenced today by the Honorable Laurie Smith Camp having previously pled guilty to conspiracy to defraud the government with respect to claims. Taylor was sentenced to 3 years of supervised release, 120 hours of community service, and $280,442 in restitution to the U.S. Department of the Treasury.
From January 2012 until December 2014, Taylor and co-defendant Latasha Ellis conspired to defraud the United States and the United States Department of the Treasury by obtaining and aiding to obtain the payment of a fraudulent claim by filing and assisting others in filing false tax returns. As part of their scheme, tax returns were filed that had false Schedules C, Profit or Loss from Business. By including false Schedules C, an individual’s earned income was inflated which had the effect of maximizing the amount of Earned Income Tax Credit the taxpayer would receive back. There were 55 tax returns filed as part of their scheme. Ellis has pled guilty and is pending sentencing.
The case was investigated by the Internal Revenue Service – Criminal Investigations.
Omaha Men Sentenced for RobberiesRead the Press Release
United States Attorney Joseph P. Kelly announced that Preston Pope, age 28, and Jeron Morris, age 25, both of Omaha, Nebraska, were sentenced today by the Honorable Laurie Smith Camp for their involvement in two Omaha robberies. Pope received a sentence of 62 years, 3 months of imprisonment to be followed by 5 years of supervised release. Morris received a 10-year sentence to be followed by 3 years of supervised release. They were both ordered to pay a total of $11,555.92 in restitution.
On August 11, 2015, at approximately 12:42 a.m., Morris and Pope robbed the Walgreen’s at 3001 Dodge Street, Omaha. They had bandanas or masks on their faces and were also wearing gloves when they demanded cash from an employee and a customer. They took $556.14 from the store and $12 from a customer. An outside witness saw them leave the store and flee in an older model white sedan.
At approximately 5:43 p.m. the same day, Pope and Morris, while wearing masks and gloves, entered the U.S. Bank inside the No Frills grocery store at 4240 South 50th Street. Again, they each were waving a handgun. Two tellers had $9,984 taken at gunpoint. A witness was able to get the license plate of the white sedan they were in when they left the area.
Officers located the car about a mile away and discovered it had been stolen. Morris’s DNA was found in the car. There was also a .40 caliber magazine located in the car.
On August 14, 2015, officers attempted to stop a van for a traffic violation. The driver of the vehicle, Pope, fled from officers first in the vehicle and then on foot. Pope was caught. Officers retraced the chase route and found a .40 handgun on the side of the road. The gun was tested for DNA and it was found to contain Pope’s DNA. The magazine in the gun matched the magazine found in the white car three days prior. Officers served a search warrant at the residence where Pope was staying and they found an empty box for a .40 handgun with two magazine. The serial number of the box matched the gun discarded when Pope was chased.
After Pope was arrested it was discovered he had accompanied a relative of his to a local car dealership on August 13, 2015. The relative paid $2,300 cash for a vehicle and a $10 bill used in the sale was one of the bills taken in the U.S. Bank robbery.
Morris previously pled guilty to one charge of brandishing a firearm at Walgreen’s and robbing the U.S. Bank. Pope went to trial and was convicted of being a felon in possession of a firearm, robbing Walgreen’s, robbing U.S. Bank and brandishing a firearm at each location. Based on his prior criminal history he was deemed to be a career offender.
The case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
Ohio Man Sentenced to Twenty Years for Firearm OffensesRead the Press Release
LEXINGTON, Ky. - Bryant Lamar Monie, 37, of Dayton, Ohio, was sentenced by United States District Judge Danny C. Reeves, on Friday, to 20 years in federal prison, for being an Armed Career Criminal and for possession of a firearm in furtherance of a drug trafficking offense.
Monie was convicted, following a jury trial, in April of 2016. The evidence at trial established that Monie had moved to the Mt. Sterling, Ky. area in late 2015. Thereafter, he began distributing cocaine in the area. On August 13, 2015, law enforcement officers executed a search warrant at Monie’s residence and seized a loaded pistol and a distribution quantity of crack cocaine. Monie had four prior felony drug convictions.
Monie must serve eighty-five percent of his sentence; and upon release, he will be under the supervision of the United States Probation Office.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart J. Lowery, Special Agent in Charge, ATF Louisville Field Division; and David Charles, Chief of the Mt. Sterling Police Department, jointly made the announcement.
The investigation was conducted by the ATF and Mt. Sterling Police Department. Assistant United States Attorney Roger W. West represented the United States in the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Attorney General Sessions has made turning the tide of rising violent crime in America a top priority. As part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district, crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Nixa Woman Sentenced to 40 Years in Prison for Drug Trafficking MurderRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., woman was sentenced in federal court today for her role in the murder of a Mexican national who was executed to help her avoid paying a debt owed in a drug-trafficking conspiracy.
Brooke Danielle Beckley, 21, of Nixa, was sentenced by U.S. District Judge Roseann Ketchmark to 40 years in federal prison without parole.
On June 20, 2017, Beckley pleaded guilty to participating in a conspiracy to distribute methamphetamine in Greene County, Dallas County, Webster County and Christian County, Mo., from April 28, 2015, to April 26, 2016. She also pleaded guilty to using a firearm in furtherance of a drug-trafficking crime, resulting in the murder of Oscar Adan Martinez-Gaxiola on April 25, 2016, in Webster County.
According to court documents, Beckley was involved in the large-scale distribution of methamphetamine in the Springfield area. Beckley met co-defendant Yovanny Aroldo Mendivil-Balderama, 23, a Mexican national, and Martinez-Gaxiola in January 2016 and began to sell methamphetamine for them. Beckley and Mendivil-Balderama started a sexual relationship shortly afterwards.
On April 6, 2016, law enforcement officers seized from Beckley’s hotel room approximately 1.9 kilograms of methamphetamine, a loaded 20-gauge shotgun with a sawed off barrel and stock, four rounds of additional shotgun ammunition, a .22-caliber pistol, a drug ledger and $3,662.
The loss of the 1.9 kilograms of methamphetamine created a $44,000 debt that Beckley owed to both Mendivil-Balderama and Martinez-Gaxiola. According to court documents, Beckley discussed with her lover Mendivil-Balderama ways to resolve the debt. Some of these discussions involved text messages between Beckley and Mendivil-Balderama. The text messages revealed they both wanted to kill Martinez-Gaxiola as a way to cancel, or extend, the debt and to prevent Martinez-Gaxiola from possibly killing Beckley.
Beckley recruited co-defendant Anthony Edward Donovan, 21, of Springfield, Mo., to assist in killing Martinez-Gaxiola, and offered to pay him $6,000. Donovan recruited co-defendant Nathaniel Austin Lee, 20, of Seymour, Mo., to assist in the murder and allow for the use of Lee’s property in rural Webster County, Mo., in exchange for part of the $6,000. Lee then recruited Joshua Applegate (who was a minor under federal law at the time of the offense, and therefore charged as an adult in state court rather than in the federal indictment).
On April 24, 2016, Beckley, Donovan and Lee practiced for the murder of Martinez-Gaxiola by discharging various firearms at the Lee residence. On April 25, 2016, Mendivil-Balderama traveled with Martinez-Gaxiola to the Lee residence on the pretext that Beckley would pay the drug debt. Beckley, Donovan, Lee and Applegate were waiting at the residence; Donovan and Lee were armed with handguns. Upon arrival, Mendivil-Balderama got out of the vehicle first. When Martinez-Gaxiola exited the vehicle, Donovan and Applegate opened fire and Martinez-Gaxiola fell to the ground. Eventually, Donovan went up to where Martinez-Gaxiola lay and shot him once in the head. Martinez-Gaxiola was armed with a handgun but did not discharge it during his murder.
Lee’s neighbors reported the shots fired at the residence (it is estimated that the co-conspirators expended 30 to 60 rounds of ammunition during the murder). Webster County deputies responded to the location. Hearing the emergency sirens, the co-conspirators attempted to conceal Martinez-Gaxiola under a piece of tin siding, and then fled area. When the deputies arrived, they found Martinez-Gaxiola, who was still alive but critically hurt and who died before transportation to the hospital. Law enforcement officers captured all the co-conspirators by the end of the day on April 25, 2016.
Mendivil-Balderrama, Donovan and Lee have pleaded guilty to the same charges and await sentencing. Mendivil-Balderrama is scheduled to be sentenced on March 8, 2018.
Co-defendant Jourdan Ashley McGinnis, 29, of Nixa, pleaded guilty to his role in the drug-trafficking conspiracy. McGinnis was sentenced on Dec. 18, 2017, to seven years and 10 months in federal prison without parole.
This case is being prosecuted by U.S. Attorney Timothy A. Garrison and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Christian County, Mo., Sheriff’s Department, the Greene County, Mo., Sheriff’s Department, the Lawrence County, Mo., Sheriff’s Department, the Webster County, Mo., Sheriff’s Department, the Seymour, Mo., Police Department, the Rogersville, Mo., Police Department, the Springfield, Mo., Police Department and the Combined Ozarks Multijurisdictional Enforcement Team (COMET).
Mexican Citizen Sentenced to 216 Months for Money LaunderingRead the Press Release
DALLAS — Marisol Carmona Arreola Avalos, 43, a citizen of Mexico, was sentenced this morning before U.S. District Judge David C. Godbey to 216 months in federal prison following her guilty plea in June 2017 to one count of conspiracy to launder monetary instruments, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Avalos’ husband, Jose Apolinar Arreola Avalos, pleaded guilty in June 2017 to one count of conspiracy to possess with intent to distribute and to distribute a controlled substance, said substance being 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance and was sentenced by Judge Godbey in October 2017 to 324 months in federal prison.
According to the plea agreement factual resume, from September 25, 2015 and continuing through March 18, 2016, Marisol and Jose Avalos cooked and cleaned methamphetamine obtained from Mexico at a Post Oak Road residence in Wilmer, Texas. In order to maximize the amount of money that was being made through the sale of the methamphetamine they cooked and cleaned the methamphetamine so that it would look as white and clean as possible. Marisol and Jose Avalos were paid by co-defendant, Domingo Arreola Avalos, for their work.
Marisol Avalos was provided with drug proceeds to purchase acetone, strainers, and materials to store the methamphetamine so that, once it was cleaned, it could be sold to other people in Texas and other parts of the United States. Marisol Avalos used some of the drug proceeds to pay phone bills, propane gas bills, and electric bills. The gas and electric bills were paid to maintain the house and area where the methamphetamine was cooked. The phone bill was paid so that she and Jose Avalos could communicate with other codefendants and drug couriers who were dropping off the liquid methamphetamine to be cleaned.
On March 18, 2016, according to the plea agreement factual resume, the Dallas Police Department executed a search warrant at the residence of Marisol and Jose Avalos. As a result of the search, agents seized approximately 172 kilograms of a combination of crystal and liquid methamphetamine, firearms, and several thousand dollars in United States Currency.
Marisol Avalos agreed to forfeit 2 firearms, $20,055 in US Currency and $274,469 in U.S. Currency seized from Domingo Arreola Avalos.
The FBI investigated the case, with assistance from the Dallas Police Department and IRS Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney George Leal.
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Man Pleads Guilty to Arson and Malicious Damage and Destruction to Federal Property Charges Related to Fires at Three U.S. Government FacilitiesRead the Press Release
St. Thomas, USVI – Spencer Wayne Allen, 26, pleaded guilty today in District Court to one count of arson and two counts of malicious damage and destruction to federal property, United States Attorney Gretchen C.F. Shappert announced.
According to the plea agreement filed with the court, on February 28, 2017, Allen maliciously damaged the U.S. Navy and Marine Recruitment Center in the Nisky Shopping Center on St. Thomas by means of fire. As a result of the fire, the U.S. Navy and Marine Recruitment Center was completely destroyed. Also on February 28, 2017, Allen damaged by fire two other properties belonging to the United States, the Ron De Lugo Federal Building and United States Courthouse, and the U.S. Coast Guard Station.
Sentencing for Allen is scheduled for June 28, 2018. Allen faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison on the arson count, and up to 10 years in prison on each of the two destruction of federal property counts.
The case was investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms, and Explosives, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, with the assistance of the Virgin Islands Territorial Emergency Management Agency, Virgin Islands Police Department, Virgin Islands Port Authority, Virgin Islands Fire Service, and the Virginia Beach Fire Department Fire Investigations. It is being prosecuted by Assistant United States Attorneys Meredith J. Edwards and Everard E. Potter.
Man Charged in Federal Indictment for Distribution of Oxycodone Resulting in the Death of Former University of South Carolina StudentRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that the Drug Enforcement Administration arrested Anthony James Edward Hunt, age 22, of Columbia. Hunt was charged in a federal indictment with unlawfully distributing oxycodone, which resulted in the death of a former University of South Carolina student on January 28, 2016. Hunt faces a maximum penalty of life imprisonment. The indictment further charges Hunt with unlawfully distributing alprazolam (commonly known as Xanax) and possessing a firearm in furtherance of a drug trafficking crime.
Multiple law enforcement agencies participated in this case, including the DEA Tactical Diversion Squad, City of Columbia Police Department, Richland County Sheriff’s Office, Richland County Coroner’s Office, and University of South Carolina Police Department.
Ms. Drake stated that this case represents the Department of Justice’s commitment to combatting the unlawful distribution of opioids. Assistant United States Attorney Ben Garner of the Columbia office is prosecuting the case.
The United States Attorney stated that all charges in this case are merely accusations and that the defendant is presumed innocent until proven guilty.
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Man Charged in Connection with ShootingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Rashad Nashid, 38, of Burlington, VT, made his initial appearance today in the United States District Court in Burlington, following his arrest for being a felon in possession of a firearm. U.S. Magistrate Judge John M. Conroy detained Nashid pending trial.
According to court documents, in the early morning hours of February 26, 2018, outside of Nectars and Esox on Main Street in Burlington, the defendant, a convicted felon, was approached by an unknown male he knew from an altercation approximately one year prior. The defendant pulled out a gun and shot at the male in order to make the male “back down.” The bullet instead struck an innocent bystander who happened to be standing on the sidewalk near the defendant. The bystander was taken to the UVM Medical Center where she remains. The defendant was arrested a short time later and found in possession of the firearm. The defendant has multiple previous felony convictions in New Jersey.
The United States Attorney, Christina E. Nolan, emphasized that the charge against Nashid is merely an accusation and that the defendant is presumed innocent unless and until his is proven guilty.
If convicted, the defendant faces up to ten years of imprisonment and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.
The case is being investigated by the Burlington Police Department and the Bureau of Alcohol, Firearms, Tobacco and Explosives. Nashid is represented by the Federal Public Defender’s Office. The prosecutor is Assistant U.S. Attorney Wendy G. Fuller.
Long Island Man Pleads Guilty to Conspiracy Charge Related to Investment Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRIAN FERRAIOLI, 41, of Sayville, N.Y., waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a conspiracy charge stemming from an investment fraud scheme.
According to court documents and statements made in court, this scheme involved the promotion and sale of securities of Waters Club Worldwide, Inc. and Waters Club Holdings, Inc. (collectively, “Waters Club”), which provided yacht charter services to customers. From approximately August 2016 to February 2017, FERRAIOLI and Thomas Heaphy, Jr., solicited prospective investors to purchase shares of Waters Club stock purportedly in advance of an initial public offering (“IPO”). According to FERRAIOLI and his co-conspirators, Waters Club intended to form a membership-based “time share” club with a fleet of yachts that members jointly owned and could use for yachting vacations.
In pleading guilty, FERRAIOLI admitted that he and his co-conspirators made certain misrepresentations to prospective investors in Waters Club, including that investors’ money would be used to develop the business and fund the operations of Waters Club, and that FERRAIOLI and his co-conspirators were being compensated with stock for recruiting investors. In truth, FERRAIOLI and Heaphy received approximately half of all the money he induced investors in Waters Club to invest. Due in part to the payments to FERRAIOLI and Heaphy, Waters Club lacked the capital to develop its membership-based club, Waters Club did not pursue an IPO, and the shares purchased by investors were unsalable.
FERRAIOLI and Heaphy recruited at least 12 investors to pay a total of at least $1,289,500 for shares of Waters Club stock. One of the victims of the Waters Club scheme was a Connecticut resident who paid $475,000 to Waters Club. FERRAIOLI’s total gain from this scheme was $297,546, and Heaphy’s total gain was $307,658.
FERRAIOLI pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years.
On August 9, 2017, FERRAIOLI pleaded guilty in New Haven federal court to one count of conspiracy to commit mail and wire fraud and one count of tax evasion stemming from his role in an unrelated stock “pump and dump” scheme. In that scheme, between approximately 2011 and July 2016, FERRAIOLI, Heaphy and others induced investors to purchase securities in shell companies with virtually no legitimate business activities. After the share price of the securities became artificially inflated, certain of FERRAIOLI’s co-conspirators sold their own preexisting positions in the securities at a profit. They then allowed he price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost millions of dollars.
FERRAIOLI and Heaphy began to sell Waters Club securities after they learned that they were under federal investigation for the stock pump and dump scheme in the summer of 2016.
At least six Waters Club victim-investors have also been identified as victims of the earlier stock pump and dump scheme.
Heaphy, 43, of East Moriches, N.Y., previously pleaded guilty to charges stemming from both the stock pump and dump scheme and the Water’s Club investment fraud scheme.
FERRAIOLI and Heaphy are released on bond pending sentencing. Sentencing dates have not been scheduled.
This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Law Enforcement Announces New Initiative to Combat Violent Crime in LexingtonRead the Press Release
Initiative partners federal, state, and local law enforcement agencies, to enhance coordination of efforts and available resources
LEXINGTON, Ky. – Today, Robert M. Duncan, Jr., the United States Attorney for the Eastern District of Kentucky, and Lou Anna Red Corn, the Fayette Commonwealth’s Attorney, along with the Lexington Police Department (LPD), the Fayette County Sheriff’s Office (FCSO), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and other local, state and federal law enforcement partners announced a new working group to enhance the joint effort to combat violent crime and drug trafficking in Lexington.
The working group, which met formally for the first time on January 18, 2018, meets twice a month. The new working group joins two existing violent crime reduction efforts, the Cease Fire Project and the Fayette County Violent Crime Task Force, under one working group, to enhance coordination of efforts and available resources.
The collaboration is part of the U.S. Department of Justice’s enhanced Project Safe Neighborhoods (PSN) Program, a violent crime reduction program incorporating long-standing law enforcement partnerships to help produce a long-term, meaningful reduction in violent crime. PSN is a comprehensive approach to public safety, one that includes prevention, enforcement, and reentry efforts.
The working group will focus its efforts on individuals responsible for violent crimes and significant drug trafficking activities in the area, including those who commit acts of violence while armed with a firearm and those who commit armed drug trafficking. As part of the collaborative partnership, members of the LPD, FCSO, ATF, FBI, DEA, and the other law enforcement partners meet regularly to share intelligence and to review cases about the most violent offenders in Lexington, including those cases in which the offender’s conduct involves possession or use of a firearm. The cases are evaluated to insure that the most significant penalties will be applied to the offenders, whether in state or federal court. The ultimate goal of the collaboration is to reduce violent crime and make Lexington neighborhoods safer for everyone.
“As Attorney General Sessions has confirmed, combatting violent crime, reducing access to drugs, and partnering with state and local law enforcement efforts are top priorities for the Department of Justice,” said U.S. Attorney Duncan. “By combining our resources and working together to investigate and prosecute the most violent individuals in Lexington, we are sending a clear message that we will protect our communities against those who do them harm. If you are using firearms to commit acts of violence or are illegally selling drugs you are on notice: your conduct will not be tolerated; and if it continues, you risk arrest, prosecution, and the forfeiture of your freedom.”
“The Fayette Commonwealth’s Attorney Office has worked closely with the United States Attorney’s Office on the Cease Fire Project for many years,” said Fayette Commonwealth’s Attorney Lou Anna Red Corn. “Cease Fire focuses primarily on armed career criminals. Our local Violent Crimes Task Force (VCTF) began meeting regularly in October 2016, with a goal of sharing information and reducing criminal activity committed by gang members. The joining of Cease Fire and the VCTF under the enhanced PSN program, along with the education, prevention, and reentry efforts, gives us a real opportunity to impact violent crime in Lexington, and I am glad for this collaborative initiative.”
In addition to enforcement, the PSN program also incorporate prevention and education efforts. “We want to encourage partnerships within our communities, not just within the law enforcement community,” said U.S. Attorney Duncan. As part of those efforts, PSN participants will meet with various community organizations, civic groups, and schools to better understand the community’s needs, to provide education about the dangers of violent crime, and to look for positive solutions to reduce crime and increase safety.
Additionally, the PSN program is supportive of reentry meetings in which those returning from prison sentences are provided information about transitioning to free society, and the potential consequences for continuing to commit crimes.
Today’s announcement observes U.S. Attorney General Sessions’s directives to federal law enforcement and prosecutors: reinvigorate the Project Safe Neighborhoods Program, in an effort to reduce rising violent crime in America and combat access to illegal drugs, particularly opiates and opioids.
Las Cruces Man Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – John Bevel, 42, of Las Cruces, N.M., pled guilty today in federal court to child pornography charges that require a sentence of a mandatory minimum of 15 years of imprisonment and under a plea agreement that limits the United States to seeking a maximum sentence of 45 years of imprisonment. Bevel will be on supervised release for a term to be determined by the court and will be required to register as a sex offender after completing his prison sentence.
Homeland Security Investigations (HSI) and the Las Cruces Police Department (LCPD) arrested Bevel in Oct. 2017, on a criminal complaint alleging possession of child pornography offenses in Oct. 2017, in Dona Ana County, N.M. According to the complaint, HSI and LCPD initiated an investigation into Bevel in early Oct. 2017, when the National Center for Missing and Exploited Children received a tip that Bevel’s account allegedly contained files containing child pornography. The complaint also alleged that Bevel’s smartphone contained hundreds of images of child pornography.
During today’s proceedings, Bevel pled guilty to a four-count felony information charging him with: (1) advertising visual depictions of minors engaging in sexually explicit conduct; (2) distributing child pornography; (3) receiving child pornography; and (4) possessing child pornography. In entering the guilty plea, Bevel admitted that on Oct. 17 and 18, 2017, he advertised and received visual depictions of minors engaging in sexually explicit conduct by communicating with another person on a messenger application on his smartphone about trading child pornography images and videos. Bevel also admitted possessing child pornography on Sept. 24, 2017, by maintaining an online storage account to store child pornography images and videos that he could access with his smartphone and laptop computer. Bevel also admitted distributing child pornography on Sept. 25, 2017, by sending numerous child pornography videos to another individual by using a messenger application on his smartphone.
Bevel remains in federal custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of HSI and the LCPD. Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Jacksonville Human Trafficking Customer Sentenced to 15 Years in Federal Prison for Using Underage “Models” to Produce Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Thomas Leslie Carr (50, Jacksonville) to 15 years in federal prison for using underage “models” to engage in sexually explicit conduct for the purpose of producing pornographic images and videos. A federal jury found him guilty on June 1, 2017.
According to court documents, in 2012, law enforcement officers began a human trafficking investigation involving the prostitution of minor and adult females throughout Florida by an individual named Michael Gallon. The investigation revealed that Gallon had recruited his victims to travel and work at “parties” and “VIP rooms” as “models,” where customers paid to have sex with them. During the investigation, agents identified Carr was one of Gallon’s regular customers.
On October 28, 2013, Gallon was arrested and charged with sex trafficking of minors and distribution of child pornography. Two weeks later, a federal search warrant was executed at Carr’s residence. During an interview, Carr admitted that he had hired about 15 girls from Gallon over a three-year period. He stated that Gallon called him when he had girls available in Jacksonville and that the two would meet so that Carr could pay Gallon to select girls to take back to his residence. At home, Carr paid the females for photo sessions that usually consisted of photographing the female stripping off her clothing and then posing nude. He stated he attempted to have sex with the women and, if they were reluctant, Carr offered them more money.
During the search of Carr’s residence, agents recovered computer media that contained images and videos of at least two minors, ages 15 and 17, engaged in sexually explicit conduct. Carr admitted to doing “photo shoots” with each of these minors. The videos depicted Carr engaging in sexual intercourse with one of the girls.
In 2014, Gallon pleaded guilty and was sentenced to 33 years and 9 months in federal prison.
This case was investigated by the Lakeland Police Department, the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Tampa and Jacksonville. It was prosecuted by Assistant United States Attorneys D. Rodney Brown, Beatriz Gonzalez, and Stacie Harris.
It is another case 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.
Huntington man pleads guilty to federal gun chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty today to a federal gun crime, announced United States Attorney Mike Stuart. John Weathers, 32, entered his guilty plea to being a felon in possession of a firearm. U.S. Attorney Stuart commended the investigative efforts of the Drug Enforcement Administration and the West Virginia State Police Violent Crime and Drug Task Force.
U.S. Attorney Stuart said, “The good citizens of Huntington need to know that my office is committed to cleaning up the streets by aggressively prosecuting drug criminals and holding them accountable with serious prison time.”
On December 5, 2017, officers with the DEA and the West Virginia State Police Violent Crime and Drug Task Force conducted a controlled buy of methamphetamine from Weathers. After determining Weathers was staying at the Econo Lodge in Huntington, officers obtained a search warrant and located a STAR Firestar 9mm pistol in a bag on the floor of the room. Weathers was prohibited from possessing any firearm under federal law because of a 2012 federal drug conviction in the Southern District of West Virginia.
Weathers faces up to 10 years in federal prison when he is sentenced on May 7, 2018.
Assistant United States Attorney Stephanie S. Taylor is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Gainesville Physician and Ex-Wife Indicted in Health Care Fraud ConspiracyRead the Press Release
GAINESVILLE, FLORIDA – Erik M. Schabert, 48, a physician, and his ex-wife, Mika Kamissa Harris, 49, both from Gainesville, Florida, have surrendered on a federal indictment charging them with health care fraud and conspiracy to commit health care fraud. The indictment also charges Harris with multiple counts of money laundering. The charges were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that while owning and operating Reliant Family Practice in Gainesville, Harris and Schabert defrauded health care benefit programs of $4.4 million through the submission of fraudulent claims. According to the indictment, between January 2013 and July 2016, Harris and Schabert caused claims to be submitted to Medicare and Blue Cross Blue Shield for chemical peels, dermabrasions, and acne surgery using false diagnoses of rosacea, acne, and actinic keratosis. The indictment further alleges that Harris laundered approximately $3.1 million dollars in proceeds of the health care fraud scheme.
Schabert and Harris made their initial appearance on the charges at the U.S. District Courthouse in Gainesville. The trial is scheduled for April 24, 2018.
If convicted of charges in the filed indictment, Schabert and Harris face a maximum term of 20 years in prison for health care fraud conspiracy and 10 years in prison for each of the health care fraud counts. Harris faces a maximum term of 10 years in prison for each of the money laundering counts.
This indictment is the result of a joint investigation conducted by the Federal Bureau of Investigation, the Internal Revenue Service–Criminal Investigation, and the Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fort Wayne Man Sentenced to 120 Months ImprisonmentRead the Press Release
FORT WAYNE – Marco A. Garcia, 31, of Fort Wayne, Indiana, was sentenced before Chief Judge Theresa L. Springmann on his plea of guilty to the charge of conspiracy to distribute cocaine, announced U.S. Attorney Thomas L. Kirsch II.
Garcia was sentenced to 120 months imprisonment and 5 years of supervised release.
According to documents in this case, from January 2015-July 2016, Garcia was part of a conspiracy to distribute cocaine.
This case was investigated by the Federal Bureau of Investigation’s (FBI) Safe Streets and Gang Task Force, whose members include the FBI, the Indiana State Police, the Allen County Sherriff’s Department, and the Fort Wayne Police Department, with assistance from the Drug Enforcement Administration, the Internal Revenue Service and the Allen County Drug Task Force. This case was prosecuted by Assistant U.S. Attorneys Anthony W. Geller and Stacey Speith.
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Former Las Vegas City Councilman Pleads Guilty to Wire FraudRead the Press Release
A former Las Vegas City Councilman pleaded guilty today to orchestrating a scheme to steal tens of thousands of dollars from his reelection campaign, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office.
Ricki Barlow, 46, of Las Vegas, Nevada, pleaded guilty to one count of wire fraud before U.S. District Judge Andrew P. Gordon of the District of Nevada. Sentencing is set for May 31.
“Rather than serving the community he was elected to represent, Ricki Barlow abused his position of trust and concocted a scheme to line his own pockets,” said Acting Assistant Attorney General Cronan. “Corruption at any level of the government harms the community by undermining the public’s confidence in their elected leaders and government. Because the effects of corruption are so corrosive, the Justice Department and our law enforcement partners are committed to vigorously investigating and prosecuting official corruption wherever it exists.”
“No one, including elected officials, is above the law,” said U.S. Attorney Elieson. “The defendant violated his oath of office and the public’s trust for his personal gain. The U.S. Attorney’s Office is committed to protecting the community and to the vigorous prosecution of all who seek to personally enrich themselves at the public’s expense.”
“The public trust must be something that is cherished by all who serve in positions of public office,” said Special Agent in Charge Rouse. “Sadly, Mr. Barlow abused his position for personal gain. The FBI will continue to root out public corruption where it exists. If you are in the community and are aware of an elected or appointed official engaging in illegal conduct, I encourage you to notify the FBI or U.S. Attorney’s Office.”
According to admissions made in connection with his guilty plea, Barlow was a candidate for re-election to the Las Vegas City Council in 2015, for which Barlow solicited donations from members of the Las Vegas community to his campaign, Ricki Barlow for City Council. According to Barlow’s admissions, the campaign treasurer managed the campaign finances through a bank account independent of Barlow, but Barlow maintained ultimate authority over the spending of campaign funds, including how much to pay campaign vendors. In order to secretly divert campaign funds to himself, Barlow admitted to orchestrating a kickback scheme whereby he hired friends and associates to work as campaign vendors, submit inflated invoices at his direction, and then kick back to Barlow approximately half of their campaign paychecks, typically in the form of cash. Barlow admitted to secretly diverting $49,125 in campaign funds for his own personal use and benefit through the kickback scheme.
Barlow also admitted to accepting an additional $17,000 in cash campaign contributions that he never reported to his campaign treasurer or transmitted to the campaign. Instead, Barlow admitted that he diverted the campaign contributions for his own personal use.
To conceal the scheme to steal campaign funds, Barlow admitted to causing his campaign to submit false campaign finance reports to the Nevada Secretary of State.
The FBI investigated the case. Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Daniel R. Schiess of the District of Nevada are prosecuting the case.
Former Las Vegas City Councilman Pleads Guilty to Wire FraudRead the Press Release
LAS VEGAS, Nev. – A former Las Vegas City Councilman pleaded guilty today to orchestrating a scheme to steal tens of thousands of dollars from his reelection campaign, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office.
Ricki Barlow, 46, of Las Vegas, Nevada, pleaded guilty to one count of wire fraud before U.S. District Judge Andrew P. Gordon of the District of Nevada. Sentencing is set for May 31, 2018.
“Rather than serving the community he was elected to represent, Ricki Barlow abused his position of trust and concocted a scheme to line his own pockets,” said Acting Assistant Attorney General Cronan. “Corruption at any level of the government harms the community by undermining the public’s confidence in their elected leaders and government. Because the effects of corruption are so corrosive, the Justice Department and our law enforcement partners are committed to vigorously investigating and prosecuting official corruption wherever it exists.”
“No one, including elected officials, is above the law,” said U.S. Attorney Elieson. “The defendant violated his oath of office and the public’s trust for his personal gain. The U.S. Attorney’s Office is committed to protecting the community and to the vigorous prosecution of all who seek to personally enrich themselves at the public’s expense.”
“The public trust must be something that is cherished by all who serve in positions of public office,” said Special Agent in Charge Rouse. “Sadly, Mr. Barlow abused his position for personal gain. The FBI will continue to root out public corruption where it exists. If you are in the community and are aware of an elected or appointed official engaging in illegal conduct, I encourage you to notify the FBI or U.S. Attorney’s Office.”
According to admissions made in connection with his guilty plea, Barlow was a candidate for re-election to the Las Vegas City Council in 2015, for which Barlow solicited donations from members of the Las Vegas community to his campaign, Ricki Barlow for City Council. According to Barlow’s admissions, the campaign treasurer managed the campaign finances through a bank account independent of Barlow, but Barlow maintained ultimate authority over the spending of campaign funds, including how much to pay campaign vendors. In order to secretly divert campaign funds to himself, Barlow admitted to orchestrating a kickback scheme whereby he hired friends and associates to work as campaign vendors, submit inflated invoices at his direction, and then kick back to Barlow approximately half of their campaign paychecks, typically in the form of cash. Barlow admitted to secretly diverting $49,125 in campaign funds for his own personal use and benefit through the kickback scheme.
Barlow also admitted to accepting an additional $17,000 in cash campaign contributions that he never reported to his campaign treasurer or transmitted to the campaign. Instead, Barlow admitted that he diverted the campaign contributions for his own personal use.
To conceal the scheme to steal campaign funds, Barlow admitted to causing his campaign to submit false campaign finance reports to the Nevada Secretary of State.
The FBI investigated the case. Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Daniel R. Schiess of the District of Nevada are prosecuting the case.
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Former HSI Confidential Informant Sentenced for Obstruction of JusticeRead the Press Release
Former Homeland Security Investigations Confidential Informant Miguel Rodriguez-Sierra was sentenced today by United States District Judge Darrin P. Gayles for obstructing justice by attempting to sell cooperation to a federal inmate to allow that inmate to obtain an unwarranted sentencing reduction, in violation of Title 18, United States Code, Sections 1503. Rodriguez-Sierra was sentenced to a term of 12 months in prison, to be followed by one year of supervised release. Rodriguez-Sierra’s sentence also included an order of forfeiture and the imposition of a $100 special assessment.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Jay H. Donly, Special Agent in Charge, U.S. Department of Homeland Security, Office of Inspector General (DHS-OIG), and Michael T. Moreland, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Office of Professional Responsibility (ICE-OPR), made the announcement.
Rodriguez-Sierra was originally charged by Criminal Complaint and subsequently pled guilty to an Information charging him with obstruction of justice. According to the facts in the Complaint and admitted at the change of plea hearing, Rodriguez-Sierra was offering to falsely credit the inmate with having provided information and assisted with cooperation in exchange for secret personal payments from the inmate. In reality, the inmate played no role, and explicitly had informed Rodriguez-Sierra that he had no information to provide and would need for Rodriguez-Sierra to provide him (the inmate) with whatever information he would need to tell agents that might interview him.
The inmate was an individual who was prosecuted by the United States Attorney’s Office for the Southern District of Florida, and was serving a lengthy term of imprisonment. Unbeknownst to Rodriguez-Sierra, the inmate reported this illegal offer to law enforcement and cooperated in this investigation, introducing an undercover agent to Rodriguez-Sierra to handle the negotiations and logistics of the scheme. On the first occasion, Rodriguez-Sierra received an initial $5000 payment towards the amount he requested before the investigating agencies informed him that they were not accepting the cooperation he was falsely crediting to the inmate.
Undeterred, Rodriguez-Sierra re-initiated contact with the inmate and the undercover agent a number of months later, offering a different scenario whereby the inmate could secretly buy credit from Rodriguez-Sierra for having supposedly helped disrupt a drug trafficking operation that he actually had nothing to do with. Once again, a $5000 down payment was made to Rodriguez-Sierra before this phase of the investigation was terminated.
Had either of Rodriguez-Sierra’s schemes worked as he intended, he would have obstructed justice by facilitating the inmate’s purchase of information to support a sentence reduction based on his supposed substantial assistance to the government. In particular, this Office maintains a policy of refusing to accept cooperation or information that has been purchased or funded by an inmate seeking a sentence reduction. Moreover, as an informant for HSI, Rodriguez-Sierra was aware of this policy, and his scheme was designed specifically to avoid this restriction by having the inmate lie about the circumstances surrounding the cooperation and information he was offering
Mr. Greenberg commended the investigative efforts of the DHS-OIG, ICE-OPR and the Federal Bureau of Investigation. This case was prosecuted by Senior Litigation Counsel Edward Stamm and Assistant United States Attorney Rilwan Adeduntan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Financial Advisor Sentenced to Two Years in Prison for Defrauding Client in Private Investment SchemeRead the Press Release
URBANA, Ill. – A Champaign, Ill., man who worked as a financial advisor at a Kankakee, Ill., bank has been ordered to serve two years in prison for falsely representing a private investment scheme to a customer that resulted in the client losing money. On February 23, 2018, Paul Schuerger, 45, of the 2700 block of Hunters Pond Run, was ordered to serve 24 months in prison and to pay $100,000 in restitution. Schuerger was allowed to remain on bond pending notice from the federal Bureau of Prisons of the date and location to report to begin serving his sentence.
On Oct. 24, 2017, Schuerger entered pleas of guilty to wire fraud and money laundering. Schuerger admitted that in early 2012, when Schuerger was working at a Kankakee bank as a financial advisor, he falsely represented to a bank customer that he had a private investment opportunity that would provide a 10 percent rate of return. The customer gave Schuerger $100,000 to invest as Schuerger proposed. Instead of investing the money, Schuerger deposited the money into a personal bank account and used it for his personal benefit, including to pay off personal debts.
The FDIC Office of Inspector General conducted the investigation. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.
Federal Prosecutors Charge Former YWCA Child Care Director for Stealing from Non-profit EmployerRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a former YWCA child care director for stealing nearly $200,000 from the non-profit over several years, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams.
The U.S. Attorney’s Office filed a one-count information in U.S. District Court charging RIKKI ROSS, 37, of Hoover, with federal program fraud for stealing from an agency that received more than $10,000 in federal benefits annually between 2012 and 2017 through grants or other assistance. The Young Women’s Christian Association of Central Alabama is a non-profit organization headquartered in Birmingham. The YWCA focuses on providing quality child development programs for children of homeless and working poor families, affordable housing, domestic violence services and social justice programming.
Ross worked as director of the YWCA Child Development Center from August 2010 until she resigned in 2017, according to a plea agreement with the government filed in association with today’s charge. Ross agrees to forfeit $198,597 to the government as proceeds of illegal activity, and to pay that same amount in restitution to the YWCA, according to her plea agreement.
“Stealing from any non-profit is unconscionable, but to steal program fees that were intended to provide a positive space for kids is truly indefensible,” Town said. “The Secret Service did an excellent job, as always, bringing Ross to justice.”
“This case highlights the excellent work the Secret Service Financial Crimes Task Force is conducting,” Williams said. “This task force is a strong force-multiplier of Birmingham metro law enforcement that fights financial crimes affecting our community.”
As part of Ross’ job as the YWCA’s childcare director, she was responsible for processing credit and debit card payments from parents for childcare services, according to her plea agreement. The YWCA CDC uses Square to process debit and credit card payments. Square is a point-of-sale provider that works in conjunction with the user’s smartphone or tablet device. The Square reader is a small removable magnetic stripe reader that plugs into the headset jack or Lightning port of a smartphone or tablet device.
The YWCA CDC utilized a Square account named “YWCA Child Development Center.” The YWCA authorized Ross to use that account to process payments for childcare services provided at the YWCA. In April 2012, Ross created a Square account of her own and named it “YWCA CDC,” according to her plea agreement. She linked the YWCA CDC account to her personal Regions Bank account.
Ross used the fraudulent Square account to charge parents and guardians for childcare services at the YWCA center, according to her plea agreement. Between April 2012 and August 2017, Ross stole more than $190,000 intended as payment for childcare services at the YWCA.
The maximum penalty for federal program fraud is 10 years in prison and a $250,000 fine.
The Secret Service investigated the case in conjunction with the Birmingham Police Department. Assistant U.S. Attorney Robin Beardsley Mark is prosecuting the case.
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